Quarterly Financial Report ending September 30, 2021

Copyright Board of Canada Statement
outlining results, risks and significant changes in operations, personnel and program
For the Quarter Ended September 30, 2021

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 2021-22 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, 2021, were $878,000, a decrease of $14,000 when compared to the same quarter last fiscal year. The decrease in net budgetary expenditures for the quarter ending September 30, 2021 is a result of lower spending for personnel expenditures by $108,000. Expenses in professional and special services decreased by $15,000; those in utilities, materials and supplies by $1,000; and those in other subsidies and payments by $5,000. All of these changes reflect operational needs and unanticipated constraints to planned spending, in part due to restrictions stemming from the pandemic (COVID-19) and the departure of a few indeterminate employees.

Risks and Uncertainties:

The Board’s most significant expenditure is personnel which represents approximately 72% of its planned expenditures. This implies that when 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. These staffing changes have 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.. Given the small size of its budget, there is an increased risk of lapsed funds, due to rescheduling 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,

Statement of Authorities (unaudited)

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