Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs
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 2020–2021 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 the 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.
LAC’s activities align with two strategic priorities: service transformation and digital optimization.
To reach more users and provide them with the best possible experience, LAC is working to transform its services and virtual access to the collection. Users expect to find what they are looking for quickly, and to have a user-friendly, dynamic and interactive online experience, and this is what LAC aims to deliver by making the most of what digital technology has to offer.
As LAC begins transforming its services to better disseminate its collection’s content, it must also prepare by optimizing its digital infrastructure and its ability to acquire, manage and preserve the constantly growing digital content transferred to it by Canadian content producers (federal government institutions, publishers and other creators) and the content generated through digitization.
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 2020–2021 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, 2020, are $136.6 million compared to $159.3 million as of June 30, 2019. The following table provides the detailed list of authorities by fiscal year, as per the Main Estimates:
Table 1 : Statement of Authorities (unaudited)
|Authority Vote/Statutory||Description||For the quarter ended June 30, 2020||For the quarter ended June 30, 2019|
|Vote 1||Operating Expenditures||103,886,627||100,671,964|
|Vote 1||Revenue credited to the vote||(550,000)||(550,000)|
|Vote 5||Capital Expenditures||21,753,850||47,317,641|
|Statutory||Spending of proceeds from the disposal of surplus Crown assets||-||3,712|
|Statutory||Contributions to employee benefit plans||11,521,626||11,893,027|
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, 2020, and June 30, 2019.
Note: Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall. As of June 30, 2020, LAC has received $105.3 million of the supply mentioned above. LAC is expected to receive full supply for the 2020–2021 Main Estimates in December 2020.
The overall decrease of $22.7 million results mainly from the following:
- A decrease of $23.4 million mainly for the substantial completion payment for the construction of a new building for the preservation of analog archival holdings in Gatineau. However, with this payment now being projected for fiscal year 2022–2023, a realignment of the funding will take place to align authorities with the new spending plan;
- A decrease of $2.3 million in funding for the revitalization of Indigenous languages and culture initiative;
- A decrease of $0.4 million related to the private records of the Right Honourable Stephen Harper;
- A decrease of $0.3 million for Budget 2018 – Fiscal Dividend;
- An increase of $1.9 million for the partnership between Library and Archives Canada, the Ottawa Public Library and the City of Ottawa for a joint facility; and
- An increase of $1.8 million for negotiated salary adjustments.
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 totalled $28.3 million as of June 30, 2020, compared to $29.8 million as of June 30, 2019. The total decrease of $1.5 million is mainly explained by the following:
- A net decrease of $2.1 million in the following departmental expenditures, mainly related to the construction of a new building for the preservation of analog archival holdings in Gatineau, and to the management and maintenance of special-purpose buildings, as detailed below:
- A decrease of $1.0 million in expenditures for professional and special services;
- A decrease of $0.7 million in expenditures related to “Other subsidies and payments,” mainly for payments in lieu of taxes; and
- A decrease of $0.4 million in expenditures related to utilities, materials and supplies.
- An increase of $0.7 million in expenditures related to personnel, due to the hiring of staff to support initiatives already under way (such as the private records of the Right Honourable Stephen Harper, collection preparations for the construction of a new building for the preservation of analog archival holdings in Gatineau, the partnership between Library and Archives Canada, the Ottawa Public Library and the City of Ottawa for a joint facility, and various class actions); and
- A net decrease of $0.1 million between the first quarter of fiscal year 2020–2021 and the first quarter of fiscal year 2019–2020 due to other minor variances in other departmental budgetary expenditures within the organization.
3. Risks and uncertainties
The following section presents LAC’s key risks:
- Using its existing systems, LAC may not be able to acquire, manage and sustainably preserve the exponential volume of digital content it acquires and digitizes and that is transferred to it. To mitigate this risk, LAC must definitely optimize the systems, infrastructure, processes and tools that underpin its digital operations. The testing and deployment of LAC’s Digital Asset Management System (DAMS) and the development of the project to renew its archival information system will partially mitigate the effects of this risk, by contributing to the improvement of its capacity and the interoperability of its digital infrastructure.
- Virtual access to LAC’s collection may not meet the expectations of current users and may not help it to attract more users. Developing LAC’s digital infrastructure, digitizing the collection, making it available and developing user-friendly digital tools are essential to facilitate access to the collection. To mitigate this risk, LAC will update its user-centric service delivery strategy. In addition, it will develop an integrated management approach for its virtual tools and services.
- LAC may not have sufficient capability to meet its legal obligations regarding access to the archival records of federal institutions and to personal information. LAC’s responsibilities in this area go well beyond those of other departments, since LAC is the custodian of billions of pages of documents that it holds on behalf of more than 200 Government of Canada (GC) organizations. LAC will continue to participate in GC efforts to identify government-wide solutions to the challenges presented by the current delivery model. However, in view of the increasing volume and complexity of access requests subject to the Access to Information Act and the Privacy Act, LAC will need to find solutions so that it can acquire the necessary digital tools and provide the required services in accordance with service standards. The development of a more efficient digital service delivery model will partially mitigate the effects of this risk.
Due to the COVID-19 pandemic and the uncertainty related to its evolution, LAC may not be able to offer certain programs and services in an optimal and continuous manner. Faced with this uncertainty, LAC is closely monitoring the situation and applying federal and provincial government directives and public health advice to plan for the gradual and safe reopening of its points of service for in-person access across the country. LAC’s priority is to provide its visitors, employees and volunteers with a safe and welcoming environment. This context leads LAC to innovate and transform its service offering even more, to make the collection available online.
4. Significant changes in relation to operations, personnel and programs
As of May 4, 2020, Ms. Julie Charbonneau, CPA, CA, was appointed to the position of Director General of Financial Services, Procurement, and Deputy Chief Financial Officer.
There were no other significant changes in the organization’s activities and programs during the first quarter, which ended on June 30, 2020.
Approval by Senior Officials
Original signed by:
Librarian and Archivist of Canada
Library and Archives Canada
Gatineau, Quebec, Canada
July 30, 2020
Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate Services and Chief Financial Officer
Library and Archives Canada
Gatineau, Quebec, Canada
July 30, 2020
Table 2: Statement of Authorities (unaudited)
|Authorities||Fiscal year 2020-2021 : Total available for use for the year ending March 31, 2021Footnote **||Fiscal year 2020-2021 : Used during the quarter ended June 30, 2020||Fiscal year 2020-2021 : Year to date used at quarter-end||Fiscal year 2019-2020 : Total available for use for the year ending March 31, 2020Footnote *||Fiscal year 2019-2020 : Used during the quarter ended June 30, 2019||Fiscal year 2019-2020 : Year to date used at quarter-end|
|Vote 1— Operating Expenditures||103,336,627||25,044,288||25,044,288||100,121,964||26,368,938||26,368,938|
|Vote 5— Capital Expenditures||21,753,850||423,269||423,269||47,317,641||417,880||417,880|
|Contributions to the employee benefit plans||11,521,626||2,880,407||2,880,407||11,893,027||2,973,257||2,973,257|
|Spending of proceeds from the disposal of surplus Crown assets||0||0||0||3,712||0||0|
|Total budgetary authorities||136,612,103||28,347,964||28,347,964||159,336,344||29,760,075||29,760,075|
Text version: Table 2 summary
This table indicates dollar figures for authorities for the fiscal year 2020-2021, including the total available for use for the year ending March 31, 2021; the total used during the quarter ended June 30, 2020; and the total year to date used at quarter-end. Displayed are the dollar figures for 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.
Table 3: Departmental Budgetary Expenditures by Standard Object (unaudited)
|Expenditures:||Fiscal year 2020-2021 : Planned expenditures for the year ending March 31, 2021||Fiscal year 2020-2021 :Expended during the quarter ended June 30, 2020||Fiscal year 2020-2021 :Year to date used at quarter-end||Fiscal year 2019-2020 : Planned expenditures for the year ending March 31, 2020||Fiscal year 2019-2020 : Expended during the quarter ended June 30, 2019||Fiscal year 2019-2020 : Year to date used at quarter-end|
|Transportation and communications||444,974||28,790||28,790||823,798||321,453||321,453|
|Professional and special services||13,580,148||1,490,036||1,490,036||46,648,692||2,532,669||2,532,669|
|Repair and maintenance||949,038||32,122||32,122||5,364,568||73,095||73,095|
|Utilities, materials and supplies||4,601,962||70,954||70,954||1,945,308||445,019||445,019|
|Acquisition of land, buildings and works||16,936,385||73,428||73,428||5,533,530||10,846||10,846|
|Acquisition of machinery and equipment||1,026,010||168||168||1,095,793||25,198||25,198|
|Other subsidies and payments||7,422,090||1,018,858||1,018,858||6,219,206||1,737,073||1,737,073|
|Total gross budgetary expenditures||137,162,103||28,348,987||28,348,987||159,886,344||29,797,273||29,797,273|
|Less Revenues netted against expenditures:|
|Total Revenues netted against expenditures||136,612,103||28,347,964||28,347,964||550,000||37,198||37,198|
|Total net budgetary expenditures||136,612,103||28,347,964||28,347,964||159,336,344||29,760,075||29,760,075|
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 2020–2021; numbers are arranged by total planned expenditures for the year ending March 31, 2021; the total expended during the quarter ended June 30, 2020; 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 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.