Quarterly financial report for the quarter ended June 30, 2019

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 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 (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 2019-20. 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

Overall OPC funding has increased as reflected in the statement of authorities table (attached). Total authorities available for the year are $29.5M compared to $25.0M in 2018-19. The variance is mainly explained by the new funding for delivering Budget 2019 measure: Protecting the privacy of Canadians to enhance the Office’s capacity and the adjustment to the employee benefit plans. More information can be found in 2019-20 Main Estimates.

As of June 30, 2019, the OPC used 19.5% or $5.8M 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, 2019 increased by $0.4M when compared to the same period last fiscal year. This increase is mainly attributable to personnel expenditures.

Risks and uncertainties

As mentioned in previous quarterly reports, the OPC’s key corporate risks are identified and assessed through its strategic planning process, which includes an environmental scanning exercise and an update of its Corporate Risk Profile. This year again, the Office continues to deal with a challenging operating context, stemming from the growing digital economy. For more information on these challenges, and how the OPC is addressing them, please refer to the section titled Plans at a glance and Operating Context of the OPC’s 2019-20 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 fiscal year 2019-20, overall OPC authorities have increased as a result of the funding for delivering Budget 2019 measure: Protecting the privacy of Canadians to enhance the Office’s capacity, including its ability to engage with Canadian individuals and businesses, address complaints and respond to privacy issues as they occur.

Measures were taken to ensure staffing processes are commenced as quickly as possible following a recently Treasury Board approval (accelerated staffing strategies, leveraging of existing pools, secondments, etc). The OPC has been working closely with Public Services and Procurement Canada on the redesign of its workspace to accommodate the increase in strength.

Three new directors have been appointed during the first quarter of 2019-20 for Government Advisory, PIPEDA Compliance and PA Compliance Directorates.

Approval by senior officials:

Approved by

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Statement of authorities (unaudited)
(in thousands of dollars)
For the quarter ended June 30, 2019

Item	Fiscal year 2019-2020			Fiscal year 2018-2019
	Total available for use for the year ending March 31, 2020	Used during the quarter ended June 30, 2019	Year to date used at quarter end	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
Program expenditures	27,404	5,069	5,069	22,916	4,811	4,811
Less: Revenues Netted Against Expenditures	(200)	-	-	(200)	-	-
Budgetary statutory authority - Employee benefit plan	2,269	687	687	2,269	573	573
TOTAL AUTHORITIES	29,473	5,756	5,756	24,985	5,384	5,384

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Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)
For the quarter ended June 30, 2019

Item	Fiscal year 2019-2020			Fiscal year 2018-2019
	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended June 30, 2019	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended June 30, 2018	Year to date used at quarter end
Expenditures
Personnel	24,031	4,682	4,682	17,364	4,380	4,380
Transportation and communications	444	101	101	896	88	88
Information	377	56	56	696	103	103
Professional and special services	3,289	391	391	3,617	408	408
Rentals	429	334	334	917	299	299
Repair and maintenance	63	29	29	241	16	16
Utilities, materials and supplies	77	23	23	187	16	16
Acquisition of machinery and equipment	462	51	51	766	13	13
Transfer payments	500	2	2	500	-	-
Other subsidies and payments *	1	87	87	1	61	61
Total gross budgetary expenditures	29,673	5,756	5,756	25,185	5,384	5,384
Less: Revenues netted against expenditures
Internal Support Services	(200)	-	-	(200)	-	-
TOTAL BUDGETARY EXPENDITURES	29,473	5,756	5,756	24,985	5,384	5,384
* 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