Quarterly Financial Report for the quarter ended September 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 and the previous quarterly financial report. This 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 to ensure 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 information about OCOL's responsibilities and program activities can be found in the 2011-2012 Report on Plans and Priorities 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 used by OCOL, consistent with the Main Estimates for the 2011-2012 fiscal year. This quarterly report has also 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.

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 are prepared on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date

This section provides a brief analysis of significant variances in relation to actual expenditures and planned expenditures that affected both the quarter and the year to date results, compared to the same periods of the preceding fiscal year.

Significant changes to authorities

As of September 30, 2011, total authorities available for the fiscal year had not significantly changed compared to the preceding year. The authorities have been slightly reduced, by 1.4%, mainly as a result of the decrease in the operating budget carry forward, which went from $892,439 in 2010-2011 to $552,908 in 2011-2012.

Significant changes to budgetary expenditures

OCOL has spent approximately 48% of its authorities as of September 30, 2011, of which 85% represent personnel costs.

Compared to the preceding fiscal year, the expenditures have increased by $484,000 or 9.0%, from $5.355 million to $5.839 million. Personnel costs increased by $1.0 million due to severance liquidation payments paid to eligible employees. However, this sum will be covered by the Treasury Board Secretariat and is a new initiative effective in 2011-2012. This increase is offset by a decrease of $555,000 in the expenditures related to professional services. In the first two quarters of 2010-2011, OCOL spent more for consulting management services as the result of an A-Base review and an analysis of its information management/information technology (IM/IT) needs. These variances are reflected in the table "Departmental Budgetary Expenditures by Standard Object" under the categories “Personnel” and “Professional and special services.”

Risks and uncertainties

Funding required for IM/IT

OCOL is still facing a risk due to the inadequacy of its IM/IT systems. A Treasury Board submission has been sent to request the one-time funding required to upgrade its deteriorating applications because the current authorities available are not sufficient. This investment would allow OCOL to optimize its business processes in order to improve its productivity and efficiency and to generate savings over the next two years.

A-Base Review

Management is presently implementing the action plan prepared in response to the A-Base Review conducted in 2010-2011. This review identified several pressures within the organization as well as opportunities for optimizing the resources.

Budget 2010

The cost containment measures announced in Budget 2010 are another financial risk OCOL faces because it has to absorb salary increases that have been agreed on in collective agreements through its A-Base funding. Management is presently reviewing various options to adjust to this financial constraint.

Budget 2011

OCOL agrees to adhere to the spirit and intent of the Strategic and Operating Review announced in Budget 2011. Management is analyzing its financial capability while taking into account the results of the implementation of the A-Base Review action plan and the results of the IM/IT funding request.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs over the past quarter. However, certain steps have been taken to streamline the organizational structure within the Compliance Assurance Branch, in light of the action plan implemented following the A-base review.

Approval by senior officials

Graham Fraser
Commissioner of Official Languages

Lise Cloutier
Chief Financial Officer
Assistant Commissioner
Corporate Management

  Ottawa, Canada
  November 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 September 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 September 30, 2010 Year to date used at quarter-end
Table note *Includes only Authorities available for use and granted by Parliament at quarter-end.
Vote 20 - Program expenditures 18,911 5,263 9,068 19,321 4,808 8,936
Budgetary statutory authorities 2,301 576 1,151 2,186 547 1,083
Total budgetary authorities 21,212 5,839 10,219 21,507 5,355 10,029

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 September 30, 2011 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2011 Expended during the quarter ended September 30, 2010 Year to date used at quarter-end
Personnel 15,085 5,018 8,728 15,041 4,000 7,738
Transportation and communications 1,001 212 358 841 211 382
Information 283 11 22 384 17 39
Professional and special services 3,773 432 815 4,054 987 1,6022
Rentals 121 16 32 118 24 37
Repair and maintenance 233 88 176 187 67 144
Utilities, materials and supplies 165 33 57 193 39 72
Acquisition of machinery and equipment 545 28 30 520 9 14
Other subsidies and payments 6 1 1 169 1 1