Quarterly financial report for the quarter ended June 30, 2018

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 OPC Main and Supplementary Estimates (if applicable).

The OPC’s mandate is overseeing compliance with both the Privacy Act, which covers the personal information-handling practices of federal government institutions, and the Personal Information Protection and Electronic Documents Act (PIPEDA), Canada’s private sector privacy law.

Detailed information on the OPC’s authority, mandate and programs can be found in our Departmental Plan and the Main Estimates.

Basis for 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 the Supplementary Estimates (as applicable) for fiscal year 2018-19. 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. (More information)

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.

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 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.

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 between actual expenditures and planned expenditures that affected both the quarter and the year-to-date results, compared to the same period the preceding fiscal year.

Statement of authorities analysis

Permanent funding for the OPC remained stable over the past fiscal year. As reflected in the statement of authorities table (attached), total authorities available for the year are $25.0M compared to $24.3M in 2017-18. The variance is mainly explained by the additional funding and the one-time reprofiling to offset the salary increase due to the new collective agreements and adjustment to the employee benefit plans.

As of June 30, 2018, the OPC used 22% or $5.4M of its authorities available for the year.

The OPC provides Internal Support Services to other small government departments related to the provision of information technology services. Pursuant to section 29.2 of the Financial Administration Act, Internal Support Services agreements are recorded as revenues.

Budgetary expenditures by standard object analysis

As per the attached Departmental budgetary expenditures by standard object table, the OPC’s total budgetary expenditures as of June 30, 2018 decreased by $0.5M when compared to the same period last fiscal year. This decrease is mainly attributable to an overstatement of salary accruals at the end of June 2017.

Risks and uncertainties

As mentioned in previous quarterly reports, 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 along with mitigating strategies in its Departmental Plan that could have a financial impact should they materialize.

For more information on these risks as well as measures being undertaken by the office to mitigate them, please refer to the section title Operating context and key risks of the OPC’s 2018-19 Departmental Plan.

In addition, the OPC continues to take actions to mitigate the issues arising with the implementation of the Phoenix pay system for its employees and to monitor closely any salary payments adjustments that may be required.

Significant changes in relation to operations, personnel and programs

Starting 2018-19, the OPC will report under its core responsibilities reflected in its Departmental Results Framework. Additional information is available in an announcement on the OPC website.

On April 1st 2018, the OPC, following an organizational review adopted a new structure to support the Privacy Commissioner’s vision to be more proactive, and to focus efforts where there can be an impact for the greatest number of Canadians. Details regarding the OPC’s new organizational structure are available in an announcement on the OPC website.

Approval by senior officials:

Approved by

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Statement of authorities (unaudited)

 

For the quarter ended June 30, 2018
(in thousands of dollars)

	Fiscal year 2018-2019			Fiscal year 2017-2018
	Total available for use for the year ending March 31, 2019	Used during the quarter ended June 30, 2018	Year to date used at quarter end	Total available for use for the year ending March 31, 2018	Used during the quarter ended June 30, 2017	Year to date used at quarter end
Program expenditures	22,916	4,811	4,811	22,275	5,322	5,322
Less: Revenues netted against expenditures	(200)	-	-	(200)	-	-
Budgetary statutory authority - Employee benefit plan	2,269	573	573	2,269	567	567
Total authorities	24,985	5,384	5,384	24,344	5,889	5,889

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended June 30, 2018
(in thousands of dollars)

	Fiscal year 2018-2019			Fiscal year 2017-2018
	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended June 30, 2018	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2018	Expended during the quarter ended June 30, 2017	Year to date used at quarter end
Expenditures
Personnel	17,364	4,380	4,380	16,724	5,087	5,087
Transportation and communications	896	88	88	886	117	117
Information	696	103	103	698	116	116
Professional and special services	3,617	408	408	3,655	197	197
Rentals	917	299	299	941	304	304
Repair and maintenance	241	16	16	299	22	22
Utilities, materials and supplies	187	16	16	227	20	20
Acquisition of machinery and equipment	766	13	13	613	21	21
Transfer payments	500	-	-	500	-	-
Other subsidies and payments *	1	61	61	1	5	5
Total budgetary budgetary	25,185	5,384	5,384	24,544	5,889	5,889
Less: revenues netted against expenditures
Internal Support Services	(200)	-	-	(200)	-	-
Total budgetary expenditures	24,985	5,384	5,384	24,344	5,889	5,889
* The main purpose of this reporting object is to capture costs that will be transferred to other reporting objects prior to the end of the fiscal year, for example, transactions related to the Government of Canada "corporate acquisition cards" and Interdepartmental Settlements