Quarterly Financial Report ending September 30, 2019
Copyright Board of Canada Statement outlining results, risks and significant changes in operations, personnel and program For the Quarter Ended September 30, 2019
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 Secretariat (TBS). 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 2019-20 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 September 30, 2019 were $884,000, an increase of $80,000 when comparing to the same quarter last year. This increase mostly reflects a corresponding increase in net operating expenditures.
The increase in net budgetary expenditures for the quarter ending September 30, 2019 is a result of several factors. Personnel expenditures has increased by $71,000 as a result of new employees. In addition, expenditures on rentals increased by $16,000 and repair and maintenance by $21,000. Utilities, materials and supplies expenditures decreased by $14,000, and those on acquisition of machinery and equipment, by $8,000. All of these changes reflected operational needs.
Risks and Uncertainties:
The Board’s most significant expenditure is personnel which represents about 60% 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.
Finally, as a service to the public and to increase transparency, the Board publishes various types of information on its website, some of which is currently in only one official language. A one-time extra-budgetary investment could be needed to proceed with translation of all the Board’s information on its website (about 1,500 documents) in both official languages.
Significant Changes in Relation to Operations, Personnel and Programs:
As part of Canada’s Intellectual Property Strategy, Federal Budget 2018 announced a 30% increase in the Board’s financial resources, to increase its internal capacity to support more efficient processes. Funds were obtained in early 2019, leading to increasing spending in a number of categories including personnel, communication and information management.
Approval by Senior Officials
Approved by,
| Nathalie Théberge | Deputy Head |
| Lara Taylor | Chief Financial Officer |
Statement of Authorities (unaudited)
| Fiscal Year 2019-2020 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2020* | Used during the quarter ended September 30, 2019 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,782 | 785 | 1,630 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 396 | 99 | 198 |
| Total authorities | 4,178 | 884 | 1,828 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2018-2019 | |||
| (in thousand of dollars) | Total available for use for the year ending March 31, 2019* | Used during the quarter ended September 30, 2018 | Year to date used at quarter-end |
| Vote 45 - Net Operating expenditures | 3,298 | 730 | 1,392 |
| Budgetary statutory authorities | |||
| Employee benefit plans | 297 | 74 | 148 |
| Total authorities | 3,595 | 804 | 1,540 |
| * Includes approved estimates documents as at quarter end. | |||
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
| Fiscal Year 2019-2020 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2020* | Expended during the quarter ended September 30, 2019 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 2,986 | 683 | 1,314 |
| Transportation and communications | 75 | 10 | 26 |
| Information | 185 | 20 | 106 |
| Professional and special services | 615 | 103 | 282 |
| Rentals | 90 | 29 | 46 |
| Repair and maintenance | 142 | 31 | 37 |
| Utilities, materials and supplies | 65 | 1 | 2 |
| Acquisition of machinery and equipment | 0 | 6 | 8 |
| Other subsidies and payments | 20 | 1 | 7 |
| Total net budgetary expenditures | 4,178 | 884 | 1,828 |
| * Includes approved estimates documents as at quarter end. | |||
| Fiscal Year 2018-2019 | |||
| (in thousand of dollars) | Planned expenditures for the year ending March 31, 2019* | Expended during the quarter ended September 30, 2018 | Year to date used at quarter-end |
| Expenditures | |||
| Personnel | 2,290 | 612 | 1,102 |
| Transportation and communications | 79 | 10 | 18 |
| Information | 205 | 24 | 125 |
| Professional and special services | 726 | 104 | 202 |
| Rentals | 95 | 13 | 20 |
| Repair and maintenance | 40 | 10 | 14 |
| Utilities, materials and supplies | 85 | 15 | 27 |
| Acquisition of machinery and equipment | 75 | 14 | 28 |
| Other subsidies and payments | - | 2 | 4 |
| Total net budgetary expenditures | 3,595 | 804 | 1,540 |
| * Includes approved estimates documents as at quarter end. | |||