Quarterly Financial Report for the quarter ended December 31, 2018

Table of contents

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 2018–2019 Main Estimates and Supplementary Estimates (A).

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

1.1 Library and Archives Canada's mandate

Under the Library and Archives of Canada Act, LAC's mandate is as follows:

  • to preserve the documentary heritage of Canada for the benefit of present and future generations;
  • to serve as 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.

The Minister of Canadian Heritage is responsible for LAC.

In 2018–2019, LAC will continue to meet the four commitments in its 2016–2019 Three-Year Plan and set guidelines and directions for its 2019–2022 Three-Year Plan:

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

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) for the 2018–2019 fiscal year. This quarterly report has been prepared using a special-purpose financial reporting framework designed to meet financial information needs with respect to 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 results reporting process. However, the spending authorities voted by Parliament remain prepared on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year-to-date results

2.1 Statement of Authorities

As reflected in the Statement of Authorities below, total authorities available for use as of December 31 are $128.8 million in 2018–2019, and $130.8 million in 2017–2018. The following table presents the detailed list of authorities by fiscal year:

Table 1: list of authorities by fiscal year
Statement of Authorities (unaudited)
(in dollars)
Authority
Vote/Statutory
Description For the quarter ended
December 31, 2018
For the quarter ended
December 31, 2017
Vote 1 Operating Expenditures 105,576,844 106,501,739
Vote 1 Revenue credited to the vote (550,000) (550,000)
Vote 5 Capital Expenditures 12,827,066 14,397,864
Statutory Spending of proceeds from the disposal of surplus Crown assets 13,916 16,320
Statutory Contributions to employee benefit plans 10,945,156 10,406,462
Total authorities   128,812,982 130,772,385
  • Table 1 summary

    For each Authority (Vote/Statutory), this table indicates the description of vote or authority, and the dollar figure, for the quarters ended December 31, 2018, and December 31, 2017.

The net decrease of $2.0 million results mainly from the following:

  • A decrease of $3.8 million for salary adjustments following the ratification of collective agreements paid in 2017-2018;
  • A decrease of $3.7 million for the implementation of the Long-Term Real Property Plan;
  • A decrease of $0.6 million for the private records of the Right Honourable Stephen Harper;
  • An increase of $0.6 million for adjustments to the contributions to employee benefits plans;
  • An increase of $1.2 million for a new partnership between LAC and the Ottawa Public Library; and
  • An increase of $4.3 million for the preservation of Indigenous languages and cultures initiative.

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 $84.8 million as of December 31, 2018, and $90.0 million as of December 31, 2017. The net decrease of $5.2 million is mainly explained by the following:

  • A decrease of $1.9 million ($62.6 million in 2018–2019 compared with $64.5 million in 2017–2018) in expenditures for "Personnel" attributable to retroactive payments from previous years, paid in 2017-2018, following the ratification of collective agreements;
  • A net decrease of $3.3 million in departmental expenditures due to payments related to management and maintenance of special-purpose buildings as detailed below :
    • A decrease of $2.8 million ($0.4 million in 2018–2019 compared with $3.2 million in 2017–2018) in expenditures for "Repair and maintenance";
    • An increase of $1.7 million ($1.7 million in 2018–2019 compared with $0 million in 2017–2018) in expenditures for "Acquisition of land, buildings and works";
    • A decrease of $2.2 million ($5.9 million in 2018–2019 compared with $8.1 million in 2017–2018) in expenditures for "Other subsidies and payments".

    These variances are explained by the fact that most of the expenditures in 2017-2018 were incurred during the first three quarters, while those in 2018-2019 will be incurred in the last quarter.

3. Risks and uncertainties

LAC has developed a Corporate Risk Profile for the 2018–2021 period. This profile describes the organizational risks and strategic impacts that have been identified, as well as the means put in place to mitigate them. An annual review of each mitigation measure allows monitoring of these risks. The following section presents these risks and their context.

  1. LAC may not be able to adapt quickly enough to evolving technology, which could affect its ability to meet the needs of its users.
    • At a time when web users expect to find what they are looking for quickly and easily, their needs change as technology advances. LAC must take steps to provide the best customer experience possible. The risk lies mainly in the impact of technological changes, which are still unknown, and in LAC's ability to adapt quickly.
  2. LAC's digital processes may not be seamlessly integrated, which could affect its efficiency.
    • In addition to having to adapt to technological changes, LAC must ensure that the systems and technological solutions put in place to acquire, preserve, manage and make available digital content are sufficiently integrated and compatible with each other. Systems harmonization requires a comprehensive and integrated view of all digital processes as well as sound planning that takes into account the particularities of each operation.

In the course of implementing the Phoenix project (the government-wide pay system modernization project), LAC has maintained its procedures for resolving outstanding service requests as quickly as possible. To minimize the impact on employees, the multidisciplinary team in charge of the Phoenix issue at LAC—including specialists in pay, finance, human resources and staffing systems—is developing temporary solutions to correct the system's problems. New resources have been hired to handle the additional workload and resolve outstanding problems.

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

There were no significant changes regarding personnel, programs or activities in the organization during the third quarter, which ended on December 31, 2018.

Approval by Senior Officials

Original signed by:


Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, Canada
February 14, 2019


Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate
Services and Chief Financial Officer
Library and Archives Canada
Gatineau, Canada
February 14, 2019

Table 2: Statement of Authorities (unaudited)
(in dollars)

Authorities Fiscal year
2018-2019:

Total available
for use for the
year ending
March 31,
2019  table 2 note*
Fiscal year
2018-2019:

Used during the
quarter ended
December 31, 2018
Fiscal year
2018-2019:

Year to date
used at
quarter-end
Fiscal year
2018-2019:

Total available
for use for the
year ending
March 31,
2018  table 2 note**
Fiscal year
2018-2019:

Used during
the quarter
ended
December 31, 2017
Fiscal year
2018-2019:

Year to date
used at
quarter-end
Vote 1 - Operating Expenditures 105,026,844 23,051,818 72,978,709 105,951,739 25,050,675 79,975,659
Vote 5 - Capital Expenditures 12,827,066 2,365,276 3,617,527 14,397,864 821,774 2,272,589
Contributions to the employee benefit plans 10,945,156 2,727,391 8,182,173 10,406,462 2,579,824 7,739,474
Spending of proceeds from the disposal of surplus Crown assets 13,916 0 0 16,320 0 0
Total budgetary authorities 128,812,982 28,144,485 84,778,409 130,772,385 28,452,273 89,987,722
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 128,812,982 28,144,485 84,778,409 130,772,385 28,452,273 89,987,722
Table 2 Notes
Table 2 Note *

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

Return to table 2 note* referrer

Table 2 Note **

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

Return to table 2 note** referrer

  • Table 2 summary

    This table indicates dollar figures for authorities for the fiscal year 2018–2019, including the total available for use for the year ending March 31, 2019; the total used during the quarter ended December 31, 2018; and the total year to date used at quarter-end. Displayed are the dollar figures for fiscal year 2017–2018, including the total available for use for the year ending March 31, 2018; the total used during the quarter ended December 31, 2017; and the total year to date used at quarter-end.

Table 3: Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)
  Fiscal year
2018-2019:

Planned expenditures
for the year ending
March 31, 2019
Fiscal year
2018-2019:

Expended during
the quarter ended
December 31, 2018
Fiscal year
2018-2019:

Year to date used
at quarter-end
Fiscal year
2017-2018:

Planned expenditures
for the year ending
March 31, 2018
Fiscal year
2017-2018:

Expended during
the quarter ended
December 31,
2017
Fiscal year
2017-2018:

Year to date used
at quarter-end
Expenditures:
Personnel 83,331,883 21,740,540 62,618,163 83,089,323 21,061,963 64,480,886
Transportation and communications 1,452,666 376,337 906,315 959,270 295,692 679,718
Information 822,346 73,943 205,330 801,777 50,354 196,691
Professional and special services 16,743,757 3,029,571 6,906,678 17,610,366 3,592,266 6,379,883
Rentals 3,271,980 574,139 2,727,833 6,089,402 1,583,104 3,817,377
Repair and maintenance 6,047,209 203,867 419,732 13,796,378 378,438 3,190,212
Utilities, materials and supplies 2,471,019 708,464 1,831,436 765,846 1,360,494 1,686,826
Acquisition of land, buildings and works 4,616,261 1,555,045 1,650,764 0 0 0
Acquisition of machinery and equipment 3,134,520 231,004 494,896 779,478 187,756 476,940
Transfer payments 1,500,000 0 1,308,519 1,542,400 0 1,320,344
Other subsidies and payments 5,971,341 (290,279) 5,881,727 5,888,145 136,451 8,075,800
Total gross budgetary expenditures 129,362,982 28,202,631 84,951,393 131,322,385 28,646,518 90,304,677
Less Revenues netted against expenditures:
Respendable revenue 550,000 58,146 172,984 550,000 194,245 316,955
Total Revenues netted against expenditures 550,000 58,146 172,984 550,000 194,245 316,955
Total net budgetary expenditures 128,812,982 28,144,485 84,778,409 130,772,385 28,452,273 89,987,722
  • Table 3 summary

    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 2018-2019; numbers are arranged by total planned expenditures for the year ending March 31, 2019; the total expended during the quarter ended December 31, 2018; and the total year to date used at quarter-end.

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