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

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Canadian Human Rights Commission Quarterly Financial Report

Statement outlining results, risks and significant changes
in operations, personnel and program
For the quarter ended September 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 $20,206 (or 0.09 percent) when compared to the second quarter of 2016-17. This represents the consolidated impact of the decrease in Employee Benefit Plan authorities and the decrease in Program authorities due to the Budget 2016 reduction in professional services, and travel and advertising.

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 second quarter of 2016-17, the revenues netted against the expenditures have increased by $155,584 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 September) represent 46 percent of total budgetary authorities available for use. Majority of the expenditures are for personnel expenditures, which represent 90 percent of the total gross amount spent as of September 30, 2017.

Total year-to-date gross budgetary expenditures have increased by $820,007 when compared to the expenditures reported for the same period in 2016-17 primarily due to higher personnel expenditures as a result of retroactive payments for newly signed collective agreements.

Total year-to-date revenues have increased by $321,056 when compared to revenues reported for the same period in 2016-17 due to 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.

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%. Since the first quarter of 2017-18, the Commission saw an increase of approximately 10% in complaints caseload. In addition, two new grounds have been added to the Canadian Human Rights Act: “gender identity or expression,” and “genetic characteristics.” These increases 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

The Commission is working to better align its resources 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

Sue Stimpson

Chief Financial Officer

Ottawa, Ontario
November 16, 2017


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending September 30, 2017

Statement of Authorities (unaudited)

  Fiscal Year 2017-18(in dollars) Fiscal Year 2016-17 (in dollars)
(in dollars) 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
Bugetary Authorities
Vote 10 - Program Expenditures 21,442,049 5,491,076 10,068,778 21,220,606 4,586,440 9,127,946
Less: Revenues Netted Against Expenditures (1,200,000) (430,399) (893,551) (1,200,000) (274,815) (572,495)
Budgetary Statutory Authorities
Employee Benefit Plans 2,600,188 650,047 1,300,094 2,841,837 710,460 1,420,919
Total Budgetary Authorities 22,842,237 5,710,724 10,475,321 22,862,443 5,022,085 9,976,370

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

 

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

Budgetary Expenditures by Standard Object (unaudited)

  Fiscal Year 2017-18(in Dollars) Fiscal Year 2016-17 (in dollars)
(in dollars) 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 19,910,139 5,459,848 10,204,391 19,958,377 4,723,438 9,511,461
Transportation and Communications 900,000 187,273 307,381 898,761 129,431 282,421
Information 200,000 17,597 58,189 180,150 36,947 65,731
Professional and Special Services 2,047,098 288,122 499,053 2,124,140 263,181 419,438
Rentals 325,000 35,806 101,818 284,218 18,174 108,653
Repair and Maintenance 100,000 22,072 40,162 106,982 25,625 37,992
Utilities, Material and Supplies 130,000 25,269 45,109 136,313 27,196 39,021
Acquisition of land, buildings and works 30,000 23,310 24,810 - - -
Acquisitions of Machinery and Equipment 400,000 81,826 87,959 373,502 72,908 84,148
Other Payments - - - - - -
Total Gross Budgetary Expenditures 24,042,237 6,141,123 11,368,872 24,062,443 5,296,900 10,548,865
Less: Revenues netted against expenditures
Internal Support Services (1,200,000) (430,399) (893,551) (1,200,000) (274,815) (572,495)
Total Net Budgetary Expenditures 22,842,237 5,710,724 10,475,321 22,862,443 5,022,085 9,976,370