Quarterly Financial Report — For the quarter ended June 30, 2023

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 2023–24.

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 2023–24 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 Minister’s motor car allowance.

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

Total authorities available for use and planned expenditures decreased to $431.5 million for the first quarter of fiscal 2023–24, compared to $700.6 million for fiscal year 2022–23, as illustrated in the Budgetary Authorities table.

FedDev Ontario has received $431.5 million in funding through the 2023–24 Main Estimates and had no items in Supplementary Estimates A.

The net decrease of $269 million over last fiscal year relates to:

• $4.2 million decrease in Vote 1 (Operating Authorities);
• $264.3 million decrease in Vote 5 (Grants and Contributions Authorities); and
• $0.5 million decrease in statutory authorities.

Vote 1 – Operating Authorities

Total Vote 1 Operating Authorities available for use for the year ending March 31, 2024, amounts to $36.5 million, compared to $40.7 million for fiscal year 2022–23, which is a net decrease of $4.2 million. The net decrease is attributed to the sunsetting of multi-year initiatives announced in Budget 2021 and subsequent reduction in operating requirements.

Vote 5 – Grants and Contributions

Total Vote 5 Grants and Contributions Authorities available for use in 2023–24 is $390.9 million, compared to $655.2 million for fiscal year 2022–23, which is a net decrease of $264.3 million. This decrease relates to the winding down of many Budget 2021 initiatives that are supporting economic recovery in southern Ontario.

Statutory Authorities

Total statutory authorities granted for use for the year ending March 31, 2024, amounts to $4.2 million, compared to $4.7 million in 2022–23, which is a net decrease of $0.5 million. This decrease in the authorities relates to the statutory employee benefits plan linked to operating (personnel) authorities provided to deliver on Budget 2021 programs.

Budgetary Authorities

* Totals presented may not add up due to rounding

2.2 Expenditure analysis

Year-to-date expenditures as at June 30, 2023, totaled $54.6 million, a decrease of $36.3 million, compared to $90.9 million at June 30, 2022. This difference is primarily attributed to decreased transfer payments for Budget 2021 initiatives that are winding down in 2023–24.

Year-to-date Expenditures as at June 30, 2023

* Totals presented may not add up due to rounding

Vote 1 (Operating Expenditures)

First quarter expenditures for personnel and other operating standard objects did not see any fluctuations from the previous fiscal year in the same quarter.

Vote 5 (Grants and Contributions)

Spending on transfer payments through voted authorities was $45.1 million in the first quarter of 2023–24, compared to $81.3 million in the same quarter of 2022–23. The difference of $36.2 million is primarily due to decreased transfer payments for sunsetting Budget 2021 initiatives.

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