Quarterly Financial Report 2018-2019 – Q1

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. 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. It reports founded cases of wrongdoing to Parliament and makes recommendations to chief executives on corrective measures; and
  • public servants and former public servants with a mechanism for making complaints of reprisal for the purpose of coming to a resolution. It investigates and can refer 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 2018-19 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.

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

 

This section highlights the significant items that contributed to the variance in resources available for the year and net changes in actual expenditures for the quarter ended June 30, 2018, in comparison to the prior year.

 

From 2017-18 to 2018-19, total budgetary authorities available for use increased by $44,557 (0.8%). This change is mostly the result of:

  • an increase of $52,045 in vote 1 authorities due to funding received in 2018-19 as a result of employee’s collective agreements.
  • a decrease of $7,488 in budgetary statutory authorities due to the adjustment of the Employee Benefit Plan annual rate, from 15.7% in 2017-18 to 15.2% in 2018-19, as directed by the Treasury Board.

Budgetary expenditures used during the first quarter of 2018-19 decreased by $176,943 (16.9%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

  • a decrease of $145,101 in salary expenditures as a results of transfer of personnel in and out of the Office.
  • a decrease of $8,740 in professional and special services primarily due to timing differences in billing and payments between 2017-18 and 2018-19.
  • an overall decrease of $23,102 in other expenditures are attributable to the timing differences in billing and payments between 2017-18 and 2018-19.

 

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 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.

 

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

 

This section highlights significant changes in operations, personnel and programs of the Office during the first quarter of the fiscal year.

A notable change to personnel is the appointment of Denis Bilodeau as Deputy Commissioner of the Office effective June 25, 2018.

 

5. Approval by Senior Officials

 

Approved by:

Joe Friday

Public Sector Integrity Commissioner

Eric Trottier, MBA, CPA, CMA

Chief Financial Officer

 

Ottawa, Canada

August 28, 2018

 

Statement of Authorities (unaudited)

Fiscal Year 2018-19

(in dollars)Total available for use for the year ending March 31, 2019*Used during the quarter ended June 30, 2018Year to date used at quarter-end
Vote 1- Program Expenditures5,009,887747,408747,408
Budgetary Statutory Authorities476,051119,013119,013
Total Budgetary Authorities5,485,938866,421866,421

 

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, 2017Year to date used at quarter-end
Vote 1 - Program Expenditures4,957,842922,479922,479
Budgetary Statutory Authorities483,539120,885120,885
Total Budgetary Authorities5,441,3811,043,3641,043,364

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

 

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2018-19

(in dollars)Planned expenditures for the year ending March 31, 2019Expended during the quarter ended June 30, 2018Year to date used at quarter-end
Personnel3,607,963672,765672,765
Transportation and communications120,00014,85614,856
Information80,00011,86611,866
Professional and special services1,342,975156,107156,107
Rentals60,0003,5863,586
Repair and maintenance5,000--
Utilities, materials and supplies30,000754754
Acquisition of land, building and works---
Acquisitions of machinery and equipment200,000158158
Transfer payments40,0006,3296,329
Other subsidies and payments---
Total Budgetary Expenses5,485,938866,421866,421

 

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2017-18

(in dollars)Planned expenditures for the year ending March 31, 2018Expended during the quarter ended June 30, 2017Year to date used at quarter-end
Personnel3,563,406817,866817,866
Transportation and communications122,10020,07020,070
Information131,1857,9717,971
Professional and special services1,243,000164,847164,847
Rentals266,23011,12711,127
Repair and maintenance7,760159159
Utilities, material and supplies15,7007,7847,784
Acquisitions of land, building and works---
Acquisitions of machinery and equipment52,0008,2308,230
Transfer payments40,0005,3105,310
Other subsidies and payments---
Total Budgetary Expenditures5,441,3811,043,3641,043,364

 

2018-08-29