Quarterly Financial Report — For the Quarter ended June 30, 2022

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

1. 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. This report should be read in conjunction with the 2022-23 Main Estimates and Supplementary Estimates. This quarterly report has not been subject to an external audit or review.

1.1 Authority, Mandate and Core Responsibility

The Federal Economic Development Agency for Southern Ontario's (FedDev Ontario) mandate is to "strengthen southern Ontario's economic capacity for innovation, economic development and growth, and to promote a dynamic, inclusive and globally-competitive southern Ontario."

Details and additional information on FedDev Ontario's authorities, mandate and core responsibility can be found in Part II of the Main Estimates and FedDev Ontario's Departmental Plan for 2022-2023.

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 FedDev Ontario's spending authorities granted by Parliament and those used by FedDev Ontario, consistent with the Main and Supplementary Estimates for the 2022-23 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.

FedDev Ontario uses the full accrual method of accounting to prepare and present its annual financial statements that are part of its performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.3 FedDev Ontario's Financial Structure

FedDev Ontario manages its expenditures under two votes:

  • Vote 1 – Net operating expenditures include the Agency's authorities related to personnel costs, operation and maintenance expenditures; and
  • Vote 5 – Grants and contributions include all authorities related to transfer payments.

Expenses under budgetary statutory authorities, for which payments are made under a law previously approved by Parliament and which are not part of the annual appropriations bills, include items such as the Government of Canada's portion of the employee benefit plan and payments and Minister's motor car allowance.

2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended June 30, 2022.

2.1 Authorities Analysis (Vote 1 – Operating, Vote 5 – Grants and Contributions and Statutory Authorities)

Total authorities available for use and planned expenditures increased to $700.6 million for first quarter of fiscal 2022-23 compared to $362.8 million for fiscal year 2021-22, as illustrated in the "Statement of Authorities" table.

FedDev Ontario has received $700.6 million in funding through the 2022-23 Main Estimates and had no items in Supplementary Estimates A.

The net increase of $337.8 million over last fiscal year relates to:

  • $6.6 million increase in Vote 1 (Operating Authorities);
  • $330.7 million increase in Vote 5 (Grants and Contributions Authorities); and
  • $0.5 million increase in statutory authorities.
Vote 1 – Operating Authorities

Total Vote 1 Operating Authorities available for use for the year ending March 31, 2023, amount to $40.7 million, compared to $34.1 million for fiscal year 2021-22, which is a net increase of $6.5 million. The net increase is attributed to additional operating funding provided to support the delivery of a suite of multi-year initiatives announced in Budget 2021.

Vote 5 – Grants and Contributions

Total Vote 5 Grants and Contributions Authorities available for use in 2022-23 is $655.2 million, compared to $324.5 million for fiscal year 2021-22, which is a net increase of $330.8 million. This increase relates to funding received from Budget 2021 to support the economic recovery of southern Ontario.

Statutory Authorities

Total statutory authorities granted for use for the year ending March 31, 2023, amount to $4.7 million, compared to $4.2 million in 2021-22, which is a net increase of $0.5 million. This increase in the authorities relates to the statutory employee benefits plan linked to the increased operating (personnel) authorities provided to deliver on Budget 2021 programs.

Budgetary Authorities Available

Text version
- Fiscal Year (in millions of dollars)
2022–23 2021–22
Vote 1 – Net Operating Expenditures 40.7 34.1
Vote 5 – Grants and Contributions 655.2 324.5
Statutory Authorities 4.7 4.2
Total 700.6 362.8

Note: Totals presented may not add up due to rounding.

2.2 Expenditure Analysis

Year-to-date expenditures as of June 30, 2022, totaled $90.9 million, an increase of $18.7 million, compared to $72.2 million at June 30, 2021. The increase in spending is primarily attributed to transfer payments related to the Budget 2021 initiatives.

Year To Date Expenditures as at June 30, 2022

Text version
- Fiscal Year (in millions of dollars)
2022–23 2021–22
Vote 1 – Net Operating Expenditures 8.5 6.8
Vote 5 – Grants and Contributions 81.3 64.0
Statutory Authorities 1.2 1.4
Total 90.9 72.2

Note: Totals presented may not add up due to rounding.

Vote 1 (Operating Expenditures)

First quarter expenditures for personnel increased by $1.3 million (or 17 percent) compared to the same period in the previous fiscal year. The increase in personnel expenditures aligns with the increased operating authorities provided to support Budget 2021 multi-year recovery programming.

Expenditures in other operating standard objects did not see material fluctuations.

Vote 5 (Grants and Contributions)

Spending on transfer payments through voted authorities was $81.3 million in the first quarter of 2022-23, compared to $64.0 million in the same quarter of 2021-22. The increase in quarterly spending is attributed to the Budget 2021 initiatives.

(For additional information on expenditures, see the Departmental Budgetary Expenditures by Standard Object table in the Appendix.)

3. Risks and Uncertainties

In 2022-23, FedDev Ontario has the highest authorities level in its history, with new programing and authorities to support government priorities to rebuild regional economies during the recovery from the pandemic. The ability to spend the authorities this year will be influenced by the capacity of recipients to launch projects and make investments, and the uncertainty around the path of the pandemic in the coming months.

4. Significant Changes in Relation to Operations, Personnel and Programs

Launched in the summer of 2021, the Budget 2021 suite of multi-year programs are being delivered by regional development agencies across Canada to support the economic recovery from the pandemic. These programs have significant financial authorities for grants and contributions investments into southern Ontario through the Jobs and Growth Fund, Tourism Relief Fund, Canada Community Revitalization Fund, Aerospace Regional Recovery Initiative and targeted funding for Major Festivals and Events.

Approval by Senior Officials


Nancy Gardiner
President
Ottawa, Canada


Lisa St-Amour, MBA, CPA, CMA
Chief Financial Officer

Statement of Authorities (unaudited) (in thousands of dollars) Footnote 1
- Fiscal Year 2022–23 Fiscal Year 2021–22
Total available for use for the year ending March 31, 2023 Footnote 2 Used during the quarter ended June 30, 2022 Year to date used at quarter-end Total available for use for the year ending March 31, 2022 Footnote 2 Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Vote 1–Net Operating Expenditures 40,682 8,464 8,464 34,149 6,808 6,808
Vote 5–Grants and Contributions 655,183 81,287 81,287 324,458 63,968 63,968
Budgetary statutory authorities: 4,720 1,180 1,180 4,236 1,446 1,446
Total authorities 700,585 90,931 90,931 362,843 72,222 72,222
Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars) Footnote 1
- Fiscal Year 2022–23 Fiscal Year 2021–22
Adjusted Planned expenditures for the year ending March 31, 2023 Used during the quarter ended June 30, 2022 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2022 Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Expenditures:
Personnel Footnote 2 36,183 9,005 9,005 31,397 7,665 7,665
Transportation and communications 639 29 29 469 3 3
Information 774 35 35 587 20 20
Professional and special services 6,616 526 526 5,050 525 525
Rentals 309 22 22 210 15 15
Repair and maintenance 48 - - 37 - -
Utilities, materials and supplies 138 15 15 105 - -
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 678 12 12 519 5 5
Transfer payments 655,183 81,287 81,287 324,458 63,968 63,968
Other subsidies and payments 16 - - 11 21 21
Total budgetary expenditures 700,585 90,931 90,931 362,843 72,222 72,222

ISSN 2368-3481