Proceedings of the Standing Committee on
Internal Economy, Budgets and Administration
Issue No. 8 - Evidence - December 1, 2016
OTTAWA, Thursday, December 1, 2016
The Standing Committee on Internal Economy, Budgets and Administration met this day at 9:03 a.m., in public, pursuant to rule 12-7(1), for the consideration of financial and administrative matters, and, in camera, pursuant to rule 12-7(1), for the consideration of financial and administrative matters.
Senator Leo Housakos (Chair) in the chair.
[English]
The Chair: Good morning, colleagues. Welcome to Internal Economy. I see we have a huge crowd here today. It is always good that the committee draws interest. Of course, I see Senator Pate with us and Senator Marwah and Senator Boniface and Senator Dean. Senator Wallin's with us today, Senator Lankin. Senator McCoy, of course, always graces us with her presence every Thursday, so she's always welcome.
Colleagues, we'll go right to the agenda.
Item 1, the adoption of the minutes of proceedings of the November 24, 2016, meeting. Senator Munson moves, seconded by Senator Cordy.
Accordingly, it's carried.
Item 2, third report of the audit subcommittee on the quarterly reports. Senator Smith.
Senator Smith: As chair of your audit committee, I'm pleased to inform you that, after a detailed review by our senior financial officers, your subcommittee is now ready to recommend approval of the QFR for the second quarter of 2016-17, ending September 30, 2016.
[Translation]
Management produces this unaudited report each quarter. It has been prepared in the form and manner prescribed by the Treasury Board Secretariat. Its purpose is to provide timely and useful information on the use of the authorities granted under the Main Estimates.
[English]
As can be seen on the first financial table of the report, the budgetary authorities for 2016-17 amount to $90.1 million, and the actual expenses for the second quarter represent $16.8 million, for total year-to-date actuals of $34.3 million. Overall, based on the best information available at this time, we forecast expenditures of 84.2 million in fiscal 2016-17.
The anticipated surplus of $5.9 million is mainly attributable to: surplus from senator's remuneration, travel and telecommunications $1.8. million; surplus from caucus research funds and house leaders' budgets, 0.8 million; surplus from committee budgets, 0.8 million; surplus from administration budget, vacancies and funding for enhanced security measures, $2.5 million.
At approximately $16.8 million, the actual expenditures for the second quarter are consistent with the prior year, with only a 1 per cent variance. On the 6th page of the report, we compare the budgetary expenditures by category of expenses.
[Translation]
In the first category, transportation and telecommunications costs fell by close to half a million dollars, primarily as a result of synchronization, billing and operations.
Every year, the Senate pays 30 per cent of the costs for international and interparliamentary affairs. As of September 30, 2016, however, the Senate had not yet received the invoice.
[English]
The second category, personal expenditures, increased by approximately $186,000 in the second quarter of 2016-17. Senators' salary and benefits expenses increased by $0.3 million due to a larger number of senators and an increase in the various allowances. Senators' staff salaries are also increased by approximately $0.2 million. These increases were partially offset by decreases in Senate administration salaries.
The third category of expenditures relates to acquisition of machinery and equipment. During the second quarter of 2016-17, a number of workstations, tablets and accessories were purchased for senators and staff, which explains the increase of $114,000 in comparison to the prior year.
[Translation]
With regard to information and publications, the decrease in expenditures is due to reduced spending on communications consultants.
[English]
Finally, the increase of 63,000 in rentals and licences is due mainly to new software licensing and to the timing of related invoices, which were received earlier in the second quarter of 2016-17 than in 2015-16.
[Translation]
The Senate administration uses a full-time equivalent (FTE) model to oversee the use of the human resources required to support all senators and for reporting purposes. The table on page 8 of the report shows the actual and planned use of FTEs by sector of the Senate administration to date. A total of approximately 360 FTEs have been approved for 2016-17. According to the information available on September 30, 2016, the Senate intends to employ approximately 325 FTEs. The surplus will be used for approximately 19 FTEs, students and casual employees. On the whole, the surplus in FTEs is attributable to unexpected retirements and staffing delays.
[English]
Consistent with past practice, our QFR lists the key risks and uncertainties that must be monitored as they could have a financial impact. On the radar are currently listed: Senate modernization, oversight body, reputation risks, security risks, corporate systems-related risks, information access legislation, funding arrangements related to knowledgeable client funding as well as talent management.
Your subcommittee has requested further information on the process to identify these risks as well as further details on the likelihood and impact assessment.
I would be pleased to answer any questions you may have. We have our financial people here who can assist if there are questions that I cannot answer.
Senator Campbell: Thank you for your hard work on this, Senator Smith. You know you have my admiration for your ability to chair.
At some point there, you referred to an expense as "travel for seniors.'' Not that that may not be relevant here, but did you mean travel for senators?
Senator Smith: I had a momentary concussion relapse from that 1974 —
Senator Campbell: I didn't want to let it go by.
Senator Smith: Was that in French or English?
Senator Campbell: It was in English.
Senator Smith: I'm trying to relate to the audience I'm dealing with.
The Chair: Colleagues, if there are no other questions, we can move a motion. Moved by Senator Campbell, seconded by Senator Smith. Carried.
Item 3, colleagues, is the fifth report of the Advisory Committee on Diversity and Accessibility. It is to be placed on consideration at the next meeting.
I have a request from Senator Jaffer, who is not going to be present at the next meeting. There she is in the back. Senator Jaffer has requested we move this report not to the next meeting but the meeting after, in two weeks, because she would like to participate in the debate. If colleagues would grant leave for that, it would be appreciated.
Hon. Senators: Agreed.
The Chair: Thank you, colleagues.
For the next two items, the second report of the Subcommittee on Estimates and for personal matters, we are going to go in camera, as is customary.
(The committee continued in camera.)