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Quarterly Financial Report: For the quarter ended December 31, 2022

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 2022-23 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 2022-23 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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, 2022.

The Commission spent approximately 43% of its authorities by the end of the third quarter, compared to 25% at the end of the same quarter of 2021-22 (see graph 1 below).

Graph 1: Comparison of Total Authorities Available For Use and Total Net Budgetary Expenditures as of Q3 2022-23 and 2021-22

Significant changes to authorities

As per graph 2 below as at December 31, 2022 and Annex A, presented at the end of this document, the Commission has authorities available for use of $0.7 million in 2022-23 compared to $4.8 million as of December 31, 2021, for a net decrease of $4.1 million or 85%. The net decrease in authorities of $4.1 million is mainly explained by the 44th federal general election during the 2021-22 fiscal year.

Graph 2: Variance in Authorities as at December 31, 2022

*Details may not add to totals due to rounding

Significant changes to quarter expenditures

Year-to-date expenditures recorded to the end of the third quarter decreased by $753,000, or 85% from the same period of the previous year (from $884,000 for 2021-22 to $133,000 for 2022-23). Table 1 below presents budgetary expenditures by standard object.

Table 1

Material Variances to Expenditures by Standard Object

(in thousands of dollars)

Fiscal year 2022-23
Expended during the quarter ended 31-December-2022
Fiscal year 2021-22
Expended during the quarter ended 31-December-2021
Variance $ Variance %
Personnel 130 138 (8) (6%)
Transportation and communications 1 2 (1) (48%)
Information 5 721 (716) (99%)
Professional and special services (3) 17 (20) (118%)
Rentals 0 5 (5) (98%)
Other subsidies and payments (1) 2 (3) (188%)
Total gross budgetary expenditures 133 884 (753) (85%)

* Details may not add to totals due to rounding

Personnel

The total decrease of $8,000 in personnel spending is mainly attributed to a reduced secretariat in 2022-23.

Information

The decrease of $716,000 is mainly attributed to the to the 44th federal general election during the 2021-22 fiscal year.

Professional and special services

The decrease of $20,000 is mainly attributed to the 44th federal general election during the 2021-22 fiscal year.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $322K for a decrease of $879K (73%) when compared to $1,201K spent during the same period in 2021-22. 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-2022
YTD Expenditures
as of 31-December-2021
Variance $ Variance %
Personnel 299 446 (147) (33%)
Transportation and communications 2 2 - 0%
Information 10 721 (711) (99%)
Professional and special services 10 26 (16) (61%)
Rentals 0 5 (5) (98%)
Other subsidies and payments 1 2 (1) (63%)
Total gross budgetary expenditures 322 1,201 (879) (73%)

* Details may not add to totals due to rounding

Personnel

The total decrease of $147,000 in personnel spending is mainly attributed to a reduced secretariat in 2022-23.

Information

The decrease of $711,000 is mainly attributed to the 44th federal general election during the 2021-22 fiscal year.

Professional and special services

The decrease of $16,000 is mainly attributed to the 44th federal general election during the 2021-22 fiscal year.

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

As this is the second 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, 2023

Original signed by

Michel Cormier
Executive Director & Chief Financial Officer
Ottawa, Canada
March 1, 2023

Annex A – Statement of Authorities (unaudited) (see notes)

Fiscal Year 2022-23
(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
Fiscal Year 2021-22
(in dollars) Total available for use for the year ending March 31, 2022 Used during the quarter ended December 31, 2021 Year to date used at quarter-end
Vote 1 – Net Operating expenditures 4,695,655 849,347 1,096,657
Budgetary Statutory authorities 139,370 34,843 104,528
Total Budgetary authorities 4,835,025 844,190 1,201,184
Total authorities 4,835,025 844,190 1,201,184

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)

Fiscal Year 2022-23
(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
Other subsidies and payments 258 (525) 470
Total net budgetary expenditures 688,970 133,104 322,125
Fiscal Year 2021-22
(in dollars) Planned expenditures for the year ending March 31, 2022 Expended during the quarter ended December 31, 2021 Year to date used at quarter-end

Expenditures:

Personnel 1,081,061 137,756 445,531
Transportation and communications 107,684 2,124 2,125
Information 2,201,814 720,596 720,596
Professional and special services 1,380,145 16,922 26,140
Rentals - 5,143 5,143
Utilities, materials and supplies 923 - -
Other subsidies and payments 63,398 1,650 1,650
Total net budgetary expenditures 4,835,025 884,190 1,201,184

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

Date modified: February 10, 2023