Canadian Human Rights Commission Quarterly Financial Report - 3rd Quarter - 2016

Canadian Human Rights Commission Quarterly Financial Report
Statement outlining results, risks and significant changes 
in operations, personnel and program
For the quarter ended December 31, 2016

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 Accounting Standard 1.3. 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 Report on Plans and Priorities (RPP) 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 2016–17 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 moneys 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 published in the Departmental Performance Report. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of 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 slightly decreased by $26,986 (or 0.1 percent) when compared to the third quarter of 2015-16. This represents the consolidated impact due to an increase in personnel authorities and employee benefits plan rate, an increase in revenue from last quarter, and permanent budget transfers to the Canada School of Public Service for training, and to Treasury Board Secretariat for the professional services, advertising and travel reduction.

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 year to date at the end of the third quarter of 2015-16, the revenues netted against the expenditures decreased by $58,941 which mainly represents reduced services for one of the Commission’s clients (the Truth and Reconciliation Commission) that ceased operations last year. 

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 December) represent 65 percent of total budgetary authorities available for use. The majority of the expenditures are for personnel expenditures, which represent 89 percent of the total gross amount spent as of December 31, 2016.

Total year-to-date net budgetary expenditures have decreased by $416,119 (or 3 percent) when compared to the expenditures reported for the same period in 2015-16. This is mainly due to a reduction in personnel ($319,317) following a strategic review. Also contributing to this decrease are rental expenses ($112,425 - a reduction in costs for licenses), and a reduction in revenues ($58,941), due to reduced services for one of the Commission’s clients that ceased operations last year.

3. Risks and Uncertainties

Given the current operating context, in which human rights issues are at the forefront of the Canadian and global debate, inquiries and complaints are steadily increasing.  The caseload for the current and next quarter is significant, and the trend will most likely continue upwards.  At the same time, the Commission is implementing several initiatives from its strategic review.  This situation creates a risk that the Commission may not be able to address all of its planned commitments. A review of activities and projects is taking place in order to alleviate this operational pressure.

All other risks are identified in the RPP.

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

To respond to the increase in complaints, the Commission is taking steps to ensure its complaint process is as effective and efficient as possible, including the establishment of a registrar function.  The Commission will also temporarily reallocate resources from other branches to assist in the short term while longer term plans are being put into place.

Approved by:

Original Signed by


Original Signed by


Marie-Claude Landry, Ad. E.

Chief Commissioner

Heather Throop

Chief Financial Officer

Ottawa, Ontario
February 20, 2017


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending December 31, 2016

Statement of Authorities (Unaudited)

Fiscal Year 2016-17 (in Dollars)

 

  Total Available for Use
for the Year
Ending
March 31, 2017
Used During the
Quarter Ended
December 31, 2016
Year to Date
Used at
Quarter-End
Bugetary authorities      
Vote 10 - Program Expenditures 21,136,203 4,571,059 13,699,005
       
Less: Revenues Netted Against Expenditures (1,200,000) (384,058) (956,553)
       
Budgetary Statutory Authorities      
Employee Benefit Plans 2,841,837 710,459 2,131,378
       
Total Budgetary Authorities 22,778,040 4,897,459 14,873,829

 

Fiscal Year 2015-16 (in Dollars)

 

  Total Available for Use
for the Year
Ending
March 31, 2016
Used During the
Quarter Ended
December 31, 2015
Year to Date
Used at
Quarter-End
Bugetary Authorities      
Vote 10 - Program Expenditures 21,492,849  5,059,456 14,421,311
       
Less: Revenues Netted Against Expenditures (1,200,000) (344,248) (1,015,496)
       
Budgetary Statutory Authorities      
Employee Benefit Plans 2,512,177 628,045 1,884,133
       
Total Budgetary Authorities 22,805,026 5,343,253 15,289,948

 

 


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending December 31, 2016

Budgetary Expenditures by Standard Object (Unaudited)

  Fiscal Year 2016-17 (in Dollars)

 

  Planned
Expenditures for
the Year Ending
March 31, 2017
Expended During
the Quarter Ended
December 31, 2016
Year to Date
Used at
Quarter-End
Expenditures:      
Personnel 19,981,785 4,552,264 14,063,725
Transportation and Communications 894,690 203,926 486,347
Information 160,800 20,227 85,958
Professional and Special Services 1,951,087 351,699 771,137
Rentals 293,184 28,555 137,208
Repair and Maintenance 393,190 22,992 60,984
Utilities, Materials and Supplies 142,602 34,654 73,675
Acquisition of Machinery and Equipment 321,878 67,202 151,350
Other Payments 5,500 - -
Total Gross Budgetary Expenditures 24,144,716 5,281,519 15,830,384
Less: Revenues Netted Against Expenditures
Internal Support Services
(1,366,676) (384,060) (956,555)
Total Net Budgetary Expenditures 22,778,040 4,897,459 14,873,829
 Fiscal Year 2015-16 (in Dollars)

 

  Planned
Expenditures for
the Year Ending
March 31, 2016
Expended During
the Quarter Ended
December 31, 2015
Year to Date
Used at
Quarter-End
Expenditures:      
Personnel 19,866,631 4,885,981 14,383,042
Transportation and Communications 878,556 233,186 531,197
Information 224,419 20,837 71,505
Professional and Special Services 2,161,615 334,526 762,162
Rentals 316,315 92,484 249,633
Repair and Maintenance 112,519 17,311 57,754
Utilities, Materials and Supplies 145,176 26,925 99,068
Acquisition of Machinery and Equipment 412,720 76,134 150,620
Other Payments - 117 463
Total Gross Budgetary Expenditures 24,117,951 5,687,501 16,305,444
Less: Revenues Netted Against Expenditures
Internal Support Services
(1,312,925) (344,248) (1,015,496)
Total Net Budgetary Expenditures 22,805,026 5,343,253 15,289,948