Quarterly Financial Report: July 1 to September 30, 2019
Management statement for the quarter ended September 30, 2019
Introduction
This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2019–2020.
This quarterly report has not been subject to an external audit or review.
The Canada School of Public Service (the School) was created on April 1, 2004, when the legislative provisions of Part IV of the Public Service Modernization Act came into effect. The School is a departmental corporation in the Treasury Board portfolio, and its mission is set out in the Canada School of Public Service Act.
The School was created to ensure that employees of the core public service have the competencies and common knowledge required to serve Canadians efficiently and effectively. To achieve this goal, the School offers a core curriculum that focuses on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.
The School is the common learning service provider for the core public service. It has a legislative mandate to provide a range of learning activities to build individual and organizational capacity and management excellence within the public service. The School is in a unique position to offer relevant, affordable and quality learning services in both official languages to all public service employees across the country, as well as to functional communities and public service organizations.
The School's core responsibility is "core public service learning".
Basis of presentation
This quarterly report has been prepared by management using expenditure-based accounting. The accompanying Statement of Authorities includes the School's spending authorities granted by Parliament, and those used by the department consistent with the Main Estimates and Supplementary Estimates for fiscal year
2019–2020. 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.
When Parliament is dissolved for the purposes of a general election section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
The School uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of the quarter ended September 30, 2019, and fiscal year 2019–2020
1. Total authorities for fiscal year 2019–2020
- The School has two sources of funding:
- appropriated funding as voted by Parliament for those activities to be paid from the Consolidated Revenue Fund
- statutory funding authority for the respending of revenue and contributions to the employee benefit plans
- Total authorities available in fiscal year 2019–2020 amount to $86.9 million, which comprises $64.9 million in voted appropriations and $22 million in statutory funding.
- The statutory funding authority of $22 million in fiscal year 2019–2020 consists of $6.9 million of forecasted respendable revenue, $6.4 million of respendable revenue, brought forward from the previous fiscal year under the provisions of section 18(2) of the Canada School of Public Service Act, and $8.7 million for employee benefit plans. Note that statutory authorities listed in Main Estimates reflect earlier revenue forecasts.
- Total authorities available for use in 2019–2020 decreased by $7.6 million or 8% under the $94.3 million available in fiscal year 2018–2019, mainly due to the following year-over-year changes:
- respendable revenue brought forward from 2018–2019 are lower by $3.3 million;
- forecasted respendable revenue to be earned in 2019–2020 are lower by $2.4 million.
- operation budget carry forward amount is lower by $1.9 million.
2. Planned expenditures for fiscal year 2019–2020
- The School has planned expenditures of $86.9 million for fiscal year 2019–2020, consisting of $66.7 million for salaries and benefits and $20.2 million for operating and maintenance. Compared with the same quarter last year, this is a decrease of $7.4 million, primarily for Personnel ($3.2 million) and other subsidies and payments ($3.4 million). With respect to the decrease in other subsidies, this is mainly the result of a change in the accounting treatment of the funding to be received for the Executive Leadership Development Program, which was previously recorded as revenues and, as of 2019–2020, is recorded as an offset to expenditures.
3. Expenditures for the quarter ended September 30, 2019
- Compared with the same quarter last fiscal year, overall expenditures decreased by $7.2 million ($13.1 million versus $20.3 million), primarily due to decreased spending in personnel ($0.9 million), professional and special services ($2.8 million) and other subsidies and payments ($3.3 million). The decrease in personnel costs is mainly due to the timing in processing the reimbursement of salaries for transferred-in employees while the decrease in professional and special services is mainly due to payments to Shared Services Canada which have been processed earlier than last fiscal year. With respect to the decrease in other subsidies, this is mainly the result of a change in the accounting treatment of the funding received for the Executive Leadership Development Program, which was previously recorded as revenues and, as of 2019–2020, is recorded as an offset to expenditures.
4. Year-to-Date Expenditures as at September 30, 2019
- The overall decrease in year-to-date expenditures of $2.3 million as at September 30, 2019, compared with the same period last year ($34.2 million versus $36.5 million) is mainly attributable to a change in the accounting treatment of the funding received for the Executive Leadership Development Program, which was previously recorded as revenues and, as of 2019–2020, is recorded as an offset to expenditures.
Risks and uncertainties
The School's ability to meet its goals is dependent on the relevance and quality of its learning products, its technological capability to support access to these products, and its ability to respond to changing priorities and learning needs. The School manages financial resources prudently to be able to meet these challenges.
Significant changes in relation to operations, personnel and programs
No significant changes were noted during the second quarter of 2019–2020.
Approval by senior officials
Approved by:
Taki Sarantakis
President
Tom Roberts
Chief Financial Officer
Ottawa, Canada
Statement of Authorities (unaudited)
Statement of authorities for fiscal years 2019–2020 and 2018–2019 in thousands of dollars. Read down the first column for the authorities and then to the right for the figures for the year ending March 31, 2020, the quarter ended September 30, 2019 for fiscal year 2019–2020, the year-to-date used at quarter-end, for the year ending March 31, 2019, the quarter ended September 30, 2018 for fiscal year 2018–2019, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
| (In thousands of dollars) |
Fiscal year 2019–2020 |
Fiscal year 2018–2019 |
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 |
|
| Vote 1 – Program expenditures |
64,862 |
9,356 |
26,581 |
67,413 |
14,361 |
28,552 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
8,739 |
2,185 |
4,370 |
8,038 |
1,339 |
3,349 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
13,252 |
1,606 |
3,212 |
18,807 |
4,561 |
4,561 |
|
| TOTAL AUTHORITIES |
86,853 |
13,147 |
34,163 |
94,258 |
20,261 |
36,462 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2019–2020 and 2018–2019 in thousands of dollars. Read down the first column for the list of expenditures and then read to the right for the figures for the year ending March 31, 2020, the quarter ended September 30, 2019, the year-to-date used at quarter-end, the year ending March 31, 2019, the quarter ended September 30, 2018, the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
| (In thousands of dollars) |
Fiscal year 2019–2020 |
Fiscal year 2018–2019 |
Planned expenditures for the year ending
March 31, 2020Note*
|
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 |
66,748 |
14,128 |
27,446 |
69,931 |
15,023 |
27,005 |
Transportation and communications |
1,928 |
435 |
872 |
1,994 |
449 |
851 |
Information |
637 |
245 |
361 |
581 |
188 |
331 |
Professional and special services |
14,728 |
1,057 |
7,624 |
16,191 |
3,880 |
7,366 |
Rentals |
673 |
147 |
310 |
401 |
83 |
133 |
Repair and maintenance |
2,630 |
5 |
6 |
2,062 |
8 |
10 |
Utilities, materials and supplies |
360 |
42 |
102 |
441 |
58 |
103 |
Acquisition of machinery and equipment |
2,137 |
164 |
327 |
2,209 |
340 |
416 |
Other subsidies and payments |
(2,988) |
(3,076) |
(2,885) |
448 |
232 |
247 |
|
| TOTAL BUDGETARY EXPENDITURES |
86,853 |
13,147 |
34,163 |
94,258 |
20,261 |
36,462 |
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