2017–18 Quarterly Financial Report – 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. 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 2017-18 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 September 30, 2017, in comparison to the prior year.

From 2016-17 to 2017-18, total budgetary authorities available for use decreased by $21,016 (0.4%). This change is mostly the result of

  • an increase of $21,498 in vote 1 authorities due to funding received for the 2017-18 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 second quarter of 2017-18 decreased by $151,013 (14.5%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

  • a decrease of $96,707 in professional and special services primarily due to the timing differences in billing and payments between 2016-17 and 2017-18.
  • a decrease of $22,449 in salary expenditures primarily due to the recovery of overpayment necessary to rectify pay issues.
  • a decrease of $19,698 in rentals as less meetings rooms were required.
  • an overall decrease of $12,159 in other expenditures are attributable to the timing differences in billing and 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 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

There have been no significant changes during the current quarter related to operations, personnel or program.

5. Approval by Senior Officials

 

Approved by:

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

 

Ottawa, Canada
November 21, 2017
 

Statement of Authorities (unaudited)
Fiscal Year 2017-18
 

  Total available for use for the year ending
March 31, 2018*
Used during the quarter ended September 30, 2017 Year to date used at
quarter-end
Vote 1 - Program Expenditures 5,202,663 770,854 1,693,333

Budgetary Statutory Authorities

483,539 120,885 241,770
Total Budgetary Authorities 5,686,202 891,739 1,935,103


Statement of Authorities (unaudited)
Fiscal Year 2016-17

 

  Total available for use for the year ending
March 31, 2017*
Used during the quarter ended September 30, 2016 Year to date used at quarter-end
Vote 1 – Program Expenditures 5,181,165 911,238 1,722,574

Budgetary Statutory Authorities

526,053 131,514 263,027
Total Budgetary Authorities 5,707,218 1,042,752 1,985,601

* 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 September 30, 2017

Year to date used at
quarter-end

Personnel

3,563,406 770,702 1,588,568
Transportation and communications 122,100 22,369 42,439
Information 131,185 13,978 21,949
Professional and special services 1,487,821 64,888 229,735
Rentals 266,230 4,556 15,683
Repair and maintenance 7,760 - 159
Utilities, material and supplies 15,700 5,765 13,549
Acquisitions of machinery and equipment 52,000 3,943 12,173
Transfer payments 40,000
5,538
10,848
Other subsidies and payments - - -
Total Budgetary Expenditures 5,686,202 891,739 1,935,103

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 September 30, 2016 Year to date used at quarter-end
Personnel 3,584,499 793,151 1,523,319
Transportation and communications 98,000 22,882 40,696
Information 61,500 20,217 22,983
Professional and special services 1,722,219 161,595 303,822
Rentals 162,000 24,254 69,154
Repair and maintenance 5,000 575 2,644
Utilities, material and supplies 14,000 1,569 3,716
Acquisitions of machinery and equipment 20,000 13,665  13,665
Transfer payments 40,000 4,844 5,602
Other subsidies and payments - - -
Total Budgetary Expenditures 5,707,218  1,042,752 1,985,601