Quarterly Financial Report 2017-18 - Q1

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

 

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. It should be read in conjunction with the Main Estimates and Supplementary Estimates. The 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 implement the Public Servants Disclosure Protection Act, which came into force in April 2007. 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; and
  • 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 plans and 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 and Supplementary Estimates for the 2017-18 fiscal year. The 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.

2.  Highlights of Fiscal Quarter and Fiscal Year to Date Results

This section highlights the significant items that contributed to the variance in resources available for the year and significant changes in actual expenditures for the quarter ended June 30, 2017, in comparison to the prior year.

From 2016-17 to 2017-18, total budgetary authorities available for use decreased by $21,093 (0.4%). This change is mostly the result of:

  • an increase of $21,421 in vote 1 authorities due to funding for adjustments made for lawyers as a result of collective bargaining.
  • a decrease of $42,514 in budgetary statutory authorities due to the adjustment of the Employee Benefit Plan annual rate from 17.2% in 2016-17 to 15.7% in 2017-18, as directed by the Treasury Board.

Budgetary expenditures used during the first quarter of 2017-18 increased by $100,515 (12.4%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

  • an increase of $87,698 in personnel primary due to salary spending on new staff hired to work on case analysis, investigations and legal issues.
  • an increase of $12,817 in overall other expenditures due to the timing differences of payments between 2016-17 and 2017-18.

3.  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 reprisal complaint, 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.

4.  Significant changes in relation to operations, personnel and program

Brian Radford was appointed as General Counsel effective March 23, 2017.

5.  Approval by Senior Officials

 

Approved by:

Joe Friday
Public Sector Integrity Commissioner
Eric Trottier, CPA, CMA, MBA
Chief Financial Officer

 

Ottawa, Canada
August 18, 2017

 

Statement of Authorities (unaudited)

Fiscal Year 2017-18

 

(in dollars) Total available for use for the year ending March 31, 2018* Used during the quarter ended June 30, 2017 Year to date used at quarter-end
Vote1 - Program Expenditures 4,957,842 922,479 922,479

Budgetary Statutory Authorities

483,539 120,885 120,885
Total Budgetary Authorities 5,441,381 1,043,364 1,043,364

 

Statement of Authorities (unaudited)

Fiscal Year 2016-17

(in dollars) Total available for use for the year ending March 31, 2017* Used during the quarter ended June 30, 2016 Year to date used at quarter-end
Vote1 - Program Expenditures 4,936,421 811,336 811,336

Budgetary Statutory Authorities

526,053 131,513 131,513
Total Budgetary Authorities 5,462,474 942,849 942,849

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

 

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2017-18

(in dollars) Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended June 30, 2017 Year to date used at quarter-end
Personnel 3,563,406 817,866 817,866
Transportation and communications 122,100 20,070 20,070
Information 131,185 7,971 7,971
Professional and special services 1,243,000 164,847 164,847
Rentals 266,230 11,127 11,127
Repair and Maintenance 7,760 159 159
Utilities, material and supplies 15,700 7,784 7,784
Acquisitions of machinery and equipment 52,000 8,230 8,230
Transfer payments 40,000 5,310 5,310
Other subsidies and payments - - -
Total Budgetary Expenditures 5,441,381 1,043,364 1,043,364

 

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2016-17

(in dollars) Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Personnel 3,584,499 730,168 730,168
Transportation and communications 98,000 17,814 17,814
Information 61,500 2,766 2,766
Professional and special services 1,477,475 142,227 142,227
Rentals 162,000 44,900 44,900
Repair and Maintenance 5,000 2,069 2,069
Utilities, material and supplies 14,000 2,147 2,147
Acquisitions of machinery and equipment 20,000 - -
Transfer payments 40,000 758 758
Other subsidies and payments - - -
Total Budgetary Expenditures 5,462,474 942,849 942,849