Quarterly Financial Report For the Quarter Ended September 30, 2015

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 programs

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 programs can be found in the 2015-16 Report on Plans and Priorities and in 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 2015-16 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 presents 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, 2015, total authorities available for the fiscal year decreased by $471,000 compared to the previous fiscal year, mainly due to the decrease in the operating budget carry forward amount.

Significant changes to budgetary expenditures

OCOL has spent approximately 46% of its authorities as of September 30, 2015, of which 83% represents personnel costs.

Expenditures in this quarter rose by $146,000, or 3%, compared to the same quarter of the prior year. This increase is due mainly to the following factors:

  • Increase of $123,000 in professional services, particularly for management advice;
  • Increase of $113,000 in payroll costs for term employees and students.

Offset by:

  • Decrease of $46,000 in transportation and communications costs as a result of fewer trips and mail-outs;
  • Decrease of $41,000 in leasing costs as a result of reduced software licensing charges.

Risks and Uncertainties

Funding required for IM/IT

The Office is investing in upgrading its IM/IT infrastructure to support the programs. The level of investment is stable 2015-2016 and future investments will be assessed as part of a new investment plan for the Office.

Capacity to meet expectations

OCOL’s capacity to handle complaints and respond to requests for information from institutions, the public and parliamentarians, in addition to supporting the internal and legal services necessary to carry out these activities, might not meet these groups’ expectations. OCOL is also facing pressure from outside regarding expectations related to the reduction of the inventory of files which have not met the established service standard. In addition, OCOL is experiencing indirect budget cuts as a result of having to fund interdepartmental initiatives from its own budget.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during the current quarter.

 

Approval by Senior Officials

The original version was approved and signed by:

Graham Fraser
Commissioner of Official Languages

Mario Séguin
Acting Chief Financial Officer
Acting Assistant Commissioner
Corporate Management

Gatineau, Canada
November 27, 2015

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in thousands of dollars)
  Fiscal year 2015–16 Fiscal year 2014–15
Total available for use for the year ending March 31, 2016Table note * Used during the quarter ended September 30, 2015 Year to date used at quarter end Total available for use for the year ending March 31, 2015Table note * Used during the quarter ended September 30, 2014 Year to date used at quarter end
Vote 1 - Program expenditures 18,898 4,406 8,615 19,494 4,291 8,878
Budgetary statutory authorities 2,278 570 1,139 2,153 539 1,077
Total budgetary authorities 21,176 4,976 9,754 21,647 4,830 9,955

Table note

Table note *

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

Return to table note * referrer

 

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Expenditures: Fiscal year 2015–16 Fiscal year 2014–15
Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended September 30, 2015 Year to date used at quarter end Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended September 30, 2014 Year to date used at quarter end
Personnel 15,834 4,045 8,135 15,203 3,932 7,910
Transportation and communications 764 104 248 897 150 213
Information 332 45 76 212 53 86
Professional and special services 3,362 671 987 4,208 548 990
Rentals 298 36 173 332 77 118
Repair and maintenance 91 43 70 293 19 49
Utilities, materials and supplies 121 17 33 137 33 56
Acquisition of machinery and equipment 374 15 32 357 15 35
Other subsidies and payments 0 0 0 8 3 498
Total gross budgetary expenditures 21,176 4,976 9,754 21,647 4,830 9,955