Canadian Human Rights Commission Quarterly Financial Report - For the quarter ending September 30, 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 September 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 $5,187,554 (or 22 percent) from $23,317,553 in 2018-19 to $28,505,107 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 $1,027,124 to modernize the Commission’s case management system 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 second 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 September 30, 2019) of $10,476,806 represent 37 percent of total planned expenditures for the year of $28,505,107. Personnel expenditures of $10,169,123 represent the majority of expenditures at 90 percent of the total gross amount spent of $11,274,382 as of September 30, 2019.

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

3. Risks and Uncertainties

The Commission faces new risks as a result of the three new mandates it has been given 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 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 a team who monitors progress and addresses implementation issues, is developing a change management strategy to support the organization in the implementation and is developing human resources comprehensive strategies for bringing the right people on board, fostering a productive workforce in a context of change and creating an accessible workplace.

The Commission continues to experience a high-level of demand for its services, guidance, and expertise. There is a risk that a sustained 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.

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

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

In September 2019, Karen Ann Jensen was appointed, by Order in Council, the first Canada’s Pay Equity Commissioner to support the Commission’s new responsibility to administer and enforce the Pay Equity Act.

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 September 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 September 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 September 30, 2018 Year to date used at quarter-end
Budgetary Authorities
Vote 10 - Program Expenditures 26,987,696 5,204,751 9,885,802 23,004,177 5,116,960 9,789,071
Less: Revenues netted against expenditures (1,800,000) (398,164) (797,576) (2,300,000) (452,472) (885,884)
Budgetary Statutory Authorities
Employee Benefit Plans 3,317,411 694,290 1,388,580 2,613,376 653,344 1,306,688
Total Budgetary Authorities 28,505,107 5,500,877 10,476,806 23,317,553 5,317,832 10,209,875

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

 

Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ending September 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 September 30, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended September 30, 2018 Year to date used at quarter-end
Expenditures:
Personnel 24,418,402 5,197,209 10,169,123 19,941,639 5,111,123 9,962,303
Transportation and Communications 1,174,156 220,222 310,735 1,100,000 154,042 288,499
Information 225,500 23,399 60,755 260,000 21,551 49,264
Professional and Special Services 2,763,582 314,792 482,450 3,045,914 395,283 571,573
Rentals 451,001 53,773 142,461 400,000 4,859 101,606
Repair and Maintenance 106,918 5,348 5,824 140,000 263 8,657
Utilities, Material and Supplies 188,565 18,844 35,659 180,000 23,759 39,899
Acquisition of land, buildings and works - 8,132 9,056 - 10,869 12,397
Acquisitions of Machinery and Equipment 971,983 46,552 47,549 500,000 3,555 16,561
Other Payments 5,000 10,770 10,770 50,000 45,000 45,000
Total Gross Budgetary Expenditures 30,305,107 5,899,041 11,274,382 25,617,553 5,770,304 11,095,759
Less: Revenues netted against expenditures
Internal Support Services (1,800,000) (398,164) (797,576) (2,300,000) (452,472) (885,884)
Total Net Budgetary Expenditures 28,505,107 5,500,877 10,476,806 23,317,553 5,317,832 10,209,875