Quarterly Financial Report for the quarter ended June 30, 2011

Introduction

This quarterly financial report has been prepared by management 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. The quarterly report has not been subject to an external audit or review.

Mandate and Program Activities

The Office of the Commissioner of Official Languages (OCOL) supports the Commissioner of Official Languages in fulfilling his mandate which consists of taking all actions and measures within his authority with a view to ensuring recognition of the status of each of the official languages and compliance with the spirit and intent of the Official Languages Act in the administration of the affairs of federal institutions, including any of their activities relating to the advancement of English and French in Canadian society.

Further details on OCOL's responsibilities and program activities may be found in the Report on Plans and Priorities 2011–12 and the Main Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes OCOL's spending authorities granted by Parliament and those used by the organization, consistent with the Main Estimates for the 2011–12 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 moneys 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.

OCOL uses the full accrual method of accounting to prepare and present its annual financial statements which are part of the organization's performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date (YTD) results

This section provides a brief analysis of significant variances that affected the actual expenditures and the planned expenditures between this year and last year's first quarter.

Significant Changes to Authorities

As of June 30, 2011, total authorities available for the fiscal year have not significantly changed compared to the same quarter of the prior year. The increase represents 0.2%. The planned expenditures presented are from the Main Estimates only. OCOL has not received any funds through Supplementary Estimates A in any of these fiscal years.

Significant Changes to Budgetary Expenditures

OCOL has spent approximately 21% of its authorities in the first quarter. Given that the most significant expense is salaries, OCOL's spending is generally distributed equally throughout the year.

Compared to the previous fiscal year, the expenditures recorded in the first quarter, ending June 30, 2011, decreased by $0.3 million or 6.3%, from $4.7 million to $4.4 million. In the first quarter of 2010–11, OCOL had spent more resources in consulting management services than in 2011–12 due to conducting an A-Base Review and for services associated with information management/information technology (IM/IT). This variance is reflected in the Departmental budgetary expenditures by Standard Object table under the category of expenditures Professional and Special Services. All other expenditures by standard object were consistent with prior year spending trends.

Risks and Uncertainties

The most significant risk which OCOL is facing is the inadequacy of the IM/IT systems, infrastructure and support. OCOL identified this risk in 2008-09 and developed its first IM/IT Strategic Plan for 2008–13. This strategic plan is gradually being implemented as funding permits, with priority given to improving the infrastructure's sustainability. However, OCOL requires an additional investment to upgrade its deteriorating applications.

In addition, the cost containment measures announced in the 2010 Budget is another risk OCOL faces in managing its human and financial resources. OCOL, like other federal institutions, has to absorb salary increases foreseen in collective agreements through its A-Base funding. Given the organization's small size, it becomes a challenge for the organization to manage these indirect funding cuts that add up year after year.

Hence, OCOL completed in 2010–11 a horizontal A-Base Review which aimed to assess whether the organization had enough financial and human resources to deliver its mandate. Among other things, it was determined that the Corporate Management Branch was underfunded and OCOL didn't have the capacity to allocate fund for its IM/IT Investments.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs over the last year.

Approval by Senior Officials

Graham Fraser
Commissioner of Official Languages

Lise Cloutier
Chief Financial Officer
Assistant Commissioner
Corporate Management

  Ottawa, Canada
  August 29, 2011

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in thousands of dollars)
  Fiscal year 2011–12 Fiscal year 2010–11
Total available for use for the year ending March 31, 2012 Used during the quarter ended June 30, 2011 Year to date used at quarter-end Total available for use for the year ending March 31, 2011 Used during the quarter ended June 30, 2010 Year to date used at quarter-end
Vote 20 - Program expenditures 18,358 3,805 3,805 18,429 4,128 4,128
Budgetary statutory authorities 2,301 575 575 2,186 546 546
Total budgetary authorities 20,659 4,380 4,380 20,615 4,674 4,674

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Expenditures: Fiscal year 2011–12 Fiscal year 2010–11
Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended June 30, 2011 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2011 Expended during the quarter ended June 30, 2010 Year to date used at quarter-end
Personnel 15,085 3,710 3,710 15,041 3,738 3,738
Transportation and communications 1,001 146 146 841 171 171
Information 283 11 11 384 22 22
Professional and special services 3,220 383 383 3,162 615 615
Rentals 121 16 16 118 13 13
Repair and maintenance 233 88 88 187 77 77
Utilities, materials and supplies 165 24 24 193 33 33
Acquisition of machinery and equipment 545 2 2 520 5 5
Other subsidies and payments 6 - - 169 - -