Language selection

Search

Top of page

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 - 573.3 47.1 47.1
Fiscal Year - 403.7 57.1 57.1

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 $573.3 million, which represents an increase of $169.6 million compared to the same period in the previous year.

Authorities (in thousands of dollars) - - Variance %
Vote 1 - Operating expenditures 217,472 225,490 (8,018) (4%)
Vote 5 - Capital expenditures 257,400 72,425 184,975 255%
Vote 10 - Grants and contributions 85,581 94,630 (9,049) (10%)
Contributions to employee benefit plans 12,271 11,086 1,185 11%
Spending of proceeds from the disposal of surplus Crown assets 581 52 529 1017%
Total budgetary authorities 573,305 403,683 169,622 42%

The decrease of $8 million in Vote 1 – Operating expenditures is mainly explained by the following items:

  • A decrease of $12.6 million for Canadarm3 project related activities.
  • A decrease of $4.4 million for Radarsat Constellation Mission (RCM) related activities.
  • An increase of $8.7 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 increase of $185 million in Vote 5 – Capital expenditures is mainly explained by the following items:

  • An increase of $183.5 million for Canadarm3 project-related activities.
  • An increase of $5.3 million for activities related to Gateway External Robotics Interfaces (GERI).
  • An increase of $2.7 million for activities related to the Quantum Encryption and Science Satellite (QEYSSat) project.
  • A decrease of $7.1 million for activities related to the Lunar Exploration Accelerator Program (LEAP).
  • A decrease of $2.5 million for activities related to the Microfluidic Sample Preparation project (MicroPrep).
  • 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 $9 million in Vote 10 – Grants and Contributions expenditures is mainly explained by the following items:

  • A decrease of $9.0 million for International Space Station (ISS) related activities.
  • A decrease of $7.1 million in anticipated cash requirements relating to the agreement between Canada and the European Space Agency (ESA).
  • An increase of $2.6 million for activities related to the Lunar Exploration Accelerator Program (LEAP).
  • An increase of $2 million for activities related to the Space Technology Development Program (STDP).
  • An increase of $1.1 million for activities related to the CubeSats Canadian initiative for science, technology, engineering and math (CUBICS).
  • 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 -

Quarterly expenditures as at are $47.1 million and represent a decrease of $10 million from the same quarter last year.

Expenditures by Vote as at June 30

Expenditures by Vote
(in thousands of dollars)
- - Variance
Quarterly Year to date Quarterly Year to date Quarterly Year to date
Vote 1 - Operating expenditures 29,204 29,204 31,241 31,241 (2,037) (2,037)
Vote 5 - Capital expenditures 5,848 5,848 3,717 3,717 2,131 2,131
Vote 10 - Grants and contributions 9,223 9,223 19,372 19,372 (10,149) (10,149)
Contributions to employee benefit plans 2,819 2,819 2,771 2,771 48 48
Spending of proceeds from the disposal of surplus Crown assets - - - - - -
Total budgetary expenditures by Vote 47,094 47,094 57,101 57,101 (10,007) (10,007)

The decrease of $2.0 million in quarterly and year-to-date expenditures in Vote 1 – Operating Expenses, is primarily due to:

  • Variations in the payment schedule related to the Canadarm3 project, whose first definition phase, not capitalisable, is ending.

The increase of $2.1 million in quarterly and cumulative expenditures in Vote 5 - Capital Expenditures is primarily due to:

  • An increase in the payment schedule for the Canadarm3 project associated with the start of the second definition phase (capitalizable).

The decrease of $10.1 million in quarterly expenditures and 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

Expenditures by Standard Object (in thousands of dollars) - - Variance
Quarterly Year to date Quarterly Year to date Quarterly Year to date
Personnel 22,435 22,435 21,631 21,631 804 804
Transportation and communications 431 431 243 243 188 188
Information 141 141 199 199 (58) (58)
Professional and special services 12,917 12,917 13,013 13,013 (96) (96)
Rentals 646 646 662 662 (16) (16)
Repair and maintenance 529 529 361 361 168 168
Utilities, materials and supplies 282 282 230 230 52 52
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 495 495 1,388 1,388 (893) (893)
Transfer payments 9,223 9,223 19,372 19,372 (10,149) (10,149)
Other subsidies and payments (5) (5) 2 2 (7) (7)
Total budgetary expenditures by Standard Object 47,094 47,094 57,101 57,101 (10,007) (10,007)

The decrease of $10.1 million in quarterly and cumulative 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 1st quarter of - represent 8% of the planned expenditures for the year ending March 31, 2023, whereas 25% of the fiscal year has passed. The level of expenditures is lower than it was in the - fiscal year (14%) and lower than the - fiscal year (15%). The current situation presents no concerns and is principally explained by an increased budget for the Canadarm3 project during the first quarter, while associated expenditures will be made in subsequent quarters. 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 Director General, 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 217,472 29,204 29,204 225,490 31,241 31,241
Vote 5: Capital expenditures 257,400 5,848 5,848 72,425 3,717 3,717
Vote 10: Grants and contributions 85,581 9,223 9,223 94,630 19,372 19,372
Contributions to employee
benefit plans
12,271 2,819 2,819 11,086 2,771 2,771
Spending of proceeds from the
disposal of surplus Crown assets
581 - - 52 - -
Total budgetary authorities 573,305 47,094 47,094 403,683 57,101 57,101

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 91,130 22,435 22,435 85,990 21,631 21,631
Transportation and communications 8,772 431 431 10,453 243 243
Information 2,202 141 141 1,781 199 199
Professional and special services 365,751 12,917 12,917 192,479 13,013 13,013
Rentals 4,644 646 646 4,614 662 662
Repair and maintenance 5,662 529 529 5,465 361 361
Utilities, materials and supplies 1,327 282 282 1,410 230 230
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 5,643 495 495 4,212 1,388 1,388
Transfer payments 85,581 9,223 9,223 94,630 19,372 19,372
Other subsidies and payments 2,593 (5) (5) 2,649 2 2
Total budgetary expenditures 573,305 47,094 47,094 403,683 57,101 57,101
Date modified: