Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 31 December 2017

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 31 December 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

There are no significant changes to authorities available and used to report in the quarter.

Bar chart
Figure 1—text version

Authorities available and used as at 31 December
(in millions of dollars)

AvailableNote * Used
2017–18 81.9 59.6
2016–17 82.1 57.5
Bar chart
Figure 2—text version

Authorities used in the quarter ended 31 December
(in millions of dollars)

  • 2017–18: 19.6
  • 2016–17: 19.0

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

Terms and conditions of employment

The Office, in collaboration with a committee that represents the Audit Professional group, has approved a revised salary structure for these unrepresented employees. The revised salary structure covering the period from 1 October 2014 to 30 September 2018 took effect on 15 August 2017.

On 4 December 2017, the Office signed a collective agreement covering the period from 1 October 2014 to 30 September 2018 with its Audit Services staff members.

On 31 December, the Office started reviewing salaries and making retroactive payments. This work will continue in the next few months.

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
28 February 2018

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
31 December 2017		 Year to date used at quarter-end Total available for use for the year ended
31 March 2017Note *		 Used during the quarter ended
31 December 2016		 Year to date used at quarter-end
Vote 1—Program expenditures 75,167 17,283 53,069 74,318 16,428 50,441
Less revenues netted against program expenditures (2,660) (25) (358) (2,510) (21) (648)
Net Vote 1—Program expenditures 72,507 17,258 52,711 71,808 16,407 49,793
Budgetary statutory authorities 9,421 2,309 6,925 10,265 2,566 7,698
Total budgetary authorities 81,928 19,567 59,636 82,073 18,973 57,491
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 81,928 19,567 59,636 82,073 18,973 57,491

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
31 December 2017		 Year to date expended at quarter-end Planned expenditures for the year ended
31 March 2017		 Expended during the quarter ended
31 December 2016		 Year to date expended at quarter-end
Expenditures:
Personnel
 73,407 17,672 51,524 73,482 16,715 49,998
Transportation and communications
 3,296 664 2,401 3,208 667 2,217
Information
 532 156 453 483 174 442
Professional and special services
 5,038 786 4,065 4,969 927 3,798
Rentals
 1,034 176 1,056 1,066 183 1,108
Repair and maintenance
 242 35 68 217 31 117
Utilities, materials and supplies
 268 58 145 229 58 139
Acquisition of machinery and equipment
 752 39 269 918 239 307
Other subsidies and payments
 19 6 13 11 0 13
Total gross budgetary expenditures
 84,588 19,592 59,994 84,583 18,994 58,139
Less revenues netted against expenditures:
Costs recovered
Members of the Canadian Council of Legislative Auditors (CCOLA)
 (660) (25) (144) (660) (21) (141)
International audit
 (2,000) 0 (214) (1,850) 0 (507)
Total net budgetary expenditures 81,928 19,567 59,636 82,073 18,973 57,491