Quarterly Financial Report: For the quarter ended December 31, 2021

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 2021-22 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 2021-22 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, 2021.

The Commission spent approximately 25% of its authorities available for use by the end of the third quarter, compared to 4% at the end of the same quarter of 2020-21 (see graph 1 below).

Graph 1: Comparison of Total Authorities Available For Use and Total Net Budgetary Expenditures as of Q3 2021-22 and 2020-21

Significant changes to authorities

As per graph 2 below as at December 31, 2021 and Annex A, presented at the end of this document, the Commission has authorities available for use of $4.8 million in 2021-22 compared to $5.7 million as of December 31, 2020, for a net decrease of $0.9 million or 16%.

Graph 2: Variance in Authorities as at December 31, 2021

Significant changes to quarter expenditures

The third quarter expenditures totaled $884K for a net increase of $714K when compared to $170K spent during the same period in 2020-21. Table 1 below presents budgetary expenditures by standard object.

Table 1
Material Variances to Expenditures by Standard Object (in thousands of dollars)	Fiscal year 2021-22 Expended during the quarter ended 31-December-2021	Fiscal year 2020-21 Expended during the quarter ended 31-December-2020	Variance $	Variance %
Personnel	138	77	61	80%
Transportation and communications	2	-	2	0%
Information	721	-	721	0%
Professional and special services	17	93	(76)	(82%)
Rentals	5	-	5	0%
Other subsidies and payments	2	1	1	125%
Total gross budgetary expenditures	884	170	714	420%

* Details may not add to totals due to rounding

Personnel:
The increase of $61K in personnel spending is mainly due to the 44th federal general election being called on Sunday, August 15, 2021 for Monday, September 20, 2021.

Information:
The increase of $721K is mainly attributed to the 44th federal general election being called on Sunday, August 15, 2021 for Monday, September 20, 2021.

Professional and special services:
The decrease of $76K is mainly attributed to the timing of payment for invoices related to other professional services, which were received in the last quarter in fiscal year 2021-22.

Significant changes to year-to-date expenditures
The year-to-date expenditures totaled $1.2 million for a net increase of $1.0 million when compared to $0.2 million spent during the same period in 2020-21. Table 2 below presents budgetary expenditures by standard object.

Table 2
Material Variances to Expenditures by Standard Object (in thousands of dollars)	YTD Expenditures as of 31-December-2021	YTD Expenditures as of 31-December-2020	Variance $	Variance %
Personnel	446	77	369	482%
Transportation and communications	2	-	2	0%
Information	721	-	721	0%
Professional and special services	26	93	(67)	(72%)
Rentals	5	-	5	0%
Other subsidies and payments	2	1	1	125%
Total gross budgetary expenditures	1,201	170	1,031	606%

* Details may not add to totals due to rounding

Personnel:
The increase of $369K in personnel spending is mainly due to the 44th federal general election being called on Sunday, August 15, 2021 for Monday, September 20, 2021.

Information:
The increase of $721K is mainly attributed to the 44th federal general election being called on Sunday, August 15, 2021 for Monday, September 20, 2021.

Professional and special services:
The decrease of $67K is mainly attributed to the timing of payment for invoices related to other professional services, which were received in the last quarter in fiscal year 2021-22.

Risks and Uncertainties

The key risks for the Commission in its first full year of its second amended mandate are:

Implementation – the Commission may be challenged to execute its work in the time available prior to the 44th general election. The Commission has responded to this risk by working with existing departments for the provision of back office support (e.g., administration, finance, legal, procurement, security, and information technology) to allow the Commission to benefit from the targeted expertise of an existing department for specific services.
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

As this is the first full year of operation of the Commission's amended second mandate, there are no changes to report in relation to Operation, Personnel and Programs. The Commission has established its organizational and governance structure to support the delivery of its mandate.

Approval by Senior Officials:

Original signed by

David Johnston
Debates Commissioner
Ottawa, Canada
Date: March 1, 2022