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Quarterly Financial Report 2012-2013 Q2

Statement outlining results, risks and significant changes in operations, personnel and programs

 

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, and it should be read in conjunction with the Main Estimates and Supplementary Estimates. This quarterly report has not been subject to an external audit or review.

Mandate

The Office of the Public Sector Integrity Commissioner of Canada (PSIC) is an independent Agent of Parliament established to administer the Public Servants Disclosure Protection Act, which came into force in April 2007. The Office is mandated to provide a confidential, independent and effective response to: 

  • disclosures of wrongdoing in the federal public sector from public servants or members of the public; and
  • complaints of reprisal from public servants and former public servants.

 

Further details on the Office’s authority, mandate and program activities can be found in its Reports on Plans and Priorities, Departmental Performance Reports and Annual Reports.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the PSIC's spending authorities granted by Parliament and those used by the Office, consistent with the Main Estimates and Supplementary Estimates for the 2012-13 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 moneys 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 Office uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

 


2. Highlights of Fiscal Quarterly and Fiscal Year to Date (YTD) Results

This section highlights the significant items that contributed to the net increase or decrease in resources available for the year and actual expenditures for the quarter ended September 30, 2012 and year to date in comparison to the prior year. 

As of September 30, 2012, total authorities available for the fiscal year were $6.0 million, a decrease of $1.2 million, or 17 percent, when compared to the same quarter of the prior year. This decrease reflects the Office returning to its base budget.  In 2009-10, $1.2 million of lapsed funds were reprofiled to 2011-12 to fund anticipated onetime costs, such as a new case management system. These additional funds were not utilized in the prior year as priorities, operating requirements and the initiative to standardize government wide systems evolved.

Program expenditures in the second quarter of 2012-13 were $1,415,263, up 20 percent or $231,319 from the $1,183,944 in the same period last year, with the following major changes by standard object:

  • an increase in personnel costs of $115,704, primarily as the added staff during 2011-12 resulted in added salary costs in the current year, as well as the cost of normal inflation and merit adjustments,
  • an increase in professional services of $44,670 primarily as a result of the timing of payments for shared services with another government department related to the provision of Finance, Administration and Information Technology services, offset by a decrease in costs under the shared service agreement for Human Resources services and external search services as staffing activities decline,
  • an increase in rental costs of $70,120 as a result of additional space leased to accommodate the growth in the staff complement and a change in the reporting classification for renewals of informatics licenses to be included in rentals, and
  • an increase in equipment acquisitions of $12,227 arising from the timing of software and equipment purchases.


 

For the first six months of 2012-13, program expenditures were $2,477,957, up 12 percent from the $2,216,424 in the same period of 2011-12, with the following major changes by standard object:

  • An increase in personnel costs of $248,919 primarily due to the growth in staffed positions during 2011-12 resulted in added salary costs in the current year, which has resulted in a 3.0 full time equivalents (FTE) increase in the first six months as compared to the same six months in the prior year, from 13.7 FTE to 16.7 FTE. The added personnel costs for salaries are partially offset by a decrease in severance payments of $59,327, as the one-time cash outs of severance to staff in the prior year stemming from new collective agreements have exceeded severance costs incurred in the current year.

 

  • A decrease in professional and special services of $68,654 as a result of reduced costs under the shared service agreement for Human Resources services and external search services as staffing activities decline, reduced consulting costs  from the completion of independent review of case files in 2011-12, and lesser reductions across most areas of professional services which are offset in part by the delayed payments for shared services with another government department related to the provision of Finance, Administration and Information Technology services in the prior year.

 

  • The remaining variance of significance year to date is the $107,813 increase in rental costs for additional space to accommodate the growth in the staff complement and the impact of the change in the reporting classification for renewals of informatics licenses to be included in rentals.  


 

3. Risks and Uncertainties

Budget Constraints

Senior management has addressed the cost containment measures set out in Budget 2010 to deal with the continued need to fund salary increases up to 2012-13.

Increasing Case Volumes

The intake of new cases has increased by 36% in the first six months over the same period in the prior year; however volume can vary by month throughout the year. The number of cases may not necessarily reflect a pressure on resources required to monitor and address cases in a timely manner, as the complexity of each case can vary significantly. Further, the Office continues to improve processes and build precedents which will add to the efficiency of the operations. However, after consideration of the forecasted government environment of workforce adjustments arising from the strategic and operating reviews, there is the potential that case volumes will continue to increase. Under these circumstances there is a risk that PSIC’s ability to address a significant rise in case volumes in a timely manner may be impacted. 


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

There have been no significant changes in relation to the operations, personnel or program this quarter.

 

5. Budget 2012 Implementation


As part of the measures announced in the Budget 2012, PSIC`s reference levels for its operating budget will be reduced by 5% or $283,000 in 2014-15. The timing of the reduction provides the Office opportunity over the next two years to streamline, standardize and consolidate functions and improve business processes to achieve the operating savings by 2014-15.
 

Approved by:

Original signed by Joe Friday, Deputy Commissioner, acting for:

Mario Dion
Public Sector Integrity Commissioner

 

Original signed by:

 

Patricia Fraser, CA
Chief Financial Officer

 

Ottawa, Canada
November 8, 2012

 

Statement of Authorities (unaudited)

(in dollars)

Fiscal Year 2012-2013

Fiscal Year 2011-2012

Total available for use for the year ending
March 31, 2013*

Used during the quarter ended
September 30, 2012

Year to date used at
quarter-end

Total available for use for the year ending
March 31, 2012*

Used during the quarter ended
September 30, 2011

Year to date used at quarter-end

Vote 50 - Program Expenditures

5,449,650

1,284,495

2,216,421

6,634,650

1,050,204

1,948,944

Statutory Authorities

523,072

130,768

261,536

534,960

133,740

267,480

Total Authorities

5,972,722

1,415,263

2,477,957

7,169,610

1,183,944

2,216,424

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

 

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2012-2013

Fiscal Year 2011-2012

(in dollars)

Planned expenditures  for the year ending
March 31, 2013

Expended during the quarter ended 
September 30, 2012

Year to date used at quarter-end

Planned expenditures for the year ending March 31, 2012

Expended during the quarter ended 
September 30, 2011

Year to date used at
quarter-end

Personnel

3,789,000

1,018,905

1,925,495

3,788,610

903,201

1,676,576

Transportation and communications

146,000

15,576

38,837

150,000

15,413

29,117

Information

140,000

20,477

26,614

150,000

24,884

39,409

Professional and special services

1,522,722

253,580

322,509

2,531,000

208,910

391,163

Rentals

195,000

75,077

119,333

40,000

4,957

11,520

Repair and maintenance

60,000

1,792

10,023

30,000

7,901

16,001

Utilities, material and supplies

45,000

11,316

12,768

30,000

13,673

26,575

Acquisitions of machinery and equipment

35,000

15,721

19,539

430,000

3,49424,002

Transfer payments

40,000

2,817

2,817

20,000

1,511

2,061

Other  subsidies and payments

-222-

-

-

Total Budgetary Expenditures

5,972,722

1,415,263

2,477,957

7,169,610

1,183,944

2,216,424

2015-10-21