Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 30 September 2017

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 30 September 2017

Statement outlining results, risks, and significant changes in operations, personnel, and program

Introduction

This quarterly 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, and it should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review.

The Office of the Auditor General has one program activity: legislative auditing. The Office conducts independent audits and studies that provide objective information, advice, and assurance to Parliament, government, and Canadians.

Mandate

The Auditor General is an Officer of Parliament, who is independent from the government and reports directly to Parliament. The duties are set out in the Auditor General Act, the Financial Administration Act, and other acts and orders-in-council. These duties relate to legislative auditing and, in certain cases, to monitoring of federal departments and agencies, Crown corporations, territorial governments, and other entities.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Office’s spending authorities granted by Parliament and those used by the Office consistent with the Main Estimates for the 2017–18 fiscal year. This quarterly report provides financial information on the use of spending authorities. The Office uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of quarterly and year-to-date results

The authorities available decreased as a result of a decrease in the statutory employee benefit plans rate (15.7% versus 17.2%).

Bar chart
Figure 1—text version

Authorities available and used as at 30 September
(in millions of dollars)

AvailableNote * Used
2017–18 81.2 40.1
2016–17 82.1 38.5
Bar chart
Figure 2—text version

Authorities used in the quarter ended 30 September
(in millions of dollars)

  • 2017–18: 19.6
  • 2016–17: 18.8

Risks and uncertainties

Paying for increasing audit and service costs from a funding base that is not increasing will require reductions in products or services, or both, in the near future. We are reviewing our resource allocations to ensure that we can produce all required audits as efficiently as possible in the near term, and we are considering potential options for the longer term.

Significant changes in operations, personnel, and program

There are no significant changes in operations, personnel, and program.

Approved by:

[Original signed by]

Michael Ferguson, Chartered Professional AccountantCPA, Chartered AccountantCA
Fellow Chartered Professional AccountantFCPA, Fellow Chartered AccountantFCA (New Brunswick)
Auditor General of Canada

[Original signed by]

Sylvain Ricard, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General and
Chief Financial Officer

Ottawa, Canada
29 November 2017

Statement of authorities (unaudited)
(in thousands of dollars)

Fiscal year 2017–18 Fiscal year 2016–17
Total available for use for the year ending
31 March 2018Note *		 Used during the quarter ended
30 September 2017		 Year to date used at quarter-end Total available for use for the year ended
31 March 2017Note *		 Used during the quarter ended
30 September 2016		 Year to date used at quarter-end
Vote 1—Program expenditures 74,468 17,529 35,786 74,318 16,470 34,013
Less revenues netted against program expenditures (2,660) (227) (333) (2,510) (215) (627)
Net Vote 1—Program expenditures 71,808 17,302 35,453 71,808 16,255 33,386
Budgetary statutory authorities 9,421 2,308 4,616 10,265 2,566 5,132
Total budgetary authorities 81,229 19,610 40,069 82,073 18,821 38,518
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 81,229 19,610 40,069 82,073 18,821 38,518

Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)

Fiscal year 2017–18 Fiscal year 2016–17
Planned expenditures for the year ending
31 March 2018		 Expended during the quarter ended
30 September 2017		 Year to date expended at quarter-end Planned expenditures for the year ended
31 March 2017		 Expended during the quarter ended
30 September 2016		 Year to date expended at quarter-end
Expenditures:
Personnel
 72,708 16,607 33,852 73,482 16,654 33,283
Transportation and communications
 3,296 645 1,737 3,208 567 1,550
Information
 532 137 297 483 143 268
Professional and special services
 5,038 1,999 3,279 4,969 1,429 2,871
Rentals
 1,034 158 880 1,066 95 925
Repair and maintenance
 242 29 33 217 52 86
Utilities, materials and supplies
 268 53 87 229 45 81
Acquisition of machinery and equipment
 752 204 230 918 51 68
Other subsidies and payments
 19 5 7 11 0 13
Total gross budgetary expenditures
 83,889 19,837 40,402 84,583 19,036 39,145
Less revenues netted against expenditures:
Costs recovered
Members of the Canadian Council of Legislative Auditors (CCOLA)
 (660) (13) (119) (660) (6) (120)
International audit
 (2,000) (214) (214) (1,850) (209) (507)
Total net budgetary expenditures 81,229 19,610 40,069 82,073 18,821 38,518