Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 30 June 2011

Statement outlining results, risks, and significant changes in operations, personnel, and programs

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 and Supplementary 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 and Supplementary Estimates for the 2011–12 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 performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of quarterly and year-to-date results

There are minor changes to the authorities available for the year and to the authorities used for the quarter ended 30 June 2011.

Changes to authorities

As at 30 June 2011, total authorities available for the year are $200,000 lower than for the same quarter of the prior year reflecting technical adjustments.

In December 2007, the Office was appointed auditor of the International Labour Organization (ILO). The cost of this audit work is fully recoverable from the ILO. Given recent changes to the ILO audit mandate, the Office determined that the best option, from both administrative and funding perspectives, was to request re-spending authority for the amounts recovered. Effective 1 April 2011, Parliament granted the Office re-spending authority for these amounts, through its approval of Bill C-8 on 22 June 2011.

Changes to authorities used

Compared with the previous year, authorities used in the first quarter (ending 30 June 2011) increased by $2.5 million, mostly in personnel expenditures. This increase is due to timing issues related to when performance pay was paid.

Risks and uncertainties

New Auditor General

Although a full Executive Search began in June 2010, a new Auditor General has not yet been nominated.

New methodology development

Several significant changes in the accounting and audit environment have been introduced in the 2010–11 fiscal year, which requires the Office to update its audit methodologies and to invest in training staff. While the estimated cost of the Revised Audit Methodology (RAM) project remains unchanged, the completion date has been extended to 31 December 2012.

Budget 2011

The Office is undertaking a strategic operational review to identify opportunities for savings. We propose to present the results to the Parliamentary Advisory Panel for the Funding and Oversight of Officers of Parliament.

Significant changes in operations, personnel, and programs

Changes in key senior personnel

In May 2011, Deputy Auditor General John Wiersema was appointed to serve as Interim Auditor General until 30 November 2011 or until a new Auditor General is appointed.

Collective agreements

The Audit Professionals’ group represents approximately 275 auditors who were decertified from their union in November 2010. The Office is now working closely with a representative committee of unrepresented employees.

New Parliament

The Office is preparing briefing documents to provide timely information to new and returning parliamentarians regarding our role, mandate, and audit findings.

Approved by:




John Wiersema, FCA
Interim Auditor General




Lyn Sachs, FCA
Assistant Auditor General and
Chief Financial Officer

Ottawa, Canada
26 August 2011

 

OFFICE OF THE AUDITOR GENERAL OF CANADA
Quarterly Financial Report
For the quarter ended June 30, 2011

Statement of authorities (unaudited)

Fiscal year 2011–12 (in thousands of dollars)
  Total available for use for the year ended 31 March 2012 * Used during the quarter ended 30 June 2011 Year to date used at quarter-end
Vote 20 (Vote 15 in 2010–11)—Program expenditures 77,019 18,031 18,031
Less revenues netted against program expenditures (2,510) (10) (10)
Net Vote 20 (Vote 15 in 2010–11)—Program expenditures 74,509 18,021 18,021
Budgetary statutory authorities 10,439 2,610 2,610
Total Budgetary authorities 84,948 20,631 20,631
Non-budgetary authorities - - -
Total authorities 84,948 20,631 20,631

Statement of Authorities (unaudited) (continued)

Fiscal year 2010–11 (in thousands of dollars)
  Total available for use for the year ended 31 March 2011 * Used during the quarter ended 30 June 2010 Year to date used at quarter-end
Vote 20 (Vote 15 in 2010–11)—Program expenditures 75,764 15,676 15,676
Less revenues netted against program expenditures (660) (37) (37)
Net Vote 20 (Vote 15 in 2010–11)—Program expenditures 75,104 15,639 15,639
Budgetary statutory authorities 9,961 2,491 2,491
Total Budgetary authorities 85,065 18,130 18,130
Non-budgetary authorities - - -
Total authorities 85,065 18,130 18,130

* Includes only Authorities available for use and granted by Parliament at quarter-end.

OFFICE OF THE AUDITOR GENERAL OF CANADA
Quarterly Financial Report
For the quarter ended June 30, 2011

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2011–12 (in thousands of dollars)
  Planned expenditures for the year ending 31 March 2012 Expended during the quarter ended 30 June 2011 Year to date expended at quarter-end
Expenditures:
Personnel 69,305 17,729 17,729
Transportation and communications 6,304 1,088 1,088
Information 859 24 24
Professional and special services 8,415 1,135 1,135
Rentals 343 52 52
Repair and maintenance 687 553 553
Utilities, materials and supplies 687 46 46
Acquisition of machinery and equipment 343 10 10
Other subsidies and payments 515 4 4
Total gross budgetary expenditures 87,458 20,641 20,641
Less Revenues netted against expenditures:
Costs recovered from members of the Canadian Council of Legislative Auditors (CCOLA) and audits of the International Labour Organization1 (2,510) (10) (10)
Total net budgetary expenditures 84,948 20,631 20,631

Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 2010–11 (in thousands of dollars)
  Planned expenditures for the year ending 31 March 2011 Expended during the quarter ended 30 June 2010 Year to date expended at quarter-end
Expenditures:
Personnel 68,555 15,189 15,189
Transportation and communications 5,323 1,004 1,004
Information 859 102 102
Professional and special services 8,413 1,070 1,070
Rentals 343 49 49
Repair and maintenance 687 569 569
Utilities, materials and supplies 687 168 168
Acquisition of machinery and equipment 343 10 10
Other subsidies and payments 515 6 6
Total gross budgetary expenditures 85,725 18,167 18,167
Less Revenues netted against expenditures:
Costs recovered from members of the Canadian Council of Legislative Auditors (CCOLA) and audits of the International Labour Organization1 (660) (37) (37)
Total net budgetary expenditures 85,065 18,130 18,130

1 In the 2010–11 fiscal year the Office had approval to use only those costs recovered from members of CCOLA

 

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