Library and Archives Canada – Quarterly Financial Report

For the quarter ended December 31, 2016 (revised)

Table of contents

Errata

Date: December 31, 2016
Location: Statement of Authorities (unaudited), used during the quarter ended December 31,2016, Vote 1 ‐ Operating expenditures.
Revision: "Vote 1 ‐ Operating expenditures $19,693,998 thousands" replaces "Vote 1 – Operating expenditures $19,963,998 thousands".
Rationale for the revision: Original amount reported was not correct.

Date: December 31, 2016
Location: Departmental Budgetary Expenditures by Standard Object (unaudited), expended during the quarter ended December 31, 2015, Transportation and communications
Revision: "Transportation and communications $244,259 thousands" replaces "Transportation and communications $224,259 thousands".
Rationale for the revision: Original amount reported was not correct.

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 2016–2017 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 the spending authorities granted by Parliament and those used by LAC, consistent with the Main Estimates and Supplementary Estimates (A) and (B) for the 2016–2017 fiscal year. It 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 Statement of Authorities below, total authorities available for use as of December 31 are $122.3 million in 2016–2017, and $96.8 million in 2015–2016. The following table presents the detailed list of authorities by fiscal year :

Table 1: list of authorities by fiscal year

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, 2016, and December 31, 2015.

Authority
Vote/Statutory
Authority Code Description For the quarter ended
December 31, 2016
For the quarter ended
December 31, 2015
Vote 1 B110 Operating Expenditures (2016-2017) and
Program Expenditures (2015-2016)

100,261,830

88,650,479

Vote 1 B130 Revenue credited to the vote

(550,000)

(1,779,000)

Vote 5 (2016-2017) B140 Capital Expenditures

12,541,607

0

S A131 Spending of proceeds from the disposal of surplus Crown assets

30,123

55,149

S A140 Contributions to employee benefit plans

10,015,218

9,828,389

Total authorities    

122,298,778

96,755,017

The overall increase of $25.5 million results from the following:

  • An increase of $23.9 million further to a government decision to transfer permanent funds from Public Services and Procurement Canada (PSPC), so as to consolidate and transfer administration of our special-purpose storage facilities, while supporting our long-term infrastructure strategy. As of 2016–2017, LAC is responsible for costs associated with the management and maintenance of its special-purpose storage facilities, previously under the responsibility of PSPC;
  • An increase of $1.0 million in operating budget carry-forward and capital budget carry-forward;
  • An increase of $0.6 million concerning the Canadian Heritage transfer:
    • $0.4 million for the purposes of the Canada Music Fund, "Canadian Music Memories" component, to provide support for acquisitions, access and preservation of Canadian sound recordings;
    • $0.2 million for the exhibition of the founding documents in the Library of Parliament to mark Canada's 150th anniversary of Confederation.

In addition, revenue credited to the vote decreased by $1.2 million. This decrease was due to the fact that the 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 on residential schools under the custody and control of LAC) ended on March 31, 2016. The revenue credited to the vote authority had been granted to LAC to cover 2015–2016 expenditures.

2.2 Statement of departmental budgetary expenditures by standard object

As presented in the Statement of Departmental Budgetary Expenditures by Standard Object, the year-to-date expenditures total $77.2 million as of December 31, 2016, and $65.7 million as of December 31, 2015. The total increase of $11.5 million is mainly explained by:

An increase of $4.7 million ($5.0 million in 2016–2017 compared with $0.3 million in 2015–2016) in expenditures for "Repair and Maintenance" attributable to expenditures incurred for the management and maintenance of our special-purpose buildings, previously under the responsibility of PSPC.

An increase of $4.5 million ($4.8 million in 2016–2017 compared with $0.3 million in 2015–2016) in "Other Subsidies and Payments" expenditures, as a result of expenditures incurred for payments in lieu of taxes payable to PSPC for our special-purpose buildings, previously under the responsibility of PSPC.

An increase of $2.1 million ($5.6 million in 2016–2017, compared with $3.6 million in 2015–2016) in "Special and Professional Services" expenditures, as a result of expenditures incurred to plan and design a new facility for the preservation of and access to analogue archival material in Gatineau, Quebec.

3. Risks and uncertainties

LAC has formalized its practices and developed a corporate risk profile in order to identify strategic and corporate risks, evaluate their potential consequences and impacts, and develop measures to reduce these risks. In its risk profile, LAC targets four strategic risks that may have a direct impact on the fulfillment of its mandate. These risks, the description of their context, and the strategies put forth to mitigate them are presented in the section that follows.

Key Risks:

  1. Risk that Canadian documentary heritage of national interest is not acquired
    Given the ever-increasing quantity of information created via new technologies and the speed at which this information can disappear, LAC runs the risk of not acquiring all Canadian documentary heritage of national interest. The scope of its mandate is such that LAC may be unable to identify all the content that should be acquired.
  2. Risk that documentary heritage is not preserved
    LAC must ensure the integrity and long-term accessibility of the documentary resources acquired. The integrity of the material can be compromised by a variety of external risk factors, such as deterioration over time and with use, and the obsolescence of the technologies needed to consult a format that is outdated. The loss of technical expertise and the lack of space providing adequate storage conditions are considered internal risk factors.
  3. Risk that documentary heritage is not accessible
    Despite technological advances, much of LAC's collection is on paper or other analogue media. The time and effort needed to process the collection to make it discoverable and make it available online are such that LAC must target its efforts to quickly provide access to the material that is of greatest interest to its clients.
  4. Risk that Government of Canada institutions do not use regulatory instruments and recordkeeping tools developed by LAC
    The quantity of information created in the government on a daily basis poses a considerable challenge when it comes to identifying records that have business, legal or historical value. Proactive management of government information is therefore essential; it ensures the government's accountability and the best use of information.

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

4. Significant changes in relation to operations, personnel and programs

As stated in our 2016–2019 Three-Year Plan, to manage service delivery and enhance our public profile, we have established priorities focused on high-quality services provided by expert, professional staff and supported by networking partnerships:

  1. Library and Archives Canada is an institution fully dedicated to serving all its clients: government institutions, donors, academics, researchers, archivists, librarians, students, genealogists and the general public.
  2. Library and Archives Canada is an institution which, drawing on the strength of its staff, is at the leading edge of archival and library science and new technologies.
  3. Library and Archives Canada is an institution proactively engaged with national and international networks in an open and inclusive way.
  4. Library and Archives Canada is an institution with prominent public visibility that highlights the value of its collection and services.

Approval by Senior Officials

Original signed by:

________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, Canada
February 15, 2017

________________________________
Hervé Déry
Chief Financial Officer
Gatineau, Canada
February 15, 2017

Table 2: Statement of Authorities (unaudited)

(in dollars)

This table indicates dollar figures for authorities for the fiscal year 2016–2017, including the total available for use for the year ending March 31, 2017; the total used during the quarter ended December 31, 2016; and the total year to date used at quarter-end. Displayed are the dollar figures for fiscal year 2015–2016, including the total available for use for the year ending March 31, 2016; the total used during the quarter ended December 31, 2015; and the total year to date used at quarter-end.


Authorities

Fiscal year 2016–2017: Total available for use for the year ending
March 31, 2017 *

Fiscal year 2016–2017: Used during the quarter ended
December 31, 2016

Fiscal year 2016–2017: Year to date used at
quarter-end

Fiscal year 2015–2016: Total available for use for the year ending
March 31, 2016 *

Fiscal year 2015–2016:
Used during the quarter ended
December 31, 2015

Fiscal year 2015–2016:
Year to date used at
quarter-end

Vote 1 (2016–2017) – Operating Expenditures and Vote 1 (2015-2016) - Program Expenditures

99,711,830

19,693,998

66,164,030

86,871,479

20,418,385

58,377,664

Vote 5 (2016–2017) – Capital Expenditures

12,541,607

2,921,166

3,552,959

0

0

0

Contributions to the employee benefit plans

10,015,218

2,503,804

7,511,414

9,828,389

2,457,097

7,371,291

Spending of proceeds from the disposal of surplus Crown assets

30,123

15,000

15,000

55,149

0

0

Total budgetary authorities

122,298,778

25,133,968

77,243,403

96,755,017

22,875,482

65,748,955

Non-budgetary authorities

0

0

0

0

0

0

Total authorities

122,298,778

25,133,968

77,243,403

96,755,017

22,875,482

65,748,955

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

Table 3: 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 2016–2017; numbers are arranged by total planned expenditures for the year ending March 31, 2017; the total expended during the quarter ended December 31, 2016; 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 2015–2016; numbers are arranged by total planned expenditures for the year ending March 31, 2016; the total expended during the quarter ended December 31, 2015; and the total year to date used at quarter-end.

Fiscal year 2016–2017: Planned expenditures for the year ending
March 31, 2017

Fiscal year 2016–2017: Expended during the quarter ended
December 31, 2016

Fiscal year 2016–2017: Year to date used
at quarter-end

Fiscal year 2015–2016: Planned expenditures for the year ending
March 31, 2016

Fiscal year 2015–2016: Expended during the quarter ended
December 31, 2015

Fiscal year 2015–2016:  Year to date used
at quarter-end

Expenditures:

Personnel

68,243,232

19,097,675

56,065,551

68,330,703

19,248,355

57,386,232

Transportation and communications

1,221,545

302,816

739,587

1,756,624

244,259

642,979

Information

360,106

97,648

331,156

292,771

59,007

114,578

Professional and special services

28,487,526

3,523,474

5,630,669

15,516,845

1,556,915

3,570,772

Rentals

2,706,219

179,269

1,973,611

2,955,282

184,225

1,798,161

Repair and maintenance

12,569,266

2,731,233

5,039,775

1,756,624

221,252

342,229

Utilities, materials and supplies

1,260,356

270,028

620,335

3,248,050

413,315

628,278

Acquisition of land, buildings and works

0

0

0

830,000

0

0

Acquisition of machinery and equipment

445,855

562,668

836,790

3,513,247

259,281

825,029

Transfer payments

1,540,000

0

1,305,134

41,100

1,002,355

1,013,833

Other subsidies and payments

6,014,673

(1,596,606)

4,807,716

292,771

51,249

342,311

Total gross budgetary expenditures

122,848,778

25,168,206

77,350,326

98,534,017

23,240,213

66,664,401

Less Revenues netted against expenditures:

Respendable revenue

550,000

34,238

106,923

1,779,000

364,731

915,446

Total Revenues netted against expenditures

550,000

34,328

106,923

1,779,000

364,731

915,446

Total net budgetary expenditures

122,298,778

25,133,968

77,243,403

96,755,017

22,875,482

65,748,955

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