Quarterly Financial Report For the quarter ended September 30, 2020

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

1. Introduction

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

Women and Gender Equality Canada (WAGE) works to advance gender equality through an intersectional gendered lens. Working in partnership with key stakeholders, including civil society organizations, labour groups, the private sector, other orders of government, and First Nations, Inuit and Metis peoples, WAGE actively promotes the inclusion of all people in Canada’s economic, social, and political life. WAGE works to uphold its mandate to advance gender equality by performing a central coordination function within the Government of Canada by developing and implementing policies, providing grants and contributions, delivering programs, investing in research, and providing advice to achieve equality for people of all genders, including women.

The Minister for Women and Gender Equality and Rural Economic Development is responsible for this organization.

A summary description of WAGE's programs can be found in Part II of the Main Estimates.

2. Basis of presentation

This quarterly report has been prepared by management 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 and Supplementary Estimates for the 2020-2021 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.

When Parliament is dissolved for purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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

3. Highlights of the fiscal quarter and the 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 September 30, 2020.

3.1 Significant changes to authorities

Total authorities available for use for the quarter ended September 30, 2020 have increased by $25.1 million, from $115.6 million in 2019-2020 to $140.7 million in 2020-2021, representing an increase of 22%.

The increase is mainly attributable to the following elements:

• An increase of $16.0 million to support additional investments in capacity building of women’s organizations and LGBTQ2 service organizations. It also includes investments in support of the National Strategy to Combat Human Trafficking;
• An increase of $30.0 million, pursuant to the Public Health Events of National Concern Payments Act, to support women’s shelters and sexual assault centres;
• An increase of $10.0 million specific to emergency response measures to Canadians during the COVID-19 pandemic; and
• A decrease of $31.3 million due to the reduced supply of the Main Estimates. Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall. WAGE is expected to receive full supply for the 2020-2021 Main Estimates in December 2020.

3.2 Significant changes to expenditures

Year-to-date budgetary expenditures for the quarter ended September 30, 2020 have increased by $44.1 million, from $45.6 million in 2019-2020 to $89.7 million in 2020-2021, representing an increase of 97%. This increase is mainly attributable to the $40.0 million in funding received to address the impacts on Canadians as a result of the COVID-19 pandemic.

Budgetary expenditures for the quarter ended September 30, 2020 have decreased by $10.0 million, from $27.6 million in 2019-2020 to $17.6 million in 2020-2021, representing a decrease of 36%.

The decrease is mainly attributable to the following elements:

• A decrease of $10.6 million in grants and contributions payments issued in the quarter;
• A decrease of $1.3 million in the use of professional services during the pandemic; and
• An increase of $1.9 million in personnel expenditures due to the increase in the number of employees delivering programming as well as improvements to the timely recording of pay data in the financial system.

Figure 1 outlines the total authorities available for use and total expenditures for the first quarter.

4. Risks and uncertainties

WAGE approaches risk as an integral part of its planning process, recognizing the need for strong risk management in all of its operations, as well as at the corporate level. The department’s corporate risk profile, review of budgetary challenges, management practices and risk mitigation strategies continue to be monitored by its senior management.

5. Significant changes in relation to operations, personnel and programs

The COVID-19 pandemic situation has had a significant impact on WAGE’s personnel and how it operates and delivers its programming, especially as staff has transitioned to working from home.

In addition, the department has played an important role in the delivery of emergency response measures to Canadians during the pandemic.

6. Approval by Senior Officials

Approved, as required by the Policy on Financial Management:

Gatineau, Canada
Date: November 18, 2020

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)