Quarterly Financial Report: For the quarter ended December 31, 2023
Statement outlining results, risks and significant changes in operations, personnel and programs
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 Directive on Accounting Standards: GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2023-24 Main Estimates. This quarterly report has not been subject to an external audit or review.
Established by Order in Council P.C. 2018-1322, the Leaders' Debates Commission ("Commission") is mandated to:
- Select and establish a seven-member Advisory Board;
- Enter into a contract for the production of the debates;
- Ensure the debates are broadcast and distributed widely and free of charge;
- Ensure the debates reach as many Canadians as possible, including those living in remote areas, those living in official language minority communities and those living with disabilities;
- Engage with political parties and ensure that the criteria for participation of political parties in the debates be applied fairly and in full transparency;
- Engage with Canadians to raise awareness about debates;
- Ensure the debates are conducted under high journalistic standards; and
- Following the general election (and no later than five months after the day on which a general election is held), provide a report to Parliament outlining findings, lessons learned, and recommendations.
Amended by Order in Council P.C. 2020-0871 of November 5, 2020, the Leaders' Debates Commission is mandated to:
- Set participation criteria for the leaders' debates and ensure that the leader of each political party that meets those criteria is invited to participate in the debates and make them public;
- Endeavour to ensure that the leaders' debates are available in languages other than French and English, and, in doing so, pay special attention to Canada's Indigenous languages; and
- Provide final approval of the format and production of the leaders' debates, while respecting journalistic independence.
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 2023-24 Main Estimates. This quarterly report has been prepared using a special purpose financial reporting framework (cash basis) designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before money 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 Commission 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 Results
This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended December 31, 2023.
The Commission spent approximately 9% of its authorities by the end of the third quarter, compared to 43% at the end of the same quarter of 2022-23 (see graph 1 below).
Graph 1: Comparison of Total Authorities Available For Use and Total Net Budgetary Expenditures as of Q3 2023-24 and 2022-23
Significant changes to authorities
As per graph 2 below as at December 31, 2023 and Annex A, presented at the end of this document, the Commission has authorities available for use of $3.5 million in 2023-24 compared to $0.7 million as of December 31, 2022, for a net increase of $2.8 million or 400%. The net increase in authorities of $2.8 million is mainly due to the funding that is accessible to organize leader's debates should a federal general election be called.
Graph 2: Variance in Authorities as at December 31, 2023
Significant changes to quarter expenditures
Year-to-date expenditures recorded to the end of the third quarter decreased by $11,000, or 8% from the same period of the previous year (from $133,000 for 2022-23 to $121,000 for 2023-24). Table 1 below presents budgetary expenditures by standard object.
|
Material Variances to Expenditures by Standard Object (in thousands of dollars) |
Fiscal year 2023-24 Expended during the quarter ended 31-December-2023 |
Fiscal year 2022-23 Expended during the quarter ended 31-December-2022 |
Variance $ | Variance % |
|---|---|---|---|---|
| Personnel | 103 | 130 | (27) | (21%) |
| Transportation and communications | 1 | 1 | - | 0% |
| Information | 3 | 5 | (2) | (39%) |
| Professional and special services | 13 | (3) | 16 | (571%) |
| Rentals | - | 0 | - | 0% |
| Other subsidies and payments | 1 | (1) | 2 | (400%) |
| Total gross budgetary expenditures | 121 | 133 | (11) | (8%) |
* Details may not add to totals due to rounding
Personnel
The total decrease of $27,000 in personnel spending is mainly attributed to employee retroactive payments that were issued in the third quarter of 2022-23.
Professional and special services
The increase of $16,000 is mainly attributed to an increase in advisory services in fiscal year 2023-24.
Significant changes to year-to-date expenditures
The year-to-date expenditures totaled $344,000 for an increase of $22,000 (7%) when compared to $322,000 spent during the same period in 2022-23. Table 2 below presents budgetary expenditures by standard object.
|
Material Variances to Expenditures by Standard Object (in thousands of dollars) |
YTD Expenditures as of 31-December-2023 |
YTD Expenditures as of 31-December-2022 |
Variance $ | Variance % |
|---|---|---|---|---|
| Personnel | 307 | 299 | 8 | 3% |
| Transportation and communications | 3 | 2 | 1 | 45% |
| Information | 4 | 10 | (6) | (61%) |
| Professional and special services | 29 | 10 | 19 | 183% |
| Rentals | 1 | 0 | 1 | 0% |
| Other subsidies and payments | 1 | 1 | - | 0% |
| Total gross budgetary expenditures | 344 | 322 | 22 | 7% |
* Details may not add to totals due to rounding
Personnel
The total increase of $8,000 in personnel spending is mainly attributed to contributions to Employee Benefit Plans.
Information
The decrease of $6,000 in information is mainly attributed to reduced communications services in fiscal year 2023-24.
Professional and special services
The increase of $19,000 is mainly attributed to an increase in advisory services and translation in fiscal year 2023-24.
Risks and Uncertainties
The key risks for the Commission in its second full year of its amended second mandate are:
- Fund management and fiduciary oversight – poor management and oversight of funds could lead to the misuse of taxpayer dollars. The Commission has responded to this risk by ensuring that financial capacity for debate production is assessed, by benefiting from the expertise of an existing department for financial management, and by ensuring that principle of cost-effectiveness is applied to all Commission decisions on the fulfilment of its mandate.
Significant Changes in Relation to Operations, Personnel and Programs
There are no changes to report in relation to Operations, Personnel and Programs.
Approval by Senior Officials:
Original signed by
Michel Cormier
Executive Director & Chief Financial Officer
Ottawa, Canada
February 29, 2024
Annex A – Statement of Authorities (unaudited) (see notes)
| (in dollars) | Total available for use for the year ending March 31, 2024 | Used during the quarter ended December 31, 2023 | Year to date used at quarter-end |
|---|---|---|---|
| Vote 1 – Net Operating expenditures | 3,409,361 | 98,851 | 276,360 |
| Budgetary Statutory authorities | 90,389 | 22,597 | 67,792 |
| Total Budgetary authorities | 3,499,750 | 121,448 | 344,152 |
| Total authorities | 3,499,750 | 121,448 | 344,152 |
| (in dollars) | Total available for use for the year ending March 31, 2023 | Used during the quarter ended December 31, 2022 | Year to date used at quarter-end |
|---|---|---|---|
| Vote 1 – Net Operating expenditures | 656,332 | 124,945 | 297,647 |
| Budgetary Statutory authorities | 32,638 | 8,159 | 24,478 |
| Total Budgetary authorities | 688,970 | 133,104 | 322,125 |
| Total authorities | 688,970 | 133,104 | 322,125 |
Note 1: Includes authorities available for use and granted by Parliament at quarter-end for each respective fiscal year (including Frozen Allotments).
Note 2: Details may not add to totals due to rounding
Annex B – Departmental Budgetary Expenditures by Standard Object (unaudited) (see notes)
| (in dollars) | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended December 31, 2023 | Year to date used at quarter-end |
|---|---|---|---|
|
Expenditures: |
|||
| Personnel | 709,991 | 103,216 | 306,955 |
| Transportation and communications | 4,520 | 1,116 | 2,777 |
| Information | 1,940,642 | 3,263 | 3,713 |
| Professional and special services | 829,125 | 12,995 | 29,314 |
| Rentals | 5,442 | 350 | 706 |
| Utilities, materials and supplies | - | 9 | 188 |
| Other subsidies and payments | 10,030 | 500 | 500 |
| Total net budgetary expenditures | 3,499,750 | 121,448 | 344,152 |
| (in dollars) | Planned expenditures for the year ending March 31, 2023 | Expended during the quarter ended December 31, 2022 | Year to date used at quarter-end |
|---|---|---|---|
|
Expenditures: |
|||
| Personnel | 250,227 | 130,094 | 299,330 |
| Transportation and communications | 27 | 1,216 | 2,184 |
| Information | 23 | 5,137 | 9,763 |
| Professional and special services | 438,435 | (2,818) | 10,379 |
| Rentals | - | - | - |
| Utilities, materials and supplies | - | - | - |
| Other subsidies and payments | 258 | (525) | 470 |
| Total net budgetary expenditures | 688,970 | 133,104 | 322,125 |
Note 1: Includes authorities available for use and granted by Parliament at quarter-end for each respective fiscal year (including Frozen Allotments).
Note 2: Details may not add to totals due to rounding