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Atlantic Canada Opportunities Agency

2024-2025

Quarterly Financial Report
For the quarter ended December 31, 2024

About this publication

© His Majesty the King in Right of Canada, as represented by the Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, 2024.

Catalogue No. AC3-1E-PDF

ISSN 2817-3694

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

INTRODUCTION

This quarterly financial report should be read in conjunction with the Main Estimates. It has been prepared by management as required by section 65.1 of the Financial Administration Act(FAA) and in the form and manner prescribed by the Treasury Board. This quarterly report has not been subjected to an external audit or review.

A summary description of the Atlantic Canada Opportunities Agency (ACOA) program activities can be found in Part II of the 2024-2025 Main Estimates.

Basis of presentation

This quarterly financial report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities is consistent with the Main Estimates, the Supplementary Estimates (A) and Supplementary Estimates (B) for the 2024-2025 fiscal year and includes ACOA's total authorities available for use as granted by Parliament and those used by the Agency during this quarter. Authorities available for use are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory authorities for specific purposes.

The authority of Parliament is required before monies can be spent by the Government.

When Parliament is dissolved for the purposes of a general election, section 30 of the FAA 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.

As part of the departmental results reporting process, the Agency prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies. However, the spending authorities voted by Parliament remain on an expenditure basis of accounting.

ACOA financial structure

ACOA manages its expenditures under two votes:

Costs under Statutory Authorities, which represent payments made under legislation approved previously by Parliament and which are not part of the annual appropriation bills, include such items as the employer’s share of the employee benefits plan and other minor items.

HIGHLIGHTS OF FISCAL QUARTER AND FISCAL YEAR-TO-DATE RESULTS

This section highlights significant changes to the fiscal quarter results as of December 31, 2024.

Statement of authorities: Vote 1 – Net operating expenditures

Total authorities available for fiscal year 2024-2025 are $74.1 million, compared to $78.1 million for fiscal 2023-2024.

Vote 1 authorities used year-to-date increased to $55.2 million at the end of the third quarter this fiscal year, compared to $52.9 million as of December 31, 2023.

Graph 1 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.

Graph 1: Comparison of net budgetary authorities and expenditures for Vote 1 as of December 31, 2023-2024 and 2024-2025.

(in thousands of dollars)

For the year ending March 31, 2024, total authorities available for use for Vote 1 is $78,067 in thousands of dollars, while year to date authorities used for Vote 1 is $52,854 in thousands of dollars. For the year ending March 31, 2025, total authorities available for use for Vote 1 is $74,139 in thousands of dollars, while year to date authorities used for Vote 1 is $55,215 in thousands of dollars.

Statement of authorities: Vote 5 – Grants and contributions

Total authorities available for use for the year ending March 31, 2025, amount to $318.2 million, a decrease of $119.9 million compared to the $438.1 million available for use in 2023-2024. The decrease of $119.9 million, or 27.4%, is explained below.

A total decrease of $128.6 million in Vote 5 authorities available for use related to:

This decrease is offset by a total increase of $8.7 million in Vote 5 authorities available for use related to:

Vote 5 authorities used decreased from $153.3 million last fiscal year to $151.8 million this fiscal year. This $1.5 million decrease in authorities used, or 1%, is mainly due to the timing of contribution payments compared to the previous fiscal year.

Graph 2 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.

Graph 2: Comparison of net budgetary authorities and expenditures for Vote 5 as of December 31, 2023-2024 and 2024-2025.

(in thousands of dollars)

For the year ending March 31, 2024, total authorities available for use for Vote 5 is $438,109 in thousands of dollars, while year to date authorities used for Vote 5 is $153,313 in thousands of dollars. For the year ending March 31, 2025, total authorities available for use for Vote 5 is $318,241 in thousands of dollars, while year to date authorities used for Vote 5 is $151,844 in thousands of dollars.

Statement of authorities: budgetary statutory authorities

Budgetary statutory authorities available for use for the year ending March 31, 2025, have decreased by $0.9 million, or 9.3%, to $8.7 million compared to the previous fiscal year at the same time.

Budgetary statutory authorities used year-to-date decreased to $6.4 million at the end of the third quarter this fiscal year, compared to $6.7 million as of December 31, 2023.

Graph 3 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.

Graph 3: Comparison of net budgetary authorities and expenditures for statutory authorities as of December 31, 2023-2024 and 2024-2025.

(in thousands of dollars)

For the year ending March 31, 2024, total authorities available for use for Statutory authorities is $9,579 in thousands of dollars, while year to date authorities used for Statutory authorities is $6,727 in thousands of dollars. For the year ending March 31, 2025, total authorities available for use for Statutory authorities is $8,690 in thousands of dollars, while year to date authorities used for Statutory authorities is $6,419 in thousands of dollars.

Statement of the Agency’s budgetary expenditures by standard object

The Agency’s budgetary expenditures by Standard Object for the quarter ended December 31, 2024, were $213.5 million, which reflects an increase of $0.6 million, or 0.3%, from the $212.9 million in overall expenditures for the quarter ended December 31, 2023.

Risks and uncertainties

ACOA conducts a regular assessment of its overarching corporate risk profile and manages financial risks through a set of appropriate mitigation measures. The financial risks are mitigated in large part by the implementation of strong internal controls over financial reporting. These include the periodic assessment of entity-level controls, general computer controls, and controls in ACOA’s key business processes such as payments on grants and contributions, regular operating expenses and accounts receivable.

Furthermore, ACOA manages its budgetary and allocation processes through a well-defined framework supported by a series of automated financial controls. Periodic forecasts are required, and analyses are done regularly to ensure that funds are properly managed.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs impacting the results of this quarter.

Approval by senior officials

Approved by:

Laura Lee Langley
Deputy Head
Moncton, Canada
Date

Kurt Chin Quee, CPA
Chief Financial Officer
Moncton, Canada
Date

Statement of authorities (unaudited)
Fiscal year 2024-2025 (in thousands of dollars)
Authorities Total available for use
for the year ending
March 31, 2025*
Used during the
quarter ended December 31, 2024
Year-to-date
used
at quarter-end
Vote 1 - Net operating expenditures 74,139 18,800 55,215
Vote 5 - Grants and contributions 318,241 77,094 151,844
Budgetary statutory authorities 8,690 2,139 6,419
Total authorities 401,070 98,033 213,478
Statement of authorities (unaudited)
Fiscal year 2023-2024 (in thousands of dollars)
Authorities Total available for use
for the year ending
March 31, 2024*
Used during the
quarter ended December 31, 2023
Year-to-date
used
at quarter-end
Vote 1 - Net operating expenditures 78,067 18,418 52,854
Vote 5 - Grants and contributions 438,109 77,257 153,313
Budgetary statutory authorities 9,579 2,237 6,727
Total authorities 525,755 97,912 212,894

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

Agency's budgetary expenditures by standard object (unaudited)
Fiscal year 2024-2025 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2025*
Expended during the
quarter ended
December 31, 2024
Year-to-date
expended at
quarter-end
     Personnel 70,912 19,525 55,742
     Transportation and communications 2,033 314 1,112
     Information 773 160 479
     Professional and special services 3,770 539 1,406
     Rentals 2,400 253 1,366
     Repair and maintenance 135 22 45
     Utilities, materials and supplies 307 32 89
     Acquisition of machinery and equipment 970 125 529
     Transfer payments 318,241 77,094 151,844
     Other subsidies and payments 1,529 (31) 866
Total net budgetary expenditures 401,070 98,033 213,478
Agency's budgetary expenditures by standard object (unaudited)
Fiscal year 2023-2024 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2024*
Expended during the
quarter ended
December 31, 2023
Year-to-date
expended at
quarter-end
     Personnel 75,206 19,101 53,881
     Transportation and communications 2,371 366 1,060
     Information 520 62 271
     Professional and special services 3,867 (107) 841
     Rentals 2,807 365 1,232
     Repair and maintenance 146 10 37
     Utilities, materials and supplies 156 107 160
     Acquisition of machinery and equipment 864 76 442
     Transfer payments 438,109 77,257 153,313
     Other subsidies and payments 1,709 675 1,657
Total net budgetary expenditures 525,755 97,912 212,894

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