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, 2014

Introduction:

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 2014-14 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 second quarter ended September 30, 2014 decreased by $29,000 when comparing to the same quarter last year. This reflects a corresponding decrease in net operating expenditures.

The decrease in net operating expenditures for the quarter ending September 30, 2014 essentially reflects a decrease of $42,000 in information expenditures. This decrease is related to the tariffs that the Board publishes in the Canada Gazette which are no longer being printed but only available electronically. Other types of expenditures such as personnel (+$9,000) and machinery and equipment (+$5,000) have increased slightly.

Net operating expenditures increased by $65,000 on a year to date basis, as a result of an increase of $54,000 in other subsidies and payments expenditures, reflecting the implementation of payment in arrears, as reported in the first quarterly report. Professional and special services expenditures also increased, by $31,000, on account of higher operational needs. Information expenditures decreased by $47,000, reflecting the lower publication costs referred to above.

Planned overall expenditures for the year ending March 31, 2015 increased $65,000 compared to the previous year, a reflection of a carry-over of funds from last 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.

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 62% 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,

Claude Majeau Deputy Head
Gilles McDougall Chief Financial Officer

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 September 30, 2014 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,971 553 1,287
Budgetary statutory authorities
Employee benefit plans 286 72 143
Total authorities 3,257 624 1,430
* 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 September 30, 2013 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,889 577 1,214
Budgetary statutory authorities
Employee benefit plans 303 75 151
Total authorities 3,192 653 1,365
* 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, 2014* Expended during the quarter ended September 30, 2014 Year to date used at quarter-end
Expenditures
Personnel 2,022 479 995
Transportation and communications 225 15 46
Information 157 28 94
Professional and special services 584 69 152
Rentals 117 13 46
Repair and maintenance 10 2 6
Utilities, materials and supplies 65 8 15
Acquisition of machinery and equipment 77 7 22
Other subsidies and payments - 4 54
Total net budgetary expenditures 3,257 624 1,430
* 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 September 30, 2013 Year to date used at quarter-end
Expenditures
Personnel 2,097 470 998
Transportation and communications 225 20 41
Information 115 70 142
Professional and special services 570 70 121
Rentals 75 13 45
Repair and maintenance 10 - -
Utilities, materials and supplies 65 7 11
Acquisition of machinery and equipment 35 2 7
Other subsidies and payments - - -
Total net budgetary expenditures 3,192 653 1,365
* Includes approved estimates documents as at quarter end.