Quarterly Financial Report for the Quarter ended December 31, 2011

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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 (Polar Commission) 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 Canadian Polar Commission was established in 1991.  The mandate of the Canadian Polar Commission 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 Polar Commission can be found on the following websites: http://www.polarcom.gc.ca and http://www.tbs-sct.gc.ca/est-pre/20112012/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 2011-2012 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 Department 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

This section highlights the significant items that contributed to changes in resources available and actual expenditures.  Variances of 5% or less are considered as having minimal impact on results and are not considered.

Statement of Authorities

The Authorities were restated to reflect the reimbursement of pay list requirements (severance) in 2011-2012 and the operating budget carry forward in both 2010-11 and 2011-12 being allocated to the Polar Commission from Treasury Board.  Planned expenditures in both years were revised to reflect the additional authorities.

Budgetary Expenditures

3rd Quarter

The 2011-12 3rd quarter expenditures increased $27 thousand over the 2010-11 3rd quarter expenditures. 

• personnel costs were up $36 thousand as a result of member pay as well as the staffing of the Polar Research Analyst term position;
• information costs were down $11 thousand.  There was no Fall/Winter Meridian in 11-12 (-$8 thousand) and not all the annual report costs were paid by the third quarter in 11-12 (-$3 thousand);
• professional services costs were up $9 thousand related to year-end audit by the OAG;
• asset costs have decreased $7 thousand as a laptop was purchased and web enhancements made in the 3rd quarter of 2010-11; and
• travel, rentals and material/supplies netted out to no change from 2010-11.

Year to date

The 2011-12 year to date expenditures increased $67 thousand over 2010-11. 

• personnel costs are up $106 thousand as a result of member pay, the staffing of the Polar Research Analyst term position and severance payments;
• transportation and communications down $18 thousand as conference travel was virtually eliminated in 11-12;
• professional services down $12 thousand (website update -$20 thousand; conference fees -$5 thousand; accounting fees +$8 thousand; and translation costs up $5 thousand);
• assets costs down $10 thousand (laptop, web enhancements and cabling purchased in 10-11) and;
• rental and information costs netted out to an increase of $1 thousand over 10-11. 

3.  Risks and Uncertainties

The risks and uncertainties remain unchanged from the previous quarter.  Funding continues to be the most significant risk facing the Polar Commission.  The authorities level is slightly in excess of $1 million dollars and in the last fiscal year, the Polar Commission lapsed just under $40 thousand dollars.  In 2011-12, the Polar Commission will incur a full year's cost related to the Board of Directors as opposed to the five-month costs in 2010-11 (the Board of Directors was appointed in November 2010).  In addition, the Polar Commission does not have an office north of 60 degrees north latitude, a requirement set out in the Canadian Polar Commission Act. The Commission closed its last northern office in January 2000 in an effort to contain costs.  The current funding situation threatens the Polar Commission's ability to deliver on its legislated mandate.

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

There was no significant change in relation to operations, personnel and programs. 

Approval by Senior Officials

Approved by:

originally signed by
Bernard Funston, Chairperson
J.M. Beaulieu, A/Chief Financial Officer

Ottawa, Canada
February 20, 2012

Statement of Authorities (unaudited)

Table 1. Departmental Budgetary Expenditures by Standard Object (unaudited)