Treasury Board Accounting Standard 1.3 - Departmental and Agency Quarterly Financial Report

Alternate Formats

1. Effective date

This Treasury Board Accounting Standard (TBAS) will take effect on April 1, 2011.

2. Application

Unless otherwise specified, this standard applies to all departments and organizations defined as departments within the meaning of section 2 of the Financial Administration Act. Throughout this standard, the terms "government-wide" and "across government" refer to these organizations.

3. Context

3.1 The Canadian federal government uses financial information as a strategic business resource to support decision-making and management activities, policy development, program and service delivery, evidential needs and for historical purposes.

3.2 Parliament and Canadians expect the federal government to be well managed including decision-making based on reporting which is supported by integrated financial and related non-financial information. They also expect timely and reliable reporting that provides transparency and accountability as to how government spends public funds to achieve results for Canadians.

3.3 This standard helps implement the requirements of section 6 of the Policy on Financial Resource Management, Information and Reporting and outlines the responsibilities of departmental Chief Financial Officers (CFOs) regarding the quarterly financial reports.

3.4 This standard is issued by the Treasury Board to provide departments the form and content of the quarterly financial reports under the authority of section 65.1 of the Financial Administration Act.

3.5 There is no requirement for an audit or review of the financial information included in the quarterly financial report.

3.6 This standard is to be read in conjunction with the Policy on Financial Resource Management, Information and Reporting.

3.7 This standard is issued pursuant to section 7 and subsection 9(1) of the Financial Administration Act.

4. Definitions

4.1 Definitions to be used in the interpretation of this standard are provided in the Appendix of the Policy on Financial Resource Management, Information and Reporting.

5. Standard statement

5.1.1 The objective of this standard is to support the Policy on Financial Resource Management, Information and Reporting by defining the form and content of departmental quarterly financial reports; to assist in the timely and effective oversight of government expenditures.

5.2.1 Quarterly financial reports contain all of the minimum requirements identified in the Appendix A - Form and Content of the Quarterly Financial Report contained herein.

5.2.2 Quarterly financial reports are timely, accurate and complete.

6. Requirements

The Departmental Chief Financial Officer is responsible for:

  • Providing to his or her deputy head a departmental quarterly financial report for the first three fiscal quarters of each fiscal year in a timely manner.
  • Ensuring that the quarterly financial report includes all of the minimum requirements identified in Appendix A - Form and Content of the Quarterly Financial Report.

The monitoring and reporting requirements set out in section 7 of the Policy on Financial Resource Management, Information and Reporting apply to this standard.

7. Consequences

7.1 The consequences of non-compliance with this standard are identified in section 8 of the Policy on Financial Resource Management, Information and Reporting.

8. Roles and responsibilities of government organizations

Note: This section identifies other departments that have a role in the standard. In and of itself, this section does not confer an authority.

8.1.1 The Treasury Board Secretariat provides interpretive advice and guidance on this standard.

10. Enquiries

Please direct enquiries about this standard to your department's headquarters. For interpretation of this standard, departmental headquarters should contact:

Assistant Comptroller General
Financial Management and Analysis Sector
Office of the Comptroller General
Treasury Board Secretariat
Ottawa ON K1A 0R5

Email: fin-www@tbs-sct.gc.ca
Facsimile: (613) 952-9613


Appendix A: Form and Content of the Quarterly Financial Report

The objective of this appendix is to provide a model for quarterly financial reports prepared by departments, as well as guidance for the expected content of the accompanying statement outlining results, risks and significant changes in relation to operations, personnel and programs. This model must be used in order to ensure presentation and disclosure consistency across departments. The financial report package contained in this appendix cannot consider all unique circumstances and peculiarities and therefore, departmental personnel must use professional judgement in modifying the package to meet their reporting requirements.

Departmental Chief Financial Officers are to ensure that the elements of the present appendix are included in their quarterly financial report when applicable and that the report includes, at a minimum:

  • A signed statement outlining
    • the results,
    • the risks; and
    • significant changes in relation to operations, personnel and programs.
  • Quarterly financial information incorporating:
    • A Statement of Authorities and a table of departmental budgetary expenditures by standard objects including both the quarter and the fiscal year-to-date; and,
    • Comparative financial information for the preceding fiscal year for both the quarter and year-to-date.

The following heading must appear on each page of the report:

DEPARTMENT'S NAME 
Quarterly Financial Report
For the quarter ended Month DD, 20XX


TBAS 1.3 - Departmental and Agency Quarterly Financial Report

 

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

Introduction

This section should indicate that the quarterly financial report:

  • should be read in conjunction with the Main Estimates (and as applicable - Supplementary Estimates and previous interim reports for the current year).
  • 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.
  • has not been subject to an external audit or review.

This section should also provide:

  • A summary description of the department's program activities. This can be done through a link to the appropriate section of the Main Estimates (Part II).
  • A brief description of the basis of presentation as follows:
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 (as applicable) for the 20XX-20XX 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 moneys 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 the 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.

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 section should provide a concise discussion of the significant events affecting both the quarter and the year to date results. Elements to be discussed include, but are not restricted to, the following:

  1. Identify and explain significant variances including analysis of significant trends related to increases and/or decreases in actual expenditures and in relation to planned expenditures, compared to the same periods of the preceding fiscal year (quarter and YTD), and including the status of any new significant spending initiatives.
  2. Identify and explain significant changes that have occurred, but are not readily apparent from the quantitative analysis, for the quarter ended and the year to date.

Explanations should be provided for each significant variance.

Risks and Uncertainties

This section should include concise information on significant financial risks and uncertainties including potential impact related to the department's financial plan for the current year. It should also briefly outline the strategies adopted to manage those risks and uncertainties. The focus should be on any newly identified risks and any changes to previously identified risks relevant to the department's financial plan.

Numerous sources of risks and uncertainties can arise, relevant factors already identified in the department's corporate risk profile may be a good source of information. Other relevant factors may include, but are not restricted to:

  • Internal restructuring;
  • Human resource challenges and key actions;
  • Changing economic, technological, social, or political conditions;
  • New or changing policies or government-wide priorities;
  • Reliance or dependence on key partners, clients, or stakeholders; and,
  • Changes in patterns of demand for goods and services.

Significant changes in relation to operations, personnel and programs

This section is to provide information about significant changes which occurred in the department during the current quarter, related to departmental operations, personnel and programs. The potential financial impact of the significant changes should be discussed where applicable.

Approval by Senior Officials

This section is to provide the approval of Senior Officials, as required by the Policy on Financial Resource Management, Information and Reporting as follows:

Approved by:

________________________
Name, deputy head
(City where signed, e.g, Ottawa, Canada)
(Date signed)

________________________
Name, Chief Financial Officer


DEPARTMENT'S NAME 
Quarterly Financial Report
For the quarter ended Month DD, 20XX

Statement of Authorities (unaudited)

Fiscal year 20XX-20XX (in thousands of dollars)
  Total available for use for the year ending March 31, 20XX * Used during the quarter ended Month DD, 20XX Year to date used at quarter-end
Vote X ** - Net Operating expenditures      
Vote Y- Capital expenditures      
Vote Z - Grants and contributions      
Budgetary statutory authorities      
Total Budgetary authorities      
Non-budgetary authorities      
Total authorities      
Fiscal year 20XX-20XX (in thousands of dollars)
  Total available for use for the year ending March 31, 20XX * Used during the quarter ended Month DD, 20XX Year to date used at quarter-end
Vote X ** - Net Operating expenditures      
Vote Y- Capital expenditures      
Vote Z - Grants and contributions      
Budgetary statutory authorities      
Total Budgetary authorities      
Non-budgetary authorities      
Total authorities      

More information is available in the attached table.

* Includes only Authorities available for use and granted by Parliament at quarter-end.
** Departments should substitute the vote numbers and title by the appropriate ones.

Note to preparers: Summary information contained in this statement should be similar in nature to the information included in the Source and Disposition of Authorities in the Volume II of the Public Accounts (Public Accounts Instructions - Form A).

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DEPARTMENT'S NAME 
Quarterly Financial Report
For the quarter ended Month DD, 20XX

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 20XX-20XX (in thousands of dollars)
  Planned expenditures for the year ending March 31, 20XX Expended during the quarter ended Month DD, 20XX Year to date used at quarter-end
Expenditures:
Personnel      
Transportation and communications      
Information      
Professional and special services      
Rentals      
Repair and maintenance      
Utilities, materials and supplies      
Acquisition of land, buildings and works      
Acquisition of machinery and equipment      
Transfer payments      
Public debt charges      
Other subsidies and payments      
Total gross budgetary expenditures      
Less Revenues netted against expenditures:
Revenues type 1      
Revenues type 2      
Total Revenues netted against expenditures:      
Total net budgetary expenditures      

Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 20XX-20XX (in thousands of dollars)
  Planned expenditures for the year ending March 31, 20XX Expended during the quarter ended Month DD, 20XX Year to date used at quarter-end
Expenditures:
Personnel      
Transportation and communications      
Information      
Professional and special services      
Rentals      
Repair and maintenance      
Utilities, materials and supplies      
Acquisition of land, buildings and works      
Acquisition of machinery and equipment      
Transfer payments      
Public debt charges      
Other subsidies and payments      
Total gross budgetary expenditures      
Less Revenues netted against expenditures:
Revenues type 1      
Revenues type 2      
Total Revenues netted against expenditures:      
Total net budgetary expenditures      

 

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