Quarterly financial report for the quarter ended December 31, 2022

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 2022-23. 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 $31.6M compared to $31.3M in 2021-22. Authorities available for use have increased by $0.3M compared to 2021-22, this net increase is due to: the operating budget carry forward from 2021-22 to 2022-23, compensation adjustments to fund salary increases to meet obligations under new collective agreements and the reimbursement of eligible paylist expenditures which are offset by the end of reprofiling of Budget 2019 funding to reduce the backlog of privacy complaints older than one year and provide Canadians with more timely resolution of their complaints.

As of December 31, 2022, the OPC used $22.0M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $21.3M 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 $0.6M or 7.7% compared to the previous year while the year-to-date spending has increased by $0.7M or 3.2% when compared to the same period last fiscal year. The year-to-date spending increase is mainly attributable to:

• An increase in personnel expenditures due to new hirings and increases in salary ranges following new collective bargaining implementation;
• An increase in travel expenses as public health restrictions have continued to ease, the OPC has resumed some in-person activities where appropriate;
• A decrease in information technology professional services and office fit-up 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 2022-23 Departmental Plan.

As with other government departments and agencies, we also recognize that the COVID-19 pandemic is not yet behind us. As we start the transition towards an effective hybrid work model, the safety and security of our employees remains paramount.

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

Following the Treasury Board Secretariat announcement in December 2022 of the adoption of a common hybrid work model for the federal public service to standardize the experience of working in and receiving services from the public service, the OPC will adjust its hybrid work model in light of the direction on prescribed presence in the workplace.

During the period covered by this report, the OPC appointed a new Chief Human Resources Officer, responsible for the Human Resources Directorate.

No other significant changes related to operations, personnel or programs occurred during the third quarter of 2022-23.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended December 31, 2022 (in thousands of dollars)

	Fiscal year 2022-23			Fiscal year 2021-22
	Total available for use for the year ending March 31, 2023	Used during the quarter ended December 31, 2022	Year to date used at quarter end	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
Program expenditures	28,672	7,060	19,713	28,310	6,491	18,995
Less: Revenues Netted Against Expenditures	(200)	(53)	(105)	(200)	(45)	(90)
Budgetary statutory authority - Employee benefit plan	3,141	785	2,356	3,171	792	2,378
Total budgetary authorities	31,613	7,792	21,964	31,281	7,238	21,283
TOTAL AUTHORITIES	31,613	7,792	21,964	31,281	7,238	21,283

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended December 31, 2022 (in thousands of dollars)

	Fiscal year 2022-23			Fiscal year 2021-22
	Planned expenditures for the year ending March 31, 2023	Expended during the quarter ended December 31, 2022	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended December 31, 2021	Year to date used at quarter end
Expenditures
Personnel	26,067	6,849	19,125	25,585	6,322	18,455
Transportation and communications	334	143	263	401	27	80
Information	365	121	235	424	64	233
Professional and special services	3,227	564	1,597	2,942	669	1,700
Rentals	630	62	476	899	61	501
Repair and maintenance	59	1	57	52	2	21
Utilities, materials and supplies	105	18	26	115	16	51
Acquisition of land, buildings and works	134	-	-	50	1	125
Acquisition of machinery and equipment	391	105	276	510	174	238
Transfer payments	500	-	10	500	-	-
Other subsidies and paymentsFootnote *	1	(18)	4	3	(53)	(31)
Total gross budgetary expenditures	31,813	7,845	22,069	31,481	7,283	21,373
Less: revenues netted against expenditures
Internal Support Services	(200)	(53)	(105)	(200)	(45)	(90)
TOTAL NET BUDGETARY EXPENDITURES	31,613	7,792	21,964	31,281	7,238	21,283