Language selection

Search

Content page

From [Institution name]

Atlantic Canada Opportunities Agency

2021-2022

Quarterly Financial Report
For the quarter ended December 31, 2021

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 the 2021-2022 Part II of the 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, Supplementary Estimates (A) and Supplementary Estimates (B) for the 2021-2022 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 authorization received from the Minister of Health and the Minister of Finance to issue transfer payments pursuant to the Public Health Events of National Concern Payments Act,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, 2021.

Statement of Authorities: Vote 1 – Net Operating Expenditures

Total authorities available for fiscal year 2021-2022 are $75.2 million with no significant variance compared to $72.3 million as of December 31, 2020.

Vote 1 authorities used year-to-date have increased from $47.4 million at the end of the third quarter in 2020-2021 to $50.8 million this fiscal year. This $3.4 million increase in authorities used, or 7.1%, is mainly explained by an increase in personnel costs resulting from revised collective agreements.

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, 2020-2021 and 2021-2022.

(in thousands of dollars)

For the year ending March 31, 2021, total authorities available for use for Vote 1 is $72,250 in thousands of dollars, while year to date authorities used for Vote 1 is $47,422 in thousands of dollars. For the year ending March 31, 2022, total authorities available for use for Vote 1 is $75,154 in thousands of dollars, while year to date authorities used for Vote 1 is $50,795 in thousands of dollars.

Statement of Authorities: Vote 5 – Grants and Contributions

Total authorities available for use for the year ending March 31, 2022, amount to $346.5 million, a decrease of $57.4 million compared to the $403.9 million available for use as of December 31, 2020. The decrease of $57.4 million, or 14.2%, is explained by the following.

A total decrease of $125.1 million in Vote 5 authorities available for use related to:

This decrease is offset by a total increase of $67.7 million in Vote 5 authorities available for use related to:

Vote 5 authorities used have decreased from $206.0 million last fiscal year to $193.1 million this fiscal year. This $12.9 million decrease in authorities used, or 6.3%, is mainly due to a reduction of authorities related to COVID-19 temporary initiatives.

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, 2020-2021 and 2021-2022.

(in thousands of dollars)

For the year ending March 31, 2021, total authorities available for use for Vote 5 is $403,948 in thousands of dollars, while year to date authorities used for Vote 5 is $205,952 in thousands of dollars. For the year ending March 31, 2022, total authorities available for use for Vote 5 is $346,527 in thousands of dollars, while year to date authorities used for Vote 5 is $193,055 in thousands of dollars.

Statement of Authorities: Budgetary Statutory Authorities

Budgetary statutory authorities available for use for the year ending March 31, 2022, have decreased by $61.3 million, or 87.6%, to $8.6 million compared to the previous fiscal year at the same time. The decrease is mainly explained by funding received last fiscal year that provided financing support pursuant to the Public Health Events of National Concern Payments Act. These authorities were provided via statutory authorities to ACOA. This amount can be broken down as follows.

A total decrease of $61.9 million in Statutory Vote authorities available for use related to:

This decrease is offset by a total increase of $0.6 million in Statutory Vote authorities available for use related to:

Statutory authorities used have decreased from $60.7 million last fiscal year to $6.2 million this fiscal year. This $54.5 million decrease in authorities used, or 89.8%, is due to the contribution payments expended last fiscal year with regards to the Regional Relief and Recovery Fund and the Canadian Seafood Stabilization Fund.

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, 2020-2021 and 2021-2022.

(in thousands of dollars)

For the year ending March 31, 2021, total authorities available for use for Statutory authorities is $70,000 in thousands of dollars, while year to date authorities used for Statutory authorities is $60,724 in thousands of dollars. For the year ending March 31, 2022, total authorities available for use for Statutory authorities is $8,646 in thousands of dollars, while year to date authorities used for Statutory authorities is $6,215 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, 2021, were $250.1 million, which reflects a decrease of $64.0 million, or 20.4%, from the $314.1 million in overall expenditures for the quarter ended December 31, 2020. The variance by Standard Object relates mainly to transfer payments. The variance is explained in the Statement of Authorities: Vote 5 – Grants and Contributions and in the Statement of Authorities: Budgetary Statutory Authorities.

Risks and Uncertainties

ACOA conducts an annual risk assessment process to update its overarching corporate risk profile. The key corporate risks being used for 2021-2022 were established prior to the COVID-19 pandemic. Despite this, it is plausible that the eventual review of internal corporate risks may have an impact on certain operational aspects of the Agency, while not necessarily having a direct impact on financial reporting, as 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 third 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, 2021.

Approval by Senior Officials

Approved by:

Francis P. McGuire
Deputy Head
Moncton, Canada
Date

Stéphane Lagacé, CPA-CMA
Chief Financial Officer
Moncton, Canada
Date January 28, 2022

Statement of Authorities (unaudited)
Fiscal year 2021-2022 (in thousands of dollars)
Authorities Total available for use for the year ending
March 31, 2022*
Used during the
quarter ended
December 31, 2021
Year-to-date
used at
quarter-end
Vote 1 – Net operating expenditures 75,154 17,127 50,795
Vote 5 – Grants and contributions 346,527 66,831 193,055
Budgetary statutory authorities 8,646 2,072 6,215
Total authorities 430,327 86,030 250,065
Statement of Authorities (unaudited)
Fiscal year 2020-2021 (in thousands of dollars)
Authorities Total available for use for the year ending
March 31, 2021*
Used during the
quarter ended
December 31, 2020
Year-to-date
used at
quarter-end
Vote 1 – Net operating expenditures 72,250 16,551 47,422
Vote 5 – Grants and contributions 403,948 97,119 205,952
Budgetary statutory authorities 70,000 12,599 60,724
Total authorities 546,198 126,269 314,098

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

Agency's budgetary expenditures by Standard Object (unaudited)
Fiscal year 2021-2022 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2022*
Expended during the
quarter ended
December 31, 2021
Year-to-date
expended at
quarter-end
     Personnel 66,377 17,202 52,381
     Transportation and communications 4,244 116 190
     Information 893 80 281
     Professional and special services 5,137 828 1,972
     Rentals 2,616 248 1,203
     Repair and maintenance 383 11 34
     Utilities, materials and supplies 660 38 81
     Acquisition of machinery and equipment 1,511 405 490
     Transfer payments 346,527 66,831 193,055
     Other subsidies and payments 1,979 271 378
Total net budgetary expenditures 430,327 86,030 250,065
Agency's budgetary expenditures by Standard Object (unaudited)
Fiscal year 2020-2021 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2021*
Expended during the
quarter ended
December 31, 2020
Year-to-date
expended at
quarter-end
     Personnel 70,418 16,727 49,207
     Transportation and communications 2,988 71 130
     Information 521 84 257
     Professional and special services 3,739 981 1,685
     Rentals 1,707 334 1,382
     Repair and maintenance 135 11 30
     Utilities, materials and supplies 539 56 126
     Acquisition of machinery and equipment 664 110 290
     Transfer payments 465,050 107,561 260,205
Other subsidies and payments 437 334 786
Total net budgetary expenditures 546,198 126,269 314,098

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