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Canadian Space Agency's Quarterly Financial Report for the Quarter Ended

On this page

  1. Introduction
  2. Highlights of the Quarterly Financial Results
  3. Risks and Uncertainties
  4. Significant Changes in Relation to Operations, Personnel and Programs
  5. Approval by Senior Officials
  6. Annexes

ISSN 2564-4262

Management Statement for the Quarter Ended

1. Introduction

In this section

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. This quarterly financial report should be read in conjunction with the - Main EstimatesFootnote 1.

1.1 Mandate and Program Activities

The Canadian Space Agency's (CSA) mandate is to promote the peaceful use and development of space, to advance the knowledge of space through science and to ensure that space science and technologies provide social and economic benefits for Canadians.

More information is available on the CSA's mandate and on the departmental results framework in the - Departmental PlanFootnote 1.

1.2 Basis of Presentation

This quarterly financial report (QFR) has been prepared by management using an expenditure basis of accounting. The Statement of Authorities annexed to this report includes the CSA's spending authorities granted by Parliament and those used by the CSA, consistent with the Main Estimates and Supplementary estimates voted as at , for fiscal year - compared to -. This QFR 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 CSA uses the full accrual method of accounting to prepare and present its annual financial statements, which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis, which is, a partial accrual method of accounting. The partial accrual method of accounting includes disbursements as well as some accruals for salaries and salary allowances.

This QFR report has not been subject to an external audit. However, it was reviewed by the members of the CSA Audit Committee, who are satisfied with its presentation and content.

2. Highlights of the Quarterly Financial Results

In this section

This section highlights the significant elements that contributed to the changes to the authorities available for the fiscal year, as well as to the quarterly and year-to-date expenditures for the quarter ended .

The following graph provides an overview of the variations in the available authorities and the expenditures. Additional details on these variations are provided in sections 2.1 and 2.2 as well as in the appended annexes.

Authorities available for use and expenditures as at (in millions of dollars)
Authorities Quarterly
Expenditures
Year to Date
Expenditures
Fiscal Year - 441.3 80.6 194.5
Fiscal Year - 449.6 62.4 173.5

Totals may not add up due to rounding.

2.1 Significant Changes in the Authorities (Total Votes Available for Use) between fiscal years - and -.

The total votes available for use as at , is $441.3 million, which represents an increase of $8.3 million compared to the same period in the previous year.

Table 2
Authorities (in thousands of dollars) - - Variance %
Vote 1 - Operating expenditures 232,089 202,886 29,203 14%
Vote 5 - Capital expenditures 103,443 155,522 (52,079) (33%)
Vote 10 - Grants and contributions 94,630 80,294 14,336 18%
Contributions to employee benefit plans 11,086 10,821 265 2%
Spending of proceeds from the disposal of surplus Crown assets 55 33 22 67%
Total budgetary authorities 441,303 449,556 (8,253) (2%)

The increase of $29.2 million in Vote 1 – Operating expenditures is mainly explained by the following items:

  • An increase of $19.9 million for Canadarm3 project related activities.
  • An increase of $12.4 million for International Space Station (ISS) related activities.
  • An increase of $8.6 million for Radarsat Constellation Mission (RCM) related activities.
  • An increase of $3.3 million for Stimulus-related activities, related to the downturn caused by the Covid-19 pandemic. A decrease of $6.1 million resulting from a budgetary transfer from the Operating Vote to the Grants and Contributions Vote.
  • A decrease of $3.2 million related to the amount of operating budget carryover in -22 lower than that received in -21.
  • A decrease of $2.5 million for activities related to the Lunar Exploration Accelerator Program (LEAP).
  • The residual difference consists of multiple variations inherent to the Canadian Space Program (CSP) Resource Management. They result from the fact that budgetary requirements by vote are not linear from one year to the next, requiring vote transfers or fund carry forwards to another fiscal year.

The decrease of $52.1 million in Vote 5 – Capital expenditures is mainly explained by the following items:

  • A decrease of $72.8 million for Radarsat Constellation Mission (RCM) project-related activities.
  • A decrease of $5.9 million for activities related to the Quantum Encryption and Science Satellite (QEYSSat) project.
  • A decrease of $5.5 million related to the amount of capital budget carryover in -22 lower than that received in 2020-21.
  • A decrease of $3.4 million resulting from a budgetary transfer from the Capital Vote to the Grants and Contribution Vote.
  • An increase of $19.9 million for activities related to the Lunar Exploration Accelerator Program (LEAP).
  • An increase of $16.5 million for International Space Station (ISS) related activities.

The increase of $14.3 million in Vote 10 – Grants and Contributions expenditures is mainly explained by the following items:

  • An increase of $9.5 million resulting from a budgetary transfer from the Operating and Capital Votes to the Grants and Contributions Vote for, among other things, the LEAP project, the Smart Earth Utiliterre program and the Space Technology Development program.
  • An increase of $1.4 million for activities related to the Lunar Exploration Accelerator Program (LEAP).
  • A decrease of $3.3 million for Stimulus-related activities, related to the slowdown caused by the Covid-19 pandemic.
  • The residual difference consists of multiple variations inherent to the Canadian Space Program (CSP) Resource Management. They result from the fact that budgetary requirements by vote are not linear from one year to the next, requiring vote transfers or fund carry forwards to another fiscal year.

2.2 Significant Changes in the Quarterly and Year-to-Date Expenditures (Votes Used) between fiscal years - and -.

Cumulative expenditures for the three months ended are $194.5 million and represent a cumulative increase of $21 million over the same period last year. Quarterly expenditures are $80.6 million and represent an increase of $18.2 million from the same quarter last year.

Expenditures by Vote as at December 31

Table 3
Expenditures by Vote
(in thousands of dollars)
- - Variance
Quarterly Year to date Quarterly Year to date Quarterly Year to date
Vote 1 - Operating expenditures 53,284 129,219 43,508 107,801 9,776 21,418
Vote 5 - Capital expenditures 7,696 15,232 12,670 25,620 (4,974) (10,388)
Vote 10 - Grants and contributions 16,853 41,729 3,587 32,216 13,266 9,513
Contributions to employee benefit plans 2,771 8,314 2,617 7,852 154 462
Spending of proceeds from the disposal of surplus Crown assets - - - - - -
Total budgetary expenditures by Vote 80,604 194,494 62,382 173,489 18,222 21,005

The increase of $9.8 million in quarterly expenditures and $21.4 million in year-to-date expenditures in Vote 1 – Operating Expenses, is primarily due to:

  • An increase in personnel, the ratification of collective agreements, as well as an increase in non-capitalizable salary expenses mainly related to the Radarsat Constellation Mission (RCM), and the payment schedule related to the Canadarm3 project.

The $5 million decrease in quarterly expenditures and $10.4 million decrease in cumulative expenditures in Vote 5 – Capital Expenditures are primarily due to:

  • A decrease in the payment schedule for the Radarsat Constellation Mission (RCM) and for activities related to the Quantum Encryption and Science Satellite (QEYSSat) project.

The increase of $13.3 million in quarterly expenditures and $9.5 million in cumulative expenditures in Vote 10 - Grants and Contributions is primarily due to:

  • The variations in the payment schedule to the European Space Agency (ESA).

Expenditures by Standard Object as at

Table 4
Expenditures by Standard Object (in thousands of dollars) - - Variance
Quarterly Year to date Quarterly Year to date Quarterly Year to date
Personnel 17,259 60,678 20,773 60,593 (3,514) 85
Transportation and communications 2,282 3,006 268 813 2,014 2,193
Information 455 959 355 1,231 100 (272)
Professional and special services 40,107 77,605 28,805 59,784 11,302 17,821
Rentals 773 1,983 1,050 2,056 (277) (73)
Repair and maintenance 413 1,113 1,737 2,454 (1,324) (1,341)
Utilities, materials and supplies 293 779 239 1,026 54 (247)
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 1,987 4,490 4,824 10,721 (2,837) (6,231)
Transfer payments 16,853 41,729 3,587 32,216 13,266 9,513
Other subsidies and payments 181 2,152 744 2,595 (563) (443)
Total budgetary expenditures by Standard Object 80,603 194,494 62,382 173,489 18,221 21,005

The $3.5 million decrease in quarterly expenditures for the personal line item is primarily due to:

  • A change in the timing of salary payments.

The $2 million increase in quarterly expenditures and $2,2 million increase in year-to-date expenditures for the transportation and communication standard object are primarily causes by:

  • Variations in the payment schedule of the Radarsat Constellation Mission (RCM).

The $11.3 million increase in quarterly expenditures and $17.8 million increase in year-to-date expenditures for the Professional and Special Services standard object are primarily caused by:

  • Variations in the payment schedule for the Canadarm3 project, Gateway External Robotic Interfaces (GERI), the Radarsat Constellation Mission (RCM) and the Quantum Encryption and Science Satellite (QEYSSat) project.

The $1.3 million decrease in quarterly expenditures and in year-to-date expenditures for the repair and maintenance standard object are primarily causes by:

  • Variation in the payment schedule related to the David Florida Laboratory (DFL) Capital Infrastructure Maintenance Project.

The $2.9 million decrease in quarterly expenditures and $6.2 million decrease in year-to-date expenditures for the standard Acquisition of Machinery and Equipment line item are primarily due to:

  • A decrease in the payment schedule for the Radarsat Constellation Mission (RCM) and International Space Station (ISS) related maintenance activities.

The increase of $13.3 million in quarterly expenditures and $9.5 million in year-to-date expenditures for the Transfer Payments standard object is primarily due to:

  • The variations in the payment schedule to the European Space Agency (ESA).

3. Risks and Uncertainties

The year-to-date expenditures for the 3rd quarter of - represent 44% of the planned expenditures for the year ending , whereas 75% of the fiscal year has passed. The level of expenditures is higher than it was in the - fiscal year (39%) and lower than the - fiscal year (50%). The situation presents no concerns since the cumulative expenditures will be restored at year-end when the accruals are recorded, in accordance with the full accrual method of accounting, combined with the deferral of budgets to the following year.

COVID-19, declared a pandemic in , had an impact on our financial performance. The pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Government of Canada has announced a set of economic measures to help stabilize the economy during this challenging period. In this context, the future impact on the Canadian and global economies, including our business, for the rest of - and thereafter remains uncertain.

The specific nature of the Canadian Space Program confronts the CSA with issues related to the advanced technologies used in space missions as well as the international aspect of some projects. For Canada, activities in space must be carried out in partnership with other spacefaring nations, using innovative and cost-efficient technologies. The international nature and technical challenges associated with developing and implementing disruptive technologies, in collaboration with multiple partners, generate risks in the delivery of projects. Also, the possibility of a disruption of services or unauthorized disclosure of information resulting from a cybersecurity event poses an additional risk to the agency's operations. These elements translate into financial risks associated with the use of funds such as the deferral of funds and costs increases.

Risks also arise from the Canada / European Space Agency (ESA) Cooperation Agreement. They include variations in amounts payable resulting from changes in the Gross National Product (GNP) statistics, the fluctuation of the Canadian dollar against the euro (exchange rate), inflation and the enforcement of the ESA's industrial policy. These risks have an impact on both costs and cash flow profiles.

To mitigate these risks, the CSA regularly reviews its project portfolio, activity plans, schedules and financial management strategies to adjust to changes brought on by the space programs of its key partners (National Aeronautics and Space Administration (NASA), ESA and other space agencies). In addition, rigorous project management practices are in place, as well as cybersecurity risk mitigation measures. These initiatives allow the CSA to track and report on the progress of its commitments, to assess the effectiveness of its work, and to align its resources with its priorities.

Furthermore, the CSA manages its financial risks and uncertainties related to Phoenix by adopting risk mitigating strategies. There are a number of actions that the CSA has taken to date to help stabilize the pay system, and to ensure that the employees are being paid accurately and on time. As one of the departments whose accounts have not been migrated to the Pay Centre, the CSA continues to offer on-site compensation services. The compensation team, whose size fluctuates to meet demand, monitors closely for payroll inaccuracies and communicates directly with employees to provide clarifications and to take, when needed, swift actions to rectify issues. The team also participates actively in various working groups and other forums led by Treasury Board Secretariat (TBS) and/or Public Services and Procurement Canada (PSPC). Beyond this, the staff in Finance regularly performs salary reconciliations to monitor and correct expense variances.

4. Significant Changes in Relation to Operations, Personnel and Programs

During the three first quarter of -, the majority of CSA employees continued to work remotely to maintain the department's operations in the context of the pandemic. Presence on site is reserved to personnel identified to support a critical service impossible to perform remotely.

5. Approval by Senior Officials

Approved by,

The original version was signed by Lisa Campbell, President, in Longueuil, Quebec, on .

The original version was signed by Jean-Claude Piedboeuf, B. Ing., Ph.D., Chief Financial Officer and General Manager, Corporate Services in Longueuil, Quebec, on .

6. Annexes

In this section

Annex 1

CANADIAN SPACE AGENCY
Quarterly Financial Report
For the quarter ended
Statement of Authorities
(unaudited)
(in thousands of dollars)
Fiscal Year - Fiscal Year -
Total available
for use for the
year ending

Table note *
$
Used during
the quarter
ended

$
Year to date
used at
quarter-end
$
Total available
for use for the
year ending

Table note *
$
Used during the quarter ended

$
Year to date
used at
quarter-end
$
Vote 1: Operating expenditures 232,089 53,284 129,219 202,886 43,508 107,801
Vote 5: Capital expenditures 103,443 7,695 15,232 155,522 12,670 25,620
Vote 10: Grants and contributions 94,630 16,853 41,729 80,294 3,587 32,216
Contributions to employee
benefit plans
11,086 2,771 8,314 10,821 2,617 7,852
Spending of proceeds from the
disposal of surplus Crown assets
55 - - 33 - -
Total budgetary authorities 441,303 80,603 194,494 449,556 62,382 173,489

Annex 2

CANADIAN SPACE AGENCY
Quarterly Financial Report
For the quarter ended
Departmental budgetary expenditures by Standard Object
(unaudited)
(in thousands of dollars)
Fiscal Year - Fiscal Year -
Planned
expenditures for
the year ending

$
Expended
during the
quarter ended

$
Year to date
used at
quarter-end
$
Planned
expenditures for
the year ending

$
Expended
during the
quarter ended
$
Year to date
used at
quarter-end
$
Expenditures:
Personnel 88,432 17,259 60,678 82,865 20,773 60,593
Transportation and communications 10,453 2,282 3,006 4,330 268 813
Information 1,781 455 959 1,486 355 1,231
Professional and special services 227,657 40,107 77,605 244,831 28,805 59,784
Rentals 4,614 773 1,983 2,972 1,050 2,056
Repair and maintenance 5,465 413 1,113 2,102 1,737 2,454
Utilities, materials and supplies 1,410 293 779 3,631 239 1,026
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 4,212 1,987 4,490 24,313 4,824 10,721
Transfer payments 94,630 16,853 41,729 80,294 3,587 32,216
Other subsidies and payments 2,649 181 2,152 2,732 744 2,595
Total budgetary expenditures 441,303 80,603 194,494 449,556 62,382 173,489
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