Quarterly financial report ending September 30, 2018 revised

Erratum

Date: January 23, 2019
Location: Departmental budgetary expenditures by Standard Object (unaudited), Planned expenditures for the year ending March 31, Professional and special services.
Revision: "Professional and special services $2,692 thousands" replaces "Professional and special services $2,683 thousands".
Rationale for the revision: Original amount reported was not correct.

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. This quarterly report should be read in conjunction with the Main Estimates.

The Canadian Northern Economic Development Agency (CanNor) works with partners to advance economic development in Canada's territories. The Agency supports, invests in and advocates for national, territorial and community level economic development; fosters growth and innovation; contributes to building capacity; and invests in foundational economic development projects in the territories. In addition, through the Northern Projects Management Office the Agency coordinates federal participation in the territorial environmental review processes and maintains the Crown consultation record for major projects.

Further details on CanNor's authorities, mandate and program activities may be found in the Departmental Plan and the Main Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes CanNor's spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2018-2019 fiscal year. The authority of Parliament is required before moneys 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.

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.

As part of the departmental performance reporting process, CanNor prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date (YTD) results

Statement of Authorities

As at September 30, 2018, total authorities available for fiscal year 2018-2019 amounted to $49.6 million, a $0.4 million decrease from the same quarter last year.

Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous year, total expenditures for the quarter ending September 30, 2018 decreased by $3.6 million ($8.9 million to $5.3 million).

Transfer payment expenditures decreased by $3.8 million ($5.8 million to $2 million) in the second quarter compared to the previous year. This is primarily attributable to the timing of the renewal of the Strategic Investments in Northern Economic Development ($2.5 million) program and the sunsetting of the Canada 150 Community Infrastructure Program ($1.5 million).

The negative expenditures that occurred during 2017-2018 reflect recoveries or timing differences, which were explained in the Quarterly Financial Report ending September 30, 2017.

Risks and Uncertainties

While the North presents opportunities for economic development, growth and innovation, factors including its vast and remote geography, lack of infrastructure, connectivity challenges, the cost and access to energy, and shortage of skilled labour all contribute to a challenging operating environment. These factors create additional challenges for businesses and can also prevent Northerners from fully benefiting from economic development opportunities.

CanNor's Corporate Risk Profile and risk assessment is published in its Departmental Plan. The risk profile identifies the following key risk areas:

Significant changes in relation to operations, personnel and programs

Paula Isaak was appointed President of the Canadian Northern Economic Development Agency effective October 9, 2018.

Approved by:

________________________
Paula Isaak
President
___________________________
Ross Miller CPA, CMA
Chief Financial Officer

Statement of Authorities (unaudited)

(In thousands of dollars)

  Fiscal year 2018-2019 Fiscal year 2017-2018
Total available for use for the year ending
March 31, 2019*
Used during the quarter ended
September 30, 2018
Year-to date used at quarter-end Total available for use for the year ending
March 31, 2018*
Used during the quarter ended
September 30, 2017
Year-to date used at quarter-end
Vote 1 - Net Operating 14,400 2,962 5,758 13,200 2,751 5,980
Vote 5 - Transfer payments 33,650 2,019 2,778 35,500 5,797 7,528
Budgetary statutory authorities 1,582 308 617 1,381 345 691
Total authorities 49,632 5,289 9,153 50,081 8,893 14,199
* includes only Authorities available for use and granted by Parliament at quarter-end.

Departmental budgetary expenditures by Standard Object (unaudited)

(In thousands of dollars)

  Fiscal year 2018-2019 Fiscal year 2017-2018
Planned expenditures for the year ending March 31, 2019 Used during the quarter ended June 30, 2018 Year-to-date used at quarter-end Planned expenditures for the year ending March 31, 2018 Used during the quarter ended June 30, 2017 Year-to-date used at quarter-end
Expenditures:
Personnel 11,441 2,463 5,229 10,182 2,910 5,639
Transportation and communications 619 85 220 600 156 291
Information 82 10 17 80 2 5
Professional and special services 2,692 228 357 2,600 (400) (122)
Rentals 1,032 378 380 1,000 452 457
Repair and maintenance 41 2 4 40 12 48
Utilities, materials and supplies 53 10 2 2 60 19 23
Acquisition of machinery and equipment 11 0 0 10 12 140
Transfer payments 33,650 2,019 2,778 35,500 5,797 7,528
Other subsidies and payments 11 94 146 9 (7) 189
Total budgetary expenditures 49,632 5,289 9,153 50,081 8,893 14,199

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