Copyright Board Canada
Canada

Copyright Board of Canada
Statement outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended December 31, 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 and previous quarterly reports for fiscal year 2011-12.

The Copyright Board of Canada (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 Board's 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 Board'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. As indicated in Table 2, there is a slight decrease of around $12,000 in the department's third quarter expenditures and a decrease of $113,000 in year-to-date expenditures compared with that of the previous year.

In this quarter, of note, the expenditures in Personnel increased by approximately $66,000. A few positions were either staffed permanently or temporarily. Professional and special services decreased by approximately $75,000 as there are more employees to do the workload.

A year-to-date decrease of $126,000 in Vote 45 - Net Operating expenditures reflects reduced Professional and special services of approximately $160,000, reduced transportation costs of approximately $31,000 and a decrease in Utilities, material and supplies of approximately $11,000, partly compensated by an increase of approximately $86,000 in salaries. These fluctuations are caused by operational demands.

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 to 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.

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 additional reductions in funding for fiscal year 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 Board'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 March 31, 2012* Used during the quarter ended December 31, 2011 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,815 563 1,504
Budgetary statutory authorities
Employee benefit plans 310 77 232
Total authorities 3,125 640 1,736
   
Fiscal Year 2010-2011
(in thousand of dollars) Total available for use for the year ending March 31, 2011* Used during the quarter ended December 31, 2010 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,817 579 1,630
Budgetary statutory authorities
Employee benefit plans 293 73 219
Total authorities 3,110  652 1,849
* Includes approved estimates documents as at quarter end.
 
Fiscal Year 2011-2012
(in thousand of dollars) Planned expenditures for the year ending March 31, 2012* Expended during the quarter ended December 31, 2011 Year to date used at quarter-end
Expenditures
Personnel 2,030 485 1,339
Transportation and communications 190 57 108
Information 115 6 53
Professional and special services 610 69 157
Rentals 70 8 54
Repair and maintenance 10 - -
Utilities, materials and supplies 65 9 18
Acquisition of machinery and equipment 35 6 7
Other subsidies and payments - - -
Total net budgetary expenditures 3,125 640 1,736
   
Fiscal Year 2010-2011
(in thousand of dollars) Planned expenditures for the year ending March 31, 2011* Expended during the quarter ended December 31,2010 Year to date used at quarter-end
Expenditures
Personnel 2,015 419 1,253
Transportation and communications 190 51 139
Information 115 5 44
Professional and special services 610 144 317
Rentals 70 11 56
Repair and maintenance 10 - -
Utilities, materials and supplies 65 16 29
Acquisition of machinery and equipment 35 6 8
Other subsidies and payments - - 2
Total net budgetary expenditures 3,110  652 1,849
* Includes approved estimates documents as at quarter end.