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, 2016

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 2016-17 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 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, 2016 increased by $18,350 when comparing to the same quarter last year. This increase reflects a corresponding increase in net operating expenditures.

The increase in net operating expenditures for the quarter ending June 30, 2016 is a result of several factors. As a result of an employee leaving, the expenditures in personnel decreased by $17,362. Other types of expenditures such as information (+$20,055) and personal and special services (+$22,119) have increased, due to operational needs.

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.

The Board’s most significant expenditure is personnel which represents 65% of its planned expenditures. 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 2016-17
(in thousand of dollars) Total available for use for the year ending March 31, 2017* Used during the quarter ended June 30, 2016 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,814 589 589
Budgetary statutory authorities
Employee benefit plans 298 75 75
Total authorities 3,112 664 664
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2015-16
(in thousand of dollars) Total available for use for the year ending March 31, 2016* Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,960 571 571
Budgetary statutory authorities
Employee benefit plans 292 73 73
Total authorities 3,252 643 643
* Includes approved estimates documents as at quarter end.
 

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

Fiscal Year 2016-17
(in thousand of dollars) Planned expenditures for the year ending March 31, 2017* Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Expenditures
Personnel 2,031 448 448
Transportation and communications 150 7 7
Information 120 82 82
Professional and special services 525 98 98
Rentals 86 11 11
Repair and maintenance 10 - -
Utilities, materials and supplies 65 10 10
Acquisition of machinery and equipment 125 1 1
Other subsidies and payments - 7 7
Total net budgetary expenditures 3,112 664 664
* Includes approved estimates documents as at quarter end.
   
Fiscal Year 2015-16
(in thousand of dollars) Planned expenditures for the year ending March 31, 2016* Expended during the quarter ended June 30, 2015 Year to date used at quarter-end
Expenditures
Personnel 2,029 465 465
Transportation and communications 267 8 8
Information 130 62 62
Professional and special services 599 76 76
Rentals 75 21 21
Repair and maintenance 10 - -
Utilities, materials and supplies 65 7 7
Acquisition of machinery and equipment 77 4 4
Other subsidies and payments 0 0
Total net budgetary expenditures 3,252 643 643
* Includes approved estimates documents as at quarter end.