Quarterly Financial Report: July 1 to September 30, 2018
Management statement for the quarter ended September 30, 2018
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 2018–2019.
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 to "provide common learning to all employees of the core public service to serve Canadians with excellence."
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 2018–2019. 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, 2018, and fiscal year 2018–2019 results to date
1. Total authorities for fiscal year 2018–2019
- 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 2018–2019 amount to $94.3 million, which comprises $67.4 million in voted appropriations and $26.9 million in statutory funding.
- The statutory funding authority of $26.9 million in fiscal year 2018–2019 consists of $9.1 million of forecasted respendable revenue, $9.7 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 $8.1 million for employee benefit plans.
- Total authorities available for use in 2018–19 increased by $5 million or 5.6% over the $89.3 million available in fiscal year 2017–2018, mainly due to the following year-over-year changes.
- Increases:
- 2.9 million for the Executive Leadership Development Program due to timing since in 2017-18, it was accounted for in the last quarter
- $1.8 million for respendable revenue brought forward from the previous fiscal year pursuant to section 18(2) of the Canada School of Public Service Act
- $1.3 million for compensation allocations relating to collective agreements
- Decreases:
- $0.9 million for reduced in-year revenue forecast
2. Planned expenditures for fiscal year 2018–2019
- The School has planned expenditures of $94.3 million for fiscal year 2018–2019, consisting of $69.9 million for salaries and benefits and $24.4 million for operating and maintenance. Compared with the same quarter last year, this is an increase of $5 million, primarily for personnel ($4.3 million). The overall increase of $5 million reflects planned spending in learning and training activities and the creation of the new Innovation and Policy Services Branch.
3. Expenditures for the quarter ended September 30, 2018
- Compared with the same quarter last fiscal year, overall expenditures increased by $4.7 million ($20.2 million versus $15.5 million), primarily for personnel ($4.4 million) which is mainly due to the recruitment of employees for learning and training activities.
4. Year-to-Date Expenditures as at September 30, 2018
- The overall increase in expenditure of $7.6 million year to date through September 30, 2018 compared to the same period last year ($36.5 million versus $28.9 million) is attributable to personnel ($4.8 million) for recruitment of employees as mentioned in the previous paragraph, and professional and special services ($2.5 million) mainly due to payments to Shared Services Canada, which have been processed earlier this fiscal year.
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
On October 16, 2018, the Honourable Scott Brison, President of the Treasury Board and Minister of Digital Government officially launched the new Canada's Digital Academy. The Academy will be hosted at the School and will be implemented in partnership with the Office of the Chief Information Officer and the Canadian Digital Service. The Digital Academy aims to advance the understanding of digital among public servants and give them the tools to better serve Canadians.
On October 17, 2018, the School's President announced that learning and training offerings will be organized thematically and organizationally along five business lines: (1) Indigenous Learning; (2) Respectful and Inclusive Workplace; (3) Government of Canada (GC) and Public Sector Skills; (4) Transferable Skills; and, (5) Digital Academy. This will align the School's offerings with Government of Canada priorities and position the School to be able to meet future priorities as they arise.
On October 22, 2018, the School's External Advisory Committee met for the first time. This committee, composed of independent external members, provides to the President and senior management team with strategic guidance and orientation, insight on achievements and failures, advice on future initiatives and challenge function to push for excellence, continuous improvement and efficiency.
Effective November 5, 2018, Margaret Meroni joined the School as the Vice-President of the Learning Programs Branch.
Approval by senior officials
Approved by:
Taki Sarantakis
President
Marc Bélisle
Chief Financial Officer
Ottawa, Canada
November 27, 2018
Statement of Authorities (unaudited)
Statement of authorities for fiscal years 2018–019 and 2017–2018 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, 2019, the quarter ended September 30, 2018 for fiscal year 2018–2019, the year-to-date used at quarter-end, for the year ending March 31, 2018, the quarter ended September 30, 2017 for fiscal year 2017–2018, 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 2018–2019 |
Fiscal year 2017–2018 |
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 |
Total available for
use for the
year ending
March 31, 2018 |
Used during the
quarter ended
September 30, 2017 |
Year-to-date
used at
quarter-end |
|
| Vote 1 – Program expenditures |
67,413 |
14,361 |
28,552 |
66,264 |
10,858 |
22,162 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
8,038 |
1,339 |
3,349 |
8,094 |
2,023 |
4,047 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
18,807 |
4,561 |
4,561 |
14,912 |
2,646 |
2,646 |
|
| TOTAL AUTHORITIES |
94,258 |
20,261 |
36,462 |
89,270 |
15,527 |
28,855 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2018–2019 and 2017–2018 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, 2019, the quarter-ended September 30, 2018, the year-to-date used at quarter end, the year ending March 31, 2018, the quarter ended September 30, 2017, 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 2018–2019 |
Fiscal year 2017–2018 |
Planned expenditures for the
year ending
March 31, 2019 Note*
|
Expended during the quarter ended
September 30, 2018 |
Year-to-date used at quarter-end |
Planned expenditures for the
year ending
March 31, 2018
|
Expended during the
quarter ended
September 30, 2017
|
Year-to-date used at
quarter-end
|
|
| Expenditures |
Personnel |
69,931 |
15,023 |
27,005 |
65,677 |
10,579 |
22,248 |
Transportation and communications |
1,994 |
449 |
851 |
1,894 |
335 |
648 |
Information |
581 |
188 |
331 |
576 |
195 |
297 |
Professional and special services |
16,191 |
3,880 |
7,366 |
16,079 |
3,815 |
4,849 |
Rentals |
401 |
83 |
133 |
400 |
14 |
114 |
Repair and maintenance |
2,062 |
8 |
10 |
2,085 |
185 |
187 |
Utilities, materials and supplies |
441 |
58 |
103 |
381 |
48 |
72 |
Acquisition of machinery and equipment |
2,209 |
340 |
416 |
2,142 |
56 |
137 |
Other subsidies and payments |
448 |
232 |
247 |
36 |
300 |
303 |
|
| TOTAL BUDGETARY EXPENDITURES |
94,258 |
20,261 |
36,462 |
89,270 |
15,527 |
28,855 |
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