Publication

Quarterly Financial Report For the Quarter Ended December 31, 2014

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 providing conference support services for the planning and conduct 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 are higher by $202 thousand than in 2013-14. The increase results from the operating budget carry forward of some $280 thousand, offset by the reduction for the authority measures announced in Budget 2012. There was no operating budget carry forward requested for 2013-14.

2.2 Statement of Department Budgetary Expenditures by Standard Object

Total budgetary expenditures to December 31, 2014 are some $204 thousand or 5% lower than those recorded for the nine months ended December 31, 2013.

This decrease results from lower personnel, transportation and communication costs. These three represent 89% of the total expenditures for the first three quarters of 2014-15.

The decrease in personnel costs results from timing differences in hiring new staff to replace retired personnel and to fill vacancies. It is anticipated that these differences will be eliminated during 2015-16 as new staff are hired during the current fiscal period. Decreases in transportation and communication costs reflect the increase in the number of teleconferences over 2013-14 resulting in reduced costs associated with travel and accommodations for personnel, interpreters and translators.

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 an increase in the number of conferences and meetings over the last three fiscal periods.

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.

In response to the evolving needs of clients, the Conference Services Division transformed its service delivery model to encompass video-conferencing and other new technologies. A realignment of functions and tasks resulted in the need for a review and update of job descriptions which resulted in an upward classification from AS 02 to the AS 03 level for five Conference Assistant (Procurement and Technical Services) positions.

5. Budget 2012 Implementation

This section provides an overview of the savings measures announced in Budget 2012 that were 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

STATEMENT OF AUTHORITIES (unaudited)

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

** Total available for use does not reflect measures announced in Budget 2012.

Departmental budgetary expenditures by Standard Object (unaudited)

*Planned expenditures do not reflect measures announced in Budget 2012.