Quarterly Financial Report Ending December 31, 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 a significant variance observed for changes in authorities. The total authorities available to the Tribunal for use by the end of the third quarter declined by $775,000 or 7.4 percent compared to the same period last year. This net decrease can be explained by an operating budget carry-forward which was below 5% unlike the previous year and 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 December 31, 2014, the Tribunal’s budgetary expenditures decreased by $457,000 or 6 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 $818,000 or 11.7 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.
  • The increase of $140,000 or 58 percent in professional and special services is mainly due to the employment of consultants.
  • The increase of $241,000 in other subsidies and payments is a direct result of year-end transactions due to the November 1, 2014 transfer of the Tribunal’s staff and budget to the Administrative Tribunal Support Service of Canada.

As can be seen in Figure 1, the Tribunal spent approximately 74 percent of its authorities as of the third quarter, compared to 73 percent at the same time last year.

Description of Figure 1 – Third 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 began its operations on November 1, 2014. The Tribunal’s staff and budget were transferred to the ATSSC effective October 31st.

Pursuant to s. 31.1 of the Financial Administration Act and Order-in-Council P.C. 2014-1106 effective November 1, 2014, $3,426K is deemed to have been appropriated to the Administrative Tribunals Support Service of Canada (Net Operating Expenditures), resulting in a reduction of the same amount in Canadian International Trade Tribunal, Vote 25, Appropriation Act No. 2, 2014-15. This amount, however, is reported as part of the Canadian International Trade Tribunal’s results for the quarter ended December 31, 2014.

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

2015-04-16
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 December 31, 2014 (Note 1)

Year to date used at quarter-end

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

Used during the quarter ended December 31, 2013

Year to date used at quarter-end

Vote 25 - Operating expenditures

8,477

2,166

6,275

9,179

2,450

6,685

Statutory - Contributions to employee benefit plans

1,177

390

878

1,250

309

925

Total budgetary authorities

9,654

2,556

7,153

10,429

2,759

7,610

Non-budgetary authorities

0

0

0

0

0

0

Total authorities

9,654

2,556

7,153

10,429

2,759

7,610

 

Note 1: Pursuant to s. 31.1 of the Financial Administration Act and Order-in-Council P.C. 2014-1106 effective November 1, 2014, $3,426K is deemed to have been appropriated to the Administrative Tribunals Support Service of Canada (Net Operating Expenditures), resulting in a reduction of the same amount in Canadian International Trade Tribunal, Vote 25, Appropriation Act No. 2, 2014-15. This amount, however, is reported as part of the Canadian International Trade Tribunal’s results for the quarter ended December 31, 2014.

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 December 31, 2014 (Note 1)

Year to date used at quarter-end

Planned expenditures for the year ending March 31, 2014

Expended during the quarter ended December 31, 2013

Year to date used at quarter-end

Expenditures

 

 

 

 

 

 

Personnel

8,308

2,255

6,170

8,651

2,452

6,988

Transportation and communications

299

69

150

319

77

142

Information

37

9

28

42

10

22

Professional and special services

649

137

380

767

108

240

Rentals

144

16

53

241

45

84

Repair and maintenance

48

7

11

18

12

27

Utilities, materials and supplies

47

1

27

126

20

44

Acquisition of machinery and equipment

122

59

93

265

35

63

Other subsidies and payments

0

3

241

0

0

0

Total gross budgetary expenditures

9,654

2,556

7,153

10,429

2,759

7,610

Less revenues netted against expenditures

 

 

 

 

 

 

Revenues

 

 

 

-

-

-

Total revenues netted against expenditures

 

 

 

-

-

-

Total net budgetary expenditures

9,654

2,556

7,153

10,429

2,759

7,610

 

Note 1: As at December 31, 2014, $1,224K of expenditures have been incurred on behalf of Administrative Tribunals Support Services of Canada by the Canadian International Trade Tribunal against the Administrative Tribunals Support Services of Canada Net Operating Expenditures vote and $195K has been charged against the budgetary statutory authorities. These amounts, however, are reported as part of the Canadian International Trade Tribunal’s results for the quarter ended December 31, 2014.

Resource Type

Status

Attachments

Publication Date

Friday, April 17, 2015

Modification Date

Friday, April 17, 2015