Quarterly financial report for the quarter ended December 31, 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 $31.3M compared to $30.9M in 2020-21, this variance is explained by compensation adjustments to fund salary increases to meet obligations under new collective agreements.

However, the OPC’s expected total authorities available for use for the year 2021-22 are $31.5M, which represents an increase of $0.2M to be transferred from Treasury Board Central Votes following the Supplementary Estimates B approval to compensate employees for damages associated with the Phoenix pay system and for the extended implementation timeframes of collective agreements during the 2018 round of collective bargaining.

As of December 31, 2021, the OPC used $21.3M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $21.0M 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 decreased by $0.4M or 5.0% compared to the previous year while the year-to-date spending has increased by $0.3M or 1.6% when compared to the same period last fiscal year. The year-to-date spending increase is mainly attributable to additional personnel expenditures due to new hiring’s and salary increases following the ratification of collective agreements and the fit-up of the Technology Analysis Laboratory. Other operating expenses generally decreased, specifically telecommunication costs, research services and information technology services.

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 still challenging for the OPC. Despite this, we have remained operational throughout the pandemic while respecting public health guidelines. Working remotely continues to be very 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 third quarter of 2021-22.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended December 31, 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 December 31, 2021	Year to date used at quarter end	Total available for use for the year ending March 31, 2021	Used during the quarter ended December 31, 2020	Year to date used at quarter end
Program expenditures	28,310	6,491	18,995	28,041	6,903	18,746
Less: Revenues Netted Against Expenditures	(200)	(45)	(90)	(200)	(56)	(113)
Budgetary statutory authority - Employee benefit plan	3,171	792	2,378	3,097	774	2,322
Total budgetary authorities	31,281	7,238	21,283	30,938	7,621	20,955
TOTAL AUTHORITIES	31,281	7,238	21,283	30,938	7,621	20,955

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended December 31, 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 December 31, 2021	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended December 31, 2020	Year to date used at quarter end
Expenditures
Personnel	25,585	6,322	18,455	25,167	6,158	17,627
Transportation and communications	401	27	80	587	44	144
Information	424	64	233	508	148	197
Professional and special services	2,942	669	1,700	3,020	956	1,921
Rentals	899	61	501	575	117	677
Repair and maintenance	52	2	21	82	9	30
Utilities, materials and supplies	115	16	51	107	34	95
Acquisition of land, buildings and works	50	1	125	-	-	34
Acquisition of machinery and equipment	510	174	238	591	185	223
Transfer payments	500	-	-	500	-	-
Other subsidies and paymentsFootnote *	3	(53)	(31)	1	26	120
Total gross budgetary expenditures	31,481	7,283	21,373	31,138	7,677	21,068
Less: revenues netted against expenditures
Internal Support Services	(200)	(45)	(90)	(200)	(56)	(113)
TOTAL NET BUDGETARY EXPENDITURES	31,281	7,238	21,283	30,938	7,621	20,955