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, 2020
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 works with employers to ensure compliance with the Employment Equity Act (EEA). The CHRA prohibits discrimination and the EEA promotes equality in the workplace. Under the leadership of the Pay Equity Commissioner and the Accessibility Commissioner, the Commission is also responsible for the administration and enforcement of the Pay Equity Act (PEA) and the Accessible Canada Act (ACA). These laws apply the principles of equal opportunity and non-discrimination to federal government departments and agencies, Crown corporations, and federally regulated private sector organizations. Finally, the Commission provides the Federal Housing Advocate with administrative services and facilities to support their duties and functions.
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 2020-21 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 decreased by $2,175,156 (or 8 percent) from $27,412,953 in 2019-20 to $25,237,797 in 2020-21. This decrease in authorities is primarily attributable to a decrease of $7,259,476, including a decrease of $450,000 in revenue as discussed below, due to reduced supply of the 2020-21 Main Estimates. Due to COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall. The Commission is expected to receive full supply for the 2020-21 Main Estimates in December 2020. These decreases in authorities are offset by funds received to support the Office of the Federal Housing Advocate for $3,000,000 and increases in funding for administering and enforcing the Accessible Canada Act (ACA) and the Pay Equity Act (PEA) for respectively $1,105,983 and $528,122.
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 2019-20, the authorities for revenues netted against the expenditures have decreased by $450,000 from $1,800,000 in 2019-20 to $1,350,000 in 2020-21 due to reduced supply of the 2020-21 Main Estimates as explained above.
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, 2020, of $6,299,760 represent 25 percent of total planned expenditures for the year of $25,237,797. Personnel expenditures of $6,097,590 represent the majority of expenditures at 90 percent of the total gross amount spent of $6,744,425 as of June 30, 2020.
Total gross budgetary expenditures of $6,744,425 of the first quarter of 2020-21 have increased by $1,369,084 compared with $5,375,341 for the first quarter of 2019-20. The increase is mainly attributable to an increase of $1,125,676 in personnel expenditures, as the funds received for the ACA and PEA were received late in the first quarter of 2019-20.
3. Risks and Uncertainties
The Commission faced a continued demand for services, guidance and expertise on human rights and discrimination complaints-related matters. COVID-19 has created an additional and unique risk related to the need to expeditiously adapt and upgrade IT infrastructure to support remote working arrangements. Such adaptation was necessary to allow the Commission to manage its day-to-day operational issues and, at the same time, engage and advocate on pressing human rights issues, including those related to COVID-19. The Commission continues to monitor trends in its current complaints processing times, has accelerated its move to digital complaints processing and is adjusting its processes, as necessary, in order to process complaints as quickly as possible.
The lack of appointment of the Accessibility Commissioner and the Federal Housing Advocate continue to present the possibility of delay in the implementation of their mandates. While these appointments are outside of the Commission's control, the Commission continues to work towards putting sustainable mechanisms in place in preparation for the eventual appointments. The Commission continues to develop its change management plan coupled with its human resources strategy. Both have been adapted to the new COVID-19 reality in order to foster a productive, flexible and agile workforce that will be able to respond to the new challenges presented, within the existing context.
All other risks are mentioned in the 2020-21 Departmental Plan.
4. Significant Changes in Relation to Operations, Personnel and Programs
The impact of COVID-19 continues to add to already present pressures on program implementation related to the Pay Equity Act, the Accessible Canada Act and the National Housing Strategy Act as well as on the operations of the Commission. It is anticipated that the challenges posed by the pandemic will continue in the near term, and that the attainment of program objectives may be delayed. The Commission will continue to closely assess the impact brought about by the current pandemic on the programs and on its operations.
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 June 30, 2020
Statement of Authorities (unaudited)
| Fiscal Year 2020-21 (in dollars) | Fiscal Year 2019-20 (in dollars) | |||||
|---|---|---|---|---|---|---|
| (in dollars) | Total available for use for the year ending March 31, 2021Footnote 1 | Used during the quarter ended June 30, 2020 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2020Footnote 1 | Used during the quarter ended June 30, 2019 | Year to date used at quarter-end |
| Budgetary Authorities | ||||||
| Budgetary Statutory Authorities | ||||||
| Vote 1 - Program Expenditures | 23,128,427 | 5,879,582 | 5,879,582 | 25,895,542 | 4,681,051 | 4,681,051 |
| Less: Revenues netted against expenditures | (1,350,000) | (444,665) | (444,665) | (1,800,000) | (399,412) | (399,412) |
| Employee Benefit Plans | 3,459,370 | 864,843 | 864,843 | 3,317,411 | 694,290 | 694,290 |
| Total Budgetary Authorities | 25,237,797 | 6,299,760 | 6,299,760 | 27,412,953 | 4,975,929 | 4,975,929 |
Canadian Human Rights Commission
Quarterly Financial Report
For the quarter ended June 30, 2020
Budgetary expenditures by Standard Object (unaudited)
| Fiscal Year 2020-21 (in dollars) | Fiscal Year 2019-20 (in dollars) | |||||
|---|---|---|---|---|---|---|
| (in dollars) | Planned expenditures for the year ending March 31, 2021 | Expended during the quarter ended June 30, 2020 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2020 | Expended during the quarter ended June 30, 2019 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Less: Revenues netted against expenditures | ||||||
| Personnel | 20,989,960 | 6,097,590 | 6,097,590 | 24,109,686 | 4,971,914 | 4,971,914 |
| Transportation and Communications | 1,095,000 | 41,615 | 41,615 | 1,017,759 | 90,513 | 90,513 |
| Information | 192,000 | 42,862 | 42,862 | 195,464 | 37,356 | 37,356 |
| Professional and Special Services | 2,540,837 | 389,128 | 389,128 | 2,395,475 | 167,658 | 167,658 |
| Rentals | 432,000 | 148,625 | 148,625 | 390,928 | 88,688 | 88,688 |
| Repair and Maintenance | 105,750 | 2,540 | 2,540 | 92,677 | 476 | 476 |
| Utilities, Material and Supplies | 178,500 | 17,458 | 17,458 | 163,448 | 16,815 | 16,815 |
| Acquisition of land, buildings and works | 600,000 | - | - | - | 924 | 924 |
| Acquisitions of Machinery and Equipment | 450,000 | 4,607 | 4,607 | 842,516 | 997 | 997 |
| Other Subsidies and Payments | 3,750 | - | - | 5,000 | - | - |
| Total Gross Budgetary Expenditures | 26,587,797 | 6,744,425 | 6,744,425 | 29,212,953 | 5,375,341 | 5,375,341 |
| Internal Support Services | (1,350,000) | (444,665) | (444,665) | (1,800,000) | (399,412) | (399,412) |
| Total Revenues netted against expenditures: | (1,350,000) | (444,665) | (444,665) | (1,800,000) | (399,412) | (399,412) |
| Total Net Budgetary Expenditures | 25,237,797 | 6,299,760 | 6,299,760 | 27,412,953 | 4,975,929 | 4,975,929 |