Quarterly Financial Report ending June 30, 2024

Copyright Board of Canada
Statement outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended June 30, 2024

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 2024-25 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, 2024, were $985,000, an increase of $214,000 when compared to the same quarter last year. The increase in net budgetary expenditures for this quarter is mainly due to increased personnel expenses of $125,000 as result of hiring additional employees and increased salary rates; and professional services of $68,000 related to the implementation of several projects with the goal of increasing the Board’s capacity to deliver on results.

Risks and Uncertainties:

The Board’s most significant expenditure is personnel which represents about 75% 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,

Statement of Authorities (unaudited)

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