Copyright Board Canada
Canada

Copyright Board of Canada
Statement outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended September 30, 2012

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 the previous quarterly financial report for the current year.

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 Copyright Board of Canada's spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates for the 2012-13 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 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 $57,000 in the department's quarterly budgetary expenditures with that of the previous year. Of note, the expenditures in Personnel decreased by approximately $42,000. This can be explained by the departure of two employees and the reimbursement of certain salary expenditures. There is a decrease in rentals of around $10,000, due to invoicing that is delayed because of lease renewal issues.

The year to date expenses increased by approximately $37,000. The expenditures in Information increased by $41,000 because of higher costs for publications. There is also an increase of approximately $14,000 in Professional and Special Services and a decrease of $12,000 in transportation and communications, both due to changing operational demands.

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 2012-13. The Board can accommodate the reduction in funding in 2012-13 without significantly impacting its operations.

With respect to Budget 2012 implementation, there are no new or renewed initiatives and savings measures announced in Canada's Economic Action Plan 2012 that will have a significant influence on the Copyright Board's authorities and expenditures.

The Board's most significant expenditure is personnel which represents 65% of its planned expenditures. Over the past few fiscal years, the Board's staff has been stable at 13 employees. However, of the 13 employees in 2008-2009, only 6 remain in the positions they then occupied. The median tenure of the Board's staff is about 3 years. This implies that whenever an employee departs due to retirement or resignation or a new employee is hired to replace the departing one, there is a risk of substantial variation in quarterly 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 2012-2013
(in thousand of dollars) Total available for use for the year ending March 31, 2013* Used during the quarter ended September 30, 2012 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,956 429 982
Budgetary statutory authorities
Employee benefit plans 303 76 151
Total authorities 3,259 505 1,133
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2011-2012
(in thousand of dollars) Total available for use for the year ending March 31, 2012* Used during the quarter ended September 30, 2011 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,815 485 941
Budgetary statutory authorities
Employee benefit plans 310 77 155
Total authorities 3,125 562 1,096
* Includes approved estimates documents as at quarter end.
 

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

Fiscal Year 2012-2013
(in thousand of dollars) Planned expenditures for the year ending March 31, 2013* Expended during the quarter ended September 30, 2012 Year to date used at quarter-end
Expenditures
Personnel 2,023 412 851
Transportation and communications 266 32 39
Information 215 19 88
Professional and special services 570 36 102
Rentals 75 1 36
Repair and maintenance 10 1 1
Utilities, materials and supplies 65 4 15
Acquisition of machinery and equipment 35 - 1
Other subsidies and payments - - -
Total net budgetary expenditures 3,259 505 1,133
* 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 September 30, 2011 Year to date used at quarter-end
Expenditures
Personnel 2,030 454 854
Transportation and communications 190 40 51
Information 115 5 47
Professional and special services 610 45 88
Rentals 70 11 46
Repair and maintenance 10 - -
Utilities, materials and supplies 65 6 9
Acquisition of machinery and equipment 35 1 1
Other subsidies and payments - - 0
Total net budgetary expenditures 3,125 562 1,096
* Includes approved estimates documents as at quarter end.