Quarterly Financial Report ending December 31, 2023
Copyright Board of Canada
Statement outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended December 31, 2023
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”) plays the fundamental role of establishing fair and equitable tariffs and licences while ensuring fairness and timeliness of processes.
The Copyright Act (the “Act”) provides that the Board intervenes in three areas, namely approving tariffs for content whose rights are managed by collective societies, the granting of licences for the use of content 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 2023-24 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, 2023, were $986,000, a decrease of $103,000 when compared to the same quarter last year. The decrease in net budgetary expenditures is mainly due to a decrease in personnel expenses of $87,000 and a decrease of $21,000 in transportation and communications.
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.
Approval by Senior Officials
Approved by,
| Nathalie Théberge | Deputy Head |
| December 31, 2023 | Date |
| Lara Taylor | Chief Financial Officer |
| December 31, 2023 | Date |
Statement of Authorities (unaudited)
| Fiscal Year 2023-2024 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2024* | Used during the quarter ended December 31, 2023 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 4,257 | 877 | 2,393 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 433 | 109 | 325 |
| Total authorities | 4,690 | 986 | 2,718 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2022-2023 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2023* | Used during the quarter ended December 31, 2022 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,888 | 988 | 2,393 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 404 | 101 | 303 |
| Total authorities | 4,292 | 1,089 | 2,696 |
| * Includes approved estimates documents as at quarter end. | |||
| Variances | |||||
| (in thousand of dollars) | YTD | YTD % | Q3 | Q3 % | |
| Vote 45 - Net Operating expenditures | 0 | 0% | (111) | -11% | |
| Budgetary statutory authorities | |||||
| Employee benefit plans | 22 | 7% | 8 | 8% | |
| Total authorities | 22 | 1% | (103) | -9% | |
| * Includes approved estimates documents as at quarter end. | |||||
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
| Fiscal Year 2023-2024 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2024* | Expended during the quarter ended December 31, 2023 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 2,997 | 869 | 2,291 |
| Transportation and communications | 100 | 3 | 29 |
| Information | 100 | 9 | 26 |
| Professional and special services | 767 | 79 | 283 |
| Rentals | 100 | 21 | 62 |
| Repair and maintenance | 90 | - | - |
| Utilities, materials and supplies | 23 | 2 | 3 |
| Acquisition of machinery and equipment | 75 | 2 | 13 |
| Other subsidies and payments | 5 | 1 | 11 |
| Total net budgetary expenditures | 4,257 | 986 | 2,718 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2022-2023 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2023* | Expended during the quarter ended December 31, 2022 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 2,697 | 956 | 2,327 |
| Transportation and communications | 100 | 24 | 35 |
| Information | 108 | 7 | 20 |
| Professional and special services | 650 | 79 | 193 |
| Rentals | 110 | 20 | 53 |
| Repair and maintenance | 115 | 8 | 8 |
| Utilities, materials and supplies | 23 | 1 | 4 |
| Acquisition of machinery and equipment | 80 | 5 | 49 |
| Other subsidies and payments | 5 | (11) | 7 |
| Total net budgetary expenditures | 3,888 | 1,089 | 2,696 |
| * Includes approved estimates documents as at quarter end. | |||
| Variances | |||||
| (in thousand of dollars) | YTD | YTD % | Q3 | Q3 % | |
| Expenditures | |||||
| Personnel | (36) | -2% | (87) | -9% | |
| Transportation and communications | (6) | -17% | (21) | -88% | |
| Information | 6 | 30% | 2 | 29% | |
| Professional and special services | 90 | 47% | - | 0% | |
| Rentals | 9 | 17% | 1 | 5% | |
| Repair and maintenance | (8) | - | (8) | -100% | |
| Utilities, materials and supplies | (1) | -25% | 1 | 100% | |
| Acquisition of machinery and equipment | (36) | -73% | (3) | -60% | |
| Other subsidies and payments | (4) | -57% | 12 | -109% | |
| Total net budgetary expenditures | 22 | 1% | (103) | -9% | |
| * Includes approved estimates documents as at quarter end. | |||||