2021–22 Quarterly Financial Report (for the quarter ended December 31, 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 $116,438 (or 2%). An increase primarily due to the lapse in 2020–21 carried over into budget authority in 2021–22.

Budgetary expenditures used during the third quarter of 2021–22 decreased by $353,276 (or 24%) compared to the same quarter last year. Significant changes to expenditures by standard object are summarized below:

  • A decrease of $269,447 in salary expenditures due to the departure of some employees and the time required to hire new employees.
  • A decrease of $75,151 in payments related to claims against the crown made in 2020–21.

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

No major changes were observed in the current quarter in terms of operations and programs. However, on the personnel side, there is the departure of the Chief Financial Officer (CFO). A new CFO started in January 2022.

Approval by Senior Officials

(Original signed by)

  • Joe Friday
    Public Sector Integrity Commissioner
  • Ludovic Noubissi, MBA, CPA, CMA
    Chief Financial Officer

Ottawa, Canada
February 23, 2022


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 December 31, 2021 Year-to-date used at quarter-end
Vote 1 – Program Expenditures 5,345,914 991,426 3,319,525
Budgetary Statutory Authorities 547,052 136,763 410,289
Total Budgetary Authorities 5,892,966 1,128,189 3,729,814

Fiscal Year 2020–21

(in dollars) Total available for use for the year ending March 31, 2021* Used during the quarter ended December 31, 2020 Year-to-date used at quarter-end
Vote 1 – Program Expenditures 5,240,176 1,347,377 3,152,990
Budgetary Statutory Authorities 536,352 134,088 402,264
Total Budgetary Authorities 5,776,528 1,481,465 3,555,254

*Note: 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) Total available for use
for the year ending
March 31, 2022
Used during the
quarter ended
December 31, 2021
Year-to-date used
at quarter-end
Personnel 4,431,209 713,517 2,892,997
Transportation and communications 82,318 19,368 38,687
Information 54,879 1,719 23,170
Professional and special services 945,286 374,642 676,289
Rentals 75,459 10,678 45,301
Repair and maintenance 6,860
Utilities, material and supplies 27,439 186 2,737
Acquisition of land, building and works
Acquisitions of machinery and equipment 219,516 805 34,452
Transfer payments 50,000 7,274 16,181
Other subsidies and payments
Total Budgetary Authorities 5,892,966 1,128,189 3,729,814

Fiscal Year 2020–21

(in dollars) Total available for use
for the year ending
March 31, 2021
Used during the
quarter ended
December 31, 2020
Year-to-date used
at quarter-end
Personnel 4,354,553 982,964 2,710,571
Transportation and communications 164,774 16,981 41,872
Information 79,300 3,112 13,341
Professional and special services 955,992 372,397 629,208
Rentals 103,447 6,162 42,552
Repair and maintenance 3,293
Utilities, material and supplies 11,936 652 1,239
Acquisition of land, building and works
Acquisitions of machinery and equipment 53,233 20,792 35,897
Transfer payments 50,000 3,254 5,423
Other subsidies and payments 75,151 75,151
Total Budgetary Authorities 5,776,528 1,481,465 3,555,254