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Quarterly Financial Report for the period ended December 31, 2022
Table of contents
- Statement outlining results, risks and significant changes in operations, personnel and programs
- Highlights of fiscal quarter and fiscal year to date results
- 1. Significant changes to Authorities
- 2. Significant changes to cumulative budgetary expenditures by Standard object and by Authority
- 3. Significant changes to quarterly budgetary expenditures by Standard object and by Authorities
- 4. Risks and uncertainties
- 5. Significant changes in Operations, Personnel and Programs
Statement outlining results, risks and significant changes in operations, personnel and programs
Introduction
This quarterly report for the period ending December 31, 2022 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. The report has not been subject to an external audit or review, and should be read in conjunction with the Main Estimates and the Supplementary Estimates for the current year.
A summary description of 抖淫视频's (GAC) programs can be found in Part II of the .
Basis of presentation
This quarterly report has been prepared using an expenditure basis of accounting. 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.
The accompanying Statement of Authorities includes GAC's spending authorities granted by Parliament, and those used by GAC, consistent with the Main Estimates and Supplementary Estimates (as applicable) for the fiscal year 2022-2023. 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.
GAC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament are on an expenditure basis.
Highlights of fiscal quarter and fiscal year to date results
1. Significant changes to Authorities
The following table shows the total budget available for use by GAC. Only authorities available for use and granted by Parliament as at December 31, 2022 are included.
| Fiscal year 2022-2023 | Fiscal year 2021-2022 | Variance | ||
|---|---|---|---|---|
| Total available for use for the year ending March 31, 2023* | Total available for use for the year ending March 31, 2022* | $ | % | |
| Vote 1 - Operating expenditures | 2,065,827 | 1,989,815 | 76,012 | 4% |
| Vote 5 - Capital expenditures | 231,000 | 143,551 | 87,449 | 61% |
| Vote 10 - Grants and contributions | 6,076,036 | 5,031,880 | 1,044,156 | 21% |
| Vote 15 - Locally engaged staff pensions, insurance and social security | 91,817 | 85,473 | 6,344 | 7% |
| Vote 35 - Debt write-off | 67 | 0 | 67 | 0% |
| Budgetary statutory authorities | ||||
| Payments to international financial institutions | 335,602 | 257,362 | 78,240 | 30% |
| Contributions to employee benefit plans | 126,448 | 119,022 | 7,426 | 6% |
| Debt forgiveness to Pakistan | 22,187 | 22,188 | (1) | (0%) |
| Other statutory authorities | 4,214 | 3,707 | 507 | 14% |
| Total budgetary authorities | 8,953,198 | 7,652,998 | 1,300,200 | 17% |
| * Includes only authorities available for use and granted by Parliament at quarter-end. | ||||
i. Authorities for Operating expenditures
Authorities for operating expenditures increased by $76 million, which is mainly explained by:
- Increase of $36 million for the Duty of Care Special Purpose Allotment to support mission security abroad;
- Increase of $26 million for the compensation for collective bargaining agreements;
- Increase of $19 million due to inflation on overseas operating costs;
- Increase of $17 million in transfers to other government departments to provide support to departmental staff located at missions abroad;
- Increase of $12 million for immigration, settlement measures, temporary accommodations and income support for Ukrainians;
- Increase of $9 million for locally engaged staff salaries and related benefits incurred at missions abroad;
- Increase of $6 million for the administration of trade controls;
- Increase of $6 million to help developing countries to address the impact of climate change;
- Decrease of $40 million due to foreign currency fluctuations incurred on expenditures at missions abroad;
- Decrease of $23 million relating to a reduction in available travel budget; and
- Remaining increase of $8 million is due to multiple smaller increases.
ii. Authorities for Capital expenditures
Authorities for capital expenditures increased by $87 million, which is mainly explained by:
- Increase of $95 million for the Duty of Care Special Purpose Allotment to support mission security abroad;
- Decrease of $4 million for the Trade Commissioner Service Electronic Client Relationship Management; and
- Decrease of $4 million in the Capital Budget Carry-Forward amount received in 2022-23 compared to previous year.
iii. Authorities for Grants and contributions
Authorities for grants and contributions increased by $1,044 million, which is mainly explained by:
- Increase of $352 million to help developing countries to address the impact of climate change;
- Increase of $282 million to support access by developing countries to vaccines, therapeutics and diagnostics (COVID-19);
- Increase of $250 million to support Canada's response to the global food and nutrition crisis;
- Increase of $208 million to support Canada's Feminist International Assistance Policy;
- Increase of $152 million for Canada’s response to advance Ukrainian resilience and early recovery;
- Increase of $24 million in the funding for Canada's Engagement in United Nations Peace Operations and Peacebuilding;
- Decrease of $165 million to support the recovery and resilience of developing countries;
- Decrease of $35 million for the Strategic Priorities Fund for international assistance;
- Decrease of $35 million of assessed contributions due to changes in the international organizations’ budgets and the impact of currency fluctuations; and
- Remaining increase of $11 million is due to multiple smaller increases.
2. Significant changes to cumulative budgetary expenditures by Standard object and by Authority
The following table shows the net budgetary expenditures and authorities for the first nine months of the fiscal year and their comparison for the same period last year.
| April to December 2022-23 | April to December 2021-22 | Variance | ||
|---|---|---|---|---|
| $ | % | |||
| Expenditures | ||||
| Salaries and employee benefits | 1,004,917 | 1,018,619 | (13,702) | (1%) |
| Professional and special services | 205,882 | 197,276 | 8,606 | 4% |
| Rentals | 175,870 | 150,990 | 24,880 | 16% |
| Transportation and communications | 86,233 | 71,439 | 14,794 | 21% |
| Information | 13,360 | 11,810 | 1,550 | 13% |
| Repair and maintenance | 17,016 | 19,379 | (2,363) | (12%) |
| Utilities, materials and supplies | 26,899 | 24,705 | 2,194 | 9% |
| Acquisition of land, buildings and works | 8,869 | 18,221 | (9,352) | (51%) |
| Acquisition of machinery and equipment | 29,201 | 23,381 | 5,820 | 25% |
| Other | 4,211 | 3,365 | 846 | 25% |
| Total Operating and Acquisition | 1,572,458 | 1,539,185 | 33,273 | 2% |
| Transfer payments | 3,596,568 | 2,614,251 | 982,317 | 38% |
| Total gross budgetary expenditures | 5,169,026 | 4,153,436 | 1,015,590 | 24% |
| Less revenues netted against expenditures | ||||
| Revenue credited to the vote | 51,233 | 47,240 | 3,993 | 8% |
| Total net budgetary expenditures | 5,117,793 | 4,106,196 | 1,011,597 | 25% |
| Authorities | ||||
| Vote 1 - Operating expenditures | 1,328,046 | 1,297,801 | 30,245 | 2% |
| Vote 5 - Capital expenditures | 44,728 | 49,369 | (4,641) | (9%) |
| Vote 10 - Grants and contributions | 3,364,581 | 2,364,710 | 999,871 | 42% |
| Vote 15 - Locally engaged staff pensions, insurance and social security | 53,583 | 54,575 | (992) | (2%) |
| Budgetary statutory authorities | ||||
| Payments to international financial institutions | 231,720 | 248,915 | (17,195) | (7%) |
| Contributions to employee benefit plans | 93,038 | 90,011 | 3,027 | 3% |
| Other statutory authorities | 2,097 | 815 | 1,282 | 157% |
| Total budgetary authorities | 5,117,793 | 4,106,196 | 1,011,597 | 25% |
i. Operating and acquisition expenditures
Operating and acquisition expenditures increased by $33 million, which is mainly explained by:
- Increase of $25 million in rentals due to an increase in expenditures for rental buildings and an increase in application development software licensing and maintenance expenditures;
- Increase of $15 million in transportation and communications due to an increase in travel for public servants due to the resumption of activities, which were suspended prior to the distribution of the COVID-19 vaccine;
- Increase of $9 million in professional and special services due to an increase in legal fees paid to the Department of Justice Canada;
- Increase of $6 million in acquisition of machinery and equipment due to an increase in expenditures related to data communication equipement and office furniture;
- Decrease of $14 million in salaries and employee benefits due to:
- Renewal of collective agreements, which resulted in increases to Canada based staff regular pay and retroactive salary payments in 2021-2022;
- Decrease in contributions to the pension plan for locally engaged staff;
- Staffing delays in the current year to fill various vacancies; and
- Decrease of $9 million in acquisition of land, buildings and works mainly due to the acquisition of land for the construction of a chancery in Senegal in the previous fiscal year.
ii. Transfer payments
Transfer payments increased by $982 million, which is largely explained by contributions to the United Nations for Canada’s response to advance Ukrainian resilience and early recovery.
3. Significant changes to quarterly budgetary expenditures by Standard object and by Authorities
The following table shows the net budgetary expenditures and authorities for the quarter ended December 31, 2022 and their comparison for the same period last year.
| October to December 2022-23 | October to December 2021-22 | Variance | ||
|---|---|---|---|---|
| $ | % | |||
| Expenditures | ||||
| Salaries and employee benefits | 308,803 | 347,090 | (38,287) | (11%) |
| Professional and special services | 89,307 | 85,419 | 3,888 | 5% |
| Rentals | 57,227 | 44,695 | 12,532 | 28% |
| Transportation and communications | 35,732 | 32,379 | 3,353 | 10% |
| Information | 6,345 | 5,678 | 667 | 12% |
| Repair and maintenance | 6,883 | 7,712 | (829) | (11%) |
| Utilities, materials and supplies | 10,172 | 9,610 | 562 | 6% |
| Acquisition of land, buildings and works | 5,856 | 15,200 | (9,344) | (61%) |
| Acquisition of machinery and equipment | 17,069 | 8,086 | 8,983 | 111% |
| Other | 2,214 | 1,759 | 455 | 26% |
| Total Operating and Acquisition | 539,608 | 557,628 | (18,020) | (3%) |
| Transfer payments | 1,797,808 | 1,228,984 | 568,824 | 46% |
| Total Gross Budgetary Expenditures | 2,337,416 | 1,786,612 | 550,804 | 31% |
| Less revenues netted against expenditures | ||||
| Revenue credited to the vote | 5,196 | 2,238 | 2,958 | 132% |
| Total net budgetary expenditures | 2,332,220 | 1,784,374 | 547,846 | 31% |
| Authorities | ||||
| Vote 1 - Operating expenditures | 465,044 | 476,871 | (11,827) | (2%) |
| Vote 5 - Capital expenditures | 21,041 | 29,160 | (8,119) | (28%) |
| Vote 10 - Grants and contributions | 1,757,764 | 1,228,686 | 529,078 | 43% |
| Vote 15 - Locally engaged staff pensions, insurance and social security | 15,750 | 19,430 | (3,680) | (19%) |
| Budgetary statutory authorities | ||||
| Payments to international financial institutions | 39,994 | - | 39,994 | 100% |
| Contributions to employee benefit plans | 30,886 | 29,890 | 996 | 3% |
| Other statutory authorities | 1,741 | 337 | 1,404 | 417% |
| Total budgetary authorities | 2,332,220 | 1,784,374 | 547,846 | 31% |
i. Operating and acquisition expenditures
Operating and acquisition expenditures decreased by $18 million, which is mainly explained by:
- Decrease of $38 million in salaries and employee benefits due to:
- Renewal of collective agreements, which resulted in increases to Canada based staff regular pay and retroactive salary payments in 2021-2022;
- Decrease in contributions to the pension plan for locally engaged staff;
- Staffing delays in the current year to fill various vacancies;
- Decrease of $9 million in acquisition of land, buildings and works mainly due to the acquisition of land for the construction of a chancery in Senegal in the previous fiscal year;
- Increase of $13 million in rentals due to an increase in expenditures for rental buildings and an increase in application development software licensing and maintenance expenditures;
- Increase of $9 million in acquisition of machinery and equipment due to an increase in expenditures related to office furniture and fixtures and data communication equipment; and
- Remaining increase of $7 million is due to multiple smaller increases.
ii. Transfer payments
Transfer payments increased by $569 million, which is largely explained by contributions to the United Nations for Canada’s response to advance Ukrainian resilience and early recovery.
4. Risks and uncertainties
As a federal department delivering a complex mandate in a rapidly changing international environment, GAC is influenced by many factors. These factors include the political conditions, economic controls, social contexts and shifting global trends, including geopolitical and climate risks.
At any time, each of the aforementioned factors, or a combination thereof, could expose GAC, whether domestically, abroad or both. As such, effective risk management is critical to GAC’s ability to deliver results for Canadians. For such reasons, GAC undertakes reviews, either annually or every two years, to validate key operational risks and to assess the progress and effectiveness of their proposed responses. Risks are managed diligently and an agile approach is upheld to avoid undue risk to program integrity.
The Enterprise Risk Management Strategy is the foundational piece, which guides departmental officials in managing risks that affect strategic plans and priorities. GAC’s Strategic Risk Landscape and the Enterprise Risk Profile identify unique pressures associated with resource management and fiduciary oversight associated with geographically dispersed operations. Key risks that are being tracked and addressed by allocating more resources are related to: health, safety and well-being of the workforce, IT Infrastructure, cyber/digital security and resilience and the management and security of real property and assets. Risks linked to these areas take into account the impact of COVID-19 on GAC’s workforce. These risks have also been reflected in GAC’s Corporate Management Agenda, a recent initiative to ensure senior-level and department wide engagement on key corporate priorities in support of a more agile and responsive department.
GAC continues to be pragmatic and versatile in its management of risks and uncertainties associated with resources. The current pandemic context further adds uncertainty to expenditure forecasts and potential surpluses. GAC is in the process of implementing certain strategies to identify investment opportunities while working to improve grants and contributions project costing analytics, by strengthening financial data capabilities. GAC is also implementing strategies to ensure the optimization of the maximum budget carry forward in order to address future year pressures, in operating and capital expenditures. GAC is continuously looking for opportunities to improve financial management practices, including those related to financial forecasting, and ensuring resources are available to implement priority activities.
GAC has applied a range of measures to manage the risks associated with fraud, such as training on awareness and detection. The risk of fraud is considered in audit and advisory engagements and four audits of missions are planned during this fiscal year. GAC continues to assess, on a risk basis, its internal controls over financial reporting at headquarters and at missions, and will be reporting on its internal controls over financial management, as per the requirements of the Treasury Board Policy on financial management. On the transfer payment programming side, GAC continues to build the capacity of the Fraud Management Unit.
5. Significant changes in Operations, Personnel and Programs
During the quarter, changes occurred in relation to the following positions:
- Appointment of a new Deputy Minister of Foreign Affairs;
- Appointment of a new Deputy Minister of International Trade; and
- Departure of the Assistant Deputy Minister, Human Resources.
Approved, as required by the TB Policy on Financial Management:
David Morrison
Deputy Minister of Foreign Affairs
Anick Ouellette, CPA
Assistant Deputy Minister and Chief Financial Officer, Corporate Planning, Finance and Information Technology
Ottawa, Ontario
Date: February 21, 2023
- Date modified:
