Quarterly Financial Report 2014-2015 Q3

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 (the Office) 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 Office'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 December 31, 2014 in comparison to the prior year.

The 2014-15 Program Expenditure Authorities are $277,674 lower than 2013-14 as at the end of the third quarter largely as a result of a decrease in funding of $283,000 announced as part of the Budget 2012. 

Program expenditures in the third quarter of 2014-15 were $1,104,379, lower by 24 percent or $343,691 from the $1,448,070 in the same period last year, with the following major changes by standard object:

  • a decrease in personnel costs of $229,388 as a result of a reduced number of staffed positions equivalent to 1.3 full time employee during the quarter and the timing of reimbursements for staff seconded to other departments;
  • a decrease in professional services of $129,920 primarily as a result of the prior year spending of $150,000 contributed to the central shared case management system initiative and an investment of $35,700 in the Office`s web site, offset by added costs in 2014-15 of an executive search of $75,920; and
  • an increase in other payments of $15,991, comprised of a $10,000 payment to support the centralized government purchase of financial system licenses and adjustments to the one-time transition payment for implementing salary payment in arrears.

For the first nine months of 2014-15, program expenditures were $3,399,890, down 15 percent or $608,902, from the $4,008,792 in the same period of 2013-14, with the following major changes by standard object:

  • a decrease in personnel costs of $495,744 as a result of the severance payments administered per collective agreements in 2013-14 and a reduced number of staffed positions equivalent to 3 full time employees in the first nine months;
  • a decrease in professional and special services of $218,335 largely as a result of the $200,000 in funds provided to the shared case management system initiative in 2013-14, a decrease of $45,132 for the use of external resources for work on operational files, a decrease of $37,421 in translation costs, offset by added costs in 2014-15 of an executive search of $75,920; and
  • an increase in other subsidies and payments of $123,445 largely 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 has not changed significantly, increasing by 9%, in the first nine 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.

The Office carried out a comprehensive risk assessment in the third quarter of 2014-15 and this assessment did not identify additional areas that may result in significant financial risks and uncertainties.

 

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

Joe Friday, previously Deputy Commissioner, has been appointed Interim Commissioner for the Office as of January 1, 2015.

5.   Budget 2012 Implementation

As part of the measures announced in the Budget 2012, the Office`s reference level 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:

Joe Friday
Interim Public Sector Integrity Commissioner

 

Original signed by:

Patricia Fraser, CPA, CA
Chief Financial Officer

 

Ottawa, Canada
February 9, 2015

Statement of Authorities (unaudited)

Fiscal Year 2014-15 

Total available for use for the year ending
March 31, 2015*

Used during the quarter ended December 31, 2014

Year to date used at
quarter-end

Vote 1 – Program Expenditures

5,190,587

978,744

3,022,985

 

Budgetary Statutory Authorities

502,540

125,635

376,905

Total Budgetary Authorities

5,693,127

1,104,379

3,399,890

 

Statement of Authorities (unaudited)

Fiscal Year 2013-14

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

Used during the quarter ended December 31, 2013

Year to date used at quarter-end

Vote 50 – Program Expenditures

5,450,002

1,317,871

3,618,193

 

Budgetary Statutory Authorities

520,799

130,199

390,599

Total Budgetary Authorities

5,970,801

1,448,070

4,008,792

* 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 December 31, 2014

Year to date used at
quarter-end

Personnel

3,815,127

713,383

2,386,707

Transportation and communications

107,000

25,738

46,272

Information

86,000

12,787

36,774

Professional and special services

1,385,000

276,757

635,453

Rentals

202,000

43,296

141,049

Repair and maintenance

10,000

796

1,883

Utilities, material and supplies

23,000

3,485

5,501

Acquisitions of machinery and equipment

25,000

1,315

1,721

Transfer payments

40,000

10,823

21,067

Other subsidies and payments

-

15,999

123,463

Total Budgetary Expenditures

5,693,127

1,104,379

3,399,890

 


 

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 December 31, 2013

Year to date used at quarter-end

Personnel

3,809,801

942,771

2,882,451

Transportation and communications

123,000

18,469

50,214

Information

105,000

14,687

37,316

Professional and special services

1,601,000

406,677

853,788

Rentals

210,000

49,135

145,424

Repair and maintenance

25,000

443

2,281

Utilities, material and supplies

34,000

586

8,576

Acquisitions of machinery and equipment

23,000

-

8,442

Transfer payments

40,000

15,294

20,282

Other subsidies and payments

-

8

18

Total Budgetary Expenditures

5,970,801

1,448,070

4,008,792

2015-09-29