Quarterly Financial Report for the Quarter ended June 30, 2012

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Contents

• 1. Introduction
  • 1.1 Background to the Quarterly Report
  • 1.2 Authority, Mandate and Program
  • 1.3 Basis of Presentation
• 2. Highlights of fiscal quarter and fiscal year to date (YTD) results
• 3. Risks and Uncertainties
• 4. Significant changes in relation to operations, personnel and programs
• Approval by Senior Officials
• Statement of Authorities (unaudited)
• Table 1: Departmental budgetary expenditures by Standard Object (unaudited)

Canadian Polar Commission

Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

1.1 Background to the Quarterly Report

As per the Treasury Board Accounting Standard (TBAS) 1.3, the Canadian Polar Commission (CPC) is submitting its quarterly report.

This section of the quarterly financial report should be read in conjunction with the Main Estimates (and as applicable - Supplementary Estimates and previous interim reports for the current year).  The 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 financial report has not been subject to an external audit or review.

1.2  Authority, Mandate and Program

The CPC was established in 1991 as the lead agency in the area of polar knowledge and has responsibility for:

• monitoring, promoting, and disseminating knowledge of the polar regions;
• contributing to public awareness of the importance of polar science to Canada;
• enhancing Canada's international profile as a circumpolar nation; and
• recommending polar science policy direction to government.

More specifically, the CPC's mandate requires it to: 

• monitor polar knowledge in Canada and around the world;
• work with Canadian and international institutions to determine scientific and other priorities;
• encourage support for Canadian polar research;
• communicate polar research information to Canadians; and
• foster international co-operation in the advancement of polar knowledge.

Further information on the mandate, roles, responsibilities and program of the CPC can be found on the following websites:  http://www.polarcom.gc.ca and http://www.tbs-sct.gc.ca/est-pre/20122013/me-bpd/docs/me-bpd-eng.pdf.

1.3 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting.  The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2012-2013 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 money 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund.  A special warrant is deemed to be an appropriation for the fiscal year in which it is issued. 

The CPC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process.  However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year to date (YTD) results

As reflected in the attached Statement of Authorities, the CPC's quarterly and year-to-date spending is approximately the same as the previous year.  The current year expenditures have increased in the area of travel due to the costs of participation at the IPY 2012 Conference (Montreal) attended by the Board and staff. The publication and printing of the Meridian in the first quarter of 2011-12 account for the increase in information costs over the current year.  The payment of the IASC membership in the first quarter of 2011-12 accounts for the increase in professional services over the current year. The current year decrease in both salary and rent expenses relate to invoicing delays by other government departments.  Supplementary (C-base) IPY funding was received in 2011-12; this program terminated March 31st, 2012 and is consequently not a source of funds in the current year.

3. Risks and Uncertainties

David J. Scott was appointed Executive Director of the CPC effective 19 March, 2012, following the retirement of his predecessor. This change in senior leadership of the CPC may introduce a level of operational uncertainty during the transition. A thorough review of financial and administrative procedures is underway, in order to improve support for the decision-making and ensure full compliance with Financial Administration Act and its associated policies, directives and guidelines.

4. Significant changes in relation to operations, personnel and programs

The Canadian Polar Commission (CPC) has an increase in funding to establish and staff a CPC office north of 60 degrees latitude. A process to create and staff a new position (Northern Coordinator) and establish the new office has been initiated. A new full-time financial analyst will replace the contracted-in expertise that currently provides this function.

Approval by Senior Officials

Approved September 7th, 2012 by:

originally signed by
Bernard Funston, Chairperson
Dr. David J. Scott, Chief Financial Officer

Ottawa, Canada

Statement of Authorities (unaudited)

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