Publication

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

1. 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 Accounting Standard 1.3. This report should be read in conjunction with the 2014-15 Main Estimates (and as applicable – Supplementary Estimates and previous quarterly reports for the current year) as well as Canada’s Economic Action Plan 2012 (Budget 2012).

The mandate of the Canadian Intergovernmental Conference Secretariat (CICS) is to support federal, provincial and territorial governments by planning, conducting, and the serving of senior level intergovernmental conferences held across Canada. The primary objective of CICS is to relieve client departments in virtually every major sector of intergovernmental activity of the numerous technical and administrative tasks associated with multilateral conferences, thereby enabling conference participants to concentrate on the substantive policy issues. CICS provides continuous, effective, impartial administrative services to these meetings.

This quarterly report has not been subject to an external audit or review.

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 2014-15 Main Estimates and Supplementary Estimates. This quarterly report has been prepared using a special purpose financial 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.

As part of the departmental performance reporting process, CICS prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year to date (YTD) results

2.1 Statement of Authorities

CICS’ authorities available for 2014-15 (lower by some $79 thousand from 2013-14) reflects the Secretariat’s total reduction for the authority measures announced in Budget 2012.

2.2 Statement of Department Budgetary Expenditures by Standard Object

Total budgetary expenditures recorded in the first quarter were some $222 thousand (20%) lower than in the first quarter, 2013-14.

The primary reason for the overall decrease in expenditures results from the absolute savings arising from Budget 2012, Efficiencies are being achieved through increased use of virtual and tele conferencing and leveraging of new information technologies to fulfill our mandate.

The increase of some $67,000 in other subsidies and payments from 2013-14 is primarily due to a one-time transition payment of $63,438 for implementing salary payment in arrears by the Government of Canada.

3. Risks and Uncertainties

Our program mandate is to provide administrative services for the planning and conduct of First Ministers, Ministers and Deputy Ministers level federal-provincial-territorial and provincial-territorial conferences. There has been and an increase in the number of conferences and meetings over the last three fiscal periods. If this trend continues, the Secretariat will have to limit the number of conferences for which it provides administrative support to keep expenditures within the current funding level.

Like many other departments and agencies, CICS is facing a critical demographic issue as we enter a phase where a significant number of our personnel are or will be eligible for retirement. Sustained efforts will be exerted to keep our employees for a reasonable period of time by creating an environment conducive to career development and job satisfaction.

4. Significant changes in relation to operations, personnel and program

In response to the evolving needs of clients, the Conference Services Division, as in the previous fiscal period, continues to transform its service delivery model to encompass video-conferencing and other new technologies.

5. Budget 2012 Implementation

This section provides an overview of the savings measures announced in Budget 2012 that was implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and to modernize and reduce the back office operations.

In 2014-15, the final year of Budget 2012 implementation, the Secretariat has achieved and will continue to achieve ongoing savings of approximately of $0.7 million. This has been, and will continue to be, accomplished through efficiency measures and program reductions that align resources to the core mandate, scaling back where the need is reduced; transforming operations internally; and by consolidating and streamlining.  With these changes the CICS will focus on supporting management excellence and accountability across government.

CICS has realigned its three year Strategic Plan with the Budget decisions and continues to develop and implement processes to support the necessary transformation of CICS. CICS has been striving to transform its corporate and service delivery model and recent events have emphasized the importance of continuing, even accelerating these efforts.

Approval by Senior Officials

The paper version was approved and signed by:


André M. McArdle
Secretary
Ottawa, Canada 

Date: August 18, 2014


Brian J. Berry, CPA, CMA
Assistant Secretary and Chief Financial Officer
Ottawa, Canada 

Date: August 18, 2014

Statement of Authorities (unaudited)

Fiscal year 2014-2015
(in dollars) Total available for use
for the year ending
March 31, 2015 *
Used during the
quarter ended
June 30, 2014
Year to date
used at
quarter-end
Vote 5 – Net Operating expenditures 5,548,958 798,301 798,301
Budgetary statutory authorities 408,205 102,051 102,051
Total Budgetary authorities 5,957,163 900,352 900,352
Total authorities 5,957,163 900,352 900,352
Fiscal year 2013-2014
(in dollars) Total available for use
for the year ending
March 31, 2014 *
Used during the
quarter ended
June 30, 2013
Year to date
used at
quarter-end
Vote 5 – Net Operating expenditures 5,597,587 1,013,058 1,013,058
Budgetary statutory authorities 437,917 109,479 109,479
Total Budgetary authorities 6,035,504 1,122,537 1,122,537
Total authorities 6,035,504 1,122,537 1,122,537

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2014-2015
(in dollars) Planned expenditures
for the year ending
March 31, 2015
Expended during
the quarter ended
June 30, 2014
Year to date
used  at
quarter-end
Expenditures:
Personnel 2,473,970 604,944 604,944
Transportation and communications 1,115,000 60,745 60,745
Information 45,000 0 0
Professional and special services 1,226,488 123,090 123,090
Rentals 410,000 40,840 40,840
Repair and maintenance 11,000 0 0
Utilities, materials and supplies 58,000 2,667 2,667
Acquisition of machinery and equipment 209,000 680 680
Other subsidies and payments 500 67,386 67,386
Total net budgetary expenditures 5,548,958 900,352 900,352
Fiscal year 2013-2014
(in dollars) Planned expenditures
for the year ending
March 31, 2014
Expended during
the quarter ended
June 30, 2013
Year to date
used at
quarter-end
Expenditures:
Personnel 2,954,684 706,488 706,488
Transportation and communications 767,000 130,225 130,225
Information 75,000 0 0
Professional and special services 1,460,000 165,569 165,569
Rentals 588,000 82,437 82,437
Repair and maintenance 20,000 711 711
Utilities, materials and supplies 100,000 13,861 13,861
Acquisition of machinery and equipment 70,000 23,165 23,165
Other subsidies and payments 820 81 81
Total net budgetary expenditures 6,035,504 1,122,537 1,122,537