Library and Archives Canada: Quarterly Financial Report for the quarter ended June 30, 2019

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 2019–2020 Main Estimates.

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 2019–2020, LAC begins implementing its new 2019–2022 three-year plan, developed following consultations with citizens, employees and partners.

Our strategic priorities for 2019–2022 are the following:

  1. We will increase access to our collection and expand opportunities for the public to enhance LAC's holdings;
  2. We will steward responsible growth of the collection and implement safeguards to preserve it for future generations;
  3. We will seek out and support collective solutions for a more cohesive and impactful documentary heritage community at home and abroad.

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 for the 2019–2020 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 June 30 are $159.3 million in 2019–2020 and $119.7 million in 2018–2019. The following table provides the detailed list of authorities by fiscal year:

Table 1: Statement of Authorities (unaudited)
(in dollars)
Authority
Vote/Statutory
Description For the quarter ended
June 30, 2019
For the quarter ended
June 30, 2018
Vote 1 Operating Expenditures 100,671,964 100,553,482
Vote 1 Revenue credited to the vote (550,000) (550,000)
Vote 5 Capital Expenditures 47,317,641 8,818,036
Statutory Spending of proceeds from the disposal of surplus Crown assets 3,712 11,873
Statutory Contributions to employee benefit plans 11,893,027 10,909,563
Total authorities   159,336,344 119,742,954
  • Text version: 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 June 30, 2019, and June 30, 2018.

The overall increase of $39.6 million results mainly from the following:

  • An increase of $34.2 million related mainly to the substantial completion payment for the construction of a new building for the preservation of analogue archival holdings in Gatineau;
  • An increase of $5.6 million related to the new partnership between Library and Archives Canada and Ottawa Public Library; and
  • A decrease of $0.5 million related to the 2018 federal budget fiscal dividend as well as the voluntary contribution for financial management transformation.

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 $29.8 million as of June 30, 2019, and $26.9 million as of June 30, 2018. The total increase of $2.9 million is mainly explained by the following:

  • An increase of $1.4 million ($21.6 million in 2019–2020 compared to $20.2 million in 2018–2019) in expenditures related to personnel, resulting from the hiring of staff to support initiatives already under way, such as the preservation of Indigenous languages and cultures, support for the Government of Canada's response to the LGBT Purge Class Action Settlement, as well as the processing of the private archives of the Right Honourable Stephen Harper; and
  • An increase of $1.5 million ($2.5 million in 2019–2020 compared to $1.0 million in 2018–2019) in expenditures for professional and special services for construction of a new building for the preservation of analogue archival holdings in Gatineau.

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.

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 first quarter, which ended on June 30, 2019.

Approval by Senior Officials

Original signed by:

Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, Canada
August 15, 2019

 

Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate
Services and Chief Financial Officer
Library and Archives Canada
Gatineau, Canada
August 15, 2019

Table 2: Statement of Authorities (unaudited)
(in dollars)
Authorities Fiscal year
2019-2020:

Total available
for use for the
year ending
 table 2 note*
Fiscal year
2019-2020:

Used during the
quarter ended
Fiscal year
2019-2020:

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

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

Used during
the quarter
ended
Fiscal year
2018-2019:

Year to date
used at
quarter-end
Vote 1 - Operating Expenditures 100,121,964 26,368,938 26,368,938 100,003,482 23,883,981 23,883,981
Vote 5 - Capital Expenditures 47,317,641 417,880 417,880 8,818,036 319,497 319,497
Contributions to the employee benefit plans 11,893,027 2,973,257 2,973,257 10,909,563 2,727,391 2,727,391
Spending of proceeds from the disposal of surplus Crown assets 3,712 0 0 11,873 0 0
Total budgetary authorities 159,336,344 29,760,075 29,760,075 119,742,954 26,930,869 26,930,869
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 159,336,344 29,760,075 29,760,075 119,742,954 26,930,869 26,930,869

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

  • Text version: Table 2 summary

    This table indicates dollar figures for authorities for the fiscal year 2019–2020, including the total available for use for the year ending March 31, 2020; the total used during the quarter ended June 30, 2019; and the total year to date used at quarter-end. Displayed are the dollar figures for fiscal year 2018–2019, including the total available for use for the year ending March 31, 2019; the total used during the quarter ended June 30, 2018; and the total year to date used at quarter-end.

Table 3: Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)
Fiscal year 2019-2020 Fiscal year 2018‑2019
Planned expenditures
for the year ending
Expended during
the quarter ended

Year to date used
at quarter-end

Planned expenditures
for the year ending

Expended during
the quarter ended
Year to date used
at quarter-end
Expenditures:
Personnel 89,625,231 21,645,008 21,645,008 82,683,004 20,179,691 20,179,691
Transportation and communications 823,798 321,453 321,453 1,238,309 267,204 267,204
Information 164,394 63,563 63,563 701,000 39,836 39,836
Professional and special services 46,648,692 2,532,669 2,532,669 11,854,632 998,667 998,667
Rentals 965,824 1,581,754 1,581,754 2,789,170 1,809,217 1,809,217
Repair and maintenance 5,364,568 73,095 73,095 5,154,878 13,780 13,780
Utilities, materials and supplies 1,945,308 445,019 445,019 2,106,398 148,189 148,189
Acquisition of land, buildings and works 5,533,530 10,846 10,846 3,622,234 56,218 56,218
Acquisition of machinery and equipment 1,095,793 25,198 25,198 2,671,988 93,618 93,618
Transfer payments 1,500,000 1,361,595 1,361,595 1,500,000 1,305,978 1,305,978
Other subsidies and payments 6,219,206 1,737,073 1,737,073 5,971,341 2,057,847 2,057,847
Total gross budgetary expenditures 159,886,344 29,797,273 29,797,273 120,292,954 26,970,245 26,970,245
Less Revenues netted against expenditures:
Respendable revenue 550,000 37,198 37,198 550,000 39,376 39,376
Total Revenues netted against expenditures 550,000 37,198 37,198 550,000 39,376 39,376
Total net budgetary expenditures 159,336,344 29,760,075 29,760,075 119,742,954 26,930,869 26,930,869
  • Text version: 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 2019–2020; numbers are arranged by total planned expenditures for the year ending March 31, 2020; the total expended during the quarter ended June 30, 2019; 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 2018–2019; numbers are arranged by total planned expenditures for the year ending March 31, 2019; the total expended during the quarter ended June 30, 2018; and the total year to date used at quarter-end.

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