Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 30 September 2018

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 30 September 2018

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 2018–19 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 have increased as a result of additional funding received at the end of the quarter.

Bar chart showing the authorities available and used as at 30 September
Figure 1—text version

Authorities available and used as at 30 September
(in millions of dollars)

AvailableNote * Used
2018–19 87.8 40.0
2017–18 81.2 40.1
Bar chart showing authorities used in the quarter ended 30 September
Figure 2—text version

Authorities used in the quarter ended 30 September
(in millions of dollars)

  • 2018–19: 19.7
  • 2017–18: 19.6

Risks and uncertainties

Our funding base is insufficient to address the increasing audit and service cost pressures the Office is facing. At the end of this quarter, additional ongoing funding of $7.7 million was approved. This increase is not sufficient to address our needs. We continue to review our resource allocations to ensure that we can produce all required audits as efficiently as possible in the near term, and we are considering options for the longer term.

Significant changes in operations, personnel, and program

Consistent with recently approved changes in the core public administration, the Office approved a revised salary structure for the Management Group. The revised salary structure, covering the period from 1 April 2014 to 1 April 2017, took effect on 9 July 2018.

Approved by:

[Original signed by]

Michael Ferguson, Chartered Professional AccountantCPA, Chartered AccountantCA
Fellow Chartered Professional AccountantFCPA, Fellow Chartered AccountantFCA (New Brunswick)
Auditor General of Canada

[Original signed by]

Sylvain Ricard, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General and
Chief Financial Officer

Ottawa, Canada
29 November 2018

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

Fiscal year 2018–19 Fiscal year 2017–18
Total available for use for the year ending 31 March 2019Footnote * Used during the quarter ended 30 September 2018 Year to date used at quarter-end Total available for use for the year ended 31 March 2018Footnote * Used during the quarter ended 30 September 2017 Year to date used at quarter-end
Vote 1—Program expenditures 80,458 17,621 35,765 74,468 17,529 35,786
Less revenues netted against program expenditures (2,660) (248) (360) (2,660) (227) (333)
Net Vote 1—Program expenditures 77,798 17,373 35,405 71,808 17,302 35,453
Budgetary statutory authorities 9,957 2,299 4,598 9,421 2,308 4,616
Total budgetary authorities 87,755 19,672 40,003 81,229 19,610 40,069
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 87,755 19,672 40,003 81,229 19,610 40,069

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

Fiscal year 2018–19 Fiscal year 2017–18
Planned expenditures for the year ending 31 March 2019 Expended during the quarter ended 30 September 2018 Year to date expended at quarter-end Planned expenditures for the year ended 31 March 2018 Expended during the quarter ended 30 September 2017 Year to date expended at quarter-end
Expenditures:
Personnel
 76,035 16,966 34,528 72,708 16,607 33,852
Transportation and communications
 4,034 697 1,588 3,296 645 1,737
Information
 722 143 317 532 137 297
Professional and special services
 6,752 1,757 2,765 5,038 1,999 3,279
Rentals
 1,385 110 845 1,034 158 880
Repair and maintenance
 341 41 57 242 29 33
Utilities, materials and supplies
 270 42 68 268 53 87
Acquisition of machinery and equipment
 844 157 186 752 204 230
Other subsidies and payments
 32 7 9 19 5 7
Total gross budgetary expenditures
 90,415 19,920 40,363 83,889 19,837 40,402
Less revenues netted against expenditures:
Costs recovered
Members of the Canadian Council of Legislative Auditors (CCOLA)
 (660) (36) (148) (660) (13) (119)
International audit
 (2,000) (212) (212) (2,000) (214) (214)
Total cost recovered
 (2,660) (248) (360) (2,660) (227) (333)
Total net budgetary expenditures 87,755 19,672 40,003 81,229 19,610 40,069