Canadian Human Rights Commission Quarterly Financial Report - For the quarter ended September 30, 2018
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, 2018
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 Plan (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 2018-19 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 increased by $475,316 (or 2 percent) when compared to the second quarter of 2017-18. This represents the consolidated impact of the increase in authorities primarily attributable to negotiated salary adjustments and a decrease in the Year End Carryforward obtained from the prior year.
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 2017-18, the authorities for revenues netted against the expenditures have increased by $1,100,000 in anticipation of increased services provided to current clients and the addition of a 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 44 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 September 30, 2018.
Total year-to-date gross budgetary expenditures have decreased by $273,113 when compared to the expenditures reported for the same period in 2017-18 primarily due to decreased retroactive payments offset by higher personnel expenditures and an influx in severance payments.
3. Risks and Uncertainties
The CHRC is faced with a significant increase in demand for services, guidance, and expertise on human rights related issues. Victims of discrimination, including those alleging harassment in the workplace, are more aware of their rights and expect redress for the violation of those rights. During the second quarter, the CHRC continued to face a growing volume of complaints. Organizations representing victims increasingly expect the CHRC to play its role to speak out and represent the public interest. Committees of Parliament and of the Senate are looking to the CHRC for expert advice and guidance on issues impacting human rights in an unprecedented way.
These pressures represent a significant risk with respect to service delivery for the entire organization. It has been 15 years since our budget was last increased. Our work has increased significantly over the years. We have been making significant changes to how we operate to improve our effectiveness and efficiency. We simply cannot do more.
The CHRC’s case management system is aging and requires significant investment. It not only cannot properly support the CHRC’s needs, creating inefficiencies in the complaints process, but without modernizing the system, the risk of a major failure of this system continues to increase. The CHRC does not have the financial resources to invest to address this risk.
All other risks are mentioned in the 2018-19 Department Plan.
4. Significant Changes in Relation to Operations, Personnel and Programs
The government has introduced the Accessible Canada Act: An Act to Ensure a Barrier- free Canada, as well as the Pay Equity Act. These laws give significant new responsibilities to the CHRC which have immediate implications for the CHRC’s resources in terms of program delivery planning.
Approved by:
|
Original Signed by |
Original Signed by |
|
Marie-Claude Landry, Ad. E. Chief Commissioner |
Luc Bélanger, CPA, CMA, MBA Acting Chief Financial Officer |
Ottawa, Ontario
November 22, 2018
Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending September 30, 2018
Statement of Authorities (unaudited)
| Fiscal Year 2018-19 (in dollars) | Fiscal Year 2017-18 (in dollars) | |||||
|---|---|---|---|---|---|---|
| (in dollars) | Total available for use for the year ending March 31, 2019* | Used during the quarter ended September 30, 2018 | Year to date used at quarter-end | 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 |
| Bugetary Authorities | ||||||
| Vote 10 - Program Expenditures | 23,004,177 | 5,116,960 | 9,789,071 | 21,442,049 | 5,491,076 | 10,068,778 |
| Less: Revenues Netted Against Expenditures | (2,300,000) | (452,472) | (885,884) | (1,200,000) | (430,399) | (893,551) |
| Budgetary Statutory Authorities | ||||||
| Employee Benefit Plans | 2,613,376 | 653,344 | 1,306,688 | 2,600,188 | 650,047 | 1,300,094 |
| Total Budgetary Authorities | 23,317,553 | 5,317,832 | 10,209,875 | 22,842,237 | 5,710,724 | 10,475,321 |
*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, 2018
Budgetary Expenditures by Standard Object (unaudited)
| Fiscal Year 2018-19 (in dollars) | Fiscal Year 2017-18 (in dollars) | |||||
|---|---|---|---|---|---|---|
| (in dollars) | Planned expenditures for the year ending March 31, 2019 | Expended during the quarter ended September 30, 2018 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2018 | Expended during the quarter ended September 30, 2017 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Personnel | 19,941,639 | 5,111,123 | 9,962,303 | 19,910,139 | 5,459,848 | 10,204,391 |
| Transportation and Communications | 1,100,000 | 154,042 | 288,499 | 900,000 | 187,273 | 307,381 |
| Information | 260,000 | 21,551 | 49,264 | 200,000 | 17,597 | 58,189 |
| Professional and Special Services | 3,045,914 | 395,283 | 571,573 | 2,047,098 | 288,122 | 499,053 |
| Rentals | 400,000 | 4,859 | 101,606 | 325,000 | 35,806 | 101,818 |
| Repair and Maintenance | 140,000 | 263 | 8,657 | 100,000 | 22,072 | 40,162 |
| Utilities, Material and Supplies | 180,000 | 23,759 | 39,899 | 130,000 | 25,269 | 45,109 |
| Acquisition of land, buildings and works | - | 10,869 | 12,397 | 30,000 | 23,310 | 24,810 |
| Acquisitions of Machinery and Equipment | 500,000 | 3,555 | 16,561 | 400,000 | 81,826 | 87,959 |
| Other Payments | 50,000 | 45,000 | 45,000 | - | - | - |
| Total Gross Budgetary Expenditures | 25,617,553 | 5,770,304 | 11,095,759 | 24,042,237 | 6,141,123 | 11,368,872 |
| Less: Revenues netted against expenditures | ||||||
| Internal Support Services | (2,300,000) | (452,472) | (885,884) | (1,200,000) | (430,399) | (893,551) |
| Total Net Budgetary Expenditures | 23,317,553 | 5,317,832 | 10,209,875 | 22,842,237 | 5,710,724 | 10,475,321 |