2023–24 Quarterly Financial Report (for the third quarter ended December 31, 2023)

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

Introduction

This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates for the current fiscal year. It 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. The quarterly report has not been subject to an external audit or review.

The raison d’être and the Office’s program expenditures can be found in the 2023–24 Estimates (Parts I and 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 and Supplementary Estimates for the 2023–24 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 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 allows the Governor in Council to ask 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 identifies and explains significant variances, trends and changes related to increases and/or decreases in actual expenditures and in relation to planned expenditures. The amounts are compared to the same periods of the preceding fiscal year, for both the quarter and the year-to-date results.

Statement of Authorities

The total authorities available for use as at December 31, 2023, increased by 4% ($273,375) compared to the same quarter of the prior year. This increase reflects the compensation adjustments resulting from recent collective bargaining agreements.

Statement of Budgetary Expenditures by Standard Object

Expenses used during the quarter ended December 31, 2023, increased by 36% ($520,538) compared with the same period last year. This trend can also be seen in cumulative expenses used at the end of the quarter, which increased by 17% ($714,654) over the same period last year.

This increase is made up of two elements:

• an increase of $664,639 in personnel expenses, of which approximately $298,833 represents the salaries of several employees who have left the organization and for whom salary recoveries have not yet been processed compared with the last fiscal year; $251,622 that relates to vacation pay cash out, parental leave and retroactive salary payments; and $114,184 representing the compensation adjustments resulting from recent collective bargaining agreements;
   
• a net increase of $50,015 in operating expenditures.

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 driven by various factors, including fear of reprisal. The decision by individuals whether to disclose wrongdoing or to submit a complaint of reprisal, the complexity of cases, the legislative landscape and the Office’s limited resources are contributing factors to the Office’s ability to effectively deliver on its mandate and to meet its service standards. This underscores the need to retain and recruit skilled employees for key positions, such as investigators and case admissibility analysts.

As a micro-organization, the Office faces the risk of not being able to attract, retain and develop the right people with the appropriate mix of skills. This can negatively affect its ability to deliver its mandate and to foster a culture of knowledge sharing and transfer. The Office’s strategy to mitigate this risk includes proactive recruitment, as well as the use of casual employment and contractors where warranted.

The Office relies on external service providers for many of its corporate functions. This dependency subjects the Office to the risk of service providers not having the capacity to meet its operational needs at any given time. To mitigate this risk, the Office ensures that memoranda of understanding are in place with each service provider that detail both the services and levels of service to be provided. Regular monitoring of service delivery and audits of service level agreements are also conducted. Notwithstanding these efforts, information technology risks have necessitated a decision to move away from a service agreement and transition to an in-house information and technology management.

Based on historical statistical data, the number of new disclosures of wrongdoing and complaints of reprisal are on the rise. Intake also fluctuates throughout the fiscal year and the complexity of each case can vary significantly. The unpredictable nature of file intake and volume means that, in the event of a sudden increase in cases and investigations, the Office runs the risk of not being able to process files in a timely manner. The Office’s risk response strategy is to closely monitor caseloads and human resource capacity and to support ongoing professional development. In addition, the Office is exploring funding options that would enable it to maintain and build on human resource capacity to effectively deliver on its mandate in the context of growing trends and caseloads.

Furthermore, there is a risk that external and internal threats (including malware, hacking and errors) could compromise the confidentiality, integrity and availability of sensitive information and business systems, which has the potential of disrupting operations and negatively impacting the Office’s ability to deliver on its mandate. To mitigate this risk, the Office is updating its outdated information technology infrastructure, acquiring and implementing a new and more reliable Case Management System, and building internal information technology capacity.

Significant Changes in Relation to Operations, Personnel and Programs

No major changes were observed in the current quarter in terms of operations and programs. However, an important change has taken place at the head of the organization. A new Deputy Commissioner has been appointed, taking up office on January 1, 2024.

Approval by Senior Officials

(Original signed by)

• Harriet Solloway
  Public Sector Integrity Commissioner
• Ludovic Noubissi, MBA, CPA
  Chief Financial Officer

Ottawa, Canada
February 27, 2024

Statement of Authorities (unaudited)

Fiscal Year 2023–24

Fiscal Year 2022–23

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

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2023–24

Fiscal Year 2022–23