Quarterly Financial Report: Quarter ended December 31, 2019
Table of contents
1. Introduction
This Quarterly Financial Report should be read in conjunction with the Main Estimates for fiscal year 2019-20. It has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board Policy on Financial Management.
This report has not been subject to an external audit or review.
1.1 Authority, Mandate and Departmental Results
Crown-Indigenous Relations and Northern Affairs supports Indigenous Peoples (First Nations, Inuit and Métis) and Northerners in their efforts to:
- Improve social well-being and economic prosperity;
- Develop healthier, more sustainable communities; and
- Participate more fully in Canada's political, social and economic development – to the benefit of all Canadians.
The responsibility for CIRNA is shared between the Minister of Crown-Indigenous Relations and the Minister of Northern Affairs.
Further details on CIRNA's authority, mandate and department results can be found in Part II of the Main Estimates and the Departmental Plan.
1.2 Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates for the 2019-20 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 money 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.
The Department uses the full accrual accounting method 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 on an expenditure basis.
2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results
The Department of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), which was a continuation of the previously established Department of Indian Affairs and Northern Development, was operating under the Department of Indian and Northern Affairs Act. Budget Implementation Act 2019 No.1 C-97 repealed the Department of Indian and Northern Affairs Act and Indigenous Northern Affairs Canada ceased to exist as of July 14, 2019. The Budget Implementation Act also established a new department under the Crown-Indigenous Relations and Northern Affairs Act called the Department of Crown-Indigenous Relations and Northern Affairs (CIRNA). The restructuring of CIRNAC to CIRNA was considered a dissolution of one department and a creation of a new department. Given that CIRNA is a new department established on July 15, 2019, no comparison data is available from the previous fiscal year.
On November 20, 2019, it was confirmed that the honourable Carolyn Bennett would continue as Minister of Crown-Indigenous Relations. In addition, the honourable Daniel Vandal assumed the position of Minister of Northern Affairs.
Since the last quarter, CIRNA's overall authorities increased by $89.5 million. During this quarter, Supplementary Estimates A was approved in the amount of $274.2 million, providing new funding of $151.0 million for initiatives such as the renewal of 25 self-governing Indigenous fiscal transfer arrangements, as well as funding to advance reconciliation on Aboriginal rights and fisheries issues with Atlantic and British Columbia First Nations, and the Labrador Innu. Supplementary Estimates A also included $123.2 million in re-profiled funding from the previous fiscal year. The increase attributed to Supplementary Estimates A was offset by a number of adjustments to the department's authority, including adjustments related to the restructuring of CIRNAC to CIRNA.
3. Risks and Uncertainties
The Department maintains a corporate risk inventory to identify and address organizational risks. Mitigation strategies have been put in place to protect CIRNA from exposure to these risks and the associated financial impacts.
In addition, there is a risk that there are insufficient controls and coordination in place in the management of common funding agreements between CIRNA and the Department of Indigenous Services. To mitigate this risk, budget and expenditure trends, particularly for programs with common funding, are monitored closely on a regular basis including formal quarterly reviews that are presented to senior management.
The creation of two new departments with shared activities has increased the number of transactions between CIRNA and the Department of Indigenous Services where the Department of Indigenous Services' regions are administrating CIRNA programs on their behalf. There is a risk that expenses are not recorded under the proper department. To address this risk, CIRNA is monitoring all accounts to ensure expenses are recorded properly and that any issues are addressed either by month-end or by year-end.
4. Significant changes in relation to Operations, Personnel and Programs
There were no significant changes in relation to Operations, Personnel and Programs.
5. Approval by Senior Officials
Approved, as required by the Treasury Board Policy on Financial Management:
_________________________
Annie Boudreau, CPA, CA
Chief Finances, Results and Delivery Officer, Crown-Indigenous Relations and Northern Affairs
Date: _______________
City: Gatineau (Canada)
_________________________
Daniel Watson
Deputy Minister, Crown-Indigenous Relations and Northern Affairs
Date: _______________
City: Gatineau (Canada)
| Total available for use for the year ending March 31, 2020 | Used during the quarter ended December 31, 2019 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 - Operating expenditures | 3,210,047 | 94,628 | 258,560 |
| Vote 5 - Capital expenditures | 7,842 | 835 | 1,958 |
| Vote 10 - Grants and contributions | 2,819,005 | 483,689 | 1,091,282 |
| Budget Implementation Vote1 | 46,036 | - | - |
| S - Budgetary statutory authorities - Operating Expenditures: | |||
Contributions to employee benefit plans (EBP) |
20,204 | 10,102 | 20,204 |
Minister of Crown-Indigenous Relations and Northern Affairs – Salary and motor car allowance |
88 | 36 | 65 |
Payments to comprehensive claim beneficiaries in compensation for resource royalties |
1,093 | - | - |
Grassy Narrows and Islington Bands Mercury Disability Board |
15 | - | - |
Other |
- | 396 | 11,757 |
| S - Budgetary statutory authorities - Transfer Payments: | |||
Grants to Aboriginal organizations designated to receive claim settlement payments pursuant to Comprehensive Land Claim Settlement Acts |
40,134 | 12,617 | 33,303 |
| Total Budgetary Authorities | 6,144,464 | 602,303 | 1,417,129 |
| Non-Budgetary Authorities: | |||
Loans to Indigenous claimants |
25,903 | 3,237 | 4,611 |
Loans to First Nations in British Columbia |
30,400 | - | - |
| Total Non-Budgetary Authorities | 56,303 | 3,237 | 4,611 |
| Total Authorities | 6,200,767 | 605,540 | 1,421,740 |
| 1 The Budget Implementation Vote is Budget 2019 funding for which the department has yet to receive spending authority. In previous quarterly reporting, the Budget Implementation Vote funding was accounted for under Vote 1. This separate line has been added for clarity. Items included in this amount are: enhancing Indigenous consultation and capacity support ($1,500,000), honouring missing residential school children ($7,758,176), creating more connectivity and more affordable electricity ($6,000,000), Supporting Indigenous Business Development ($25,777,783) and ensuring strong Arctic and Northern communities ($5,000,000). | |||
| Planned expenditures for the year ending March 31, 2020 | Expended during the quarter ended December 31, 2019 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
1 Personnel |
147,771 | 59,870 | 125,360 |
2 Transportation and communications |
16,918 | 2,689 | 6,057 |
3 Information |
5,878 | 752 | 1,946 |
4 Professional and special services |
246,303 | 30,906 | 84,312 |
5 Rentals |
18,218 | 4,112 | 6,318 |
6 Purchased repair and maintenance |
2,805 | 386 | 582 |
7 Utilities, materials and supplies |
3,139 | 374 | 696 |
8 Acquisition of land, buildings and works |
7,242 | 500 | 1,104 |
9 Acquisition of machinery and equipment |
600 | 776 | 1,322 |
10 Transfer payments |
2,819,005 | 496,306 | 1,124,584 |
11 Public debt charges |
- | - | - |
12 Other subsidies and payments |
2,889,668 | 5,632 | 64,848 |
| Total gross budgetary expenditures | 6,157,547 | 602,303 | 1,417,129 |
| Less Revenues netted against expenditures: | |||
Internal Services |
(13,083) | - | - |
| Total Revenues netted against expenditures | (13,083) | - | - |
| Total net budgetary expenditures | 6,144,464 | 602,303 | 1,417,129 |