2021–22 Quarterly Financial Report (for the quarter ended September 30, 2021)

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 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 Main Estimates (Part 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 2021-22 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 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.

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 ended and the year-to-date results.

From 2020-21 to 2021-22, total budgetary authorities available for use increased by $1.3M. This increase is related to the limited supply of the Main Estimates distributed to organizations last year due to the COVID-19 pandemic. The Office received its full supply in the first quarter of 2021-22.

Budgetary expenditures used during the second quarter of 2021-22 increased by $395, 058 (39%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

  • An increase of $356,445 in salary expenditures as a result of hiring new employees.
  • An increase of $43,170 in professional services due to increased cost in services received.

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.

Based on statistical data of previous years, volume of cases does fluctuate by month throughout the year, and the complexity of each case can vary significantly. COVID-19 adds another level of uncertainty as a large percentage of federal employees are working remotely and a change in behaviours could occur. The COVID-19 pandemic had minimal impact on the Office’s year-end financial statements. Although the Office does not anticipate any significant financial impact going forward, the long-term impact on the volume of cases remains highly uncertain.

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. The Office’s risk response strategy is to monitor closely caseloads, maintain human resources capacity and support ongoing professional development.

Significant changes in relation to operations, personnel and programs

There were no significant changes during the current quarter relating to operations, personnel and programs.

Approval by Senior Officials

(Original signed by)

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

Ottawa, Canada
November 26, 2021


Statement of Authorities (unaudited)

Fiscal Year 2021–22

(in dollars) Total available for use for the year ending March 31, 2022* Used during the quarter ended September 30, 2021 Year to date used at quarter-end
Vote 1 – Program Expenditures 5,323,421 1,276,947 2,328,099
Budgetary Statutory Authorities 547,052 136,763 273,526
Total Budgetary Authorities 5,870,473 1,413,710 2,601,625


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

Fiscal Year 2020–21

(in dollars) Total available for use for the year ending March 31, 2021* Used during the quarter ended September 30, 2020 Year to date used at quarter-end
Vote 1 – Program Expenditures 3,978,682 884,564 1,805,613
Budgetary Statutory Authorities 536,352 134,088 268,176
Total Budgetary Authorities 4,515,034 1,018,652 2,073,789


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


Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2021–22

(in dollars) Planned expenditures for the year ending March 31, 2022 Expended during the quarter ended September 30, 2021 Year to date used at quarter-end
Personnel 4,408,716 1,193,677 2,179,480
Transportation and communications 82,318 12,767 19,319
Information 54,879 8,892 21,451
Professional and special services 945,286 171,298 301,647
Rentals 75,459 14,913 34,623
Repair and maintenance 6,860 - -
Utilities, material and supplies 27,439 1,144 2,551
Acquisition of land, building and works - - -
Acquisitions of machinery and equipment 219,516 5,709 33,647
Transfer payments 50,000 5,310 8,907
Other subsidies and payments - - -
Total Budgetary Expenditures 5,870,473 1,413,710 2,601,625

Fiscal Year 2020–21

(in dollars) Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended September 30, 2020 Year to date used at quarter-end
Personnel 3,448,552 837,232 1,727,607
Transportation and communications 123,581 15,186 24,891
Information 59,475 10,179 10,229
Professional and special services 716,994 128,128 256,811
Rentals 77,585 14,085 36,390
Repair and maintenance 2,470 - -
Utilities, material and supplies 8,952 587 587
Acquisition of land, building and works - - -
Acquisitions of machinery and equipment 39,925 11,086 15,105
Transfer payments 37,500 2,169 2,169
Other subsidies and payments - - -
Total Budgetary Expenditures 4,515,034 1,018,652 2,073,789