Quarterly Financial Report - For the quarter ended December 31, 2023

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2023 to 2024. It 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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. It has been reviewed by the Internal Audit Committee of the Public Service Commission of Canada.

This quarterly report has not been subject to an external audit or review.

1.1 Authority and objectives

The Public Service Commission of Canada (the agency) is an independent agency established under the Public Service Employment Act and listed in schedules I.1 and IV of the Financial Administration Act.

A summary description of the agency’s programs can be found in its 2023–24 Departmental Plan.

1.2 Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency, consistent with the Main and Supplementary Estimates for fiscal year 2023 to 2024. This quarterly financial report has been prepared using a special purpose financial reporting framework designed to meet financial reporting needs with respect to the use of spending authorities.

Authorization for government spending is required from Parliament. Approvals are granted in the form of annually approved limits under appropriation acts, or through legislation in the form of statutory spending authority for specified purposes.

The agency uses the full accrual method of accounting for the preparation of its annual departmental financial statements, which form part of the departmental results reporting process. However, spending authorities voted by Parliament are still subject to expenditure-based accounting.

1.3 Financial structure

The agency’s financial structure consists of voted budgetary authorities for program expenditures and statutory authorities for contributions to employee benefit plans.

In addition, the agency has the authority to re-spend certain revenues received from other government departments and agencies during a fiscal year to offset expenditures incurred during that same year, for the provision of assessment and counselling products and services.

2. Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the principal elements contributing to the changes in existing resources for the current year, and actual expenditures for the quarter ending December 31, 2023.

The following graph provides a comparison of the net budgetary authorities available for spending and the expenditures for the quarters ended December 31, 2023, and December 31, 2022, for the agency’s combined Vote 1 – Program Expenditures and Statutory Authorities.

2.1 Significant changes to authorities

As indicated in Section 6: Statement of Authorities, at December 31, 2023, there was an increase of $5,976,000 in authorities available for use in the current year, compared with the previous year.

The variance is mainly due to the following:

• an increase of $6,055,000 in funding from the Treasury Board of Canada Secretariat to cover higher current and retroactive salary rates following the implementation of new collective agreements
• an increase of $705,000 in funding from the Treasury Board of Canada Secretariat submission to cover expenses related to the Public Service Employment Act initiative
• an increase of $330,000 in funding due to adjustments in employer contributions to employee benefit plans
• a decrease of $850,000 in the year-end operating budget carry-forward received in fiscal year 2023 to 2024, due to a smaller lapse compared to the previous year
• a decrease of $264,000 in funding related to frozen allotments for refocusing government spending

2.2 Significant variances in net expenditures from prior year           

As indicated in Section 7: Budgetary expenditures by standard object, total net budgetary expenditures during the quarter increased from $22,879,000 in 2022 to 2023 to $28,624,000 in 2023 to 2024, a variance of $5,745,000 or 25.11%.

The variance is mainly due to the following:

• an increase of $6,318,000 in personnel expenses, resulting from:
• an increase of $5,192,000 in spending, due mainly to an increase in the number of indeterminate employees and retroactive payments following the implementation of new collective agreements
• an increase of $1,553,000 in spending, resulting mainly from signing bonuses of new collective agreements
• a decrease of $427,000 in spending, resulting mainly from a reduction in the number of casual employees
• a decrease of $1,135,000 in operating and maintenance spending, resulting from the following:
• a decrease of $616,000 in professional and special services, resulting mainly from a reduction in management consulting services and professional development expenses
• a decrease of $542,000 in acquisitions of machinery and equipment, resulting mainly from a reduction in computer hardware purchases
• an increase of $23,000 in miscellaneous expenses
• a decrease of $562,000 in revenues netted against expenditures, due to fewer services requested by other government departments

3. Risks and uncertainties

The agency is evolving in a dynamic and complex environment that requires it to be efficient, flexible and innovative to support hiring in federal departments and agencies across Canada. As part of its departmental planning and reporting cycle, the agency undertakes an annual review of its organizational risks, as well as quarterly monitoring. This monitoring includes strategic oversight of changes in external risk factors and internal vulnerabilities that may have an impact on the agency’s results.

To learn more about the agency’s risks, consult the 2023–24 Departmental Plan, which also includes a link to the operating context.

Amendments to the agency’s enabling legislation, the Public Service Employment Act, are being implemented as they come into force, and the agency has developed tools to guide departments and agencies to eliminate biases and barriers that disadvantage members of equity-seeking groups in the hiring process. The 2 remaining amendments came into effect on July 1, 2023. The agency will continue to work with departments and agencies to examine a wider range of socio-demographic and intersecting identity factors, to remove or reduce barriers and biases in the staffing system, beyond the consideration of the 4 employment equity groups.

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

On the recommendation of the Prime Minister, the Senate and the House of Commons approved the appointment of Marie-Chantal Girard as the President of the Public Service Commission of Canada effective January 2, 2024.

5. Approved by senior officials

Marie-Chantal Girard
President

Farhat Khan, CPA,
Chief Financial Officer and Vice-President,
Corporate Affairs Sector

Gatineau, Canada
February 28, 2024

6. Statement of authorities (unaudited)

6. Statement of authorities (unaudited)(continued)

7. Budgetary expenditures by standard object (unaudited)

7. Budgetary expenditures by standard object (unaudited)(continued)