Quarterly Financial Reports for the quarter ended September 30, 2013

This page has been archived on the Web

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Archived

This page has been archived on the Web.

Office of the Privacy Commissioner of Canada

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

This quarterly report was 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.  It should be read in conjunction with the Office of the Privacy Commissioner of Canada (OPC) Main and Supplementary Estimates.

The OPC’s mandate is overseeing compliance with both the Privacy Act (PA), which covers the personal information-handling practices of federal government departments and agencies, and the Personal Information Protection and Electronic Document Act (PIPEDA), Canada’s private sector privacy law. Its mission is to protect and promote the privacy rights of individuals via the following four key program activities:

• Compliance activities, represented by the responsibility to investigate privacy-related complaints and responding to information requests from individuals and organizations;
• Research and policy development, through which the Office serves as a centre of expertise on emerging privacy issues in Canada and abroad by researching trends and technological developments, monitoring legislative and regulatory initiatives, providing legal, policy and technical analyses of key issues, and developing policy positions that advance privacy protection;
• Public outreach, which the Office delivers through public education and communications activities, including speaking engagements, special events, media relations, and producing and sharing of promotional and educational material;
• Internal services, which refers to activities and resources that support program needs and other OPC corporate obligations.

Detailed information on the OPC’s authority, mandate and program activities can be found in our Report on Plans and Priorities (RPP) and the Main Estimates.

Basis for Presentation

This report has been prepared 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 the Supplementary Estimates for fiscal year 2013-14. This 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. (More information can be found on the Treasury Board of Canada Secretariat website)

The authority of Parliament is required before money can be spent by federal organizations. 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 OPC uses full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year.  Budget 2013 was tabled in Parliament on March 21, after the tabling of the Main Estimates on February 25, 2013.  As a result the measures announced in the Budget 2013 could not be reflected in the 2013-14 Main Estimates.

In fiscal year 2013-2014, frozen allotments will be established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2013.  In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.

This report has not been subject to an external audit or review.

Highlights of fiscal quarter and fiscal year to date (YTD) Results

This section highlights the significant variances in relation to actual expenditures and planned expenditures that affected both the quarter and the year to date results, compared to the same periods of the preceding fiscal year.

Statement of authorities analysis

The permanent funding for OPC remained stable over the past fiscal year. As reflected in the table on statement of authorities (attached), total authority available for the year is $29.1M compared to $24.6M in 2012-13.  The increase of $4.5M is essentially due to the one-time funding received in 2013-14 for the OPC’s move to Gatineau, Quebec.  This funding will be spent for the office set up and equipment as well as the new technology infrastructure and is expected to occur in the second half of 2013-14.

Budgetary expenditures by standard object analysis

As shown in the departmental budgetary expenditures by standard object table (attached), the OPC spent approximately 39% of its authorities as of September 30, 2013, of which 78% represents personnel costs.

Expenditures in this quarter have decreased by $0.4 million or 8% compared to the same quarter in the previous fiscal year.  This decrease is mainly due to a correction related to an over estimation of salary accruals that was processed in Q2 and the decrease of the use of professional services.  However, the Office is expecting a significant increase in its expenditures in the remaining quarters of 2013-14 due to the Office headquarter move to Gatineau, Québec.

Risks and Uncertainties

The OPC’s key corporate risks are identified and assessed through an annual update of the Office’s Corporate Risk Profile. This year, the Office identified a number of key risks which could have financial impacts should they materialize as well as strategies to mitigate them. These risks and mitigation strategies are described in more detail below.

Relocation of OPC headquarters

As mentioned in Q1, the OPC is required to move its headquarter offices to a new building due to the retrofit of its current building. Significant costs will result from this move, scheduled for the winter of 2014. The OPC has received one-time funding in FY 2013-14 to cover the estimated costs. This funding will be offset by future reductions to reference levels for the next 15 years starting in FY 2014-15.

Despite the significant funding pressures caused by this move, the OPC views it as an opportunity to work more closely with other Agents of Parliament who will also have their offices at this new site; this should create a work environment more conducive to greater information sharing and collaboration between employees. The Office is currently exploring opportunities for common and/or shared services with Agents of Parliament and continues to engage staff to ensure the new work environment is conducive to synergies and employee well-being.

Budget Reductions

As mentioned in Q1, the OPC is facing budget reductions of $0.7M in 2013-14 and $1.1M for 2014-15 and beyond (equivalent to 5% of its ongoing budget) as part of its contribution to the government’s efforts to generate operational efficiencies.

These budgetary reductions come at a time when demand for OPC privacy advice and expertise is rising as is the complexity of the requests. It is important to manage this situation well in order to maintain both the OPC’s solid credibility and a high quality of service for Canadians.

To manage this situation, the OPC strengthened its financial management framework and streamlined a number of its core processes resulting in increased effectiveness and efficiency of its operations.  Additionally, the Office continues to closely monitor its financial situation and strategically allocate its resources.

Significant changes in relation to operations, personnel and programs

December 2013 will mark the end of the current Commissioner’s mandate. This change in leadership, the first in 10 years for the OPC, represents an important transition for the Office. Work is still underway to effectively manage this transition.

Approval by Senior Officials:

Approved by,

---

Statement of Authorities (unaudited)
(in thousands of dollars)

	Fiscal year 2013-2014			Fiscal year 2012-2013
	Total available for use for the year ending March 31, 2014	Used during the quarter ended September 30, 2013	Year to date used at quarter end	Total available for use for the year ending March 31, 2013	Used during the quarter ended September 30, 2012	Year to date used at quarter end
Program expenditures	26,628	4,747	10,021	22,131	5,192	9,973
Budgetary statutory authority - Employee benefit plan	2,471	618	1,236	2,474	619	1,237
TOTAL AUTHORITIES	29,099	5,365	11,257	24,605	5,811	11,210

---

Departmental budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)

	Fiscal year 2013-2014			Fiscal year 2012-2013
	Planned expenditures for the year ending March 31, 2014	Expended during the quarter ended September 30, 2013	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2013	Expended during the quarter ended September 30, 2012	Year to date used at quarter end
Expenditures
Personnel	16,675	3,941	8,810	16,532	4,489	8,643
Transportation and communications	851	169	302	972	209	325
Information	553	47	103	495	66	136
Professional and special services	4,667	610	1,036	3,714	749	1,340
Rentals	201	174	434	92	175	453
Repair and maintenance	454	9	92	590	2	112
Utilities, materials and supplies	213	63	144	302	80	138
Acquisition of machinery and equipment	4,976	299	314	1,398	25	46
Transfer payments	500	20	20	500	14	14
Other subsidies and payments	9	33	2	10	2	3
TOTAL BUDGETARY EXPENDITURES	29,099	5,365	11,257	24,605	5,811	11,210