2022–23 Quarterly Financial Report (for the second quarter ended September 30, 2022)

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 2022–23 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 2022–23 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 and the year-to-date results.

Overall, from 2021–22 to 2022–23, total budgetary authority available for use has remained stable.

For the fiscal quarter ended September 30, 2022, budgetary expenditures have increased by $70,301 (5%) compared to the same period in the previous year.

The year-to-date budgetary expenditures, as at September 30, 2022, have also increased by $148,590 (5.7%) compared to the same period in the previous year. These increases are largely attributable to the following:

• Personnel ($43,613): the payment of lump-sum retroactive payments in the collective agreements for Executives group (EX) in 2022–23;
• Transport and Communications ($18,107): increased travel costs due to the gradual return to normalcy since the end of the pandemic;
• Professional and Special Services ($40,778): the timing of payments to Public Services and Procurement Canada for shared services related to human resources and increased expenditures in 2022–23 to support the modernization of the GX financial transaction database;
• Acquisitions of Machinery and Equipment ($43,906): the payment to a third party in 2022–23 for the acquisition of informatics equipment, which should have been made at the end of the 2021–22 fiscal year.

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 reprisals. Decisions by individuals to disclose wrongdoing or submit a complaint of reprisals, 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 admissibility analysts.

As a micro-organization, the Office faces a 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 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 and contractors where warranted.

The Office relies on external service providers and this brings a risk that they may not have the capacity to meet operational needs. To mitigate this risk, the Office ensures memoranda of understanding are in place with service providers that detail the services and levels of service to be provided. Regular monitoring and audits of service providers’ ability to deliver needed services are conducted.

Based on statistical data from previous years, the number of cases fluctuates throughout the year and the complexity of each case can vary significantly. This unpredictable nature of the file intake volume means that in the event of a sudden increase in 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 closely monitor caseloads, maintain human resource 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.

Approval by Senior Officials

(Original signed by)

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

Ottawa, Canada
November 10, 2022

Statement of Authorities (unaudited)

Fiscal Year 2022–23

Fiscal Year 2021–22

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

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2022–23

Fiscal Year 2021–22