Quarterly Financial Report for the Quarter Ended June 30, 2015

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 2015–2016 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

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) for the 2015–2016 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 June 30 are $93 million in 2015–2016, and $96 million in 2014–2015. 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 June 30, 2015 and June 30, 2014.

Authority
Vote/Statutory

Authority code

Description

For the quarter ended June 30, 2015

For the quarter ended June 30, 2014

Vote 1

B110

Program expenditures

84,962,100

86,981,409

Vote 1

B130

Revenue credited to the vote

-1,779,000

-550,000

S

A131

Spending of proceeds from the disposal of surplus Crown assets

34,753

133,879

S

A140

Contributions to employee benefit plans

9,828,389

9,433,379

Total authorities

 

 

93,046,242

95,998,667

The overall net decrease of $3 million in total available authorities for use between the two fiscal years is mainly due to the following:

  • An overall decrease of $3.7 million mainly resulting from:
    • a decrease of $3.1 million for the costs related to the conversion of a facility in Gatineau, Quebec to a collection storage facility with a high-density shelving system;
    • a decrease of $0.4 million related to the transfer from Canadian Heritage to LAC for the Canada Music Fund, the Canadian Music Memories Component, which supports the acquisition, accessibility and preservation of Canadian sound recordings. For the 2015–2016 fiscal year, the transfer will be carried out through the supplementary estimates.
  • An overall increase of $0.7 million mainly resulting from a compensation adjustment to fund increased salary expenditures related to collective agreements and employee benefit plans (statutory).

In addition, revenue credited to the vote increased by $1.2 million following the signature of 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 related to the residential schools under the custody and control of LAC. This revenue credited to the vote authority was granted to LAC in the third-quarter of 2014–2015, whereas in 2015–2016, the votes were received at the start of the year.

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 $21.3 million as of June 30, 2015, and $24.3 million as of June 30, 2014. The total decrease of $3 million is mainly explained by:

  • A decrease of $2.5 million ($0.2 million in 2015–2016 and $2.7 million in 2014–2015) in "Other Subsidies and Payments" expenditures, mainly due to the one-time transition payment for implementing salary payment in arrears by the Government of Canada.

  • A decrease of $0.6 million ($0.6 million in 2015–2016 and $1.2 million in 2014–2015) in "Professional and Special Services" expenditures, mainly resulting from the fact that:

    • In the 2014–2015 fiscal year, LAC used professional and temporary help services to digitize and relocate First World War records and to relocate the post-1945 service records of military personnel, and to support organizational priorities;
    • The cost recovery related to an interdepartmental memorandum of understanding between LAC and another government institution concerning security services was billed on June 30, 2015, while the costs related to this interdepartmental memorandum of understanding were not billed in the same quarter the year before.

  • An increase of $0.6 million ($1 million in 2015–2016 and $0.4 million in 2014–2015) in "Rentals" expenditures, mainly resulting from certain software costs and higher maintenance costs for LAC's workstation and server platforms that were incurred in the first quarter of 2015–2016, whereas they were incurred later in 2014–2015.

  • A decrease of $0.3 million in 2015–2016 in "Acquisition of Land, Buildings and Works" expenditures, mainly resulting from expenditures in 2014–2015 related to the development of digital spaces in a collection storage facility with a high-density shelving system.

3. Risks and Uncertainties

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

  • the risk that Canadian documentary heritage of national interest is not acquired;
  • the risk that documentary heritage is not preserved for future generations;
  • the risk that documentary heritage is not available to current and future generations;
  • the risk that Government of Canada institutions do not use regulatory instruments and recordkeeping tools developed by LAC.

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

The principal areas of operational risk identified 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

In recent years, LAC has pursued innovative efforts to better fulfill its mandate in the context of the digital environment. In the coming years, LAC will work to maximize the visibility and accessibility of its collection by offering services that meet the needs of its clients. The organizational priorities that form the basis of this report directly support the objectives in LAC's legislated mandate:

  1. acquire information resources that are representative of Canadian society;
  2. preserve documentary heritage in analogue and digital formats;
  3. offer quality services and programs to Canadians and provide access to as much content as possible using digital technologies;
  4. adopt a more collaborative approach to fulfill the mandate and support documentary heritage communities;
  5. develop the infrastructure and the skills needed to manage documentary heritage in the 21st century.

Approval by Senior Officials

Original signed by

____________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, Canada
August 26, 2015

Original signed by

____________________________________
Hervé Déry
Assistant Deputy Minister, Corporate Services, and Chief Financial Officer
Gatineau, Canada
August 25, 2015

 

 

[data]

Statement of Authorities (unaudited)

(in dollars)

 

Authorities

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

Fiscal year 2015–2016:
Used during the quarter ended
June 30, 2015

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

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

Fiscal year 2014–2015:
Used during the quarter ended June 30, 2014

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

Vote 1 Program expenditures

83,183,100

18,822,199

18,822,199

86,431,409

21,940,764

21,940,764

Contributions to the employee benefit plans

9,828,389

2,457,097

2,457,097

9,433,379

2,358,345

2,358,345

Spending of proceeds from the disposal of surplus Crown assets

34,753

0

0

133,879

0

0

Total Budgetary authorities

93,046,242

21,279,296

21,279,296

95,998,667

24,299,109

24,299,109

Non-budgetary authorities

0

0

0

0

0

0

Total authorities

93,046,242

21,279,296

21,279,296

95,998,667

24,299,109

24,299,109

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


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

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

Fiscal year 2015–2016:
Expended during the quarter ended
June 30, 2015

Fiscal year 2015–2016:
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
June 30, 2014

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

Expenditures:

Personnel

68,330,703

18,986,831

18,986,831

66,605,374

19,119,577

19,119,577

Transportation and communications

1,535,627

177,322

177,322

1,952,535

129,875

129,875

Information

255,938

25,996

25,996

301,659

4,659

4,659

Professional and special services

13,564,707

554,562

554,562

15,107,057

1,154,297

1,154,297

Rentals

2,576,755

1,013,175

1,013,175

4,417,190

383,734

383,734

Repair and maintenance

1,535,627

14,436

14,436

1,835,260

36,844

36,844

Utilities, materials and supplies

2,832,693

141,552

141,552

2,606,879

351,285

351,285

Acquisition of land, buildings and works

830,000

0

0

700,000

343,998

343,998

Acquisition of machinery and equipment

3,071,254

194,297

194,297

2,614,028

101,793

101,793

Transfer payments

36,000

0

0

36,000

0

0

Other subsidies and payments

255,938

210,760

210,760

372,685

2,709,527

2,709,527

Total gross Budgetary expenditures

94,825,242

21,318,931

21,318,931

96,548,667

24,335,589

24,335,589

Less Revenues netted against expenditures:

Respendable revenue

1,779,000

39,635

39,635

550,000

36,480

36,480

Total Revenues netted against expenditures:

1,779,000

39,635

39,635

550,000

36,480

36,480

Total net budgetary expenditures

93,046,242

21,279,296

21,279,296

95,998,667

24,299,109

24,299,109

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