Archived — Quarterly Financial Report — Quarter ended June 30, 2016
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Statement outlining results, risks and significant changes in operations, personnel, and programs
- 1. Introduction
- 2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results
- 3. Risks and Uncertainties
- 4. Significant Changes in Relation to Operations, Personnel and Programs
- Statement of Authorities (unaudited)
- Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
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 Accounting Standard 1.3. This report should be read in conjunction with the 2016-17 Main Estimates and Supplementary Estimates A. This quarterly report has not been subject to an external audit or review.
Authority, Mandate & Program Activities
As Canada's most populous region — home to more than 12.8 million residents living in 288 communities — southern Ontario is a key contributor to the Canadian economy. The Government of Canada created the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) in 2009 to support economic growth in southern Ontario through the delivery of federal programs and services. FedDev Ontario works with communities, businesses and not-for-profit organizations in southern Ontario to actively promote the region and build a strong foundation of investment and partnerships to help secure Canada's long-term prosperity.
FedDev Ontario works as a co-investor, convener, champion and delivery agent, intentionally directing its resources to activities with the greatest regional impacts. Working in collaboration with organizations and businesses, FedDev Ontario is able to advance innovative technologies and leverage community capacity to develop regionally-based economic solutions.
Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes FedDev Ontario's spending authorities granted by Parliament and those used by FedDev Ontario—consistent with the Main Estimates and Supplementary Estimates A for the 2016-17 fiscal year. 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.
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.
FedDev Ontario uses the full accrual method of accounting to prepare and present its annual financial statements that are part of its performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results
This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended June 30, 2016.
2.1 Authorities Analysis
Planned departmental spending in fiscal year 2016-17 totals $256.6 million, a $41.3 million increase over that available at the close of the first quarter in the 2015-16 fiscal year. This comprises a $41.4 million increase in program authorities and a decrease of $0.1 million in operating authorities.
The $41.3 million increase in program authorities is the result of the introduction of funding for the Canada 150 Community Infrastructure Program ($44.4 million), an adjustment to the Southern Ontario Prosperity Initiatives ($3 million decrease and $8.6 million transfer to other government departments), a decrease to the Advanced Manufacturing Fund ($1.0 million) and an additional $9.6 million for the grant for the City of Brantford to support the Brantford Greenwich-Mohawk Brownfield Remediation project.
2.2 Expenditure Analysis
In the first quarter of the 2016-17 fiscal year, total budgetary expenditures were $37.9 million compared to $21.1 million reported in the same period of 2015-16. This represents a year-over-year increase of $16.8 million, or 79.6 percent.
Quarterly spending includes $32.3 million on programs and $5.6 million on operating expenditures. Spending on operating costs decreased slightly by $0.3 million compared to the same period in 2015-16, and program expenditures have increased by $17.0 million.
Statement of Departmental Budgetary Expenditures by Standard Object
The following provides additional analysis of key variances at the Standard Object level.
Used During the Quarter
Spending on transfer payments was $32.3 million in the first quarter of 2016-17, compared to $15.2 million in the same quarter of 2015-16. The increase in transfer payment expenditures is an expected trend as the current suite of programs has committed funding against a portfolio of projects that are now underway, resulting in increased submissions of eligible costs for reimbursement.
Personnel-related expenditures totaled $5.2 million, displaying minimal change from the $5.4 million in the same period in 2015-16. This change is primarily attributed to efficiencies gained through the alignment of all regional development agencies under the Innovation, Science and Economic Development portfolio in the fall of 2015.
During the first quarter of 2016-17, other operating expenditures totaled $433,000, a decrease of $129,000 from the same period in 2015-16. This decrease was primarily driven by decreases in Repair and Maintenance (−$21,000), Acquisition of Machinery and Equipment (−$67,000) and other office fit-up costs attributed to FedDev Ontario's headquarters relocation to Waterloo. Spending on other standard objects displayed non-material changes ranging from (+$8,000 to −$20,000).
3. Risks and Uncertainties
FedDev Ontario maintains a Corporate Risk Profile, which identifies and assesses risks that could impact the objectives of the agency. To minimize potential financial impact, FedDev Ontario maintains a strong system of budgeting, forecasting and internal controls, helping to mitigate financial risks related to the Agency's funding authorities.
4. Significant Changes in Relation to Operations, Personnel and Programs
In Budget 2016, the Government of Canada committed an additional $150 million over two years to the Canada 150 Community Infrastructure Program, doubling the annual contributions from FedDev Ontario to $44.4 million in fiscal years 2016-17 and 2017-18.
Regarding changes in key personnel, Mr. Frank Lofranco was appointed to the role of Vice President, Business Innovation and Community Development on April 4, 2016.
Approval by Senior Officials
Original signed by
Original signed by
Acting Chief Financial Officer
Statement of Authorities (unaudited)
|(in thousands of dollars)||Fiscal Year 2016-17||Fiscal Year 2015-16|
|Total available for use for the year ending March 31, 2017Footnote 1||Used during the quarter ended June 30, 2016||Year to date used at quarter-end||Total available for use for the year ending March 31, 2016Footnote 1||Used during the quarter ended June 30, 2015||Year to date used at quarter-end|
|Vote 1—Net Operating Expenditures||25,754||4,814||4,814||25,859||5,123||5,123|
|Vote 5—Grants and Contributions||227,680||32,259||32,259||186,240||15,214||15,214|
|Budgetary statutory authorities:|
|Employee benefit plans||3,214||803||803||3,151||788||788|
|Minister of State—car allowance||-||-||-||2||1||1|
|Total budgetary authorities||256,648||37,876||37,876||215,252||21,126||21,126|
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
|(in thousands of dollars)||Fiscal Year 2016-17||Fiscal Year 2015-16|
|Planned expenditures for the year ending March 31, 2017Footnote 1||Used during the quarter ended June 30, 2016||Year to date used at quarter-end||Planned expenditures for the year ending March 31, 2016Footnote 1||Used during the quarter ended June 30, 2015||Year to date used at quarter-end|
|Transportation and communications||997||90||90||943||110||110|
|Professional and special services||4,418||283||283||4,458||295||295|
|Repair and maintenance||316||20||20||570||41||41|
|Utilities, materials and supplies||301||7||7||124||13||13|
|Acquisition of land, buildings and works||0||0||0||36||0||0|
|Acquisition of machinery and equipment||350||1||1||349||68||68|
|Other subsidies and payments||18||3||3||21||(5)||(5)|
|Total budgetary expenditures||256,648||37,876||37,876||215,252||21,126||21,126|
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