Quarterly Financial Report for the Quarter Ended December 31, 2014

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

1. Introduction

This quarterly report has been prepared by Library and Archives Canada (LAC) as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. This quarterly report should be read in conjunction with the 2014–2015 Main Estimates and Supplementary Estimates (A) and (B).

This quarterly report has not been subject to an independent audit or review.

1.1 Library and Archives Canada's Mandate

Library and Archives Canada is a departmental agency within the Canadian Heritage Portfolio. Created in 2004 under the Library and Archives of Canada Act, its mandate is as follows:

  • to preserve the documentary heritage of Canada for the benefit of present and future generations;
  • to be a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society;
  • to facilitate in Canada co-operation among communities involved in the acquisition, preservation, and diffusion of knowledge; and
  • to serve as the continuing memory of the Government of Canada and its institutions.

1.2 Basis of Presentation

This quarterly report has been prepared by LAC using an expenditure basis of accounting. The accompanying Statement of Authorities includes LAC's spending authorities granted by Parliament and those used by LAC, consistent with the Main Estimates and Supplementary Estimates (A) and (B) for the 2014–2015 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs regarding the use of spending authorities.

The authority of Parliament is required before monies 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.

LAC 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 are still prepared on an expenditure basis.

2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

2.1 Statement of Authorities

As reflected in the attached Statement of Authorities, total authorities available for use as of December 31 are $101.1 million in 2014–2015, and $104.4 million in 2013–2014. The following table presents the detailed list of authorities by fiscal year:

Statement of Authorities (unaudited)
(in dollars)

For each Authority Vote/Statutory, this table indicates the authority code, description of vote or authority, and the dollar figure, for the quarters ended December 31, 2014, and December 31, 2013.

Authority Vote/Statutory

Authority code

Description

For the quarter ended December 31, 2014

For the quarter ended December 31, 2013

Vote 1 (2014–2015) and Vote 55 (2013–2014)

B110

Program expenditures (2014–2015) and operating expenditures (2013–2014)

93,543,100

90,632,056

Vote 1 (2014–2015) and Vote 55 (2013–2014)

B130

Revenue credited to the vote

-2,337,500

-550,000

Vote 1 (2014–2015) and Vote 60 (2013–2014)

B140

Capital expenditures

0

3,943,615

S

A131

Spending of proceeds from the disposal of surplus Crown assets

145,173

229,274

S

A140

Contributions to employee benefit plans

9,718,879

10,177,677

Total authorities

 

 

101,069,652

104,432,622

The change by authority code between the two fiscal years is attributable to the following:

  • An increase of $1.8 million in revenues credited to the vote, required following the signature of an interdepartmental memorandum of understanding between LAC and Aboriginal Affairs and Northern Development Canada aimed at providing the Truth and Reconciliation Commission of Canada with all government records under the custody and control of LAC related to the Residential Schools Resolution.
  • A decrease of $3.9 million in capital expenditures in connection with the conversion of a facility in Gatineau, Quebec, to a collection storage facility with a high-density shelving system.

The overall net decrease of $3.3 million in total available authorities for use between the two fiscal years in the enclosed Statement of Authorities is mainly due to the following:

  • An overall decrease of $6.7 million resulting from:
    • a decrease of $3.0 million due to savings identified as part of the Budget 2012 spending review;
    • a decrease of $2.6 million for the conversion of a facility in Gatineau, Quebec, to a collection storage facility with a high-density shelving system;
    • a decrease of $0.7 million due to the operating budget carry forward and the capital budget carry forward;
    • a decrease of $0.4 million following the transfer to Shared Services Canada as part of the Workplace Technology Devices Initiative.
  • An overall increase of $3.4 million resulting from:
    • an increase of $1.9 million from Public Works and Government Services Canada as a result of Library and Archives Canada program space consolidation and rationalization efforts;
    • an increase of $0.8 million for compensation adjustments to fund increased salary expenditures related to collective agreements and employee benefit plans (statutory);
    • an increase of $0.7 million from Public Works and Government Services Canada for reimbursement as a result of a reduction in accommodation requirements.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As presented in the attached Statement of Departmental Budgetary Expenditures by Standard Object, the year-to-date expenditures total $73.5 million as of December 31, 2014, and $62.7 million as of December 31, 2013. The total increase of $10.8 million is explained mainly by:

An increase of $2.9 million ($6.9 million in 2014–2015 and $4.0 million in 2013–2014) in expenditures for "Professional and Special Services," which is mainly due to increased expenditures for professional services and temporary help for services to digitize and move First World War records and relocate post-1945 military service personnel files, as well as to support organizational priorities.

An increase of $2.6 million ($57.6 million in 2014–2015, and $55.0 million in 2013–2014) of "Personnel" expenditures, which is explained mainly by:

  • an increase in salary expenditures following the hiring of temporary personnel to support organizational priorities;
  • an increase in salary expenditures in light of the fact that the recovery of costs associated with interdepartmental memoranda of understanding between LAC and other government institutions related to accession, reference and disposition services are lower than those recovered last year;
  • a decrease in salary expenditures paid out in severance pay to LAC employees following the ratification of new collective agreements.

An increase of $2.6 million ($3.3 million in 2014–2015 and $0.7 million in 2013–2014) in expenditures for "Other Subsidies and Payments" is mainly due to the one-time transition payment for implementing salary payment in arrears by the Government of Canada.

An increase of $0.9 million ($1.2 million in 2014–2015 et $0.3 million in 2013–2014) in expenditures for "Repairs and Maintenance," which is mainly explained by the expenditures related to the development of digital spaces in the facility in Gatineau, Quebec, a collection storage facility with a high-density shelving system, as well as to the improvement of its facilities.

An increase of $0.6 million ($0.7 million in 2014–2015 and $0.1 million in 2013–2014) in expenditures for "Acquisition of Land, Buildings and Works," which is mainly explained by the expenditures related to the development of digital spaces in the facility in Gatineau, Quebec, a collection storage facility with a high-density shelving system. 

An increase of $0.5 million ($1.3 million in 2014–2015 and $0.8 million in 2013–2014) in expenditures for "Acquisition of Machinery and Equipment," resulting mainly from the acquisition of a research engine to facilitate access to LAC's documentary heritage.

3. Risks and Uncertainties

LAC has identified four strategic risks that may have an impact on achieving its legislative mandate:

  • That essential documentary heritage will not be acquired;
  • That documentary heritage will not be preserved for future generations;
  • That documentary heritage will not be available to Canadians; and
  • That Government of Canada information resources will not be managed properly.

The strategic risks translate into corporate risks that may have an impact on LAC's operations. They are identified and assessed by LAC's senior officials and managers. They must be reviewed in-depth every three years and validated every year for relevance.

The principal areas of operational risk identified in 2014 include digital preservation, online access, the description of the collection and technology management. LAC's strategy for mitigating these risks includes a number of concrete initiatives specific to each risk.

4. Significant Changes in Relation to Operations, Personnel and Programs

Over the past few years, LAC has taken advantage of the innovations created by the rapid growth in digital technologies to refocus its mandate, clarify how it wants to fulfill it and identify the best means and strategies for doing so.

LAC has developed policy frameworks for its operations and will continue its innovation efforts to consolidate its approach and provide even more tangible results for Canadians.

LAC is focused on the commitments set out in the 2014–2015 Report on Plans and Priorities. Therefore, LAC's activities are centred on the following priorities:

  1. acquire documentary resources representative of Canadian society;
  2. improve the preservation of documentary heritage in digital and analogue formats;
  3. provide quality service to Canadians and maximize access to LAC's holdings using digital technologies;
  4. adopt a more collaborative approach with documentary heritage communities to fulfill LAC's mandate;
  5. develop the infrastructure and the strategies needed to manage documentary heritage in the 21st century.

5. Budget 2012 Implementation

This section provides an overview of the cost-saving measures announced in Budget 2012. The total cost-saving measures for LAC were $3.5 million in 2012–2013, $6.6 million in 2013–2014, and $9.6 million in 2014–2015 and subsequent years. These measures were implemented to refocus the government and its programs, make it easier for Canadians and businesses to deal with their government, and modernize and streamline administrative services.

Budget for acquisitions: The $0.4 million dedicated budget to purchase documents and special collections was eliminated. In future, these purchases will be made within LAC's usual acquisition process using available resources.

National Archival Development Program (NADP): The NADP was terminated under Budget 2012 and some wind-down costs were incurred in 2012–2013.

Reduced spending related to five other LAC programs as a result of Budget 2012 impacts salaries as a result of workforce reduction.

Approval by Senior Officials


Signed by G. Berthiaume

____________________________________
Guy Berthiaume
Librarian and Archivist of Canada
February 23, 2015

Signed by H. Déry

____________________________________
Hervé Déry
Assistant Deputy Minister, Corporate Services, and Chief Financial Officer
February 23, 2015

Statement of Authorities (unaudited)
(in dollars)

This table indicates dollar figures for authorities for the fiscal year 2014–2015, including the total available for use for the year ending March 31, 2015; the total used during the quarter ended December 31, 2014; and the total year to date used at quarter-end. Displayed are the dollar figures for fiscal year 2013–2014, including the total available for use for the year ending March 31, 2014; the total used during the quarter ended December 31, 2013; and the total year to date used at quarter-end.

Authorities

Fiscal year 2014–2015: Total available for use for the year ending March 31, 2015 *  

Fiscal year 2014–2015: Used during the quarter ended December 31, 2014

Fiscal year 2014–2015: Year to date used at quarter-end

Fiscal year 2013–2014:
Total available for use for the year ending March 31, 2014 *

Fiscal year 2013–2014:
Used during the quarter ended December 31, 2013

Fiscal year 2013–2014:
Year to date used at quarter-end

Vote 1 (2014–2015) – Program expenditures and Vote 55 (2013–2014) – Operating Expenditures

91,205,600

23,137,798

66,386,524

90,082,056

20,075,426

54,622,773

Vote 1 (2014–2015) and Vote 60 (2013–2014) - Capital expenditures

0

0

0

3,943,615

369,858

414,903

Contributions to employee benefit plans

9,718,879

2,358,345

7,075,034

10,177,677

2,545,900

7,633,258

Spending of proceeds from the disposal of surplus Crown assets

145,173

0

0

229,274

0

0

Total budgetary authorities

101,069,652

25,496,143

73,461,558

104,432,622

22,991,184

62,670,934

Non-budgetary authorities

0

0

0

0

0

0

Total authorities

101,069,652

25,496,143

73,461,558

104,432,622

22,991,184

62,670,934

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

[a]

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)

This table indicates departmental budgetary expenditures. Displayed are the dollar figures for expenditures by standard object; total gross budgetary expenditures; total gross budgetary expenditures less revenues netted against expenditures; and total net budgetary expenditures for fiscal year 2014–2015; numbers are arranged by total planned expenditures for the year ending March 31, 2015; the total expended during the quarter ended December 31, 2014; and the total year to date used at quarter-end. Displayed are the dollar figures for expenditures by standard object; total gross budgetary expenditures; total gross budgetary expenditures less revenues netted against expenditures; and total net budgetary expenditures for fiscal year 2013–2014; numbers are arranged by total planned expenditures for the year ending March 31, 2014; the total expended during the quarter ended December 31, 2013; and the total year to date used at quarter-end.

Fiscal year 2014–2015: Planned expenditures for the year ending March 31, 2015

Fiscal year 2014–2015: Expended during the quarter ended December 31, 2014

Fiscal year 2014–2015: Year to date used at quarter-end

Fiscal year 2013–2014: Planned expenditures for the year ending March 31, 2014

Fiscal year 2013–2014: Expended during the quarter ended December 31, 2013

Fiscal year 2013–2014: Year to date used at quarter-end

Expenditures:

Personnel

68,508,693

19,723,845

57,562,839

69,243,967

19,570,168

54,928,550

Transportation and communications

2,240,399

342,325

765,556

1,713,481

189,294

410,463

Information

346,132

25,241

54,684

427,252

20,721

41,674

Professional and special services

17,694,299

4,036,899

6,856,838

15,627,720

1,722,788

4,020,726

Rentals

5,064,196

119,935

892,073

4,185,172

69,892

812,316

Repair and maintenance

2,105,834

517,019

1,154,726

2,642,104

149,399

287,577

Utilities, materials and supplies

2,986,992

377,101

1,031,829

2,507,833

327,647

726,795

Acquisition of land, buildings and works

997,562

0

656,700

3,943,615

58,292

58,292

Acquisition of machinery and equipment

2,999,415

429,209

1,274,781

4,462,615

406,435

788,674

Transfer payments

36,000

11,073

11,073

36,000

10,650

36,766

Other subsidies and payments

427,630

-51,856

3,301,979

192,863

521,509

726,586

Total gross budgetary expenditures

103,407,152

25,530,791

73,563,078

104,982,622

23,046,795

62,838,419

Less revenues netted against expenditures:

Respendable revenue

2,337,500

34,648

101,520

550,000

55,611

167,485

Total revenues netted against expenditures:

2,337,500

34,648

101,520

550,000

55,611

167,485

Total net budgetary expenditures

101,069,652

25,496,143

73,461,558

104,432,622

22,991,184

62,670,934

[text version]

Date modified: