Quarterly Financial Report for the quarter ended 31 December 2021

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 2021–22 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 available for use mainly increased as a result of the additional funding request for the OAG’s program integrity, which was approved in March 2021. The authorities used increased primarily as a result of the growing workforce.

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)

Year	AvailableNote *	Year to date used
2021–22	120.6	82.9
2020–21	91.1	70.5

Figure 2—text version

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

• 2021–22: 29.0
• 2020–21: 24.5

Risks and uncertainties

On 2 November 2021, OAG members of the Public Service Alliance of Canada bargaining unit voted in support of a strike. The OAG has approximately 800 employees, and about 165 of them belong to the Audit Services Group and are represented by the alliance. This ongoing labour dispute is having an impact on the OAG, its employees, and the timelines of its work.

Significant changes in operations, personnel, and program

A new Assistant Auditor General was appointed in November 2021. This senior executive brings extensive public sector management experience to the OAG. In addition to being a member of the executive team, this Assistant Auditor General is responsible for supporting change management activities, managing the strategic planning processes, and contributing to the implementation of renewed governance processes.

Approved by:

Ottawa, Canada
25 February 2022

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

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