Language selection

Search

Quarterly Financial Report for the quarter ended September 30, 2019

Agriculture and Agri-Food Canada - Quarterly Financial Report for the quarter ended September 30, 2019 (PDF Version, 793 KB)

Introduction

Agriculture and Agri-Food Canada is the federal department responsible for the Canadian agriculture and agri-food sector. Agriculture is a shared jurisdiction in Canada, and our department works closely with provincial and territorial governments on the development and delivery of policies and programs. Along with these policies and programs, our research and technology helps farmers and food producers to grow and develop the sector in order to succeed in Canadian and global markets.

Detailed information on Agriculture and Agri-Food Canada’s program activities can be found in the Departmental Plan.

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act in the form and manner prescribed by Treasury Board, and should be read in conjunction with the Main Estimates.

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

Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates for the 2019-2020 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.

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

Highlights of fiscal quarter and fiscal year-to-date (YTD) results

This quarterly financial report reflects the results of the current fiscal period in comparison to the authorities provided in the Main Estimates for fiscal year 2019-2020, as well as budget adjustments approved by Treasury Board up to September 30, 2019.

The following table provides a comparison of authorities available for spending and year-to-date expenditures for the second quarter of the current and previous fiscal years.

Comparison of Authorities Available for Spending for the Year and Total Year-to-date Expenditures for the Quarter ended September 30 of fiscal years 2018-2019 and 2019-2020 (in millions of dollars)
All Votes and Statutory (in millions of dollars) 2018-2019 2019-2020
Total Authorities 2,564 2,549
Total Year-to-date Expenditures 492 534
Utilization 19% 21%

A. Significant Changes to Authorities

The following table provides a comparison of authorities by vote for the second quarter of the current and previous fiscal years.

Comparison of Authorities Available for Spending for the Year as at September 30 of Fiscal Years 2018-2019 and 2019-2020
Authorities Available
(in millions of dollars)
2018-2019 2019-2020 Variance
Vote 1 – Net Operating authorities 597 601 4
Vote 5 - Capital authorities 64 51 (14)
Vote 10 - Grants and Contributions 426 420 (6)
Vote 15 - A Food Policy for Canada 17 17
Statutory authorities 1,478 1,460 (17)
Total Authorities 2,564 2,549 (15)
Note: Totals may not add up due to rounding.

Authorities available for spending in fiscal year 2019-2020 were $2,549 million at the end of the second quarter, as compared to $2,564 million at the end of the second quarter of 2018-2019, which represents a decrease of $15 million or 1%. This decrease is primarily attributable to the following reductions in funding:

These decreases in authorities are partially offset by increases as follows:

B. Significant Changes in Year-to-Date Expenditures

The following table provides a comparison of spending by vote for the second quarter of the current and previous fiscal years.

Comparison of Year-to-Date Expenditures for the Quarter Ended September 30 of Fiscal Years 2018-2019 and 2019-2020
Year-to-date Expenditures
(in millions of dollars)
2018-2019 2019-2020 Variance
Vote 1 – Net Operating expenditures 258 260 2
Vote 5 - Capital expenditures 10 6 (4)
Vote 10 - Grants and Contributions 42 86 44
Vote 15 - A Food Policy for Canada
Statutory expenditures 183 183 (0)
Total Year-to-date Expenditures 492 534 43
Note: Totals may not add up due to rounding.

At the end of the second quarter of 2019-2020, total expenditures were $534 million, compared to $492 million reported for the same period in 2018-2019, representing an increase of $43 million or 9%. Expenditure trends were similar to last year with the exception of:

Risks and Uncertainties

Agriculture and Agri-Food Canada continues to exercise prudent management in delivering its policies and programs. The department has established processes to identify, assess, monitor, and respond to a variety of risks. This facilitates decision making and priority setting and contributes to more effective delivery and efficient use of resources.

In the current environment, supporting employees and managers dealing with pay issues is a top priority for Agriculture and Agri-Food Canada. The department created a Pay Transformation team to proactively mitigate risks and respond to pay issues by providing:

The department actively monitors the pay impacts and corresponding salary payment adjustments resulting from these issue resolution activities.

Significant changes in relation to operations, personnel and programs

Personnel

On August 12, 2019, Jane Taylor was appointed to the position of the Workplace Well-Being Ombudsperson and Paul Samson was appointed to Assistant Deputy Minister, Programs Branch.

Programs

Budget 2019 announced A Food Policy for Canada, introducing $134.4 million of new investments over the next five years among Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency, and the Canadian Northern Economic Development Agency. Agriculture and Agri-Food Canada was allocated $95 million of this funding to:

The 2018 Fall Economic Statement announced Canada’s Export Diversification Strategy and earmarked new funding ($25 million over five years and $5 million ongoing, beginning in 2024-2025) among Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency, and Health Canada. The funding will be spent to enhance federal capacity to ease Canadian agricultural producers’ access to international markets by means such as better engagement with international standard-setting bodies. Agriculture and Agri-Food Canada was allocated $11.6 million over five years ($2.3 million ongoing, beginning in 2024-2025) of this funding to enhance the Agriculture and Food Trade Commissioner Services and accelerate Canada’s expansion into newly accessible markets through free trade agreements.

Approval by Senior Officials
Approved by:

Original signed by
Chris Forbes, Deputy Head
Ottawa, Canada

Original signed by
Christine Walker, Chief Financial Officer
Ottawa, Canada

Statement of Authorities (unaudited)
For the quarter ended September 30, 2019
(in thousands of dollars)
Fiscal year 2019-2020 [1] Fiscal year 2018-2019 [1]
Total available for use for the year ending March 31, 2020 [2] Used during the quarter ended September 30, 2019 Year to date used at quarter-end Total available for use for the year ending March 31, 2019 [2] Used during the quarter ended September 30, 2018 Year to date used at quarter-end
Vote 1 - Net Operating expenditures $600,847 $107,197 $260,168 $596,523 $134,909 $257,867
Vote 5 - Capital expenditures 50,645 4,465 5,904 64,447 7,760 9,635
Vote 10 - Grants and contributions 419,735 47,238 85,775 425,525 33,380 41,571
Vote 15 - A Food Policy for Canada 17,486 - - - - -
Budgetary statutory authorities [3] 1,460,452 131,514 182,573 1,477,694 136,837 182,843
Total Budgetary authorities 2,549,165 290,413 534,421 2,564,188 312,886 491,915
Total authorities $2,549,165 $290,413 $534,421 $2,564,188 $312,886 $491,915

Notes:
[1] Totals may not add due to rounding.
[2] Includes only authorities available for use and granted by Parliament at quarter-end.
[3] Details on Budgetary statutory authorities are included the table below.

Departmental budgetary expenditures by Standard Object (unaudited)
For the quarter ended September 30, 2019

(In thousands of dollars)
Fiscal year 2019-2020 [1] Fiscal year 2018-2019 [1]
Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended September 30, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended September 30, 2018 Year to date used at quarter-end
Expenditures:
Personnel $520,634 $128,094 $250,890 $500,315 $122,866 $245,270
Transportation and communications 15,075 3,487 5,992 12,016 3,216 5,783
Information 6,817 1,019 2,403 6,342 668 2,110
Professional and special services 101,631 20,974 33,528 103,956 19,801 32,122
Rentals 6,735 1,099 3,688 6,017 880 3,682
Repair and maintenance 13,243 2,198 3,588 14,007 3,808 5,317
Utilities, materials and supplies 40,846 6,316 11,494 41,814 6,878 12,174
Acquisition of land, buildings and works 27,379 383 479 51,820 3,103 3,534
Acquisition of machinery and equipment 38,553 4,414 6,993 31,053 4,460 6,650
Transfer payments 1,803,969 160,805 233,431 1,827,049 152,376 189,659
Other subsidies and payments 26,791 (25,892) 5,618 26,868 5,578 9,786
Total gross budgetary expenditures 2,601,672 302,897 558,104 2,621,257 323,634 516,087
Less Revenues netted against expenditures:
Vote-netted revenues 52,507 12,484 23,683 57,069 10,748 24,172
Total Revenues netted against expenditures 52,507 12,484 23,683 57,069 10,748 24,172
Total net budgetary expenditures $2,549,165 $290,413 $534,421 $2,564,188 $312,886 $491,915
Note:
[1] Totals may not add due to rounding.

Appendix A

Budgetary Statutory Authorities Breakdown (unaudited)
For the quarter ended September 30, 2019

(in thousands of dollars)
Fiscal year 2019-2020 [1] Fiscal year 2018-2019 [1]
Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended September 30, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended September 30, 2018 Year to date used at quarter-end
Contributions to employee benefit plans $65,685 $16,360 $32,720 $65,526 $16,381 $32,763
Minister of Agriculture and Agri-Food - Salary and motor car allowance 88 22 44 86 22 43
Contribution payments for the AgriStability program 384,830 (16,067) (21,200) 384,830 (5,101) (10,958)
Contribution payments for the AgriInsurance program 623,000 54,517 69,334 623,000 59,267 79,925
Grant payments for the AgriInvest program 122,910 49,712 81,934 138,148 54,530 88,990
Payments in connection with the Agricultural Marketing  Programs Act 65,900 13,526 18,101 65,900 5,760 11,150
Grant payments for the AgriStability program 39,320 (106) (92) 39,320 (6) (103)
Contribution payments for the AgriInvest program 16,550 11,268 11,416 18,602 4,737 4,737
Loan guarantees under the Canadian Agricultural Loans Act 13,111 745 754 13,111 (9) -
Contributions in support of the Assistance to the Pork Industry Initiative - - (12,550) - (79) (25,289)
Grants to agencies established under the Farm Products Agencies Act 100 - - 100 - -
Contribution payments for the Agricultural Disaster Relief  Program (ADRP)/AgriRecovery 118,513 - - 118,513 - -
Canadian Pari-Mutuel Agency Revolving Fund - 25 (519) - (154) (935)
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 10,446 1,540 2,672 10,558 1,542 2,833
Contributions for agricultural risk management - Enhanced Spring Credit Advance program Business Risk Management - - - - (32) (121)
Class grant payments for the Transitional Industry Support program - - - - - (2)
Class grant payments for the Farm Income Program - - - - - 2
Grant payments for the Canadian Agricultural Income Stabilization program Inventory Transition Initiative - (11) (15) - (6) (15)
Contribution payments for the Canadian Agricultural Income Stabilization program Inventory Transition Initiative - (17) (26) - (15) (179)
Budgetary statutory authorities $1,460,453 $131,514 $182,573 $1,477,694 $136,837 $182,843
Note:
[1] Totals may not add due to rounding.
Report a problem on this page
Please select all that apply:
Date modified: