Quarterly Financial Report ending December 31, 2020
Copyright Board of Canada Statement outlining results, risks and significant changes in operations, personnel and program for the Quarter Ended December 31, 2020
Introduction
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.
As an economic regulator, an independent administrative tribunal and a key institution of Canada’s intellectual property ecosystem, the Copyright Board of Canada’s (the Board) role is to establish fair and equitable tariffs and licences for the use of collectively managed, copyright-protected content as articulated in the Copyright Act (the Act).
The Act provides that the Board intervenes in three areas, namely approving tariffs for works whose rights are managed by collective societies, the granting of licences for the use of works for which the right owners cannot be found, and arbitration in the event a collective society and user cannot agree on royalties.
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 2020-21 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 TBS 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, 2020 were $813,000, a decrease of $110,000 when comparing to the same quarter last year. The decrease in net budgetary expenditures for the quarter ending December 31, 2020 is a result of lower spending for personnel expenditures by $36,000; and in rentals by $7,000. Expenses in transportation and communications decreased by $17,000; those in information by $9,000; those in utilities, materials and supplies by $7,000; and those in acquisition of machinery and equipment by $9,000. Furthermore, there was no expenditure in repair and maintenance. All of these changes reflect operational needs and unanticipated constraints to planned spending, primarily due to restrictions stemming from the pandemic (COVID-19).
Risks and Uncertainties:
The Board’s most significant expenditure is personnel which represents about 70% of its planned expenditures. This implies that whenever an employee departs due to retirement or resignation or that a new employee is hired to replace the departing one, there is a risk of substantial variation in quarterly expenditures. New resources to support the modernization of the Board, by increasing its efficiency and transparency, have also been put in place in the past quarter, in both permanent and temporary capacity. This has an impact on personnel expenditures.
The continued uncertainty of the pandemic situation has affected operations across the Board, resulting in a measure of reduced control over actual expenditures, especially in fiscal year 2020-2021. Given the small size of its budget, there is an increased risk of lapsed funds, due to re-scheduling or postponement of normal Board activities, and due to more judicious forecasting so that money is available for any special or extraordinary needs due to the pandemic situation. The Board is carefully monitoring its finances to minimize the impact of this temporary situation, and ensure that its resources are fully aligned with its level of operations once the situation stabilizes.
Approval by Senior Officials
Approved by,
| Nathalie Théberge | Deputy Head |
| Lara Taylor | Chief Financial Officer |
Statement of Authorities (unaudited)
| Fiscal Year 2020-2021 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2021* | Used during the quarter ended December 31, 2020 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,997 | 715 | 2,165 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 391 | 98 | 293 |
| Total authorities | 4,388 | 813 | 2,458 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2019-20 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2020* | Used during the quarter ended December 31, 2019 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,782 | 824 | 2,453 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 396 | 99 | 297 |
| Total authorities | 4,178 | 923 | 2,750 |
| * Includes approved estimates documents as at quarter end. | |||
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
| Fiscal Year 2020-2021 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2021* | Expended during the quarter ended December 31, 2020 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 3,197 | 701 | 2,134 |
| Transportation and communications | 150 | 3 | 9 |
| Information | 108 | 9 | 26 |
| Professional and special services | 650 | 82 | 216 |
| Rentals | 110 | 16 | 56 |
| Repair and maintenance | 66 | - | - |
| Utilities, materials and supplies | 23 | - | 1 |
| Acquisition of machinery and equipment | 80 | 1 | 7 |
| Other subsidies and payments | 5 | 1 | 9 |
| Total net budgetary expenditures | 4,388 | 813 | 2,458 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2019-20 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2020* | Expended during the quarter ended December 31, 2019 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 2,986 | 737 | 2,051 |
| Transportation and communications | 75 | 20 | 45 |
| Information | 185 | 18 | 124 |
| Professional and special services | 615 | 86 | 368 |
| Rentals | 90 | 23 | 69 |
| Repair and maintenance | 142 | 20 | 56 |
| Utilities, materials and supplies | 65 | 7 | 10 |
| Acquisition of machinery and equipment | 20 | 10 | 18 |
| Other subsidies and payments | - | 2 | 9 |
| Total net budgetary expenditures | 4,178 | 923 | 2,750 |
| * Includes approved estimates documents as at quarter end. | |||