Canadian Human Rights Commission Quarterly Financial Report - 1st Quarter - June 30, 2017

Canadian Human Rights Commission
Quarterly Financial Report
Statement outlining results, risks
and significant changes in operations,
personnel and program
For the quarter ended June 30, 2017 

  

 

 

1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board GC 4400 Accounting Standard. It should be read in conjunction with the Main Estimates. This report has not been subject to an external audit or review. 

1.1    Authority, Mandate and Program Activities

The Canadian Human Rights Commission (the Commission) was established in 1977 under Schedule I.1 of the Financial Administration Act in accordance with the Canadian Human Rights Act (CHRA). The Commission leads the administration of the CHRA and ensures compliance with the Employment Equity Act (EEA). The CHRA prohibits discrimination and the EEA promotes equality in the workplace. Both laws apply the principles of equal opportunity and non-discrimination to federal government departments and agencies, Crown corporations, and federally regulated private sector organizations.

Further details on the Commission’s authority, mandate and program activities can be found in the Departmental Plans (DP) and Part II of the Main Estimates.

1.2    Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Commission’s spending authorities granted by Parliament and those used by the Commission, consistent with the Main Estimates, Supplementary Estimates and Treasury Board vote transfers for the 2017-18 fiscal year. This quarterly report has been prepared using 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 in the form of annually approved limits through appropriation acts, 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 Commission uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

2.1 Statement of Authorities

As reflected in the attached Statement of Authorities, the Commission’s total authorities available for use for the current fiscal year have decreased by $326,052 (or 1.47 percent) when compared to the first quarter of 2016-17. This represents the consolidated impact due to the decrease in Employee Benefit Plan authorities, the decrease in Program authorities due to the Budget 2016 reduction in professional services, travel and advertising, and an increase in revenues.

The Commission provides Internal Support Services to certain other small government departments related to the provision of finance, human resources, compensation, procurement, administration and information technology services. These Internal Support Services agreements are recorded as revenues as per section 29.2 of the Financial Administration Act. When compared to the first quarter of 2016-17, the revenues netted against the expenditures have increased by about $165,472 which represents increased services provided to current clients and the addition of one new client.  

2.2 Statement of Department Budgetary Expenditures by Standard Object

As per the attached Budgetary Expenditures by Standard Object, total year-to-date net budgetary expenditures (April to June) represent 22 percent of total budgetary authorities available for use. Majority of the expenditures are for personnel expenditures, which represent 91 percent of the total gross amount spent as of June 30, 2017.

Total year-to-date net budgetary expenditures have decreased by $189,688 when compared to the expenditures reported for the same period in 2016-17, primarily due to higher revenues from increased services provided to current clients and the addition of one new client.

3. Risks and Uncertainties

Last year, the Commission reframed its approach and embarked on several transformational initiatives to help the Commission put people first and better meet the needs and expectations that Canadians have of their national human rights institution. The Commission’s people first approach requires that the Commission offer face-to-face meetings with individuals, particularly those in vulnerable circumstances. 

This approach has made Canadians more aware of the Commission. One of the results is an increased complaints caseload. From fiscal year 2015-16 to 2016-17, the Commission’s caseload has experienced an increase of 24%. In addition, two new grounds have been added to the Canadian Human Rights Act: “gender identity or expression,” and “genetic characteristics.” The increase in the caseload and the addition of two new grounds of discrimination will have a financial impact on the Commission. We are currently working hard to evaluate the possible impact in order to create proper mitigation strategies.

All other risks are identified in the 2017-18 Departmental Plan.

4. Significant Changes in Relation to Operations, Personnel and Programs

Changes to the organizational structure of the Commission took place to better align with its strategic direction. The Commission embarked on a LEAN process and a Registrar office was created in order to better manage the flow of complaints while ensuring proper support for people in vulnerable circumstances.

The Commission also looked at its statistics and internal/external audit functions, including employment equity compliance audits. These sectors were merged to improve consistency and reliability of data that forms the evidence base for the Commission’s decision-making. Housing compliance audit functions with the audit and evaluation team brought further synergies. These changes allowed for reinvestment of resources, better collaboration and sharing of expertise. 

Approved by:

Original Signed by


Original Signed by


Marie-Claude Landry, Ad. E.

Chief Commissioner

Hervé Éthier

Acting Chief Financial Officer

Ottawa, Ontario
August 22, 2017


Canadian Human Rights Commission
Quarterly Financial Report
For the Quarter Ended June 30, 2017

Statement of Authorities (Unaudited)

Fiscal Year 2017-18 (in Dollars)

 

  Total Available for Use
for the Year
Ending
March 31, 2018*
Used During the
Quarter Ended
June 30, 2017
Year to Date
Used at
Quarter-End
Bugetary authorities      
Vote 1 - Program Expenditures 20,422,932 4,577,702 4,577,702
       
Less: Revenues Netted Against Expenditures (1,200,000) (463,152) (463,152)
       
Budgetary Statutory Authorities      
Employee Benefit Plans 2,600,188 650,047 650,047
       
Total Budgetary Authorities 21,823,120 4,764,597 4,764,597

*Includes only Authorities available for use and granted by Parliament at quarter-end

Fiscal Year 2016-17 (in Dollars)

 

  Total Available for Use
for the Year
Ending
March 31, 2017*
Used During the
Quarter Ended
June 30, 2016
Year to Date
Used at
Quarter-End
Bugetary Authorities      
Vote 1 - Program Expenditures 20,382,335 4,541,506 4,541,506
       
Less: Revenues Netted Against Expenditures (1,075,000) (297,680) (297,680)
       
Budgetary Statutory Authorities      
Employee Benefit Plans 2,841,837 710,459 710,459
       
Total Budgetary Authorities 22,149,172 4,954,285 4,954,285

*Includes only Authorities available for use and granted by Parliament at quarter-end

 


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended June 30, 2017

Budgetary Expenditures by Standard Object (Unaudited)

  Fiscal Year 2017-18 (in Dollars)

 

  Planned
Expenditures for
the Year Ending
March 31, 2018
Expended During
the Quarter Ended
June 30, 2017
Year to Date
Used at
Quarter-End
Expenditures:      
Personnel 19,161,896 4,744,543 4,744,543
Transportation and Communications 900,000 120,108 120,108
Information 200,000 40,592 40,592
Professional and Special Services 1,831,224 210,931 210,931
Rentals 300,000 66,012 66,012
Repair and Maintenance 100,000  18,090 18,090
Utilities, Materials and Supplies 130,000 19,840 19,840
Acquisition of land, buildings and works - 1,500 1,500
Acquisition of Machinery and Equipment 400,000 6,133 6,133
Other Subsidies and Payments - - -
Total Gross Budgetary Expenditures 23,023,120 5,227,749 5,227,749
Less: Revenues Netted Against Expenditures
Internal Support Services
(1,200,000) (463,152) (463,152)
Total Revenues netted against expenditures: (1,200,000) (463,152) (463,152)
Total Net Budgetary Expenditures 21,823,120 4,764,597 4,764,597
 Fiscal Year 2016-17 (in Dollars)

 

  Planned
Expenditures for
the Year Ending
March 31, 2017
Expended During
the Quarter Ended
June 30, 2016
Year to Date
Used at
Quarter-End
Expenditures:      
Personnel 19,530,423 4,788,023 4,788,023
Transportation and Communications 877,985 152,990 152,990
Information 173,309 28,784 28,784
Professional and Special Services 1,851,705 156,257 156,257
Rentals 278,755 90,479 90,479
Repair and Maintenance 111,024 12,367 12,367
Utilities, Materials and Supplies 135,378 11,825 11,825
Acquisition of land, buildings and works - - -
Acquisition of Machinery and Equipment 356,671 11,240 11,240
Other Subsidies and Payments 21,300 - -
Total Gross Budgetary Expenditures 23,336,550 5,251,965 5,251,965
Less: Revenues Netted Against Expenditures
Internal Support Services
(1,187,378) (297,680) (297,680)
Total Revenues netted against expenditures: (1,187,378) 297,680 297,680​
Total Net Budgetary Expenditures 22,149,172 4,954,285 4,954,285