Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 30 September 2020
Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 30 September 2020
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 (OAG) has 1 program activity: legislative auditing. The OAG conducts independent audits and studies that provide objective information, advice, and assurance to Parliament, government, and Canadians.
Mandate
The Auditor General of Canada 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 OAG’s spending authorities granted by Parliament and those used by the OAG, consistent with the Main Estimates for the 2020–21 fiscal year. This quarterly report provides financial information on the use of spending authorities. The OAG 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
In the 2019–20 fiscal year, the full supply of authorities was provided in the first quarter. As a result of the coronavirus disease (COVID-19) pandemic and limited sessions in the spring for Parliament to study supply, the full supply of authorities for the 2020–21 fiscal year is expected to be received in December 2020. This change explains the decrease in authorities available for use at the end of the second quarter compared with last year.
The authorities used increased as a result of the growing workforce and the revised salary structures that were announced in previous quarters.
Figure 1—text version
Authorities available and used as at September 30
(in millions of dollars)
AvailableNote * | Year to date used | |
---|---|---|
2020–21 | 71.6 | 46.0 |
2019–20 | 91.2 | 40.5 |
Figure 2—text version
Authorities used in the quarter ended September 30
(in millions of dollars)
- 2020–21: 24.7
- 2019–20: 20.3
Risks and uncertainties
The primary risk currently facing the OAG is its limited capacity to deliver on its performance audit mandate. This risk has emerged because of significant underfunding of the OAG in recent years, which resulted in a reduction in the number of audits delivered by the performance audit practice. This risk has been compounded by the stress imposed on the OAG’s operations by the COVID-19 pandemic and by the fact that the House of Commons has requested specific performance audit work, which will require substantial resources to complete.
Another risk that the OAG faces is its capacity to invest in necessary information technology systems and architecture for the audit and corporate services. These investments have been delayed because of insufficient funding of the OAG.
Significant changes in operations, personnel, and program
There were no significant changes in operations, personnel, and program during the second quarter of the 2020–21 fiscal year.
Approved by:
[Original signed by]
Karen Hogan, Chartered Professional AccountantCPA, Chartered AccountantCA
Auditor General of Canada
[Original signed by]
Lucie Cardinal, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General
and Chief Financial Officer
Ottawa, Canada
27 November 2020
Statement of authorities (unaudited)
(in thousands of dollars)
Fiscal year 2020–21 | Fiscal year 2019–20 | |||||
---|---|---|---|---|---|---|
Total available for use for the year ending 31 March 2021Footnote * | Used during the quarter ended 30 September 2020 | Year to date used at quarter-end | Total available for use for the year ended 31 March 2020Footnote * | Used during the quarter ended 30 September 2019 | Year to date used at quarter-end | |
Vote 1—Program expenditures | 64,402 | 22,481 | 41,939 | 83,731 | 17,793 | 36,072 |
Less revenues netted against program expenditures | (2,660) | (243) | (856) | (2,660) | (23) | (656) |
Net Vote 1—Program expenditures | 61,742 | 22,238 | 41,083 | 81,071 | 17,770 | 35,416 |
Budgetary statutory authorities | 9,822 | 2,455 | 4,910 | 10,154 | 2,538 | 5,077 |
Total budgetary authorities | 71,564 | 24,693 | 45,993 | 91,225 | 20,308 | 40,493 |
Non-budgetary authorities | – | – | – | – | – | – |
Total authorities | 71,564 | 24,693 | 45,993 | 91,225 | 20,308 | 40,493 |
Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)
Fiscal year 2020–21 | Fiscal year 2019–20 | |||||
---|---|---|---|---|---|---|
Planned expenditures for the year ending 31 March 2021 | Expended during the quarter ended 30 September 2020 | Year to date expended at quarter-end | Planned expenditures for the year ended 31 March 2020 | Expended during the quarter ended 30 September 2019 | Year to date expended at quarter-end | |
Expenditures: | ||||||
Personnel
|
63,092 | 21,335 | 40,295 | 79,505 | 17,410 | 35,036 |
Transportation and communications
|
3,320 | 188 | 311 | 3,837 | 947 | 1,975 |
Information
|
591 | 483 | 532 | 651 | 64 | 222 |
Professional and special services
|
4,677 | 2,287 | 4,032 | 6,367 | 1,318 | 2,489 |
Rentals
|
1,101 | 269 | 1,217 | 1,654 | 167 | 897 |
Repair and maintenance
|
171 | 14 | 31 | 298 | 48 | 74 |
Utilities, materials and supplies
|
182 | 29 | 46 | 307 | 64 | 81 |
Acquisition of machinery and equipment
|
1,003 | 316 | 370 | 1,232 | 304 | 366 |
Other subsidies and payments
|
87 | 15 | 15 | 34 | 9 | 9 |
Total gross budgetary expenditures
|
74,224 | 24,936 | 46,849 | 93,885 | 20,331 | 41,149 |
Less revenues netted against expenditures: | ||||||
Costs recovered
|
||||||
Members of the Canadian Council of Legislative Auditors (CCOLA)
|
(660) | (19) | (46) | (660) | (23) | (123) |
International audits
|
(2,000) | (224) | (810) | (2,000) | – | (533) |
Total cost recovered
|
(2,660) | (243) | (856) | (2,660) | (23) | (656) |
Total net budgetary expenditures | 71,564 | 24,693 | 45,993 | 91,225 | 20,308 | 40,493 |