2013–14 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 (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 2013-14 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, 2013 in comparison to the prior year. 

 As of September 30, 2013, total authorities available for the fiscal year were $5.7 million, which was $0.3 million lower than at the same time in the prior year, as 90% of the operating budget carry forward had been granted available for use in September 2012 and this year it is currently scheduled for the third quarter.

Program expenditures in the second quarter of 2013-14 were $1,408,765, on par with spending of $1,415,263 in the same period last year, with the following major changes by standard object:

• An increase in personnel costs of $35,008 arising from an increase in severance payments and wage increases administered per collective agreements, offset by a reduction in number of staffed positions.
• An increase in professional services of $24,175 as the Office contributed $50,000 to the government wide shared case management system initiative offset by the timing of payments to the government shared service providers.
• A decrease in rental costs of $41,615 as a result of timing of payments.
• A decrease in acquisitions of machinery and equipment of $15,721 as the prior year expenditures included the acquisition of application software which included the initial licensing fees.

For the first six months of 2013-14, program expenditures were $2,560,722, up 3 percent or $82,765, from the $2,477,957 in the same period of 2012-13, with the following major changes by standard object:

• An increase in personnel costs of $14,185 for the same reasons outlined it the quarter’s results.
• An increase in professional and special services of $124,602 largely as a result of the $50,000 in funds provided to the shared case management system initiative and an increase of $50,258 for the use of external resources for work on operational files.
• A decrease in rental costs of $23,044 as a result of timing of payments.

 3.   Risks and Uncertainties

 Increasing Case Volumes

The intake of new cases is unchanged in the first six months as compared 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

 There have been no significant changes in relation to the operations, personnel or program this quarter.

 5.   Budget 2012 Implementation

As part of the measures announced in the Budget 2012, PSIC`s reference levels for its operating budget will be reduced by 5% or $283,000 in 2014-15. The timing of the reduction provides the Office opportunity to streamline, standardize and consolidate functions and improve business processes to achieve the operating savings by 2014-15.

Approved by:                                         

Ottawa, Canada

November 5, 2013

Statement of Authorities (unaudited)

Fiscal Year 2013-14 

Statement of Authorities (unaudited)

Fiscal Year 2012-13 

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2013-14

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2012-13