Canadian Human Rights Commission Quarterly Financial Report Statement For the quarter ended September 30, 2021
Statement outlining results, risks and significant changes in operations,
personnel and program
For the quarter ended September 30, 2021
Table of contents
This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act (FAA) and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the Main Estimates and Supplementary 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 FAA in accordance with the Canadian Human Rights Act (CHRA). The Commission leads the administration of the CHRA and works with employers to ensure compliance with the Employment Equity Act (EEA). The CHRA prohibits discrimination and the EEA promotes equality in the workplace. Under the leadership of the Pay Equity Commissioner and the Accessibility Commissioner, the Commission is also responsible for the administration and enforcement of the Pay Equity Act (PEA) and the Accessible Canada Act (ACA). These laws apply the principles of equal opportunity and non-discrimination to federal government departments and agencies, Crown corporations, and federally regulated private sector organizations. Finally, the Commission provides the Federal Housing Advocate with administrative services and facilities to support their duties and functions.
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, Supplementary Estimates and Treasury Board vote transfers for the 2021-22 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.
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 Statement of Authorities, the Commission’s total authorities available for use have increased by $12,414,643 (or 48 percent) from $26,071,734 in 2020-21 to $38,486,377 in 2021-22. Due to the pandemic and limited sessions in the spring of 2020 for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall resulting in the Commission receiving full supply for the 2020-21 Main Estimates later in the fiscal year. As a result, $7,259,476 of the increase seen in authorities available for use can be attributed to having received only a partial supply of Main Estimates in the second quarter of 2020-21 in comparison to full supply in the second quarter of 2021-22. The Commission’s total authorities available for use also increased by additional funds received and/or reprofiled to administer and enforce the CHRA, ACA and PEA for respectively $2,106,011, $1,764,551 and $1,284,606.
The Commission provides internal support services to certain other small government departments and agencies such as finance, human resources, acquisition and information technology services. These internal support services agreements are recorded as revenues as per section 29.2 of the FAA. When compared to the second quarter of 2020-21, the authorities have increased by $730,000 from $1,350,000 in 2020-21 to $2,080,000 in 2021-22 due to reduced supply of the 2020-21 Main Estimates as discussed above ($450,000) and an increase in anticipated vote netted revenue ($280,000).
2.2 Statement of Department Budgetary Expenditures by Standard Object
As per the Budgetary Expenditures by Standard Object, total year-to-date net budgetary expenditures as of September 30, 2021, of $15,505,509 represent 40 percent of total planned expenditures for the year of $38,486,377. Personnel expenditures of $14,426,879 represent the majority of expenditures at 88 percent of the total gross amount spent of $16,414,650 as of September 30, 2021.
Total gross budgetary expenditures of $8,546,461 of the second quarter of 2021-22 have increased by $1,485,319 compared with $7,061,142 for the second quarter of 2020-21. The increase is mainly attributable to an increase of $1,239,963 in personnel expenditures from $6,303,521 in 2020-21 to $7,543,484 in 2021-22, as a gradual increase in staffing to support the ACA, PEA and the Federal Housing Advocate has occurred since the second quarter of 2020-21 to coincide with the growth and implementation of these mandates.
3. Risks and Uncertainties
The Commission continues to face a high demand for services, guidance and expertise on human rights and discrimination complaints-related matters. The COVID-19 pandemic continues to reinforce the need to adapt and upgrade the Commission’s IT infrastructure to support prolonged remote working arrangements in order to allow the Commission to manage its day-to-day Canadian Human Rights Commission operational issues and, at the same time, engage and advocate on pressing human rights matters. The Commission is monitoring trends in its complaints processing times and adjusting its processes, as necessary, in order to process complaints as quickly as possible.
The Commission is anticipating the appointment of the Accessibility Commissioner and the Federal Housing Advocate. This presents the possibility of delay in the implementation of their mandates. The Commission continues to work towards putting sustainable mechanisms in place in preparation for the eventual appointments.
All other risks are mentioned in the 2021-22 Departmental Plan.
4. Significant Changes in Relation to Operations, Personnel and Programs
The impact of COVID-19 continues to add to existing pressures on program implementation related to the PEA, the ACA and the National Housing Strategy Act as well as on the regular operations of the Commission. With the challenges posed by the pandemic, the attainment of program objectives may be delayed. The Commission continues to closely assess the impact brought about by the pandemic on its programs and operations.
Marie-Claude Landry, Ad. E.
Chief Financial Officer
|Fiscal Year 2021-22||Fiscal Year 2020-21|
|Total available for use for the year ending March 31, 2022First Footnote *||Used during the quarter ended September 30, 2021||Year to date used at quarter-end||Total available for use for the year ending March 31, 2021Second Footnote *||Used during the quarter ended September 30, 2020||Year to date used at quarter-end|
Vote 1 - Program Expenditures
|Less: Revenues netted against expenditures||(2,080,000)||(454,369)||(909,141)||(1,350,000)||(514,286)||(958,951)|
|Budgetary Statutory Authorities
Employee Benefit Plans
|Total Budgetary Authorities||38,486,377||8,092,092||15,505,509||26,071,734||6,546,856||12,846,616|
|Expenditures||Fiscal Year 2021-22||Fiscal Year 2020-21|
|Planned expenditures for the year ending March 31, 2022||Expended during the quarter ended September 30, 2021||Year to date used at quarter end||Planned expenditures for the year ending March 31, 2021||Expended during the quarter ended September 30, 2020||Year to date used at quarter end|
|Transportation and Communications||1,668,000||64,945||94,111||1,095,000||45,076||86,691|
|Professional and Special Services||4,965,354||608,674||1,250,269||2,540,837||549,756||938,884|
|Repair and Maintenance||126,000||1,602||1,602||105,750||-||2,540|
|Utilities, Material and Supplies||295,000||20,866||36,995||178,500||10,563||28,021|
|Acquisition of land, buildings and works||350,000||-||-||600,000||-||-|
|Acquisitions of Machinery and Equipment||850,000||136,943||212,385||450,000||38,188||42,795|
|Total Gross Budgetary Expenditures||40,566,377||8,546,461||16,414,650||27,421,734||7,061,142||13,805,567|
|Less: Revenues netted against expenditures
Internal Support Services
|Total Net Budgetary Expenditures||38,486,377||8,092,092||15,505,509||26,071,734||6,546,856||12,846,616|