Quarterly Financial Report 2014-2015 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 (PSDPA or 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 2014-15 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, 2014 in comparison to the prior year.

The 2014-15 Program Expenditure Authorities are comparable to 2013-14 as at the end of the second quarter as a result of the following offsetting changes: a decrease in funding of $283,000 announced as part of the Budget 2012 and an increase in funding from the 2013-14 carry forward funding of $255,705. 

Program expenditures in the second quarter of 2014-15 were $1,129,369 lower by 20 percent or $279,387 from the $1,408,756 in the same period last year, with the following major changes by standard object:

  • a decrease in personnel costs of $223,459 as a result of the severance payments administered per collective agreements in 2013-14 and a reduced number of staffed positions equivalent to 1 full time employee during the quarter; and
  • a decrease in professional services of $48,261 primarily as a result of the $50,000 in funds provided to the shared case management system initiative in 2013-14.

For the first six months of 2014-15, program expenditures were $2,295,511, down 10 percent or $265,211, from the $2,560,722 in the same period of 2013-14, with the following major changes by standard object:

  • a decrease in personnel costs of $266,356 as a result of the severance payments administered per collective agreements in 2013-14 and a reduced number of staffed positions equivalent to 1.6 full time employees in the first six months;
  • a decrease in professional and special services of $88,415 largely as a result of the $50,000 in funds provided to the shared case management system initiative in 2013-14, a decrease of $23,081 for the use of external resources for work on operational files, and a decrease of $19,851 in translation costs; and
  • an increase in other subsidies and payments of $107,454 due to a one-time transition payment for implementing salary payment in arrears by the Government of Canada.

3.   Risks and Uncertainties

Increasing Case Volumes

The intake of new cases decreased by 10%, or 6 fewer cases, in the first six months as compared to 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

The Commissioner has communicated his intent to leave the organization in December 2014 and a search is underway for his replacement.

5.   Budget 2012 Implementation

As part of the measures announced in the Budget 2012, PSIC`s reference levels for its operating budget was reduced by 5% or $283,000 in 2014-15. The timing of the reduction provided the Office opportunity to streamline, standardize and consolidate functions and improve business processes to achieve these 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 24, 2014

Statement of Authorities (unaudited)
Fiscal Year 2014-15
Total available for use for the year ending
March 31, 2015*
Used during the quarter ended September 30, 2014
Year to date used at
quarter-end

Vote 50 – Program Expenditures

5,179,374

1,003,734

2,044,241

 

Budgetary Statutory Authorities

502,540

125,635

251,270

Total Budgetary Authorities

5,681,914

1,129,369

2,295,511

 

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

 

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

Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal Year 2014-15

(in dollars)

Planned expenditures for the year ending
March 31, 2015
Expended during the quarter ended September 30, 2014
Year to date used at
quarter-end

Personnel

3,803,914

830,454

1,673,324

Transportation and communications

107,000

14,942

20,534

Information

86,000

11,475

23,987

Professional and special services

1,385,000

229,494

358,696

Rentals

202,000

40,728

97,753

Repair and maintenance

10,000

642

1,087

Utilities, material and supplies

23,000

531

2,016

Acquisitions of machinery and equipment

25,000

36

406

Transfer payments

40,000

3,982

10,244

Other subsidies and payments

-

-2,915

107,464

Total Budgetary Expenditures

5,681,914

1,129,369

2,295,511

 

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

2015-09-29