Quarterly Financial Report ending June 30, 2022
Copyright Board of Canada Statement outlining results, risks and significant changes in operations, personnel and program For the Quarter Ended June 30, 2022
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 2022-23 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 June 30, 2022, were $710,000, an increase of $11,000 when compared to the same quarter last year. The increase in net budgetary expenditures for the quarter ending June 30, 2022, is a result of increased net operating expenditures and budgetary statutory authorities such as employee benefit plans.
Expenses in acquisition of machinery and equipment increased by $7,000, other subsidies and payments by $6,000 (this variance is mainly due to salary overpayment) and by $5,000 for professional and special services. However, there was a decrease of $4,000 in personnel and of $2,000 in rental expenditures. All of these changes reflect operational needs and unanticipated constraints to planned spending, in part 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 impacted operations across the Board, resulting in a reduced measure of control over actual expenditures. Given the small size of its budget, there is an increased risk of lapsed funds, due to the postponement of normal Board activities, new requirements for the return to the workplace initiative (hybrid model) and more judicious forecasting so that funds are available for any potential immediate need due to the pandemic situation. The Board continues to carefully monitor 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 2022-23 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2023* | Used during the quarter ended June 30, 2022 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,888 | 609 | 609 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 404 | 101 | 101 |
| Total authorities | 4,292 | 710 | 710 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2021-2022 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2022* | Used during the quarter ended June 30, 2021 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,882 | 599 | 599 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 398 | 100 | 100 |
| Total authorities | 4,280 | 699 | 699 |
| * Includes approved estimates documents as at quarter end. | |||
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
| Fiscal Year 2022-2023 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2023* | Expended during the quarter ended June 30, 2022 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 3,101 | 611 | 611 |
| Professional and special services | 650 | 60 | 60 |
| Repair and maintenance | 115 | - | - |
| Rentals | 110 | 7 | 7 |
| Information | 108 | 7 | 7 |
| Transportation and communications | 100 | 2 | 2 |
| Acquisition of machinery and equipment | 80 | 7 | 7 |
| Utilities, materials and supplies | 23 | 3 | 3 |
| Other subsidies and payments | 5 | 13 | 13 |
| Total net budgetary expenditures | 4,292 | 710 | 710 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2021-22 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2022* | Expended during the quarter ended June 30, 2021 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 3,088 | 615 | 615 |
| Professional and special services | 650 | 55 | 55 |
| Repair and maintenance | 116 | - | - |
| Rentals | 110 | 9 | 9 |
| Information | 108 | 8 | 8 |
| Transportation and communications | 100 | 3 | 3 |
| Acquisition of machinery and equipment | 80 | - | - |
| Utilities, materials and supplies | 23 | 2 | 2 |
| Other subsidies and payments | 5 | 7 | 7 |
| Total net budgetary expenditures | 4,280 | 699 | 699 |
| * Includes approved estimates documents as at quarter end. | |||