2014–15 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, 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 (PSIC) 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 PSIC'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 September 30, 2014 in comparison to the prior year.

The 2014-15 Program Expenditure Authorities are comparable to 2013-14 as at the end of the second quarter as a result of the following offsetting changes: a decrease in funding of $283,000 announced as part of the Budget 2012 and an increase in funding from the 2013-14 carry forward funding of $255,705. 

Program expenditures in the second quarter of 2014-15 were $1,129,369 lower by 20 percent or $279,387 from the $1,408,756 in the same period last year, with the following major changes by standard object:

• a decrease in personnel costs of $223,459 as a result of the severance payments administered per collective agreements in 2013-14 and a reduced number of staffed positions equivalent to 1 full time employee during the quarter; and
• a decrease in professional services of $48,261 primarily as a result of the $50,000 in funds provided to the shared case management system initiative in 2013-14.

For the first six months of 2014-15, program expenditures were $2,295,511, down 10 percent or $265,211, from the $2,560,722 in the same period of 2013-14, with the following major changes by standard object:

• a decrease in personnel costs of $266,356 as a result of the severance payments administered per collective agreements in 2013-14 and a reduced number of staffed positions equivalent to 1.6 full time employees in the first six months;
• a decrease in professional and special services of $88,415 largely as a result of the $50,000 in funds provided to the shared case management system initiative in 2013-14, a decrease of $23,081 for the use of external resources for work on operational files, and a decrease of $19,851 in translation costs; and
• an increase in other subsidies and payments of $107,454 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 decreased by 10%, or 6 fewer cases, in the first six 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.

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

The Commissioner has communicated his intent to leave the organization in December 2014 and a search is underway for his replacement.

5.   Budget 2012 Implementation

As part of the measures announced in the Budget 2012, PSIC`s reference levels 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:

Ottawa, Canada
November 24, 2014

Statement of Authorities (unaudited)

Fiscal Year 2014-15

Statement of Authorities (unaudited)

Fiscal Year 2013-14

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2014-15

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2013-14