Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 30 June 2019

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 30 June 2019

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 of Canada 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 2019–20 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 for use increased as a result of additional funding received in fall 2018 ($7 million), economic and management salary increases ($2 million), and associated increases in statutory employee benefits ($1 million).

Authorities (in millions of dollars)
Figure 1—text version

Authorities (in millions of dollars)

AvailableNote * Used
2019–20 88.2 20.2
2018–19 78.2 20.3

Risks and uncertainties

The Office received no additional funding in the 2019 federal budget. As a result, we have eliminated five performance audits that had been planned for reporting in the 2019–20 fiscal year, and we will continue to defer certain audit-related work in our financial audit practice. We will also not be able to make the investments in new technologies or audit approaches that are necessary to prepare the Office for the future.

Significant changes in operations, personnel, and program

Following the passing of Michael Ferguson, Her Excellency the Governor General in Council appointed Sylvain Ricard as Interim Auditor General of Canada for a term of six months, effective 28 March 2019. On 1 July 2019, Her Excellency the Governor General in Council reappointed Mr. Ricard as Interim Auditor General for a term of six months, effective 28 September 2019.

The Office approved a revised salary structure for the Management group, effective 1 April 2019, which involves the conversion from a broadband to a lock-step salary structure.

Approved by:

[Original signed by]

Sylvain Ricard, Chartered Professional AccountantCPA, Chartered AccountantCA
Interim Auditor General of Canada

[Original signed by]

Lucie Cardinal, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General
and Chief Financial Officer

Ottawa, Canada
29 August 2019

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

Fiscal year 2019–20 Fiscal year 2018–19
Total available for use for the year ending
31 March 2020Footnote *		 Used during the quarter ended
30 June 2019		 Year to date used at quarter-end Total available for use for the year ended
31 March 2019Footnote *		 Used during the quarter ended
30 June 2018		 Year to date used at quarter-end
Vote 1—Program expenditures 80,744 18,279 18,279 71,688 18,144 18,144
Less revenues netted against program expenditures (2,660) (633) (633) (2,660) (112) (112)
Net Vote 1—Program expenditures 78,084 17,646 17,646 69,028 18,032 18,032
Budgetary statutory authorities 10,154 2,539 2,539 9,197 2,299 2,299
Total budgetary authorities 88,238 20,185 20,185 78,225 20,331 20,331
Non-budgetary authorities – – – – – –
Total authorities 88,238 20,185 20,185 78,225 20,331 20,331

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

Fiscal year 2019–20 Fiscal year 2018–19
Planned expenditures for the year ending
31 March 2020		 Expended during the quarter ended
30 June 2019		 Year to date expended at quarter-end Planned expenditures for the year ended
31 March 2019		 Expended during the quarter ended
30 June 2018		 Year to date expended at quarter-end
Expenditures:
Personnel
 76,518 17,626 17,626 69,704 17,562 17,562
Transportation and communications
 3,837 1,028 1,028 3,137 891 891
Information
 651 158 158 561 174 174
Professional and special services
 6,367 1,171 1,171 5,250 1,008 1,008
Rentals
 1,654 730 730 1,077 735 735
Repair and maintenance
 298 26 26 265 16 16
Utilities, materials and supplies
 307 17 17 210 26 26
Acquisition of machinery and equipment
 1,232 62 62 656 29 29
Other subsidies and payments
 34 – – 25 2 2
Total gross budgetary expenditures
 90,898 20,818 20,818 80,885 20,443 20,443
Less revenues netted against expenditures:
Costs recovered
Members of the Canadian Council of Legislative Auditors (CCOLA)
 (660) (100) (100) (660) (112) (112)
International audit
 (2,000) (533) (533) (2,000) – –
Total cost recovered
 (2,660) (633) (633) (2,660) (112) (112)
Total net budgetary expenditures 88,238 20,185 20,185 78,225 20,331 20,331