Thank you, Mr. Chair.
Today, I'm presenting the 2022-2023 Annual Financial Report for the House of Commons, which includes the audited financial statements. I'm asking the Board to authorize the operating budget carry-forward.
Sections 1 to 3 of the report provide an overview of the House's financial results for the year ended March 31, 2023.
Section 4 presents audited financial statements for that same period.
Every year, financial statements are audited by an independent external auditor, specifically KPMG. I'm pleased to point out that the audit resulted in an unqualified opinion.
We are seeing an overall increase in expenditures from $33 million compared to the previous financial year, 2022-2023. This increase is due mainly to three budget items.
The first budget item increased by $17.3 million, which represents over half of the overall increase. This is due to increased travel costs after public health restrictions were lifted.
The second budget item increased by $5.9 million, due to the lifecycle of members' computer equipment, the Long-Term Vision and Plan, as well as licenses and IT projects in support of members.
The third item increased by $5.3 million, due to higher salary costs and cost of living increases within the Members and House Officers program.
I turn your attention to the year-end financial results. The 2022-23 budget amounted to $558.5 million. Total net operating expenses were $537.6 million, and this left a surplus of $20.9 million.
Fifty-one per cent of the surplus pertains to the House office budgets of members and House officers, which reflects typical spending trends. Thirteen per cent relates to the budgets of committees, associations and exchanges, mainly due to lower travel costs and witness expenses than before the pandemic. Finally, 36% pertains to the House administration, mainly attributable to job vacancies and recruitment challenges.
The $20.9-million surplus represents 5.3% of the 2022-23 budget. It also corresponds to the lapse that will be reported in the Public Accounts of Canada.
Annually, with the board's approval, the House carries forward lapsed amounts of up to 5%, which corresponds to $19.8 million for 2022-23. Of that, $7.5 million would be allocated to the office budgets of members and House officers, and the $12.3 million remaining would be allocated to House administration to support various member-related projects and initiatives.
The administration is therefore seeking the board's approval to include a budget carry-forward of $19.8 million to fund mainly member-related projects and initiatives, such as member security, the accessibility plan, life cycling of IT, members' orientation and other various initiatives. This $19.8 million carry-forward would be included in the 2023-24 supplementary estimates that will be tabled in the fall.
Mr. Speaker, this concludes my presentation. I'll now pass the floor to Mr. Newman, KPMG audit partner. The board will then have the opportunity to ask questions and speak to the auditors in camera.