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Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph

The following graph presents planned (voted and statutory spending) over time.

Actual spending: 2017-18, 2018-19, 2019-20. Planned spending: 2020-21, 2021-22, 2022-23.

Planned spending for 2020-21, 2021-22 and 2022-23 does not include COVID-19 related amounts and excess amounts related to the collection of repayable contributions because decisions on the excess amount of collections that can be re-invested by the Agency are made later in the fiscal cycle.

In 2019-20, the Agency’s spending increased to $351.7 million with no significant variance compared to $349.6 million in 2018-19.

The decrease in planned spending from 2019-20 to 2020-21 and 2021-22 is attributable mainly to:

• a reprofile of funds into 2019-20 as a result of project/contracting delays;
• the expiration of temporary funding for the Regional Economic Growth through Innovation  program – Supporting SME users of steel and aluminum initiative;
• the expiration of temporary funding for the Budget 2019 measure:  launching a federal strategy on jobs and tourism; and
• the inability to include excess amounts of collections related to the reinvestment of repayable contributions, as explained in the note under the above graph.

The increase in planned spending for 2022-23 is attributable mainly to the conclusion of funding transferred to Natural Resources Canada for Protecting Jobs in Eastern Canada’s Forestry Section, announced in Budget 2018.

Budgetary performance summary for Core Responsibilities and Internal Services (dollars)

For 2019-20, planned spending of $315.6 million increased by $38.9 million, resulting in total authorities available for use of $354.5 million. This was due to the following additional authorities received during the fiscal year:

• $27.5 million related to the collection of repayable contributions. This is an adjustment required annually to account for collections in excess of the base amount included in ACOA’s reference levels;
• $3.1 million related to the amount transferred from the Department of National Defence in support of the Halifax International Security Forum;
• $3.0 million related to an operating budget carry-forward from 2018-19;
• $2.5 million related to compensation allocations resulting from revised collective agreements;
• $2.2 million related to temporary funding announced in Budget 2019 for launching a federal strategy on jobs and tourism; and
• $0.8 million related to temporary funding announced in Budget 2018 for the Women Entrepreneurship Strategy.

The increase is offset by a total decrease of $0.2 million related to various adjustments.

From the 2019-20 total authorities of $354.5 million, actual spending was $351.7 million. This resulted in a surplus of $2.8 million. Of that amount, $2.7 million was carried forward as part of the Agency’s operating budget and the remaining balance lapsed.

Actual human resources

Human resources summary for core responsibilities and Internal Services

Human resource levels at ACOA remain stable. The minor fluctuations that occur reflect the realignment of human resources to support priorities and projects. The Agency will continue to achieve its results by allocating its human resources to best support its priorities and programs.

Expenditures by vote

For information on ACOA’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2019-2020.^{Footnote (i)}

Government of Canada spending and activities

Information on the alignment of ACOA’s spending with the Government of Canada’s spending and activities is available in GC InfoBase.^{Footnote (ii)}

Financial statements and financial statement highlights

Financial statements

ACOA’s financial statements (unaudited) for the year ended March 31, 2019, are available on the departmental website.

Financial statement highlights

Condensed Statement of Operations (unaudited) for the year ended March 31, 2020 (dollars)

Actual total expenses were $268.9 million in fiscal year 2019-20, an increase of $12.5 million (4.9%) compared to the previous fiscal year.

The increase were mainly due to a rise in salary cost of $6 million, related to collective agreement as well as an adjustment to the allowance leave provision, and an accounting adjustment made every year for conditionally repayable contributions. When payments are made on conditionally repayable contributions, the amounts are captured as expenses until conditions for repayment are met, at which time the Agency reduces its expenses and increases its accounts receivable. During the 2018‑2019 fiscal year, the reduction to expenses was $4 million greater than during the 2019-20 fiscal year.

Of the total expenses of $268.9 million, $238.3 million (88.6%) was used to support economic development in Atlantic Canada while $30.6 million (11.4%) was expended for Internal Services.

Condensed Statement of Financial Position (unaudited) as of March 31, 2020 (dollars)

Total net liabilities were $36.4 million at the end of the 2019-20 fiscal year, representing a decrease of $24.4 million (40.1%) from fiscal year 2018-19. The decrease is the result of intensified efforts made to issue payment prior to year-end in response to COVID-19, which of the effect of decreasing total net liabilities.

Total net financial assets equaled $28.6 million at the end of the 2019-20 fiscal year, a decrease of $26.9 million (48.4%) over the previous year’s total. The assets primarily consist of the “Due from the Consolidated Revenue Fund” ($27 million), which is used to discharge the Agency’s liabilities.

Total non-financial assets were $2.2 million at the end of 2019-20 fiscal year, an increase of $0.2 million (8.9%) over the previous fiscal year’s total. The increase is mainly attributable to work in progress related to the Grants and Contributions Program Management system.