Quarter ended financial report June 30, 2020

For the quarter ended June 30, 2020

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 2020-21 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 slightly decreased to $34.2 million (5%) in 20-21, down from the previous year of $36 million. 

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 June) represent 11% percent of total budgetary authorities available for use.  IiC expects a large portion of its expenditures to occur in Q3 and Q4 of 2020-21.

As shown in the below statements, IiC first quarter expenditures are $0.6 million higher than the year before.  Personnel costs had the largest increase ($0.4 million) with IiC growing to a current staff of 59 individuals compared to 45 at the same time last year.

3. Risks and Uncertainties

Operational risks

There is a risk that Covid-19 will limit IiC’s ability to achieve many aspects of its mandate. To minimize this risk, IiC has continued actively engaging with investors and partners to better understand the COVID-19 impact on expansion plans and their business more broadly. IiC has also strengthened its research activities to better understand the impact of the pandemic on investments and to provide information and data to partners and clients. In-person events and international conferences have been cancelled or postponed; however, where possible, IIC remains active and engaged through online event participation.

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

No significant changes to report.  

Approved by:

Original Signed by
Ian Mckay
Chief Executive Officer

Original Signed by
Katie Curran
Chief Administrative Officer

Ottawa, Ontario
August 31, 2020

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Invest in Canada
Quarterly Financial Report
For the quarter ended June 30, 2020

Statement of Authorities (unaudited)

 

Invest in Canada is responsible for all employee benefit and pension contributions

 

Invest in Canada
Quarterly Financial Report
For the quarter ended June 30, 2020 

Budgetary expenditures by Standard Object (unaudited)