Quarterly financial report for the quarter ended September 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 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 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. Total authorities available for the year are $30.5M compared to $25.3M 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 September 30, 2019, the OPC used 38.8% or $11.8M of its authorities available for the year. For the same period in the preceding fiscal year, OPC had used 42% of its available authorities.

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 departmental budgetary expenditures by standard object table, the OPC’s total budgetary expenditures as of September 30, 2019 increased by $0.7M when compared to the same period last fiscal year. This increase is mainly attributable to the implementation of the Budget 2019 measure and relates more specifically to additional personnel expenditures, staffing support services, additional software licenses and acquisition of informatics technology equipment.

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.

As the OPC is in its first year of implementing Budget 2019 measure: Protecting the Privacy of Canadians, and is undertaking significant initiatives, it is continuously evaluating its capacity to spend its allocated funds. As such, the OPC is exploring with Central Agencies the possibility of reprofiling funds to future years to be in a better position to deliver on its priorities and mandate.

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 period covered by this report, a new Director of Technology Analysis Directorate and a new Deputy Chief Financial Officer, responsible for the Finance and Administration Directorate have joined the OPC.

No other significant changes related to operations, personnel or programs occurred during the second quarter of 2019-20.

Approval by Senior Officials:

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

	Fiscal year 2019-2020			Fiscal year 2018-2019
	Total available for use for the year ending March 31, 2020	Used during the quarter ended September 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 September 30, 2018	Year to date used at quarter end
Program expenditures	28,454	5,450	10,519	23,194	4,898	9,709
Less: Revenues netted against expenditures	(200)	(48)	(48)	(200)	(43)	(43)
Budgetary statutory authority - Employee benefit plan	2,269	686	1,373	2,291	573	1,146
Total budgetary authorities	30,523	6,088	11,844	25,285	5,428	10,812
TOTAL AUTHORITIES	30,523	6,088	11,844	25,285	5,428	10,812

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Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)

	Fiscal year 2019-2020			Fiscal year 2018-2019
	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended September 30, 2019	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended September 30, 2018Footnote **	Year to date used at quarter endFootnote ***
Expenditures
Personnel	24,305	4,775	9,457	17,664	4,433	8,813
Transportation and communications	444	127	228	896	176	264
Information	377	92	148	696	81	184
Professional and special services	4,065	785	1,176	3,617	637	1,045
Rentals	429	57	391	917	29	328
Repair and maintenance	63	23	52	241	6	22
Utilities, materials and supplies	77	22	45	187	33	49
Acquisition of land, buildings and works	-	-	-	-	-	-
Acquisition of machinery and equipment	462	183	234	766	72	85
Transfer payments	500	17	19	500	-	-
Other subsidies and paymentsFootnote *	1	56	143	1	4	65
Total gross budgetary expenditures	30,723	6,137	11,893	25,485	5,471	10,855
Less: Revenues netted against expenditures
Internal Support Services	(200)	(48)	(48)	(200)	(43)	(43)
TOTAL BUDGETARY EXPENDITURES	30,523	6,088	11,844	25,285	5,428	10,812