Quarterly Financial Report: July 1 to September 30, 2017
Management Statement for the Quarter Ended September 30, 2017
Introduction
This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2017–2018.
This quarterly report has not been subject to an external audit or review.
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 of the core public service have the competencies and common knowledge required to serve Canadians efficiently and effectively. To achieve this goal, the School offers a core 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 core public service. 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 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 by management 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 2017–2018. 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 money 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.
When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
The School uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of the Quarter Ended September 30, 2017, and Fiscal Year 2017–2018 Results to Date
1. Total Authorities for Fiscal Year 2017–2018
- 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.
- Total authorities available in fiscal year 2017–2018 amount to $89.3 million. This is $5.1 million or 5.4% lower than the $94.4 million available in fiscal year 2016–2017. The $89.3 million comprises $66.3 million in voted appropriations and $23 million in statutory funding.
- Over a three year period that ended in fiscal year 2016–2017, the School underwent a significant transformation and implemented a new funding model that is primarily based on appropriations. At the same time, the School's appropriations were reduced by 7.3%, or $5.2 million, from $71.5 million at the end of the second quarter in 2016–2017, to $66.3 million in 2017–2018.
- The statutory funding authority of $23 million in fiscal year 2017–2018 consists of $7 million of forecasted respendable revenue, $7.9 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 $8.1 million for employee benefit plans.
2. Planned Expenditures for Fiscal Year 2017–2018
- The School has planned expenditures of $89.3 million for fiscal year 2017–2018, consisting of $65.7 million for salaries and benefits and $23.6 million for operating and maintenance.
3. Expenditures for the Quarter Ended September 30, 2017
- Compared to the same quarter last fiscal year, overall expenditures decreased by $4.2 million ($15.5 million in 2017–2018 versus $19.7 million in 2016–2017), primarily in salaries and professional services.
4. Year-to-Date Expenditures as at September 30, 2017
- Overall expenditures decreased by $6.7 million for the two quarters ending September 30, 2017 compared to the same period last year ($28.9 million versus $35.6 million). This is primarily due to decreased expenditures in salaries and professional services.
Risks and Uncertainties
As previously noted, funding from appropriations has declined by 5.4% since fiscal year 2016–2017. Under the new funding model, which is primarily based on appropriations, funding for the School is mostly fixed. In response to this tighter financial context, the School has adopted a prudent and deliberate financial strategy, grounded in a rigorous budget management process and measures to contain costs. Through this strategy, the School is creating financial flexibility to self-fund investments in its learning platform and curriculum.
Significant Changes in Relation to Operations, Personnel and Programs
Budget 2017 announced three departmental reviews and two horizontal reviews to ensure better alignment with priorities, improve the delivery of results and increase efficiency. The School is one of the organizations that is conducting a comprehensive review in 2017–2018. The government has indicated that it will report on the progress of its reviews in Budget 2018.
The goal of the departmental reviews is to ensure that departmental spending is aligned with priorities and that programs deliver results for Canadians.
No other significant changes were noted during the second quarter of 2017–2018.
Approval by Senior Officials
Approved by:
Wilma Vreeswijk
Deputy Minister/President
Diane Lorenzato
Acting Chief Financial Officer
Ottawa, Canada
November 29, 2017
Statement of Authorities (unaudited)
Statement of authorities for fiscal years 2017–2018 and 2016–2017 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 June 30, 2017 for fiscal year 2017–2018, the year-to-date used at quarter-end, for the year ending March 31, 2017, the quarter ended September 30, 2016 for fiscal year 2016–2017, 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 2017–2018 |
Fiscal year 2016–2017 |
Total available for use for the year ending
March 31, 2018 |
Used during the quarter ended
September 30, 2017 |
Year to date used at quarter-end |
Total available for use for the year ending
March 31, 2017 |
Used during the quarter ended
September 30, 2016 |
Year to date used at quarter-end |
|
| Vote 1 – Program expenditures |
66,264 |
10,858 |
22,162 |
71,454 |
14,996 |
28,921 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
8,094 |
2,023 |
4,047 |
7,973 |
1,993 |
3,986 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
14,912 |
2,646 |
2,646 |
14,952 |
2,700 |
2,700 |
|
| TOTAL AUTHORITIES |
89,270 |
15,527 |
28,855 |
94,379 |
19,689 |
35,607 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2017–2018 and 2016–2017 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, 2018, the quarter ended June 30, 2017, the year-to-date used at quarter-end, the year ending March 31, 2017, the quarter ended September 30, 2016, 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 2017–2018 |
Fiscal year 2016–2017 |
Planned expenditures for the
year ending
March 31, 2018
|
Expended during the quarter ended
September 30, 2017 |
Year to date used at quarter-end |
Planned expenditures for the
year ending
March 31, 2017
|
Expended during
the quarter ended
September 30, 2016
|
Year to date used at
quarter-end
|
|
| Expenditures |
Personnel |
65,677 |
10,579 |
22,248 |
64,419 |
13,211 |
25,320 |
Transportation and communications |
1,894 |
335 |
648 |
2,452 |
365 |
717 |
Information |
576 |
195 |
297 |
864 |
184 |
308 |
Professional and special services |
16,079 |
3,815 |
4,849 |
18,664 |
4,680 |
7,385 |
Rentals |
400 |
14 |
114 |
2,230 |
393 |
787 |
Repair and maintenance |
2,085 |
185 |
187 |
2,800 |
562 |
587 |
Utilities, materials and supplies |
381 |
48 |
72 |
549 |
50 |
99 |
Acquisition of machinery and equipment |
2,142 |
56 |
137 |
2,401 |
242 |
383 |
Transfer payments |
- |
- |
- |
- |
- |
- |
Other subsidies and payments
|
36 |
300 |
303 |
- |
2 |
21 |
|
| TOTAL BUDGETARY EXPENDITURES |
89,270 |
15,527 |
28,855 |
94,379 |
19,689 |
35,607 |
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