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Atlantic Canada Opportunities Agency

2023-2024

Quarterly Financial Report
For the quarter ended September 30, 2023

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, 2023.

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 2023-2024 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 and Supplementary Estimates (A) for the 2023-2024 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 September 30, 2023.

Statement of authorities: Vote 1 – Net Operating Expenditures

Total authorities available for fiscal year 2023-2024 are $73.8 million, with no significant variance compared to $73.3 million as of September 30, 2022.

Vote 1 authorities used year-to-date are $34.4 million at the end of the second quarter this fiscal year, with no significant variance compared to $34.6 million as of September 30, 2022.

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 September 30, 2022-2023 and 2023-2024.

(in thousands of dollars)

Graph 1: Comparison of Net Budgetary Authorities and Expenditures for Vote 1 as of September 30, 2022-2023 and 2023-2024.

Statement of authorities: Vote 5 – Grants and Contributions

Total authorities available for use for the year ending March 31, 2024, amount to $405.0 million, an increase of $47.5 million compared to the $357.5 million available for use as of September 30, 2022. The increase of $47.5 million, or 13.3%, is explained by the following:

A total increase of $132.2 million in Vote 5 authorities available for use related to:

This increase is offset by a total decrease of $84.7 million in Vote 5 authorities available for use related to:

Vote 5 authorities used decreased from $81.9 million last fiscal year to $76.1 million this fiscal year. This $5.8 million decrease in authorities used, or 7.1%, 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 September 30, 2022-2023 and 2023-2024.

(in thousands of dollars)

Graph 2: Comparison of Net Budgetary Authorities and Expenditures for Vote 5 as of September 30, 2022-2023 and 2023-2024.

Statement of authorities: budgetary statutory authorities

Budgetary statutory authorities available for use for the year ending March 31, 2024, have increased by $0.4 million, or 4.7%, to $9.5 million compared to the previous fiscal year at the same time.

Budgetary statutory authorities used year-to-date remain the same at $4.5 million at the end of the second quarter this fiscal year compared to the previous fiscal year at the same time.

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 September 30, 2022-2023 and 2023-2024.

(in thousands of dollars)

Graph 3: Comparison of Net Budgetary Authorities and Expenditures for Statutory Authorities as of September 30, 2022-2023 and 2023-2024.

Statement of the Agency’s budgetary expenditures by standard object

The Agency’s budgetary expenditures by Standard Object for the quarter ended September 30, 2023, were $115.0 million, which reflects a decrease of $6.0 million, or 5.0%, from the $121.0 million in overall expenditures for the quarter ended September 30, 2022. The variance by Standard Object relates mainly to transfer payments. The variance is explained in the Statement of Authorities: Vote 5 – Grants and Contributions.

Risks and uncertainties

ACOA conducts a regular assessment of its overarching corporate risk profile. ACOA 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

The following change in personnel was made during the second quarter:

There are no other significant changes in relation to operations, personnel and programs for this reporting period not already disclosed in the quarter ended June 30, 2023.

Approval by senior officials

Approved by:

Catherine Blewett
Deputy Head
Moncton, Canada
Date

Stéphane Lagacé, CPA-CMA
Chief Financial Officer
Moncton, Canada
Date

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
September 30, 2023
Year-to-date
used
at quarter-end
Vote 1 - Net operating expenditures 73,800 16,889 34,436
Vote 5 - Grants and contributions 405,005 47,506 76,056
Budgetary statutory authorities 9,513 2,242 4,490
Total authorities 488,318 66,637 114,982
Statement of Authorities (unaudited)
Fiscal year 2022-2023 (in thousands of dollars)
Authorities Total available for use
for the year ending
March 31, 2023*
Used during the
quarter ended
September 30, 2022
Year-to-date
used
at quarter-end
Vote 1 – Net operating expenditures 73,269 17,199 34,593
Vote 5 – Grants and contributions 357,462 51,133 81,887
Budgetary statutory authorities 9,085 2,257 4,514
Total authorities 439,816 70,589 120,994

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

Agency's budgetary expenditure s 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
September 30, 2023
Year-to-date
expended at
quarter-end
     Personnel 70,194 17,375 34,780
     Transportation and communications 2,467 270 694
     Information 548 71 209
     Professional and special services 4,126 555 948
     Rentals 2,960 284 867
     Repair and maintenance 155 17 27
     Utilities, materials and supplies 164 39 53
     Acquisition of machinery and equipment 911 155 366
     Transfer payments 405,006 47,506 76,056
     Other subsidies and payments 1,787 365 982
Total net budgetary expenditures 488,318 66,637 114,982
Agency's budgetary expenditures by Standard Object (unaudited)
Fiscal year 2022-2023 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2023*
Expended during the
quarter ended
September 30, 2022
Year-to-date
expended at
quarter-end
     Personnel 69,225 17,516 35,123
     Transportation and communications 1,602 311 582
     Information 663 73 201
     Professional and special services 4,461 520 1,002
     Rentals 2,547 313 948
     Repair and maintenance 205 18 34
     Utilities, materials and supplies 315 13 29
     Acquisition of machinery and equipment 1,350 117 251
     Transfer payments 357,461 51,133 81,887
Other subsidies and payments 1,987 575 937
Total net budgetary expenditures 439,816 70,589 120,994

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