Canadian Human Rights Commission Quarterly Financial Report - For the quarter ended June 30, 2019

* This publication is only available in electronic format. If you require a paper version, please contact the Commission directly. Please allow 5-8 business days for processing.

Canadian Human Rights Commission Quarterly Financial Report

Statement outlining results, risks and significant changes
in operations, personnel and program
For the quarter ended June 30, 2019

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 2019-20 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 $4,945,090 (or 22 percent) from $22,467,863 in 2018-19 to $27,412,953 in 2019-20. This increase in authorities is primarily attributable to funds received to conduct two new mandates stemming from recent passing of the Pay Equity Act ($1,818,626) as well as the Accessible Canada Act: An Act to Ensure a Barrier-free Canada ($2,430,471). The Commission also received $1,027,124 to modernize the Commission’s Case management system. These increases in authorities are offset by a decrease in revenue as discussed below.

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 first quarter of 2018-19, the authorities for revenues netted against the expenditures have decreased by $500,000 in anticipation of decreased services provided to some clients.

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 June 30, 2019) of $4,975,929 represent 18 percent of total planned expenditures for the year of $27,412,953. Personnel expenditures of $4,971,914 represent the majority of expenditures at 92 percent of the total gross amount spent of $5,375,341 as of June 30, 2019.

Total gross budgetary expenditures of the first quarter of 2019-20 remain comparable with those of the first quarter of 2018-19 as the funds for the Commission’s new responsibilities were received later in the quarter.

3. Risks and Uncertainties

The Commission continues to experience a high-level of demand for services, guidance, and expertise on human rights matters. There is a risk that the current and continued influx of complaints may limit the Commission’s capacity to provide access to justice in a timely manner. To mitigate this risk, the Commission is actively monitoring the caseload and continuously developing innovative approaches to expedite the processing of complaints.

More and more, the Commission is being called upon by Parliament, Senate, and stakeholders to help advocate for those living in vulnerable circumstances. They also regularly call upon the Commission to seek its expertise on emerging human rights issues, employment equity issues and legislation. The Commission is also often called upon to speak out on human rights matters and to 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. 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. In response to the growing demand for human rights expertise, the Commission centralized its outreach requests functions and integrated policy and communication expertise under the same umbrella.

The Commission also faces some new risks related to the introduction of three new mandates: Pay Equity, Accessibility Compliance and Housing. There is a risk that program implementation may be delayed into year two of the rollout due to organizational capacity to staff new positions and accommodate new personnel. In response to this risk, the Commission has established an implementation team responsible for the monitoring of the implementation of new mandates, is developing a change management strategy to support the organization in the implementation and is developing a new human resources comprehensive framework for bringing the right people on board, fostering a productive workforce in a context of change and creating an accessible workplace.

All other risks are mentioned in the 2019-20 Department Plan.

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

In June 2019, the federal government adopted the Accessible Canada Act and federal housing legislation. These new laws combined with the new pay equity legislation adopted in December 2018 are adding important new responsibilities for the Commission. The organization is currently implementing these new mandates, which has an 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

Chief Financial Officer


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending June 30, 2019

Statement of Authorities (unaudited)

  Fiscal Year 2019-20 (in dollars) Fiscal Year 2018-19 (in dollars)
(in dollars) Total available for use for the year ending March 31, 2020* Used during the quarter ended June 30, 2019 Year to date used at quarter-end Total available for use for the year ending March 31, 2019* Used during the quarter ended June 30, 2018 Year to date used at quarter-end
Bugetary Authorities
Vote 1 - Program Expenditures 25,895,542 4,681,051 4,681,051 22,154,487 4,672,111 4,672,111
Less: Revenues Netted Against Expenditures (1,800,000)  (399,412) (399,412) (2,300,000) (433,312) (433,412)
Budgetary Statutory Authorities
Employee Benefit Plans 3,317,411 694,290 694,290 2,613,376 653,344 653,344
Total Budgetary Authorities 27,412,953 4,975,929 4,975,929 22,467,863 4,892,043 4,892,043

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

 

Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended June 30, 2019

Budgetary Expenditures by Standard Object (unaudited)

  Fiscal Year 2019-20 (in dollars) Fiscal Year 2018-19 (in dollars)
(in dollars) Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended June 30, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended June 30, 2018 Year to date used at quarter-end
Expenditures:
Personnel 24,109,686 4,971,914 4,971,914 19,806,639 4,851,180 4,851,180
Transportation and Communications 1,017,759 90,513 90,513 1,100,000 134,457 134,457
Information 195,464 37,356 37,356 260,000 27,713 27,713
Professional and Special Services 2,395,475 167,658 167,658 2,376,224 176,290 176,290
Rentals 390,928 88,688 88,688 400,000 96,747 96,747
Repair and Maintenance 92,677 476 476 140,000 8,394 8,394
Utilities, Material and Supplies 163,448 16,815 16,815 180,000 16,140 16,140
Acquisition of land, buildings and works - 924 924 - 1,528 1,528
Acquisitions of Machinery and Equipment 842,516 997 997 500,000 13,006 13,006
Other Payments 5,000 - - 5,000 - -
Total Gross Budgetary Expenditures  29,212,953 5,375,341 5,375,341 24,767,863 5,325,455 5,325,455
Less: Revenues netted against expenditures
Internal Support Services (1,800,000) (399,412) (399,412) (2,300,000) (433,412) (433,412)
Total Revenues netted against expenditures (1,800,000) (399,412) (399,412) (2,300,000) (433,412) (433,412)
Total Net Budgetary Expenditures 27,412,953 4,975,929 4,975,929 22,467,863 4,892,043 4,892,043