2019–20 Quarterly Financial Report (for the quarter ended June 30, 2019)

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

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. It should be read in conjunction with the Main Estimates. The quarterly report has not been subject to an external audit or review.

Raison d’être

The Office of the Public Sector Integrity Commissioner of Canada was established to implement the Public Servants Disclosure Protection Act, which came into force in April 2007.

The Commissioner reports directly to Parliament, and the President of the Treasury Board is responsible for tabling the Office’s Departmental Plan and Departmental Results Report in Parliament.

The Office contributes to strengthening accountability and increases oversight of government operations by providing:

  • public servants and members of the public with an independent and confidential process for receiving and investigating disclosures of wrongdoing in, or relating to, the federal public sector, and by reporting founded cases to Parliament and making recommendations to chief executives on corrective measures;
  • public servants and former public servants with a mechanism for handling complaints of reprisal for the purpose of coming to a resolution including referring cases to the Public Servants Disclosure Protection Tribunal.

Further details on the Office’s authority, mandate and program activities can be found in the Main Estimates (Part II) and in its corporate publications.

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 fiscal year ending March 31, 2020. 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 money 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The Office uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of the fiscal quarter and the fiscal year-to-date results

This section highlights the significant variance in resources available for the year and net changes in actual expenditures for the quarter ended June 30, 2019, in comparison to the prior year.

From 2018–19 to 2019–20, total budgetary authorities available for use increased by $41,448 (0.8%). This change is mostly the result of:

  • an increase of $58,467 in vote 1 authorities due to funding received in 2019–20 as a result of employees’ collective agreements;
  • a decrease of $17,019 in budgetary statutory authorities due to the adjustment of the Employee Benefit Plan annual rate, as directed by the Treasury Board.

Budgetary expenditures used during the first quarter of 2019–20 increased by $123,673 (14.3%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

  • an increase of $45,882 in salary expenditures as a result of hiring new employees;
  • an increase of $42,155 in acquisitions of buildings and works attributable to the refit and relocation of the Office;
  • an increase of $35,637 in other expenditures due to an increase in transportation to conduct disclosure interviews and to the timing differences in invoices and payments between 2019–20 and 2018–19.

Risks and uncertainties

The Office continues to operate in a sensitive environment where there still exists a culture of resistance to whistleblowing within the federal public service due to various factors, including fear of reprisal. Decisions by individuals to disclose wrongdoing or submit a complaint of reprisal, the complexity of cases, as well as the legislative requirements and the Office’s service standards are major contributors to the workload. In turn, this drives the need to retain and recruit key skilled positions, such as investigators and case analysts.

Volume of cases does fluctuate by month throughout the year, and the complexity of each case can vary significantly. However, if there was a continued and significant increase in the number of cases and/or investigations, the Office runs the risk of not being able to process all files in a timely manner.

Significant changes in relation to operations, personnel and programs

There were no significant changes to operations, personnel and programs during the first quarter ended June 30, 2019.

Approval by Senior Officials

Original signed by:

Joe Friday
Public Sector Integrity Commissioner

Éric Trottier, MBA, CPA, CMA
Chief Financial Officer


Ottawa, Canada
August 29, 2019


Statement of Authorities (unaudited)

Fiscal Year 2019–20

(in dollars)

Total available for use for the year ending
March 31, 2020*

Used during the quarter ended June 30, 2019

Year-to-date used at
quarter end

Vote 1 – Program Expenditures

4,982,609

853,900

853,900

Budgetary Statutory Authorities

544,777

136,194

136,194

Total Budgetary Authorities

5,527,386

990,094

990,094

Fiscal Year 2018–19

(in dollars)

Total available for use for the year ending
March 31, 2019*

Used during the quarter ended June 30, 2018

Year-to-date used at quarter end

Vote 1 – Program Expenditures

5,009,887

747,408

747,408

Budgetary Statutory Authorities

476,051

119,013

119,013

Total Budgetary Authorities

5,485,938

866,421

866,421


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


Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2019–20

(in dollars)

Planned expenditures for the year ending
March 31, 2020

Expended during the quarter ended June 30, 2019

Year-to-date used at
quarter end

Personnel

4,105,411

718,647

718,647

Transportation and communications

88,429

31,794

31,794

Information

59,863

7,219

7,219

Professional and special services

881,305

164,691

164,691

Rentals

138,356

24,881

24,881

Repair and maintenance

3,974

-

-

Utilities, material and supplies

15,525

707

707

Acquisition of land, building and works

-

42,155

42,155

Acquisitions of machinery and equipment

184,523

-

-

Transfer payments

50,000

-

-

Other subsidies and payments

-

-

-

Total Budgetary Expenditures

5,527,386

990,094

990,094

Fiscal Year 2018–19

(in dollars)

Planned expenditures for the year ending
March 31, 2019

Expended during the quarter ended June 30, 2018

Year-to-date used at quarter end

Personnel

3,607,963

672,765

672,765

Transportation and communications

120,000

14,856

14,856

Information

80,000

11,866

11,866

Professional and special services

1,342,975

156,107

156,107

Rentals

60,000

3,586

3,586

Repair and maintenance

5,000

-

-

Utilities, material and supplies

30,000

754

754

Acquisition of land, building and works

-

-

-

Acquisitions of machinery and equipment

200,000

158

158

Transfer payments

40,000

6,329

6,329

Other subsidies and payments

-

-

-

Total Budgetary Expenditures

5,485,938

866,421

866,421