Western Economic Diversification Canada
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Western Economic Diversification Canada’s Quarterly Financial Report for the quarter ended June 30, 2016

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


Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates (A). It 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 has not been subject to an external audit or review.

Authority, Mandate and Program Activities

Western Economic Diversification Canada (WD) is mandated to “promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program and project development and implementation.”

The Report on Plans and Priorities and Main Estimates provide further information on WD’s authority, mandate and program activities.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates (A) for fiscal year 2016–17. 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.

The department uses the full accrual method of accounting to prepare and present its annual departmental 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 fiscal quarter and fiscal year to date (YTD) results

Total Authorities Available for Use and Planned Expenditures for the Year Ending March 31, 2017

Planned departmental spending is concentrated in transfer payments (80 percent) and personnel (14 percent). Combined, they account for 94 percent of total planned expenditures (refer to the fiscal year 2016-17 pie chart below).

The department experienced an overall increase in total funding available for use and planned expenditures to $196.5 million for fiscal year 2016-17, compared to $159.9 million for fiscal year 2015-16, as illustrated in the "Statement of Authorities" and "Departmental Budgetary Expenditures by Standard Object" tables. The net increase of $36.6 (19 percent) is due to:

  • An increase of $46.2 million related to funding for the Canada 150 Infrastructure Program;
  • A decrease of $5.2 million in funding related to the Thirty Meter Telescope;
  • A net decrease of $2.2 million in operating funding primarily related to the delivery of programs on behalf of Infrastructure Canada, and other minor operating adjustments;
  • A decrease of $1.2 million in funding related to the Rick Hansen Foundation; and
  • A decrease of $1.0 million related to the transfer of contribution funding from Agriculture and Agri-Food Canada to support the establishment of the Canadian Beef Centre of Excellence.

Text Version (Link 1): Planned Expenditures for Fiscal Year 2016-2017

(in thousands of dollars)

This pie chart breaks down planned expenditures for the fiscal year 2016–17 This pie chart breaks down planned expenditures for the fiscal year 2015–16

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Total Authorities Used and Expended for the Quarter Ended June 30, 2016

Total authorities used for the first quarter is concentrated in transfer payments (66 percent) and personnel (28 percent). Combined, they account for 94 percent of first quarter actual expenditures (refer to the fiscal year 2016–17 pie chart below). This spending pattern remains consistent when compared to the same period of fiscal year 2015–16, and it is expected to continue for the remainder of fiscal year 2016–17.

First quarter spending reflects an increase of $551 thousand (2 percent) in total authorities used and actual expenditures for fiscal year 2016–17 when compared to fiscal year 2015–16, as illustrated in the “Statement of Authorities” and “Departmental Budgetary Expenditures by Standard Object” tables. The net increase is due to:

  • an increase of $338 thousand due to timing differences in the processing of claims for reimbursement of various transfer payment programs;
  • an increase of $142 thousand of funding for the Canada 150 Infrastructure Program; and
  • a minor net increase of $71 thousand in personnel and other operating costs.

Text Version (Link 2): Actual Expenditures for Fiscal Year 2016-2017

(in thousands of dollars)

This pie chart breaks down actual expenditures for the quarter ended June 30, 2016 This pie chart breaks down actual expenditures for the quarter ended June 30, 2015

Risks and Uncertainties

The department is managing the allocation of resources for items announced in Budget 2016 within a well-defined framework of accountabilities, policies and procedures including a system of budgets, reporting and other internal controls to manage within available resources and Parliamentary authorities. WD also conducts an annual risk assessment exercise as part of its overall risk management approach. For 2016-17, no significant financial risks were identified or reported in the Corporate Risk Profile.

The department maintains its financial management processes and it will continue to strengthen them, such that budget management remains effective. This includes assessing the impact of project timing fluctuations and the process for forecasting multi-year funding requirements. The decision-making process facilitates the re-allocation of financial resources to higher priority initiatives.

Significant changes in relation to operations, personnel and programs

Dylan Jones was appointed the Deputy Minister of Western Economic Diversification effective June 20, 2016.

 


 

Approval by Senior Officials

Approved by:

Original signed by
 

 

Dylan Jones
Deputy Minister
Original signed by
 

 

Cathy McLean
Chief Financial Officer


 

Edmonton, Canada
Date: August 29, 2016
 
 


 


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Statement of Authorities (unaudited)

(in thousands of dollars) Fiscal year 2016–17
Total available for use for the year ending March 31, 2017* Used during the quarter ended June 30, 2016 Year to date used at quarter-end
Vote 1 – Operating expenditures 34,871 7,824 7,824
Vote 5 – Grants and contributions 157,533 17,409 17,409
Budgetary statutory authorities
Contributions to employee benefit plans 4,088 1,022 1,022
Total budgetary authorities 196,492 26,255 26,255

 

(in thousands of dollars) Fiscal year 2015–16
Total available for use for the year ending March 31, 2016* Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Vote 1 – Operating expenditures 36,995 7,727 7,727
Vote 5 – Grants and contributions 118,733 16,930 16,930
Budgetary statutory authorities
Contributions to employee benefit plans 4,184 1,046 1,046
Minister’s salary and motor car allowance 2 1 1
Total budgetary authorities 159,914 25,704 25,704

More information is available in the following table.

* 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 2016–17
Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Expenditures
Personnel 27,856 7,188 7,188
Transportation and communications 1,198 203 203
Information 319 12 12
Professional and special services 6,864 1,163 1,163
Rentals 1,602 53 53
Repair and maintenance 37 1 1
Utilities, materials and supplies 224 8 8
Acquisition of machinery and equipment 859 7 7
Transfer payments 157,533 17,409 17,409
Other subsidies and payments 211 211
Total budgetary expenditures 196,492 26,255 26,255

 

(in thousands of dollars) Fiscal year 2015–16
Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended June 30, 2015 Year to date used at quarter-end
Expenditures
Personnel 29,089 7,302 7,302
Transportation and communications 1,307 225 225
Information 380 48 48
Professional and special services 7,935 1,063 1,063
Rentals 1,611 56 56
Repair and maintenance 31
Utilities, materials and supplies 223 12 12
Acquisition of machinery and equipment 605 12 12
Transfer payments 118,733 16,930 16,930
Other subsidies and payments 56 56
Total budgetary expenditures 159,914 25,704 25,704