Quarterly Financial Report: For the quarter ended September 30, 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.

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 September 30, 2023.

The Commission spent approximately 6% of its authorities by the end of the second quarter, compared to 29% at the end of the same quarter of 2022-23 (see graph 1 below).

Significant changes to authorities

As per graph 2 below as at September 30, 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 September 30, 2022, for a net increase of $2.8 million. The net increase in authorities of $2.8 million is mainly due to the funding that is accessible to organize leaders' debates should a federal general election be called.

*Details may not add to totals due to rounding

Significant changes to quarter expenditures

Year-to-date expenditures recorded to the end of the second quarter increased by $21,000, or 22% from the same period of the previous year (from $94,000 for 2022-23 to $115,000 for 2023-24). Table 1 below presents budgetary expenditures by standard object.

* Details may not add to totals due to rounding

Personnel

The total increase of $15,000 in personnel spending is mainly attributed to an increase to contributions to Employee Benefit Plans.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $223,000 for an increase of $34,000 (18%) when compared to $189,000 spent during the same period in 2022-23. Table 2 below presents budgetary expenditures by standard object.

* Details may not add to totals due to rounding

Personnel

The total increase of $35,000 in personnel spending is mainly attributed to an increase to contributions to Employee Benefit Plans.

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 Operation, Personnel and Programs.

Approval by Senior Officials:

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

Fiscal Year 2023-24

(in dollars)	Total available for use for the year ending March 31, 2024	Used during the quarter ended September 30, 2023	Year to date used at quarter-end
Vote 1 – Net Operating expenditures	3,384,425	92,742	177,509
Budgetary Statutory authorities	90,389	22,597	45,195
Total Budgetary authorities	3,474,814	115,339	222,704
Total authorities	3,474,814	115,339	222,704

Fiscal Year 2022-23

(in dollars)	Total available for use for the year ending March 31, 2023	Used during the quarter ended September 30, 2022	Year to date used at quarter-end
Vote 1 – Net Operating expenditures	656,332	85,945	172,702
Budgetary Statutory authorities	32,638	8,159	16,319
Total Budgetary authorities	688,970	94,105	189,021
Total authorities	688,970	94,105	189,021

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 2023-24

(in dollars)	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended September 30, 2023	Year to date used at quarter-end
Expenditures:
Personnel	685,055	103,038	203,739
Transportation and communications	4,520	854	1,661
Information	1,940,642	38	450
Professional and special services	829,125	11,007	16,319
Rentals	5,442	356	356
Utilities, materials and supplies	-	47	179
Other subsidies and payments	10,030	-	-
Total net budgetary expenditures	3,474,814	115,339	222,704

Fiscal Year 2022-23

(in dollars)	Planned expenditures for the year ending March 31, 2023	Expended during the quarter ended September 30, 2022	Year to date used at quarter-end
Expenditures:
Personnel	250,227	87,748	169,236
Transportation and communications	27	28	968
Information	23	2,306	4,626
Professional and special services	438,435	3,029	13,196
Rentals	-	-	-
Repair and maintenance	-	-	-
Utilities, materials and supplies	-	-	-
Acquisition of machinery and equipment	-	-	-
Other subsidies and payments	258	995	995
Total net budgetary expenditures	688,970	94,105	189,021

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