Quarterly financial report for the quarter ended September 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 2021-22 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 2021-2022 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 September 30, 2021

Significant changes to budgetary authorities

As of September 30, 2021, Accessibility Standards Canada’s total available authorities for fiscal year 2021 to 2022 amounted to $20.5 million, compared to $12.1 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. Available authorities increased by $0.45 million since the first quarter due to the allocation of the operating budget carry forward.

Significant changes to authorities used

As of September 30, 2021, Accessibility Standards Canada spent $6.3 million, compared to $5.7M in the previous year. The reason for this increase is in line with the ramp-up of operations that the organization has undertaken to reach a steady state. Payments related to multi-year grants and contributions programs that were approved in previous years were issued in the first quarter. This is different from the previous year when the payments occurred in the second quarter upon signature of the agreements. Payments for new agreements signed this fiscal year are scheduled for the third quarter. 

Total operational authorities used during the second quarter of fiscal year 2021 to 2022 ($1.3 million) represents 11 per cent of total available authorities ($11.2 million). This is lower than the 50% normally expected (half 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. The transition phase for grants and contributions is underway with ASC being independent on all new call for proposals and managing all agreements that derive from it. For human resources, the transition is set to be completed in the third quarter.  

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 Louis-Philippe Daigle for CFO Philipe Sarrazin

Table 1: Statement of authorities (unaudited)

(in thousands of dollars)	Fiscal year 2021-22	Fiscal year 2021-22	Fiscal year 2021-22	Fiscal year 2020-21	Fiscal year 2020-21	Fiscal year 2020-21
Budgetary Authorities	Total available for use for the year ending March 31, 2022	Used during the quarter ended September 30, 2021	Year to date used at quarter-end September 30, 2021	Total available for use for the year ending March 31, 2021	Used during the quarter ended September 30, 2020	Year to date used at quarter-end September 30, 2020
Vote 1 – Operating Expenditures	11,193	1,339	1,662	7,297	1,197	1,234
Vote 5 – Grants and Contributions	8,500	0	4,248	4,125	4,125	4,125
Statutory authorities –  Contributions to the Employee Benefit Plan	829	207	414	697	174	349
Total Budgetary Authorities	20,522	1,546	6,324	12,119	5,496	5,708

*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 2021-22	Fiscal year 2021-22	Fiscal year 2021-22	Fiscal year 2020-21	Fiscal year 2020-21	Fiscal year 2020-21
Expenditures:	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended September 30, 2021	Year to date used at quarter-end September 30, 2021	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended September 30, 2020	Year to date used at quarter-end September 30, 2020
Personnel	6,428	1,340	1,547	4,228	1,048	1,223
Transportation and communications	1,116	1	1	776	9	9
Information	466	44	81	300	28	35
Professional and special services	1,263	161	444	884	285	314
Rentals	891	-	-	611	-	-
Repair and maintenance	57	-	-	-	-	-
Utilities, materials and supplies	57	-	-	-	-	-
Acquisition of land, building and works	1,355	-	-	951	-	-
Acquisition of machinery and equipment	389	-	3	244	1	2
Other subsidies and payments	-	-	-	-	-	-
Transfer Payments	8,500	-	4,248	4,125	4,125	4,125
Total Budgetary Authorities	20,522	1,546	6,324	12,119	5,496	5,708

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