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, 2014

Inroduction:

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act (FAA) and in the form and manner prescribed by the Treasury Board (TB). This quarterly report should be read in conjunction with the Main Estimates.

The Copyright Board of Canada (the "Board") is an independent administrative agency that has been conferred department status for purposes of the FAA. Its mandate 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 Board, consistent with the Main Estimates for the 2014-15 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 TB 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

The total authorities used during the quarter ended June 30, 2014 increased by $97,000 when comparing to the same quarter last year. This increase in total authorities reflects a corresponding increase in net operating expenditures.

The increase in net operating expenditures for the quarter ending June 30, 2014 is a result of several factors. First, other subsidies and payments expenditures increased by $49,000, reflecting the implementation of payment in arrears. Professional services expenditures also increased, by $32,000, on account of higher operational needs. Expenditures on transportation and communications increased by $10,000 and those on machinery and equipment, by $9,000. In this later case, the acquisition of new material was made necessary by the implementation of Windows 7. Finally, as a result of the departure of some staff, the expenditures in Personnel decreased by $12,000.

Planned expenditures for the year ending March 31, 2015 is showing a $75,000 decrease compared to the previous year. This is due to some reimbursement received by the Board in respect of severance pay and vacation credit for 2013-14 but not for 2014-15.

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.

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. The median tenure of the Board’s staff is about three 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

Statement of Authorities (unaudited)

Fiscal Year 2014-2015
(in thousand of dollars) Total available for use for the year ending March 31, 2015* Used during the quarter ended June 30, 2014 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,831 734 734
Budgetary statutory authorities
Employee benefit plans 286 72 72
Total authorities 3,117 805 805
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2013-2014
(in thousand of dollars) Total available for use for the year ending March 31, 2014* Used during the quarter ended June 30, 2013 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,891 637 637
Budgetary statutory authorities
Employee benefit plans 301 75 75
Total authorities 3,192 712 712
* Includes approved estimates documents as at quarter end.
 

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2014-2015
(in thousand of dollars) Planned expenditures for the year ending March 31, 2015* Expended during the quarter ended June 30, 2014 Year to date used at quarter-end
Expenditures
Personnel 2,022 516 516
Transportation and communications 225 31 31
Information 115 67 67
Professional and special services 570 83 83
Rentals 75 33 33
Repair and maintenance 10 4 4
Utilities, materials and supplies 65 6 6
Acquisition of machinery and equipment 35 15 15
Other subsidies and payments - 49 49
Total net budgetary expenditures 3,117 805 805
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2013-2014
(in thousand of dollars) Planned expenditures for the year ending March 31, 2014* Expended during the quarter ended June 30, 2013 Year to date used at quarter-end
Expenditures
Personnel 2,097 528 528
Transportation and communications 225 21 21
Information 115 71 71
Professional and special services 570 51 51
Rentals 75 33 33
Repair and maintenance 10 - -
Utilities, materials and supplies 65 4 4
Acquisition of machinery and equipment 35 6 6
Other subsidies and payments - - -
Total net budgetary expenditures 3,192 712 712
* Includes approved estimates documents as at quarter end.