Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 31 December 2019

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 31 December 2019

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 2019–20 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

The authorities used increased as a result of the growing workforce, the economic salary increases, and the revised salary structure that was announced in the first quarter of the 2019–20 fiscal year. The revised salary structure involved converting from a broadband to a lock-step structure to simplify the pay process.

Bar chart showing authorities available and used as at December 31
Figure 1—text version

Authorities available and used as at December 31
(in millions of dollars)

Authorities available and used as at December 31 (in millions of dollars)
AvailableNote * Year to date used
2019–20 91.2 63.4
2018–19 90.7 59.3
Bar chart showing authorities used in the quarter ended December 31
Figure 2—text version

Authorities used in the quarter ended December 31
(in millions of dollars)

  • 2019–20: 22.9
  • 2018–19: 19.3

Risks and uncertainties

The key risk for the OAG is its ability to effectively acquire, develop, and use new technologies and methodologies to keep pace with the changing audit environment. Managing this risk means that the OAG must invest in its information technology security and architecture, including the modernization of audit tools and emerging technologies. Accordingly, the OAG has had to reduce the number of performance audits that it conducts.

Significant changes in operations, personnel, and program

There were no significant changes in operations, personnel, and program during the third quarter of the 2019–20 fiscal year.

Approved by:

[Original signed by]

Sylvain Ricard, Chartered Professional AccountantCPA, Chartered AccountantCA
Interim Auditor General of Canada

[Original signed by]

Lucie Cardinal, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General
and Chief Financial Officer

Ottawa, Canada
28 February 2020

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

Statement of authorities (unaudited) (in thousands of dollars)
Fiscal year 2019–20 Fiscal year 2018–19
Total available for use for the year ending 31 March 2020Footnote * Used during the quarter ended 31 December 2019 Year to date used at quarter-end Total available for use for the year ended 31 March 2019Footnote * Used during the quarter ended 31 December 2018 Year to date used at quarter-end
Vote 1—Program expenditures 83,733 21,079 57,151 83,365 17,040 52,805
Less revenues netted against program expenditures (2,660) (710) (1,366) (2,660) (11) (371)
Net Vote 1—Program expenditures 81,073 20,369 55,785 80,705 17,029 52,434
Budgetary statutory authorities 10,154 2,538 7,615 9,957 2,299 6,897
Total budgetary authorities 91,227 22,907 63,400 90,662 19,328 59,331
Non-budgetary authorities
Total authorities 91,227 22,907 63,400 90,662 19,328 59,331

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

Departmental budgetary expenditures by standard object (unaudited) (in thousands of dollars)
Fiscal year 2019–20 Fiscal year 2018–19
Planned expenditures for the year ending 31 March 2020 Expended during the quarter ended 31 December 2019 Year to date expended at quarter-end Planned expenditures for the year ended 31 March 2019 Expended during the quarter ended 31 December 2018 Year to date expended at quarter-end
Expenditures:
Personnel
79,507 20,478 55,514 78,942 16,940 51,468
Transportation and communications
3,837 1,007 2,982 4,034 810 2,398
Information
651 272 494 722 130 447
Professional and special services
6,367 1,562 4,051 6,752 1,012 3,777
Rentals
1,654 159 1,056 1,385 135 980
Repair and maintenance
298 26 100 341 25 82
Utilities, materials and supplies
307 44 125 270 51 119
Acquisition of machinery and equipment
1,232 60 426 844 236 422
Other subsidies and payments
34 9 18 32 9
Total gross budgetary expenditures
93,887 23,617 64,766 93,322 19,339 59,702
Less revenues netted against expenditures:
Costs recovered
Members of the Canadian Council of Legislative Auditors (CCOLA)
(660) (41) (164) (660) (11) (159)
International audit
(2,000) (669) (1,202) (2,000) (212)
Total cost recovered
(2,660) (710) (1,366) (2,660) (11) (371)
Total net budgetary expenditures 91,227 22,907 63,400 90,662 19,328 59,331