Quarterly Financial Report for the quarter ended 31 December 2020

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

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, and it should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review.

The Office of the Auditor General of Canada (OAG) has 1 program activity: legislative auditing. The OAG conducts independent audits and studies that provide objective information, advice, and assurance to Parliament, government, and Canadians.

Mandate

The Auditor General of Canada is an Officer of Parliament, who is independent from the government and reports directly to Parliament. The duties are set out in the Auditor General Act, the Financial Administration Act, and other acts and orders-in-council. These duties relate to legislative auditing and, in certain cases, to monitoring of federal departments and agencies, Crown corporations, territorial governments, and other entities.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the OAG’s spending authorities granted by Parliament and those used by the OAG, consistent with the Main Estimates for the 2020–21 fiscal year. This quarterly report provides financial information on the use of spending authorities. The OAG uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of quarterly and year-to-date results

The authorities used increased primarily as a result of the growing workforce and the revised salary structures that were announced in the first quarter of the 2020–21 fiscal year to align with the core public administration.

Figure 1—text version

Authorities available and used as at December 31
(in millions of dollars)

Authorities available and used as at December 31 (in millions of dollars)

	AvailableNote *	Year to date used
2020–21	91.1	70.5
2019–20	91.2	63.4

Figure 2—text version

Authorities used in the quarter ended December 31
(in millions of dollars)

• 2020–21: 24.5
• 2019–20: 22.9

Risks and uncertainties

Given the future increase in the OAG’s base funding announced in the Fall Economic Statement 2020, the OAG is now positioned to modernize its approaches, tools, and products.

The OAG’s operations continue to be affected by the coronavirus disease (COVID‑19) pandemic. As the pandemic continues to evolve, the impact on the OAG’s operations will continue to be assessed and managed.

Significant changes in operations, personnel, and program

Two new assistant auditors general were appointed in December 2020 to fill vacant positions, and Lissa Lamarche took on the role of Chief Financial Officer. In February 2021, a Commissioner of the Environment and Sustainable Development was appointed.

Approved by:

Ottawa, Canada
1 March 2021

Statement of authorities (unaudited)
(in thousands of dollars)

Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)