Quarterly financial report for the quarter ended June 30, 2021

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

Introduction

This Quarterly Financial Report (QFR) is prepared by management as required by section 65.1 of the Financial Administration Act. It should be read in conjunction with the 2021 to 2022 Main Estimates.

Authority, mandate and programs

When the Accessible Canada Act became law in July 2019, it created the Canadian Accessibility Standards Development Organization. In January 2020, the organization adopted the title Accessibility Standards Canada because it is easier to remember and also follows Treasury Board requirements. The legal title of the organization is still the Canadian Accessibility Standards Development Organization, as per the Accessible Canada Act.

Accessibility Standards Canada will help to achieve a Canada without barriers, on or before January 1, 2040. It will do this by:

• developing new, and changing existing, accessibility standards
• supporting innovative research
• sharing information about identifying, removing and preventing accessibility barriers

The December 2019 Mandate Letter to the Minister of Employment, Workforce Development and Disability Inclusion from the Prime Minister highlighted the importance of Accessibility Standards Canada’s work. The letter asked the Minister to:

• continue her efforts in leading the Government’s work to promote disability inclusion
• support the operationalization of Accessibility Standards Canada, in consultation with the disability community

Accessibility Standards Canada’s priorities for the 2021 to 2022 year are in line with the directives in the Mandate Letter:

• Accessibility Standards Canada will focus on hiring new people, particularly persons with disabilities
• The organization will continue to build organizational capacity.

The Board will work with persons with disabilities and partners across the country to guide the work.

Further information on Accessibility Standards Canada’s mandate and program activities are found in Part II of the Main Estimates and in the Departmental Plan.

Basis of presentation

This quarterly report was prepared by management using:

• an expenditure basis of accounting
• a special-purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities

The accompanying Statement of Authorities (Table 1) includes Accessibility Standards Canada’s spending authorities granted by Parliament. It is consistent with the Main Estimates and the budgetary authorities used by the Department for the 2020 to 2021 fiscal year.

Parliament must approve spending by the Government. Approvals are provided annually in allocated limits through appropriation acts or through legislation.

As part of the departmental performance reporting process, Accessibility Standards Canada prepares its annual financial statements on a full accrual basis. It follows Treasury Board accounting policies, which are based on Canadian accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

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

Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to:

• the net increase in resources available for the year
• the net increase in actual expenditures for the quarter ending June 30, 2021

Significant changes to budgetary authorities

As of June 30, 2021, Accessibility Standards Canada’s total available authorities for fiscal year 2021 to 2022 amounted to $20.1 million, compared to $11.7 million for the same period last year. The primary reason for this significant variance is timing. Due to the COVID-19 pandemic, full supply was delayed in fiscal year 2021. For the same period in fiscal year 2022, full supply has been received. Compared to the funding available to ASC at the end of fiscal year 2021, the Q1 funding represents an increase of 17%.

Significant changes to authorities used

As of June 30, 2021, Accessibility Standards Canada spent $4.8 million, compared to $0.2M in the previous year. The reason for this increase is that at this time last year, the transfer of grants and contributions funding to ESDC for distribution had not occurred. This year, ASC transferred $4.5M of grants and contributions funding in the first quarter. Contrary to the prior year, ASC already has programs and a payment schedule in place that need to be respected. When removing the grants and contributions amount from total spending, the operational spending is actually $0.3M, which is only a slight increase compared to prior year.

Total operational authorities used during the first quarter of fiscal year 2021 to 2022 ($0.3 million) represent 3 per cent of total available authorities ($10.7 million). This is lower than the 25% normally expected (quarter of the year completed).

The main reason for delays in payments is staff salaries. As a new corporation, Accessibility Standards Canada has several agreements with Employment and Social Development Canada (ESDC), one of which is to process pay for its employees through the Phoenix pay system. As the employees are still paid by ESDC, a quarterly process is in place to invoice Accessibility Standards Canada for reimbursement of staff expenditures and payment for such invoice generally occurs in the following quarter.

Risks and uncertainties

To ensure that corporate objectives are met, key risks were highlighted in the organization’s Departmental Plan. In addition to these risks, an Enterprise-wide Risk Management Framework was presented to the Board to highlight the risks that the organization faces, and how to mitigate them. ASC is still assessing the effects of the COVID-19 pandemic on operations in both the present and the future.

The primary financial risk is the ramp-up of operations. With a new organization comes a steep learning curve. This uncertainty manifests itself when defining the optimal workforce and financial requirements to achieve its mandate. The agility exhibited by senior management and its Board of Directors is a key mitigation factor that allows Accessibility Standards Canada to build its operations. Decisions are made in a timely manner, which allows for great efficiency and minimizes the impact COVID-19 could have had on the ramp-up of its operations.

Significant changes related to operations, personnel and programs

As a fledgling department, Accessibility Standards Canada is meeting unique challenges:

• how to establish an optimal workforce
• how to operationally meet its mandate

Integrated and multi-year planning, initiated earlier this year, has created a baseline for what the organization’s operations will look like in the future. The process of re-patriating currently outsourced processes has begun. This applies to grants and contributions and human resources, and will continue with financial operations. ASC resolved financial pressures related to the construction of a new workspace, which was a priority of the federal government, and therefore had its timeline accelerated in the prior fiscal year. Construction is complete, the workspace is operational, and staff will start reporting onsite once COVID-related restrictions are eased and onsite work can resume.

Approval by Senior Officials

Original signed by CEO Philip Rizcallah

Original signed by CFO Philipe Sarrazin

Table 1: Statement of authorities (unaudited)

(in thousands of dollars)	Fiscal year 2021 to 2022	Fiscal year 2021 to 2022	Fiscal year 2021 to 2022	Fiscal year 2020 to 2021	Fiscal year 2020 to 2021	Fiscal year 2020 to 2021
Budgetary Authorities	Total available for use for the year ending March 31, 2022	Used during the quarter ended June 30, 2021	Year to date used at quarter-end June 30, 2021	Total available for use for the year ending March 31, 2021	Used during the quarter ended June 30, 2020	Year to date used at quarter-end June 30, 2020
Vote 1 – Operating Expenditures	10,737	323	323	6,841	38	38
Vote 5 – Grants and Contributions	8,500	4,248	4,248	4,125	0	0
Statutory authorities – Contributions to the Employee Benefit Plan	829	207	207	697	174	174
Total Budgetary Authorities	20,066	4,778	4,778	11,663	212	212

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

Table 2: Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)	Fiscal year 2021 to 2022	Fiscal year 2021 to 2022	Fiscal year 2021 to 2022	Fiscal year 2020 to 2021	Fiscal year 2020 to 2021	Fiscal year 2020 to 2021
Expenditures:	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended June 30, 2021	Year to date used at quarter-end June 30, 2021	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended June 30, 2020	Year to date used at quarter-end June 30, 2020
Personnel	6,428	207	207	4,228	174	174
Transportation and communications	1,059	-	-	776	-	-
Information	409	36	36	300	7	7
Professional and special services	1,206	284	284	884	29	29
Rentals	834	-	-	611	-	-
Repair and maintenance	-	-	-	-	-	-
Utilities, materials and supplies	-	-	-	-	-	-
Acquisition of land, building and works	1,298	-	-	495	-	-
Acquisition of machinery and equipment	332	3	3	244	2	2
Other subsidies and payments	-	-	-	-	-	-
Transfer Payments	8,500	4,248	4,248	4,125	-	-
Total Budgetary Authorities	20,066	4,778	4,778	11,663	212	212

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