Canadian Human Rights Commission Quarterly Financial Report - For the quarter ended December 31, 2018

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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 December 31, 2018

1. Introduction

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 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 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 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.

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 $255,368 (or 1 percent) from $23,453,222 in 2017-18 to $23,708,590 in 2018-19. This represents the impact of an 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 FAA. When compared to the third 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 Budgetary Expenditures by Standard Object, total year-to-date net budgetary expenditures (as of December 31, 2018) of $15,740,191 represent 66 percent of total planned expenditures for the year of $23,708,590. Personnel expenditures of $15,165,223 represents the majority of expenditures at 89 percent of the total gross amount spent of $17,066,000 as of December 31, 2018.

Total quarterly gross budgetary expenditures have increased by $251,098 from $5,719,143 in 2017-18 to $5,970,241 in 2018-19 primarily due to higher personnel expenditures as a result of salary increases from newly signed collective agreements.

3. Risks and Uncertainties

The Commission continues to experience a significant increase in demand for services, guidance, and expertise on human rights matters. For example, in both 2017 and 2018, the Commission received approximately 4,000 inquiries each year after averaging 2,600 inquiries the previous three years (2014 to 2016).

During the third quarter, the Commission has continued to implement new processes to manage and control this growing volume of work in a more efficient manner.

Parliament and Senate Committees regularly seek the expertise of the Commission on emerging human rights issues and legislation. Many other stakeholders representing vulnerable peoples expect the Commission to speak out on human rights matters and represent the public interest. In a context of stretched resources, these demands create pressures and there is a risk that it could impact service delivery.

The Commission’s case management system is old and creates inefficiencies in the complaints process. This system requires significant investment as the risk of a major failure continues to increase.

There is a risk that the current influx of complaints may limit the Commission’s capacity to provide access to justice in a timely manner and/or advocate for human rights in a preventive fashion. There is also a risk that unexpected emerging human rights issues could divert focus from key priorities and result in the re-assignment of our limited resources.

All other risks are mentioned in the 2018-19 Department Plan.

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

In June 2018, the federal government introduced the Accessible Canada Act: An Act to Ensure a Barrier- free Canada. In December 2018, the government also adopted new proactive pay equity legislation.

These new laws are adding important new responsibilities to the Commission. The organization continues to devote resources to plan for these new mandates which has immediate impact on the Commission’s capacity to deliver its services.

Approved by:

Original Signed by


Original Signed by


Marie-Claude Landry, Ad. E.

Chief Commissioner

Natalie Dagenais

Acting Chief Financial Officer

Ottawa, Ontario
February 14, 2019


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending December 31, 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 December 31, 2018 Year to date used at quarter-end Total available for use for the year ending March 31, 2018* Used during the quarter ended December 31, 2017 Year to date used at quarter-end
Bugetary Authorities
Vote 10 - Program Expenditures 23,395,214 5,316,897 15,105,968 22,053,034 5,069,096 15,137,874
Less: Revenues Netted Against Expenditures (2,300,000)  (439,925) (1,325,809) (1,200,000) (491,230) (1,384,781)
Budgetary Statutory Authorities
Employee Benefit Plans 2,613,376 653,344 1,960,032 2,600,188 650,047 1,950,141
Total Budgetary Authorities 23,708,590 5,530,316 15,740,191 22,453,222 5,227,913 15,703,234

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

 

Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended December 31, 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 December 31, 2018 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended December 31, 2017 Year to date used at quarter-end
Expenditures:
Personnel 20,332,676 5,202,920 15,165,223 20,521,124 4,912,883 15,117,274
Transportation and Communications 1,100,000 219,750 508,249 900,000 147,742 455,123
Information 260,000 29,832 79,096 200,000 14,452 72,641
Professional and Special Services 3,045,914 334,239 905,812 2,047,098 431,354 930,407
Rentals 400,000 51,059 152,665 325,000 32,293 134,111
Repair and Maintenance 140,000 8,891 17,548 100,000 28,288 68,450
Utilities, Material and Supplies 180,000 25,396 65,295 130,000 30,561 75,670
Acquisition of land, buildings and works - - 12,397 30,000 1 24,811
Acquisitions of Machinery and Equipment 500,000 97,754 114,315 400,000 121,569 209,528
Other Payments 50,000 400 45,400 - - -
Total Gross Budgetary Expenditures  26,008,590 5,970,241 17,066,000 24,653,222 5,719,143 17,088,015
Less: Revenues netted against expenditures
Internal Support Services (2,300,000) (439,925) (1,325,809) (1,200,000) (491,230) (1,384,781)
Total Net Budgetary Expenditures 23,708,590 5,530,316 15,740,191 23,453,222 5,227,913 15,703,234