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, 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 Board’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 December 31, 2016 were $783,000, an increase of $101,000 when comparing to the same quarter last year. This increase reflects a corresponding increase in net operating expenditures.

On a year-to-date basis, net expenditures increased by $122,000 for the quarter ending December 31, 2016. This is the result of several factors. Professional services expenditures increased by $116,000, on account of higher operational needs. Other types of expenditures such as utilities, materials and supplies (+$20,000) and other subsidies and payments (+$11,000) have also increased, due to operational needs. As a result of an employee leaving, the expenditures in personnel decreased by $28,000.

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 December 31, 2016 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,814 709 1,298
Budgetary statutory authorities
Employee benefit plans 298 74 149
Total authorities 3,112 783 1,447
* 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 December 31, 2015 Year to date used at quarter-end
Vote 45 - Net Operating expenditures 2,960 609 1,179
Budgetary statutory authorities
Employee benefit plans 292 73 146
Total authorities 3,252 682 1,325
* 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 December 31, 2016 Year to date used at quarter-end
Expenditures
Personnel 2,031 487 934
Transportation and communications 150 10 17
Information 120 5 88
Professional and special services 525 192 290
Rentals 86 38 50
Repair and maintenance 10 9 9
Utilities, materials and supplies 65 26 36
Acquisition of machinery and equipment 125 12 12
Other subsidies and payments - 4 11
Total net budgetary expenditures 3,112 783 1,447
* 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 December 31, 2015 Year to date used at quarter-end
Expenditures
Personnel 2,029 498 963
Transportation and communications 267 10 18
Information 130 30 92
Professional and special services 599 98 174
Rentals 75 23 44
Repair and maintenance 10 9 9
Utilities, materials and supplies 65 8 15
Acquisition of machinery and equipment 77 6 10
Other subsidies and payments 0 0
Total net budgetary expenditures 3,252 682 1,325
* Includes approved estimates documents as at quarter end.