Quarterly Financial Report: July 1 to September 30, 2016
Management Statement for the Quarter Ended September 30, 2016
Introduction
This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in accordance with Treasury Board Accounting Standard 1.3. It should be read in conjunction with the Main Estimates and Supplementary Estimates for Fiscal Year 2016–2017.
The Canada School of Public Service (the School) was created on April 1, 2004, when the legislative provisions of Part IV of the Public Service Modernization Act came into force. The School is a departmental corporation in the Treasury Board portfolio, and its mission is set out in the Canada School of Public Service Act.
The School was created to ensure that employees in the core federal public administration have the competencies and common knowledge required to serve Canadians in the most efficient and effective way possible. To achieve this goal, the School continues to offer a strong and consistent curriculum that focuses on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.
The School is the common learning service provider for the Public Service of Canada. It has a legislative mandate to provide a range of learning activities to build individual and organizational capacity and management excellence within the public service. The School is in a unique position to offer relevant, affordable and quality learning services in both official languages to all public service employees at all levels and across the country, as well as to functional communities and public service organizations.
The School has a single strategic outcome: "Federal public service employees have the common knowledge, skills and competencies to fulfil their responsibilities in serving Canadians." One program, Learning Services, supports this strategic outcome.
Basis of Presentation
This quarterly report has been prepared using expenditure-based accounting. The accompanying Statement of Authorities includes the School's spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for Fiscal Year 2016–2017. This report has also been guided by a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before monies can be spent by the government. Approvals are given through appropriation acts in the form of annually approved limits or through legislation in the form of statutory spending authority for specific purposes.
As part of the departmental performance reporting process, the School prepares its annual financial statements on a full accrual basis in accordance with Treasury Board accounting standards, which are based on generally accepted accounting principles for the Canadian public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.
This quarterly report has not been subject to an external audit or review.
Highlights of the Quarter Ended September 30, 2016, and Fiscal Year 2016–2017 Results to Date
1. Total Authorities for Fiscal Year 2016–2017
- The School has two sources of funding:
- appropriated funding as voted by Parliament for those activities to be paid from the Consolidated Revenue Fund; and
- statutory funding authority for the respending of revenue and contributions to the employee benefit plans.
- The School's appropriations were increased to $71.5 million for fiscal year 2016–2017 compared to $53.7 million available at the end of the second quarter for fiscal year 2015–2016. The increase in appropriated funding is primarily the result of the transition to a new funding model, to be completed in 2016–2017, whereby expenditures will be funded primarily from voted appropriation.
- The statutory funding authority of $22.9 million for 2016–2017 consists of $7.6 million of forecasted respendable revenue, $7.3 million of respendable revenue brought forward from the previous fiscal year under the provisions of section 18(2) of the Canada School of Public Service Act and $8 million for employee benefit plans.
- The total authorities available in fiscal year 2016–2017 amount to $94.4 million. This is $4.6 million lower than the amount available in fiscal year 2015–2016, which is mainly due to a decrease in respendable revenue. This decrease is also the result of the transition to the new funding model, whereby the School is shifting over time from revenue generation to primarily funded appropriation.
2. Planned Expenditures for Fiscal Year 2016–2017
- The School has planned expenditures of $94.4 million in 2016–2017, consisting of $64.4 million for salaries and benefits and $30 million for operating and maintenance.
3. Expenditures for the Quarter Ended September 30, 2016
- Compared to the same period last year, overall expenditures decreased by approximately $0.8 million in the second quarter ($19.7 million versus $20.5 million) mainly due to reductions in salaries, partially offset by increased expenditures in professional services in support of the School's transformation towards the full implementation of its new business model.
4. Year-to-Date Expenditures as at September 30, 2016
- Overall expenditures increased by approximately $0.6 million for the two quarters ending September 30, 2016 compared to the same period last year ($35.6 million versus $35 million). This is primarily due to increased expenditures in professional services for transformation initiatives and in facility improvements, partially offset by a decrease in salaries.
Risks and Uncertainties
2016–2017 is the final year of the three year transformation undertaken by the School to make learning more accessible to public service employees in all regions. The School is well positioned to complete all its strategic initiatives related to this transformation including the transition to the new funding model and a reduced funding envelope in 2017–2018. To this end, the School is effectively managing financial risk through the implementation in 2016–2017 of a rigorous resource management framework.
Significant Changes in Relation to Operations, Personnel and Programs
At the end of the second quarter of 2016–2017, there were no significant changes.
Original approved by:
Wilma Vreeswijk
Deputy Minister/President
Elizabeth Tromp
Chief Financial Officer
Ottawa, Canada
November 22, 2016
Statement of Authorities (unaudited)
Statement of authorities for fiscal years 2016-2017 and 2015-2016 in thousands of dollars. Read down the first column for the authorities and then to the right for the figures for the year ending March 31, 2017, the quarter ended September 30, 2016 for fiscal year 2016-2017, the year-to-date used at quarter-end, for the year ending March 31, 2016, the quarter ended September 30, 2015 for fiscal year 2015-2016, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
| (In thousands of dollars) |
Fiscal year 2016–2017 |
Fiscal year 2015–2016 |
Total available for use for the year ending
March 31, 2017 |
Used during the quarter ending
September 30, 2016 |
Year to date used at quarter-end |
Total available for use for the year ending
March 31, 2016 |
Used during the quarter
ending
September 30, 2015 |
Year to date used at quarter-end |
|
| Vote 1 – Program expenditures |
71,454 |
14,996 |
28,921 |
53,718 |
16,953 |
29,227 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
7,973 |
1,993 |
3,986 |
5,802 |
1,450 |
2,901 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
14,952 |
2,700 |
2,700 |
39,476 |
2,072 |
2,911 |
|
| Total authorities |
94,379 |
19,689 |
35,607 |
98,996 |
20,475 |
35,039 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2016-2017 and 2015-2016 in thousands of dollars. Read down the first column for the list of expenditures and then read to the right for the figures for the year ending March 31, 2017, the quarter ended June 30, 2016, the year-to-date used at quarter-end, the year ending March 31, 2016, the quarter ended June 30, 2015, the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
| (In thousands of dollars) |
Fiscal year 2016–2017 |
Fiscal year 2015–2016 |
Planned expenditures for the
year ending
March 31, 2017
Note*
|
Expended during the quarter ending
September 30, 2016 |
Year to date used at quarter-end |
Planned expenditures for the
year ending
March 31, 2016
Note*
|
Expended during the
quarter ending
September 30, 2015
|
Year to date used at
quarter-end
|
|
| Expenditures |
Personnel |
64,419 |
13,211 |
25,320 |
65,052 |
15,024 |
27,395 |
Transportation and communications |
2,452 |
365 |
717 |
2,661 |
406 |
664 |
Information |
864 |
184 |
308 |
937 |
133 |
279 |
Professional and special services |
18,664 |
4,680 |
7,385 |
21,572 |
3,948 |
5,538 |
Rentals |
2,230 |
393 |
787 |
1,279 |
763 |
833 |
Repair and maintenance |
2,800 |
562 |
587 |
3,362 |
30 |
32 |
Utilities, materials and supplies |
549 |
50 |
99 |
735 |
74 |
135 |
Acquisition of machinery and equipment |
2,401 |
242 |
383 |
3,398 |
87 |
109 |
|
Other subsidies and payments
|
- |
2 |
21 |
- |
10 |
54 |
|
| Total budgetary expenditures |
94,379 |
19,689 |
35,607 |
98,996 |
20,475 |
35,039 |
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