Quarterly Financial Report 2013-2014 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 (the 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 for the 2013-14 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, 2013 in comparison to the prior year. 

 As of September 30, 2013, total authorities available for the fiscal year were $5.7 million, which was $0.3 million lower than at the same time in the prior year, as 90% of the operating budget carry forward had been granted available for use in September 2012 and this year it is currently scheduled for the third quarter.

Program expenditures in the second quarter of 2013-14 were $1,408,765, on par with spending of $1,415,263 in the same period last year, with the following major changes by standard object:

  • An increase in personnel costs of $35,008 arising from an increase in severance payments and wage increases administered per collective agreements, offset by a reduction in number of staffed positions.
  • An increase in professional services of $24,175 as the Office contributed $50,000 to the government wide shared case management system initiative offset by the timing of payments to the government shared service providers.
  • A decrease in rental costs of $41,615 as a result of timing of payments.
  • A decrease in acquisitions of machinery and equipment of $15,721 as the prior year expenditures included the acquisition of application software which included the initial licensing fees.

 

For the first six months of 2013-14, program expenditures were $2,560,722, up 3 percent or $82,765, from the $2,477,957 in the same period of 2012-13, with the following major changes by standard object:

  • An increase in personnel costs of $14,185 for the same reasons outlined it the quarter’s results.
  • An increase in professional and special services of $124,602 largely as a result of the $50,000 in funds provided to the shared case management system initiative and an increase of $50,258 for the use of external resources for work on operational files.
  • A decrease in rental costs of $23,044 as a result of timing of payments.

 

 3.   Risks and Uncertainties

 Increasing Case Volumes

The intake of new cases is unchanged in the first six months as compared the same period in the prior year; however volume does 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, if there was a significant increase in the number of cases, the Office runs the risk of not being able to process all files in a timely manner. 

 

 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 to streamline, standardize and consolidate functions and improve business processes to achieve the operating savings by 2014-15.

 

Approved by:                                         

 

Original signed by:

Mario Dion
Public Sector Integrity Commissioner

Original signed by:

Patricia Fraser, CPA, CA
Chief Financial Officer

Ottawa, Canada

November 5, 2013

Statement of Authorities (unaudited)
Fiscal Year 2013-14 

Total available for use for the year ending
March 31, 2014*

Used during the quarter ended September 30,  2013

Year to date used at
quarter-end

Vote 50 – Program Expenditures

5,154,100

1,278,556

2,300,322

 

Budgetary Statutory Authorities

520,799

130,200

260,400

Total Budgetary Authorities

5,674,899

1,408,756

2,560,722

 

Statement of Authorities (unaudited)
Fiscal Year 2012-13 

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

Vote 50 – Program Expenditures

5,449,650

1,284,495

2,216,421

 

Budgetary Statutory Authorities

523,072

130,768

261,536

Total Budgetary Authorities

5,972,722

1,415,263

2,477,957

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

 

Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal Year 2013-14

(in dollars)

Planned expenditures for the year ending
March 31, 2014

Expended during the quarter ended September 30,  2013

Year to date used at
quarter-end

Personnel

3,513,899

1,053,913

1,939,680

Transportation and communications

123,000

19,963

31,745

Information

105,000

13,364

22,629

Professional and special services

1,601,000

277,755

447,111

Rentals

210,000

33,462

96,289

Repair and maintenance

25,000

1,658

1,838

Utilities, material and supplies

34,000

6,307

7,990

Acquisitions of machinery and equipment

23,000

-

8,442

Transfer payments

40,000

2,333

4,988

Other subsidies and payments

-

1

10

Total Budgetary Expenditures

5,674,899

1,408,756

2,560,722

 

Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal Year 2012-13

(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

Personnel

3,789,000            

1,018,905                

   1,925,495

Transportation and communications

146,000 

15,576

38,837

Information

140,000

20,477

          26,614

Professional and special services

1,522,722

253,580

322,509

Rentals

195,000

75,077

119,333

Repair and maintenance

60,000

1,792

10,023

Utilities, material and supplies

45,000

11,316

12,768

Acquisitions of machinery and equipment

35,000

15,721

19,539

Transfer payments

40,000

2,817

2,817

Other subsidies and payments

-

2

22

Total Budgetary Expenditures

5,972,722

1,415,263

2,477,957

2015-10-21