Canadian Human Rights Commission Quarterly Financial Report - 3rd Quarter - 2012
Canadian Human Rights Commission Quarterly Financial Report
Statement outlining results, risks and significant changes
in operations, personnel and program
For the fiscal quarter ending December 31, 2012
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) leads the administration of the Canadian Human Rights Act and ensures compliance with the Employment Equity Act. Both laws apply to federal government departments and agencies, Crown corporations, and federally regulated private sector organizations.
The Commission promotes the core principle of equal opportunity and works to prevent discrimination in Canada by:
- promoting the development of human rights cultures;
- understanding human rights through research and policy development;
- protecting human rights through effective case and complaint management; and
- representing the public interest to advance human rights for all Canadians.
Further details on the Commission’s authority, mandate and program activities can be found in the Report on Plans and Priorities and Part II of the Main Estimates.
1.2 Basis of Presentation
This quarterly report has been prepared by management 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 and Treasury Board vote transfers for the 2012-13 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 decreased by approximately $0.8 million (or 3.4 percent) when compared to the same quarter of the previous year.
This decrease is mainly due to the severance pay cash-out in 2011-12 following the signing of a new collective agreement in June 2011 with the Public Service Alliance of Canada.
2.2 Statement of Budgetary Expenditures by Standard Object
Compared to the previous year, total year to date expenditures (April to September), which were recorded as of the second quarter, decreased by $0.6 million and represent 46 percent of the total authorities (see attached table: Budgetary expenditures by Standard Object). The decrease is mainly attributed to the following factors:
i. Revenue has increased by $0.3 million due to both the additional internal support services provided by the Commission to small agencies and the timing of cost recovery.
ii. Acquisitions of machinery and equipment expenditures have decreased by $0.1 million. The primary reasons for this decrease are: a lower number of computers being purchased in the current year compared to the previous year; no upgrades required to informatics equipment, unlike the previous year; and purchases being carried out later in the current year compared to the previous year.
Compared to the previous year, total quarter expenditures (July to September), which were recorded in the second quarter, decreased by $1 million (see attached table: the Budgetary expenditures by Standard Object). The decrease is mainly attributed to the following factors:
i. Revenue has increased by $0.3 million due to both the additional internal support services provided by the Commission to small agencies and timing of cost recovery.
ii. Personnel expenditures have decreased by $0.6 million in relation to the severance pay cash-out in 2011-12 following the signing of a new collective agreement in June 2011 with the Public Service Alliance of Canada.
In addition, the Commission anticipates an operation budget carry forward of $1 million. This is approximately the same as the previous fiscal year. This carry forward is part of the planned professional and special services expenditures for both fiscal years.
3. Risks and uncertainties
The risk identified during the first quarter stills applies for the second quarter (budget freeze). As well, there has been a new risk identified during the second quarter (increasing complaint volumes).
3.1 Budget freeze (Budget 2010)
The Commission is funded through annual Parliamentary Authorities and program activities are impacted by any change in funding approvals. Operational budgets were frozen at the 2010-11 level for fiscal years 2011-12 and 2012-13. As a result, the Commission must fund the salary increases as determined by collective bargaining agreements within existing budget levels. Advance planning and implementation of budgetary recommendations provided by the Commission’s CFO has avoided any significant impact on program activities. However, senior management continues to evaluate options to reduce expenses through an Efficiency Study by implementing permanent operating reductions.
3.2 Increasing complaint volumes
The number of complaints received by the Commission has increased over the last five years. The increase is attributable to various factors, of which the repeal of section 67 of the Canadian Human Rights Act is a significant one. The volume of complaints dealing with Aboriginal issues has risen along with the relative proportion of such complaints in the Commission’s overall caseload. In addition, the Commission continues to actively promote its mandate throughout Canada. It continues to lead research and policy development in response to emerging human rights trends. The Commission participates in high profile cases before the Canadian Human Rights Tribunal and all levels of Canada’s courts when the decisions have the potential to clarify, influence or define human rights law. The Commission has also developed the Human Rights Maturity Model, an initiative embraced by many organizations that helps employers create self-sustaining human rights cultures in the workplace.
As a result of these efforts, more and more Canadians are being informed about the Commission’s work and how they can pursue remedies to discrimination in their lives. Over the last five years, the effect is an increase in the number of intake files opened and the number of signed complaints received by the Commission. The Commission mitigated this risk by reallocating resources internally up to the end of the third quarter.
4. Significant Changes in Relation to Operations, Personnel and Programs
There have been no significant changes in operations, personnel and programs over the last quarter.
5. Budget 2012 Implementation
The Commission is not affected by the Canada’s Economic Action Plan 2012.
Approved by:
| David Langtry | Heather Throop |
| Acting Chief Commissioner | Chief Financial Officer |
Ottawa, Ontario
March 1st, 2013
Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended December 31, 2012
Statement of Authorities (unaudited)
Fiscal year 2012-13 (in dollars)
| Total available for use for the year ending March 31, 2013 |
Used during the quarter ended December 31, 2012 |
Year to date used at quarter-end |
|
| Bugetary authorities | |||
| Vote 10 - Program Expenditures | 23,221,474 | 5,081,969 | 15,184,296 |
| Less: Revenues netted against expenditures | (1,100,00) | - | (446,521) |
| Budgetary statutory authorities | |||
| Employee Benefit Plans | 2,649,295 | 662,324 | 1,986,971 |
| Total Budgetary authorities | 24,770,769 | 5,744,293 | 16,724,746 |
Fiscal year 2011-12 (in dollars)
| Total available for use for the year ending March 31, 2012* |
Used during the quarter ended December 31, 2011* |
Year to date used at quarter-end* |
|
| Bugetary authorities | |||
| Vote 10 - Program Expenditures | 23,438,610 | 5,227,643 | 15,716,902 |
| Less: Revenues netted against expenditures | (888,850) | (250,485) | (423,061) |
| Budgetary statutory authorities | |||
| Employee Benefit Plans | 2,570,167 | 642,542 | 1,927,625 |
| Total Budgetary authorities | 25,119,927 | 5,619,700 | 17,221,466 |
* Comparative figures have been reclassified to conform to the current year's presentation. The Commission provides Internal Support Services to other small agencies related to the provision of Finance, Compensation, Human Resources, Procurement, Administration and Information Technology services. Since the new section 29.1(2)(a) of the Financial Administration Act received Royal Assent on June 26, 2011, Internal Support Services agreements are recorded as a revenue rather than as cost recovery under Professional and Special Services.
Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended December 31, 2012
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2012-13 (in dollars)
| Planned expenditures for the year ending March 31, 2013 |
Expended during the quarter ended December 31, 2012 |
Year to date used at quarter-end |
|
| Expenditures: | |||
| Personnel | 20,860,902 | 4,750,659 | 14,891,421 |
| Transportation and communications | 979,242 | 288,538 | 613,562 |
| Information | 271,849 | 48,156 | 144,595 |
| Professional and special services | 2,772,425 | 435,275 | 1,118,445 |
| Rentals | 203,316 | 47,728 | 161,702 |
| Repair and maintenance | 27,696 | 8,794 | 16,822 |
| Utilities, materials and supplies | 137,708 | 36,541 | 75,061 |
| Acquisition of machinery and equipment | 562,965 | 127,844 | 148,811 |
| Other subsidies and payments | 4,666 | 758 | 858 |
| Total gross budgetary expenditures | 25,820,769 | 5,744,293 | 17,171,267 |
| Less: Revenues netted against expenditures Internal Support Services |
(1,050,000) | - | (446,521) |
| Total Net Budgetary Expenditures | 24,770,769 | 5,744,293 | 16,724,746 |
Fiscal year 2011-12 (in dollars)
| Planned expenditures for the year ending March 31, 2012* |
Expended during the quarter ended December 31, 2011* |
Year to date used at quarter-end* |
|
| Expenditures: | |||
| Personnel | 20,806,000 | 4,754,130 | 14,945,612 |
| Transportation and communications | 1,205,964 | 336,677 | 744,600 |
| Information | 237,217 | 31,665 | 89,204 |
| Professional and special services | 2,826,842 | 482,173 | 1,212,459 |
| Rentals | 182,218 | 18,871 | 138,990 |
| Repair and maintenance | 136,929 | 68,520 | 139,980 |
| Utilities, materials and supplies | 161,367 | 23,476 | 107,328 |
| Acquisition of machinery and equipment | 447,733 | 153,491 | 264,914 |
| Other subsidies and payments | 7,957 | 1,182 | 1,440 |
| Total gross budgetary expenditures | 26,012,227 | 5,870,185 | 17,644,527 |
| Less: Revenues netted against expenditures Internal Support Services |
(892,300) | (172,576) | (423,061) |
| Total Net Budgetary Expenditures | 25,119,927 | 6,476,346 | 17,221,466 |