Canadian Human Rights Commission Quarterly Financial Report - For the quarter ending December 31, 2019

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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, 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 $5,161,731 (or 22 percent) from $23,708,590 in 2018-19 to $28,870,321 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 ($2,430,471). The Commission also received funds to modernize the Commission’s case management system ($1,027,124) and had an increased Year End Carryforward in comparison to 2018-19 ($203,637). 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 third 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 December 31, 2019, of $16,551,385 represent 57 percent of total planned expenditures for the year of $28,870,321. Personnel expenditures of $15,694,941 represent the majority of expenditures at 88 percent of the total gross amount spent of $17,740,090 as of December 31, 2019

Total gross budgetary expenditures of $17,740,090 of the third quarter of 2019-20 have increased by $674,090 compared with $17,066,000 for the third quarter of 2018-19. The increase is mainly attributable to an increase of $529,718 in personnel expenditures, which is explained by retro payments made following newly signed collective agreements and by more personnel expenditures due to the Commission’s new mandates.

3. Risks and Uncertainties

The Commission continues to face some risks with respect to the new mandates it was given by Parliament under the Pay Equity Act, the Accessible Canada Act and the National Housing Strategy Act.

There is a risk that program implementation may be delayed due to organizational capacity to staff new positions and accommodate new personnel. In addition, since the Accessibility Commissioner and the Federal Housing Advocate have not been appointed, this could impact to some extent the implementation of their mandates. To manage these risks, the Commission has put in place a team to monitor progress and address implementation issues. The development of a change management plan was launched in November 2019 and a comprehensive human resources strategy was put in place to recruit people with the required competencies. These measures are crucial to foster a productive workforce that will adequately respond to the new challenges while ensuring the sustainability of operations in this context of change.

The Commission is still experiencing a high-level of demand for its services, guidance, and expertise. There is a risk that a constant influx of complaints under the Canadian Human Rights Act may limit the Commission’s capacity to provide access to justice in a timely fashion. To mitigate this risk, the Commission actively monitors the caseload and continuously develops innovative approaches to ensure the diligent processing of complaints.

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

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

During the last quarter, further to the appointment of the Pay Equity Commissioner, staffing actions were taken to build a dedicated team of subject-matter experts to support the implementation of the new pro-active pay equity legislation. Staffing measures and other actions also took place in support of the administration and enforcement of the Accessible Canada Act and towards supporting the role of the Federal Housing Advocate.

Approved by:

Marie-Claude Landry, Ad. E.

Chief Commissioner

Natalie Dagenais

Chief Financial Officer


Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended December 31, 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 December 31, 2019 Year to date used at quarter-end 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
Budgetary Authorities
Vote 1 - Program Expenditures 27,352,910 5,771,419 15,657,221 23,395,214 5,316,897 15,105,968
Less: Revenues netted against expenditures (1,800,000) (391,129) (1,188,705) (2,300,000) (439,925) (1,325,809)
Budgetary Statutory Authorities
Contributions to employee benefit plans 3,317,411 694,289 2,082,869 2,613,376 653,344 1,960,032
Total Budgetary Authorities 28,870,321 6,074,579 16,551,385 23,708,590 5,530,316 15,740,191

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

 

Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending December 31, 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 December 31, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended December 31, 2018 Year to date used at quarter-end
Expenditures:
Personnel 24,783,616 5,525,818 15,694,941 20,332,676 5,202,920 15,165,223
Transportation and Communications 1,174,156 203,782 514,517 1,100,000 219,750 508,249
Information 225,500 19,415 80,170 260,000 29,832 79,096
Professional and Special Services 2,763,582 575,486 1,057,936 3,045,914 334,239 905,812
Rentals 451,001 33,379 175,840 400,000 51,059 152,665
Repair and Maintenance 106,918 4,471 10,295 140,000 8,891 17,548
Utilities, Material and Supplies 188,565 27,568 63,227 180,000 25,396 65,295
Acquisition of land, buildings and works - 6,864 15,920 - - 12,397
Acquisitions of Machinery and Equipment 971,983 72,695 120,244 500,000 97,754 114,315
Other Payments 5,000 (3,770) 7,000 50,000 400 45,400
Total Gross Budgetary Expenditures 30,670,321 6,465,708 17,740,090 26,008,590 5,970,241 17,066,000
Less: Revenues netted against expenditures
Internal Support Services (1,800,000) (391,129) (1,188,705) (2,300,000) (439,925) (1,325,809)
Total Net Budgetary Expenditures 28,870,321 6,074,579 16,551,385 23,708,590 5,530,316 15,740,191