Copyright Board Canada
Canada

Copyright Board of Canada
Statement outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended June 30, 2011

Inroduction

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.

The Board is an independent administrative agency that has been conferred department status for purposes of the Financial Administration Act. The mandate of the Board is set out in the Copyright Act (the "Act"). The Board is empowered to establish, either mandatorily or at the request of an interested party, the royalties to be paid for the use of copyrighted works when the administration of such works is entrusted to a collective administrative society.

The Copyright Board of Canada?s (the "Board") program objective is to set royalties which are fair and equitable to both copyright owners and users of copyright-protected works. This includes setting fair and equitable terms and conditions so as to permit the use of works when the owner of the copyright cannot be located.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Copyright Board of Canada?s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates for the 2011-12 fiscal year. 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 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.

As part of the departmental performance reporting process, the Board 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.

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

Highlights of Fiscal Quarter and Fiscal Year to Date Results

Overall, there is no significant variance in expenditures between the years due to the stability of its workforce and workload. There is a slight decrease of around $52,000 in the department?s quarterly and year-to-date total net budgetary expenditures with that of the previous year. The expenditures in personnel decreased by approximately $65,000. This can be explained by the fact that two positions are now vacant and the position of one member is now on a part-time basis. The expenditures in the Information category increased by $31,000, due to higher costs for publications.

In its 2010 budget, the government announced two significant actions to reduce the growth in operating expenditures.

  • Any wage and salary increases set in the Expenditure Restraint Act (ERA) and in collective agreements applying from the beginning of 2010-11 until the end of 2012-13 are to be absorbed by organizations;
  • Operating budgets will be frozen at 2010-11 levels for the following two fiscal years (2011-12 and 2012-13).

There is a slight increase of $15 000 in authorities available for use which is due to an increase in planned expenditures for Personnel resulting from compensation received for some collective agreements that were signed before the wage and salary freeze became effective.

The travel, conference and hospitality expenses remain essentially the same, due to the cost containment measures implemented in 2010. In 2009-10, there was a freeze at 2008-09 levels on travel, conferences and hospitality budgets and that continued until the end of 2010-11.

Given that the department?s most significant expense is salaries, the Board?s spending is generally distributed equally throughout the year.

Risks and Uncertainties

The Board is funded through annual appropriations. As a result, its operations are impacted by any changes in funding approved through Parliament.

Budget 2010 announced that departments would not be funded for the 2010-11 to 2012-13 wage and salary increases resulting from collective agreements. As departments must pay the salary increases to employees, organizations are expected to find efficiencies within their operating vote to fund these increases.

The Board has estimated the impact of this government-wide initiative to be approximately $14,000 in 2011-12. The Board can accommodate the reduction in funding in 2011-12 without significantly impacting its operations. Management is reviewing various options to address the increasing reductions in funding for fiscal years 2011-12 and 2012-13.

The Board?s most significant expenditure is personnel which represents 65% of its planned expenditures. Over the last few fiscal years, its work force has been stable with few departures. An ongoing challenge for the Board is to maintain staffing at a level sufficient to compensate for departures. Given the department?s small size, the departure or hiring of a handful of employees in one quarter can have a significant impact on the quarter?s expenditures.

In addition, the Board?s expenditures are influenced by the number and complexity of tariffs that it has to establish. A significant increase in the number of hearings can result in resource pressures.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs this fiscal year.

Approval by Senior Officials

Approved by,

Deputy Head Claude Majeau Ottawa, Canada
Chief Financial Officer Gilles McDougall Ottawa, Canada

Table 1: Statement of Authorities (unaudited)

Fiscal Year 2011-2012
(in thousand of dollars) Total available for use for the year ending Marc 31, 2012* Used during the quarter ended June 30, 2011 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,815 457 457
Budgetary statutory authorities
Employee benefit plans 310 77 77
Total authorities 3,125 534 534
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2010-2011
(in thousand of dollars) Total available for use for the year ending Marc 31, 2011* Used during the quarter ended June 30, 2010 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,817 514 513
Budgetary statutory authorities
Employee benefit plans 293 73 73
Total authorities 3,110  586 586
* Includes approved estimates documents as at quarter end.
 

Table 2: Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2011-2012
(in thousand of dollars) Planned expenditures for the year ending March 31, 2012* Expended during the quarter ended June 30, 2011 Year to date used at quarter-end
Expenditures
Personnel 2,030 400 400
Transportation and communications 190 10 10
Information 115 42 42
Professional and special services 610 44 44
Rentals 70 35 35
Repair and maintenance 10 - -
Utilities, materials and supplies 65 3 3
Acquisition of machinery and equipment 35 - -
Other subsidies and payments - - -
Total net budgetary expenditures 3,125 534 534
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2010-2011
(in thousand of dollars) Planned expenditures for the year ending March 31, 2011* Expended during the quarter ended June 30, 2010 Year to date used at quarter-end
Expenditures
Personnel 2,015 465 465
Transportation and communications 190 17 17
Information 115 11 11
Professional and special services 610 52 52
Rentals 70 34 34
Repair and maintenance 10 - -
Utilities, materials and supplies 65 4 4
Acquisition of machinery and equipment 35 2 2
Other subsidies and payments - 1 1
Total net budgetary expenditures 3,110  586 586
* Includes approved estimates documents as at quarter end.