BOIE
Consult the user guide
For assistance, please contact us
Consult the user guide
For assistance, please contact us
Add search criteria
Results: 1 - 10 of 10
Daniel Paquette
View Daniel Paquette Profile
Daniel Paquette
2020-10-08 12:05
Thank you, Mr. Chair.
The next two points, not only the quarterly report, are about financial information, and since the pandemic is influencing the majority of our financial trends, I will present them together. That way, we can get better organized for questions.
To begin, I will present the quarterly financial report and tell you about the decrease we have proposed for supplementary estimates (B) for this fiscal year. It should be noted that a quarterly report generally gives a good idea of spending trends from one year to another. However, in this case, we are comparing an election year with a year that is part of the COVID-19 pandemic context. In both cases, we are not talking about typical years, and so the trends cannot really make it possible to facilitate comprehension as is the case usually.
In the report dated June 30, the approved authorities for 2020-21, in the amount of $516.4 million, appear to indicate a decrease of $4.4 million compared with the 2019-20 authorities. That is because the Board of Internal Economy approved the $17.4-million financial rollover this past July, which could not be reflected in our report dated June 30.
If we look at the overall trends, we can see that there was an increase of $4.4 million for various important investments, an increase of $3.1 million for cost of living expenses and an increase of $1.7 million for budget adjustments following a general election.
On June 30, the expenditures totalled $114.3 million, compared with expenditures of $121 million for the previous year. That is a decrease of $7.4 million.
The expenditures are also presented by type of cost. The most significant decrease in expenditures relates to the reduction of $6 million in transportation and telecommunications. This is due to the significant decrease in travel as a result of the pandemic. The expenditures for professional and special services have also decreased by $2 million, which is also due to the reduction in service contracts, training and hospitality, again as a result of COVID. As well, there is the difference in timing of certain payments to our external partners during this period. This decrease was partially offset by the cost to accommodate the virtual House proceedings. In addition, the expenditures for materials and supplies have also decreased by $2 million. That is as a result of the temporary closures of the food service facilities and the printing facilities as a result of the pandemic.
On the other hand, expenditures for computers and office equipment have increased by a little over $1 million. This is primarily due to the purchase of equipment to accommodate the virtual House proceedings and committees and to enable certain employees to work remotely during COVID-19.
Finally, the report provides comparison between the utilization of authorities from one year to the next, and we see a slight decrease of 1.3%, which is not unusual, given the current situation.
It's also important to mention that the administration promotes an efficient use of resources and we continuously strive to minimize the request for incremental funding whenever possible. Given the current situation surrounding the COVID pandemic, we are closely monitoring and considering any financial impact when making funding decisions throughout the year.
Also, given what has happened, we have reviewed our request for the 2020-21 supplementary estimates (B). As you know, the COVID pandemic has resulted in the postponement of the 65th Commonwealth Parliamentary Conference to 2021, as well as the cancellation of the 29th annual session of the OSCE Parliamentary Assembly. Funding for these conferences had been included in our main estimates for the current year. With the change in plans, this funding will no longer be required this year. As a result, we have offset our request with the current request for a carry-forward for 2021 in the supplementary estimates (B), and as a result, we've revised our request down to $6.3 million for a carry-forward, instead of the $17.4 million.
As for the next point, given all the financial trends the pandemic has significantly affected, we prepared you a summary of the major expenditures stemming from decisions made in the current landscape.
To add relevance, we prepared a summary of expenditures by covering the period up until mid-September, which is a bit more useful for you. Contrary to the report I just presented, this one does not only concern the first quarter. This report includes the following expenditures: $1.4 million in investments for operating the virtual House; $1.1 million paid for outside printing; $287,000 for the purchase of equipment and supplies for members' offices; and the purchase of IT equipment and supplies totalling $396,000 for the administration.
It should also be noted that a significant realignment of our staff was necessary to support the new ways of doing things and that this did not directly impact our expenditures. We continue to monitor those changes. We will submit a report to the Board of Internal Economy with our future quarterly reports.
This concludes my presentation. I am ready to answer your questions.
View Anthony Rota Profile
Lib. (ON)
We'll now move on to item four, which includes the 2019-20 year-end financial report and the 2020-21 supplementary estimates (B).
I'll turn the floor over to Daniel Paquette, the chief financial officer.
Daniel Paquette
View Daniel Paquette Profile
Daniel Paquette
2020-07-10 14:00
Thank you, Mr. Speaker.
I'm here to present the 2019-20 year-end financial report and to get your approval for the 2020-21 supplementary estimates (B).
Parliament gives the House authorities so that it can support members based on their usual parliamentary calendar. The authorities for 2019-20 totalling $517 million constitute an increase of $10.7 million, or 2.1%, compared to the previous year.
The most significant changes regarding the increase are $3.4 million and $1.5 million respectively for the increases in the cost of living for members and House officers and for the administration. There's also a $2-million increase for the carry-forward related to the various major investments made.
In 2019-20, expenditures totalled $506 million, an increase of $18 million, or 3.8%, compared to the previous year. In the report, expenditures are also presented by type of cost. We can see that the largest increase concerns salary and benefit expenses. The total of $17.3 million is mainly attributed to election expenses.
There are the severance payments for former members and their employees and the additional salaries that the administration paid to employees that it hired to support various election activities and orientation programs. In addition, there are salary increase expenses. The economic increases of certain administration employees contributed to this fluctuation.
Expenditures for computers, office equipment and furniture have increased by $5 million. This is primarily due to key investments in such activities as the implementation of managed computing for constituencies and the increased capacity for broadcasting and webcasting for committees. As well, given the year of an election, there were additional IT investments in the life cycle of the infrastructure during this period of time. On the other hand, a decrease of $5.8 million in transportation and telecom was mostly due to the decrease in travel expenditures as a result of the election period. Our revenues also went down by $5.9 million due to a reduction in services provided to federal departments and other parliamentary institutions, as well as a decrease in catering, cafeteria and restaurant revenue, all during the dissolution period.
Finally, the report provides a comparison between the 2019-20 and 2018-19 utilization. It shows a slight increase of 1.5%. It is important to mention that the House promotes an efficient use of resources and continuously strives to minimize requests for incremental funding whenever possible. For example, financial pressures that occurred over the course of the year, such as election-related costs and economic increases for House administration employees, were all managed within existing resources rather than additional funding being sought. As a matter of fact, over the past two years, other than the operating budget carry-forward, no additional funding was sought through the supplementary estimates process.
It is customary for government organizations to carry forward lapsed amounts of 5% of their main estimates. For the House, this equates to a maximum of $17.5 million. Therefore, I am seeking your approval to include the full carry-forward amount of $17.5 million into our 2020-21 supplementary estimates. This carry-forward will then be allocated to members, House officers and the administration according to existing policies. In addition, I'm seeking your approval to include $5.5 million in the 2020-21 supplementary estimates (B) relating to the 2020-21 economic increases for certain House administration that was approved by the board in February. I should also point out that, going forward, the requirements for these economic increases will be included in our main estimates for 2021-22.
In conclusion, as you know, the House is continuing to react and to adjust operations in response to the COVID-19 pandemic, including implementing appropriate measures on the Hill and in constituencies. I would like to assure you that we are closely monitoring the financial impacts associated with this situation. If needed, although it's not anticipated, a submission will be brought forward to address financial requirements through the 2020-21 supplementary estimates. In any case, we will report back in the fall on the impact COVID is having on our financial situation.
Mr. Chair, this concludes my presentation. I will take any questions.
View Mark Strahl Profile
CPC (BC)
Thank you, Mr. Chair.
I note that the House administration budget was $186.6 million. The actual spend was $190.8 million, so $4.2 million more than anticipated was spent, I guess because members spent less and the monies were available for the House administration. Perhaps you just did say it and I misunderstood it, but what caused that $4.2 million spending over the anticipated budget?
Daniel Paquette
View Daniel Paquette Profile
Daniel Paquette
2020-07-10 14:06
When we manage the overall budget from a cash flow perspective, we look at the full voted appropriation. A portion goes to House administration and then goes to the members. We know that during an election year, due to the period of reduced activities, some of these funds are not necessarily used on the members' side. Knowing this, we didn't come back and ask for supplementary estimates for something like the economic increase for last year and the retroactive implications of those. It was about $8.1 million just for that particular item. We also had the additional resources for the HR advisory services for members. That was $2.5 million. The actual election costs for the administration were a little over a million dollars.
Knowing that the cash was there in our voted appropriation, we didn't ask for the supplementary estimates. Between our programs, it shows maybe an overspend of our planned budget but not an overspend in our overall appropriation.
View Peter Julian Profile
NDP (BC)
Thank you, Mr. Speaker.
Thank you, Mr. Paquette.
These financial statements are a bit like the economic update that would have been provided just before the pandemic hit. We're talking about March 31. On March 13, the decision was made to suspend parliamentary activities. I find this interesting. I don't have any issue with the financial statements. This seems very clear, including the significant decreases in committee expenses and parliamentary exchanges.
When I look at the largest and much smaller expenditures, I think that it would be worthwhile to hear how you think things will unfold this year. Since I'm in New Westminster and the other members are also at home, it seems that travel expenses are much smaller. There are no parliamentary exchanges either. The committees are meeting virtually. Does this raise or lower costs? I imagine that this lowers costs. In addition, many House administration employees are teleworking.
In your opinion, which expenditures will increase as a result of the pandemic and which expenditures will decrease significantly because of all the decisions made in the context of the pandemic?
Daniel Paquette
View Daniel Paquette Profile
Daniel Paquette
2020-07-10 14:09
The expenditures that will increase are the technology and telecommunications expenditures, given the establishment of the platform. We must ensure that everyone is well connected and that we have the necessary equipment.
The decreased costs include travel costs, because people aren't travelling. There are conference and committee costs, both for members and for the administration, whether the costs involve conferences or training.
At this time, we're monitoring the situation. We have tools built into our financial system that will enable us to provide a proper report this fall on the impact of these items. Right now, it's too early to quantify this and to determine where this will lead us. I think that we'll manage to do so by the middle of the year. I'll come back here to provide an update on the actual situation, once we've made these adjustments.
View Claude DeBellefeuille Profile
BQ (QC)
Thank you, Mr. Speaker.
Good afternoon, everyone.
I want to start by thanking the interpreters who have been translating the comments made by my English-speaking colleagues for the past hour and 10 minutes. I must say that they're excellent, and I applaud them. I hope that they have air conditioning in their booths, because it's hot.
Mr. Speaker, I find the report presented to us today very transparent. I can see that a number of expenditure increases have been funded through the authorized budgets.
I have just one question.
One reason for the increase in staff expenditures, which total $17.3 million in 2019-20, is the hiring of additional employees to work on the major Centre Block renovation project.
How much of this increase is related to staff expenditures in comparison with the other items identified in the document, such as information technology, advisory services and support for members? Are more human resources directed toward providing advisory services to members than toward the major Centre Block renovation project?
Daniel Paquette
View Daniel Paquette Profile
Daniel Paquette
2020-07-10 14:11
Basically, the money for the Centre Block renovation comes from Public Services and Procurement Canada, or PSPC. These expenditures are not directly related to the administration. I said that our revenues were down because we have advisory services. We're recovering these expenditures from the department. This isn't a net expenditure for us.
I'll explain the $17.3-million increase.
A significant part of this increase, $11 million, is attributable to severance payments for members and their employees during the election period. The members' orientation provided by employees during the election period accounts for an increase of about $3 million. An increase of over $2 million is attributable to the human resources team that supports the members as employers.
There's also the increase in the cost of living. Retroactive payments arising from the signature of the collective agreements amounted to over $8 million.
My calculation is just over $17.3 million. However, this increase is offset by the $4-million decrease in the salaries paid by members during the year. During an election period, many members have fewer employees, and new members take some time to hire employees. There's a decrease in these averages.
Essentially, this increase doesn't concern the renovation of the Centre Block. Instead, it concerns the employees responsible for providing orientation and support services to members during the election period.
View Anthony Rota Profile
Lib. (ON)
Are there any other questions?
Do we have approval for the proposal put forward by Monsieur Paquette?
Looking around, I see heads nodding.
Very good. We have approval.
Before continuing to item five, there was a question raised by Mr. Strahl. I believe Mr. Patrice has the answer to the printing discrepancy, or the delta between the two printing levels.
Monsieur Patrice.
Results: 1 - 10 of 10

Export As: XML CSV RSS

For more data options, please see Open Data