2013–14 Quarterly Financial Report – Q3

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, 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 December 31, 2013 in comparison to the prior year. 

As of December 31, 2013, total authorities available for the fiscal year were $6.0 million, comparable to the same quarter of the prior year.

Program expenditures in the third quarter of 2013-14 were $1,448,070, an increase of 5% or $68,060, from spending of $1,380,010 in the same period last year, with the following major changes by standard object:

• An increase in professional services of $101,263 largely a result of an additional $150,000 contribution to the government wide shared case management system and an investment in IT to complete reconstruction of the Offices web site for $35,700, offset by a reduced use of professional services for operational files of $97,090.

For the first nine months of 2013-14, program expenditures were $4,008,792, up 4 percent or $150,825, from the $3,857,967 in the same period of 2012-13, with the following major changes by standard object:

• An increase in professional and special services of $225,951 largely as a result of the $200,000 in funds provided to the cross government shared case management system initiative and the investment in IT to complete reconstruction of the Offices web site for $35,700. The use of external resources for work on operational files has decreased by $53,504 and is largely offset by the increasing or added costs for translation, ATIP services and the contribution to the cross government common human resources process initiative.
• A decrease in the acquisition of machinery and equipment of $28,341 is a result of purchases of application software and licences in the first nine months of 2012-13. 
• A decrease in information costs of $18,242 largely as a result of non recurring costs incurred in 2012-13 to print educational material for distribution to public servants.

 3.   Risks and Uncertainties

 Increasing Case Volumes

The intake of new cases has decreased by 20% in the first nine months as compared the same period in the prior year as a result of lower activity in the third quarter; 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

February 17, 2014

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