Library and Archives Canada: Quarterly Financial Report for the quarter ended September 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:

  • We will increase access to our collection and expand opportunities for the public to enhance LAC's holdings;
  • We will steward responsible growth of the collection and implement safeguards to preserve it for future generations;
  • 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 September 30 are $166.7 million in 2019–2020 and $127.2 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
September 30, 2019
For the quarter ended
September 30, 2018
Vote 1 Operating Expenditures 105,503,944 105,141,524
Vote 1 Revenue credited to the vote (550,000) (550,000)
Vote 5 Capital Expenditures 49,867,511 11,655,073
Statutory Spending of proceeds from the disposal of surplus Crown assets 4,638 12,555
Statutory Contributions to employee benefit plans 11,893,027 10,909,563
Total authorities   166,719,120 127,168,715
  • 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 September 30, 2019, and September 30, 2018.

The overall increase of $39.5 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 analog archival holdings in Gatineau; however, based on the progress of the project, payment is now planned for fiscal year 2022–2023;
  • 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 $63.2 million as of September 30, 2019, and $56.6 million as of September 30, 2018. The total increase of $6.6 million is mainly explained by the following:

  • An increase of $3.5 million ($44.4 million in 2019–2020 compared to $40.9 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 (lesbian, gay, bisexual and transgender) Purge Class Action Settlement, the processing of the private archives of the Right Honourable Stephen Harper, as well as collection preparations related to the construction of a new building for the preservation of analog archival holdings in Gatineau;
  • An increase of $2.0 million ($5.9 million in 2019–2020 compared to $3.9 million in 2018–2019) in expenditures for professional and special services for the construction of a new building for the preservation of analog archival holdings in Gatineau;
  • A net increase of $1.4 million in departmental expenditures related to the acquisition of equipment for the preservation of documentary heritage, as detailed below:
    • An increase of $0.9 million ($1.2 million in 2019–2020 compared to $0.3 million in 2018–2019) in expenditures related to the acquisition of machinery and equipment;
    • An increase of $0.5 million ($2.7 million in 2019–2020 compared to $2.2 million in 2018–2019) in expenditures related to rentals;
  • A net decrease of $0.5 million in departmental expenditures due to payments related to the management and maintenance of special-purpose buildings, as detailed below:
    • A decrease of $1.8 million ($4.4 million in 2019–2020 compared to $6.2 million in 2018–2019) in expenditures related to "Other subsidies and payments";
    • An increase of $1.3 million ($1.4 million in 2019–2020 compared to $0.1 million in 2018–2019) in expenditures related to the acquisition of land, buildings and works.

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

Effective August 2, 2019, Library and Archives Canada's Chief Information Officer, Surinder Komal has left the organization.

Effective August 30, 2019, Ms. Leslie Weir has been appointed as the Librarian and Archivist of Canada, following the end of the mandate of Mr. Guy Berthiaume.

There were no other significant changes regarding programs or activities in the organization during the second quarter, which ended on September 30, 2019.

Approval by Senior Officials

Leslie Weir
Librarian and Archivist of Canada
Library and Archives Canada
Gatineau, Canada
November 21, 2019

 

Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate
Services and Chief Financial Officer
Library and Archives Canada
Gatineau, Canada
November 21, 2019

Table 2: Statement of Authorities (unaudited)
(in dollars)
Authorities Fiscal year 2019–2020: Total available for use for the year ending March 31, 2020  table 2 note* Fiscal year 2019–2020: Used during the quarter ended September 30, 2019 Fiscal year 2019–2020: Year-to-date used at quarter end 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 September 30, 2018 Fiscal year 2018–2019: Year-to-date used at quarter end
Vote 1 - Operating Expenditures 104,953,944 27,283,323 53,652,261 104,591,524 26,042,910 49,926,891
Vote 5 - Capital Expenditures 49,867,511 3,165,988 3,583,868 11,655,073 932,754 1,252,251
Contributions to the employee benefit plans 11,893,027 2,973,257 5,946,514 10,909,563 2,727,391 5,454,782
Spending of proceeds from the disposal of surplus Crown assets 4,638 0 0 12,555 0 0
Total budgetary authorities 166,719,120 33,422,568 63,182,643 127,168,715 29,703,055 56,633,924
Non-budgetary authorities 0 0 0 0 0 0
Total authorities 166,719,120 33,422,568 63,182,643 127,168,715 29,703,055 56,633,924

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 September 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 September 30, 2018; and the total year to date used at quarter-end.

Table 3: Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)
Standard Object Fiscal year 2019–2020: Planned expenditures for the year ending March 31, 2020 Fiscal year 2019–2020: Expended during the quarter ended September 30, 2019 Fiscal year 2019–2020: Year to date used at quarter-end Fiscal year 2018–2019: Planned expenditures for the year ending March 31, 2019 Fiscal year 2018–2019: Expended during the quarter ended September 30, 2018 Fiscal year 2018–2019: Year to date used at quarter-end
Expenditures:
Personnel 90,863,305 22,707,572 44,352,580 82,683,004 20,697,932 40,877,623
Transportation and communications 875,661 276,811 598,264 1,452,666 262,774 529,978
Information 174,744 104,447 168,010 822,346 91,551 131,387
Professional and special services 51,946,483 3,349,856 5,882,525 16,743,757 2,878,440 3,877,107
Rentals 1,026,975 1,111,154 2,692,908 3,271,300 344,477 2,153,694
Repair and maintenance 5,702,302 183,800 256,895 6,047,209 202,085 215,865
Utilities, materials and supplies 2,068,124 528,056 973,075 2,470,338 974,783 1,122,972
Acquisition of land, buildings and works 5,727,540 1,364,772 1,375,618 3,622,234 39,501 95,719
Acquisition of machinery and equipment 1,164,780 1,184,198 1,209,396 3,134,520 170,274 263,892
Transfer payments 1,500,000 30,296 1,391,891 1,500,000 2,541 1,308,519
Other subsidies and payments 6,219,206 2,626,129 4,363,202 5,971,341 4,114,159 6,172,006
Total gross budgetary expenditures 167,269,120 33,467,091 63,264,364 127,718,715 29,778,517 56,748,762
Less revenues netted against expenditures:
Respendable revenue 550,000 44,523 81,721 550,000 75,462 114,838
Total Revenues netted against expenditures 550,000 44,523 81,721 550,000 75,462 114,838
Total net budgetary expenditures 166,719,120 33,422,568 63,182,643 127,168,715 29,703,055 56,633,924
  • 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 September 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 September 30, 2018; and the total year to date used at quarter-end.

Date modified: