Quarterly financial report for the quarter ended September 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 (PA), which covers the personal information-handling practices of federal government departments and agencies, 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 (DP) 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.

The OPC spent approximately 43%, or $10.8M of its authorities available for use by the end of the second quarter of 2018-19 which is comparable to the percentage of spending reported at the second quarter last fiscal year.

Significant changes to authorities

The OPC has authorities available for use of $25.3M in 2018-19 compared to $24.3M as of September 30, 2017, for an increase of $0.9M or 3.7%. The increase in authorities is mainly explained by ongoing funding received from Treasury Board Secretariat for collective agreements and subsequent funding adjustments to employee benefit plans.

Significant changes to expenditures

Gross spending during the second quarter slightly increased when compared to the same period last fiscal year (from $4.9M for 2017-18 to $5.4M for 2018-19). The majority of the increase in expenditures pertain to higher salary and wages resulting from collective agreements and informatics technology services.

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.

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 has 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 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

During the second quarter of fiscal year 2018-19, the OPC continued to implement its new organizational structure which supports 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.

More information can be found by consulting the new organizational structure of the OPC.

Approval by Senior Officials:

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Statement of Authorities (unaudited)
(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 September 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 September 30, 2017	Year to date used at quarter end
Program expenditures	23,194	4,898	9,709	22,275	4,353	9,676
Less: Revenues Netted Against Espenditures	(200)	(43)	(43)	(200)	-	-
Budgetary statutory authority - Employee benefit plan	2,291	573	1,146	2,269	569	1,135
Total budgetary authorities	25,285	5,428	10,812	24,334	4,922	10,811
TOTAL AUTHORITIES	25,285	5,428	10,812	24,334	4,922	10,811

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Departmental budgetary expenditures by Standard Object (unaudited)
(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 September 30, 2018	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2018	Expended during the quarter ended September 30, 2017	Year to date used at quarter end
Expenditures
Personnel	17,664	4,512	8,853	16,724	4,141	9,228
Transportation and communications	896	185	273	886	129	246
Information	696	81	184	698	74	190
Professional and special services	3,617	643	1,051	3,655	382	579
Rentals	917	29	328	941	86	390
Repair and maintenance	241	6	22	299	5	27
Utilities, materials and supplies	187	33	49	227	12	32
Acquisition of land, buildings and works	-	1	1	-	-	-
Acquisition of machinery and equipment	766	72	85	613	17	38
Transfer payments	500	-	-	500	-	-
Other subsidies and paymentsFootnote *	1	(51)	10	1	76	81
Total budgetary expenditures	25,485	5,511	10,856	24,544	4,922	10,811
Less: revenues netted against expenditures
Internal Support Services	(200)	(43)	(43)	(200)	-	-
TOTAL BUDGETARY EXPENDITURES	25,285	5,468	10,812	24,344	4,922	10,811