Quarterly financial report for the quarter ended September 30, 2021

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.

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 federal 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 2021-22. 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

As reflected in the statement of authorities table, the authorities available for use for the year are $30.2M, which represents the full supply, compared to $23.1 in 2020-21. The variance between both fiscal years is due to the reduced supply (9/12) of the 2020-21 Main Estimates at the same period. The reduced supply for the same period in 2020-21 was attributable to the COVID-19 pandemic and the limited number of sessions in Parliament during the spring to examine and complete the supply process. The full supply was granted in the fall. When compared to the total expected authorities of $29.7M for 2020-21, the OPC’s 2021-22 authorities available for use has increased by $0.5M at the same period. This increase is due to the compensation adjustments to fund salary increases to meet obligations under new collective agreements.

As of September 30, 2021, the OPC used $14.0M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $13.3M of its authorities available for use.

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 quarterly spending has increased by $0.5M or 7.4% compared to the previous year while the year-to-date spending has increased by $0.7M or 5.3% when compared to the same period last fiscal year. These increases are mainly attributable to additional personnel expenditures due to new hiring’s and salary increases following the ratification of collective agreements. Other operating expenses have generally increased specifically in the electronic media monitoring services and the fit-up of the Technology Analysis Laboratory. Also due to the COVID-19 pandemic, expenditures for travel, exhibits and telecommunication services have decreased.

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 2021-22 Departmental Plan.

As with other government departments and agencies, the COVID-19 outbreak is creating challenges for the OPC. Despite this, we have remained operational throughout the pandemic while respecting public health guidelines. Working remotely continues to be effective for the OPC and staff are able to provide services as usual.

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

No other significant changes related to operations, personnel or programs occurred during the second quarter of 2021-22.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended September 30, 2021 (in thousands of dollars)

	Fiscal year 2021-22			Fiscal year 2020-21
	Total available for use for the year ending March 31, 2022	Used during the quarter ended September 30, 2021	Year to date used at quarter end	Total available for use for the year ending March 31, 2021	Used during the quarter ended September 30, 2020	Year to date used at quarter end
Program expenditures	27,262	6,535	12,504	20,955	6,062	11,844
Less: Revenues Netted Against Expenditures	(200)	(45)	(45)	(150)	(57)	(57)
Budgetary statutory authority - Employee benefit plan	3,171	793	1,586	2,322	774	1,548
Total budgetary authorities	30,233	7,283	14,045	23,127	6,779	13,335
TOTAL AUTHORITIES	30,233	7,283	14,045	23,127	6,779	13,335

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended September 30, 2021 (in thousands of dollars)

	Fiscal year 2021-22			Fiscal year 2020-21
	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended September 30, 2021	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended September 30, 2020	Year to date used at quarter end
Expenditures
Personnel	24,598	6,256	12,133	18,766	5,950	11,469
Transportation and communications	401	38	53	441	58	100
Information	424	64	169	381	14	49
Professional and special services	2,881	683	1,031	2,169	603	965
Rentals	899	121	440	559	63	560
Repair and maintenance	52	2	19	62	3	21
Utilities, materials and supplies	115	21	35	80	44	61
Acquisition of land, buildings and works	50	125	124	-	34	34
Acquisition of machinery and equipment	510	42	64	443	36	38
Transfer payments	500	-	-	375	-	-
Other subsidies and paymentsFootnote *	3	(24)	22	1	30	93
Total gross budgetary expenditures	30,433	7,328	14,090	23,277	6,836	13,392
Less: revenues netted against expenditures
Internal Support Services	(200)	(45)	(45)	(150)	(57)	(57)
TOTAL NET BUDGETARY EXPENDITURES	30,233	7,283	14,045	23,127	6,779	13,335