Quarterly Financial Report for the Quarter ended September 30, 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 by an Act of Parliament. CPC is Canada's national institution for furthering polar knowledge and awareness. It 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 Polar Commission'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 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

As reflected in the attached Statement of Authorities, the Polar Commission's quarterly and year-to-date spending has changed from the previous year.  Details of these variances are set out below.

2nd Quarter

The significant changes from the previous quarter result primarily from the following: 

• personnel +61K severance costs in 11-12 as well as the staffing of the Polar Research Analyst term position;
• transportation and communications -6K attendance at conferences down but travel related to Board of Directors is up; and
• rentals +31K occupancy instrument signed and 1st quarter rental costs paid in 2nd quarter.

Year to date

The significant changes from the previous year to date result primarily from the following: 

• personnel +69K see 2nd quarter comments above;
• transportation and communications -20K see 2nd quarter comments above;
• information +10 (Meridian costs in 1st quarter 2011-12);
• professional services -21K staffing of Polar Research Analyst (6 month term position eliminated professional services requirement); and
• rentals +7K rental increase under new occupancy instrument. 

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 half year 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 one significant change in relation to personnel as the Polar Research Analyst position (6 month term position) was staffed. 

Approval by Senior Officials

Approved by:

originally signed by
Bernard Funston, Chairperson
Steven Bigras, Chief Financial Officer

Ottawa, Canada
November 28, 2011

Statement of Authorities (unaudited)

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