For the quarter ended September 30, 2018

1. Introduction 

This quarterly 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 GC 4400 Accounting Standard. It should be read in conjunction with the Main Estimates. This report has not been subject to an external audit or review.

1.1 Authority and Mandate 

As outlined in the Invest in Canada Act, for the purpose of supporting economic prosperity and stimulating innovation in Canada, IIC’s mandate is to:

  1. promote foreign direct investment in Canada and attract and facilitate that investment; and
  2. coordinate the efforts of the government, the private sector and other stakeholders with respect to foreign direct investment in Canada.

1.2 Basis of Presentation 

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes IIC’s spending authorities granted by Parliament and those used by the IIC, consistent with the Main Estimates, Supplementary Estimates and Treasury Board vote transfers for the 2018-19 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 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.

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.

IIC uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

2.1 Statement of Authorities

As reflected in the attached Statement of Authorities, IIC’s total authorities has not changed for 18-19. 

2.2 Statement of Department Budgetary Expenditures by Standard Object

As per the attached Budgetary Expenditures by Standard Object, total year-to-date net budgetary expenditures (April to September) represent 10% percent of total budgetary authorities available for use.  IIC spent the first two quarters building capacity and continue to ramp up operations in the quarters to come.

3. Risks and Uncertainties

Startup / organizational capacity risks

As a Startup organization, there are risks in getting IIC off the ground. Core to IIC’s business is a highly skilled, high performing team to target, support, and facilitate FDI attraction and provide world-class investor services. A key challenge will be the organization’s ability to attract and retain this highly skilled work force on a timely basis. Strong operating policies, processes, and systems are needed as the organization builds its capacity and develops its programs that will ensure both the highest standard of accountability and service to clients. If IIC were to fall short in these areas and not meet client expectations, its reputation could be at risk.

To mitigate these risks, a transition team was put in place to help lay the foundation and help facilitate start-up. Compensation will be benchmarked against relevant data markers including the private sector to ensure competiveness with pay and benefits, with flexible offerings to attract the talent needed. A collaborative approach to developing programs and systems will be taken and strong relationships established with key players to ensure alignment and to leverage existing systems and networks. A specialized recruiting firm could be retained to assist in identifying and recruiting the talent needed for the leadership team, and other core positions.

Financial risks

There is a risk that cost estimates and the actual costs associated with establishing IIC differ, resulting in funding shortfalls that impact the organization’s ability to deliver on its goals. Various factors could influence this, including salaries to attract private sector positions being higher than anticipated. There is also a risk that funds will lapse in the early years, as building capacity for the corporation could take more time than anticipated.

To reduce the impacts of these risks, IIC monitors its financial situation closely and adjust its expenditure plans as needed. Funding profiles have been established that include a gradual scaling up of operations to account for the time needed for set-up and recruitment.

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

No significant changes to report.

Approved by:

Original Signed by Original Signed by
Ian Mckay
Chief Executive Officer
Katie Curran
Chief Administrative Officer

Ottawa, Ontario July 09, 2019


Invest in Canada
Quarterly Financial Report
For the quarter ended September 30, 2018 

Statement of Authorities (unaudited)

(in thousands of dollars)  Fiscal Year 2018-19 (in thousands of dollars)
Total available for use for the year ending March 31, 2019* Used during the quarter ended September 30, 2018 Year to date used at quarter-end
Bugetary Authorities
Vote 10 - Program Expenditures
22,203 1,375 1,877
Less: Revenues netted against expenditures - - -
Bugetary Statutory Authorities
Employee Benefit Plans
982 245 490
Total Bugetary Authorities 23,185 1,620 2,367

 *Includes only Authorities available for use and granted by Parliament at quarter-end

Invest in Canada
Quarterly Financial Report
For the quarter ended September 30, 2018 

Bugetary expenditures by Standard Object (unaudited)

(in thousands of dollars)  Fiscal Year 2018-19 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended September 30, 2018 Year to date used at quarter-end
Expenditures:
Personnel
7,439 706 1,106
Transportation and Communications 3,750 105 162
Information 6,000 198 213
Professional and Special Services 5,024 481 751
Rentals 362 22 22
Repair and Maintenance 120 2 2
Utilities, Material and Supplies 490 34 34
Acquisition of land, buildings and works - - -
Acquisitions of Machinery and Equipment - 4 5
Other Payments - 68 72
Total Net Budgetary Expenditures 23,185 1,620 2,367