Quarterly Financial Report Ending September 30, 2014

CANADIAN INTERNATIONAL TRADE TRIBUNAL

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

TABLE OF CONTENTS

 

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 quarterly report should be read in conjunction with the Main Estimates and the Supplementary Estimates for 2014-2015 as well as Canada’s Economic Action Plan 2012 (Budget 2012).

Organizational Overview

Further information on the mandate, roles, responsibilities and programs of the Canadian International Trade Tribunal (the Tribunal) can be found in the “2014-15 Estimates”, available on the following Web site: www.tbs-sct.gc.ca/ems-sgd/me-bpd/20142015/me-bpdtb-eng.asp.

Raison d’être

The Tribunal provides Canadian and international businesses with access to fair, transparent and timely processes for the investigation of trade remedy cases and complaints concerning federal government procurement and for the adjudication of appeals on customs and excise matters. At the request of the Government, the Tribunal provides advice in tariff, trade, commercial and economic matters.

Mission Statement

The Tribunal’s mission is to render sound, transparent and timely decisions in trade, customs and procurement cases for Canadian and international businesses and to provide the Government with sound, transparent and timely advice in tariff, trade, commercial and economic matters.

Vision

The Tribunal will be recognized as a centre of excellence in matters of trade, customs and procurement, and as a model administrative tribunal in matters of governance.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Tribunal’s spending authorities granted by Parliament and those used by the Tribunal and is consistent with the Main Estimates and Supplementary Estimates for fiscal year 2014-2015. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies 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, the Tribunal 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.

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

HIGHLIGHTS OF FISCAL QUARTER AND FISCAL YEAR TO DATE RESULTS

The Tribunal defines a significant variance as a variance greater than 5 percent on total authorities and on budgetary expenditures. The significant variance per standard object needs to be greater than 5 percent and $50,000 to be considered material.

Significant Changes in Authorities

On the basis of the Tribunal’s definition, there was no significant variance observed for changes in authorities. The total authorities available to the Tribunal for use by the end of the second quarter declined by $277,000 or 2.8 percent compared to the same period last year. This net decrease can be explained by the reduction in authorities following the implementation of the Budget 2012 Deficit Reduction Action Plan. The section on Budget 2012 implementation below provides more details.

Significant Changes to Budgetary Expenditures by Standard Object

For the period ending September 30, 2014, the Tribunal’s budgetary expenditures increased by $72,000 or 3.4 percent compared to the same period last year. On the basis of the Tribunal’s definition, there were three significant variances observed for budgeted expenditures by standard object:

  • There was a decrease of $621,000 or 13.7 percent in personnel expenses as a result of a decrease in staff due to the implementation of the 2012 Budget Deficit Reduction Action Plan and to payments related to the severance elimination in the Public Service.
  • There was a decrease of $128,000 or 20.8 percent in contribution to employee benefit plans which is a direct result of the decrease in permanent staff due to the implementation of the 2012 Budget Deficit Reduction Action Plan.
  • The increase of $111,000 or 84.1 percent in professional and special services is mainly due to the employment of consultants.

As can be seen in Figure 1, the Tribunal spent approximately 47.8 percent of its authorities as of the second quarter, compared to 48.5 percent at the same time last year.

Description of Figure 1 – Second Quarter expenditures compared to Annual Authorities

(Text Version)

RISKS AND UNCERTAINTIES

The quarterly financial report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 10, 2014.

There are no significant financial risks or uncertainties to report at this time.

SIGNIFICANT CHANGES IN RELATION TO OPERATIONS, PERSONNEL AND PROGRAMS

In Canada’s Economic Action Plan 2014, the Government announced its intention to create the Administrative Tribunals Support Service of Canada (ATSSC). This new organization, which consolidates operations of several administrative tribunals, will provide support services to the Tribunal.

The Economic Action Plan 2014 Act, No. 1 received Royal Assent on June 19, 2014 and the ATSSC will begin operations effective November 1, 2014. As of the effective date, all of the Tribunal’s human and financial resources will be transferred to the ATSSC and the Tribunal’s appropriation will then be deemed to be ATSSC’s appropriation.

BUDGET 2012 IMPLEMENTATION

This section provides an overview of the savings measures announced in Budget 2012 that were implemented by the Tribunal 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.

The Tribunal will have achieved Budget 2012 savings of $0.5 million by the end of fiscal year 2014-2015 following a review of its internal processes to find efficiencies and synergies.

The Tribunal has implemented several initiatives to deliver on its mandate more efficiently while limiting the impact on program delivery. In particular, the Tribunal was restructured to reduce inefficiencies and better leverage existing resources. The Canadian International Trade Tribunal Act was amended to replace the two Vice-chairperson positions with two Member positions.

There are no financial risks or uncertainties related to these savings.

Approved by:

Stephen A. Leach
Stephen A. Leach
Chairperson

Sylvie Mercier
Sylvie Mercier
Chief Financial Officer

Ottawa, Canada

2014-11-27
Date

STATEMENT OF AUTHORITIES (unaudited)
(in thousands of dollars)

 

Fiscal Year 2014-2015

Fiscal Year 2013-2014

 

Total available for use for the year ending March 31, 2015

Used during the quarter ended September 30, 2014

Year to date used at quarter-end

Total available for use for the year ending March 31, 2014

Used during the quarter ended September 30, 2013

Year to date used at quarter-end

Vote 25 - Operating expenditures

8,445

1,898

4,109

8,660

1,811

4,235

Statutory - Contributions to employee benefit plans

1,171

293

488

1,233

308

616

Total budgetary authorities

9,616

2,191

4,597

9,893

2,119

4,851

Non-budgetary authorities

0

0

0

0

0

0

Total authorities

9,616

2,191

4,597

9,893

2,119

4,851

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in thousands of dollars)

 

Fiscal Year 2014-2015

Fiscal Year 2013-2014

 

Planned expenditures for the year ending March 31, 2015

Expended during the quarter ended September 30, 2014

Year to date used at quarter-end

Planned expenditures for the year ending March 31, 2014

Expended during the quarter ended September 30, 2013

Year to date used at quarter-end

Expenditures

 

 

 

 

 

 

Personnel

8,270

1,924

3,915

8,321

1,930

4,536

Transportation and communications

299

59

81

319

33

65

Information

37

7

19

42

6

12

Professional and special services

649

148

243

767

79

132

Rentals

144

16

37

241

16

39

Repair and maintenance

48

4

4

18

14

15

Utilities, materials and supplies

47

19

26

126

14

24

Acquisition of machinery and equipment

122

11

34

59

27

28

Other subsidies and payments

0

3

238

0

0

0

Total gross budgetary expenditures

9,616

2,191

4,597

9,893

2,119

4,851

Less revenues netted against expenditures

 

 

 

 

 

 

Revenues

 

 

 

-

-

-

Total revenues netted against expenditures

 

 

 

-

-

-

Total net budgetary expenditures

9,616

2,191

4,597

9,983

2,119

4,851

 

Resource Type

Status

Attachments

Publication Date

Wednesday, November 26, 2014

Modification Date

Wednesday, November 26, 2014