Publication

Quarterly Financial Report for CICS for the Quarter Ending June 30, 2013

Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

This quarterly report 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.  This report should be read in conjunction with the Main Estimates (and as applicable – Supplementary Estimates and previous interim reports for the current year) as well as Canada’s Economic Action Plan 2012 (Budget 2012).

The mandate of the Canadian Intergovernmental Conference Secretariat (CICS) is to serve federal, provincial and territorial governments in the planning, conduct, and the serving of senior level intergovernmental conferences held across Canada. The primary objective of CICS is to relieve client departments in virtually every major sector of intergovernmental activity, of the numerous technical and administrative tasks associated with the planning and conduct of multilateral conferences, thereby enabling them to concentrate on the substantive policy issues. CICS provides continuous, effective, impartial administrative services to these meetings.

The quarterly report has not been subject to an external audit or review.

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 and Supplementary Estimates for the 2013-14 fiscal year.  This quarterly report has been prepared using a special purpose financial framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act 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 performance reporting process, CICS prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.  However, the spending authorities voted by Parliament remain on an expenditure basis.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year.  Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012.  As a result the measures announced in the Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012-2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012.  In 2013-2014, the changes to departmental authorities were reflected in the 2013-2014 Main Estimates tabled in Parliament.

Highlights of fiscal quarter and fiscal year to date (YTD) results

2.1 Statement of Authorities

As reflected in the attached Statement of Authorities, the CICS’ total authorities available for use for the first quarter was lower than the one of the previous year by $0.5 million because the total available for use in 2012-13 did not reflect measures announced in Budget 2012.
2.2 Statement of Department Budgetary Expenditures by Standard Object

Compared to the previous year, total budgetary expenditures recorded in the first quarter was similar as per the attached Budgetary expenditures by Standard Object.

Overall 19 percent of available authorities for the year have been spent. This is consistent with previous year where 17 percent of total authorities were expended.

3. Risks and Uncertainties

Our one program mandate is to provide administrative services for the planning and conduct of First Ministers, Ministers and Deputy Ministers level federal-provincial-territorial and provincial-territorial conferences. As such the number of conferences and meetings can fluctuate from one year to the next. Ongoing challenges in government fiscal management have led to a lower number of senior level multilateral intergovernmental meetings serviced by the Secretariat being held over the last number of years. In addition, there have been freezes and reductions in the areas of travel, hospitality and conferences throughout government which have had an impact on the services we provide.

Like many other departments and agencies, CICS is facing a critical demographic issue as we enter a phase where a significant number of our personnel are or will be eligible for retirement. Sustained efforts will be exerted to keep our employees for a reasonable period of time by creating an environment conducive to career development and job satisfaction.

Significant changes in relation to operations, personnel and program

In response to the evolving needs of clients, the Conference Services Division transformed its service delivery model to encompass video-conferencing and other new technologies. A realignment of functions and tasks resulted in the need for a review and update of job descriptions which resulted in an upward classification from AS 02 to the AS 03 level for five Conference Assistant (Procurement and Technical Services) positions.

Budget 2012 Implementation

This section provides an overview of the savings measures announced in Budget 2012 that will be implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and, modernize and reduce the back office.

CICS will achieve Budget 2012 savings of $0.7 million by fiscal year 2014-15 through efficiency measures and program reductions that align resources to its core mandate, scaling back where the need is reduced; transforming how it works internally; and by consolidating and streamlining. With these changes the CICS will focus on supporting management excellence and accountability across government.

In 2013-14, the second year of implementation, the Secretariat will achieve savings of approximately $0.6 million and will result in ongoing saving of $0.7 million by 2014-15.

CICS has realigned its three year Strategic Plan with the Budget decisions and continues discussions on the necessary transformation of CICS. CICS has been striving to transform its corporate and service delivery model and recent events have emphasized the importance of continuing, even accelerating these efforts.

Some uncertainties related to these savings are in relation to the implementation of the Shared Financial System and Services project that was planned for 2013-14. Also, the CICS transformation may involve reclassification and some pressures on our ability to deliver all of our services as well as on our capacity to support all requests, especially during peak periods.

Approval by Senior Officials

Approved by: 

STATEMENT OF AUTHORITIES (unaudited)

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

** Total available for use does not reflect measures announced in Budget 2012.

Departmental budgetary expenditures by Standard Object (unaudited)

*Planned expenditures do not reflect measures announced in Budget 2012.