Quarter ended financial report June 30, 2019

For the quarter ended June 30, 2019

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. a. promote foreign direct investment in Canada and attract and facilitate that investment; and
2. b. 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 

TThis 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 2019-20 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 increased to $36 million in 19-20, up from the previous year of 23.2 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 8 % percent of total budgetary authorities available for use. IiC is continuing to build up internal capacity, allocating resources to marketing and outreach, investor services and partnerships and strategy development. IIC anticipates its spending to increase each quarter as its operations continue to develop.

As shown in the below statements, IIC first quarter expenditures is $2.2 million higher than the year before. This sharp increase indicates the progress IIC has made over the past year rapidly developing and enhancing its business operations to ensure achievement of its mandate. Personnel costs has the largest increase with IIC growing to a current staff of 45 individuals compared to 12 at the same time last year.

3. Risks and Uncertainties

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

Ian Mckay
Chief Executive Officer

Original Signed by

Katie Curran
Chief Administrative Officer

Ottawa, Ontario
August 30, 2019

---

Invest in Canada
Quarterly Financial Report
For the quarter ended June 30, 2019

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, 2019 

Bugetary expenditures by Standard Object (unaudited)