Quarterly financial report for the quarter ended September 30, 2023

Statement outlining results, risks and significant changes in operations, personnel and programs

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 Treasury Board. It should be read in conjunction with the Office of the Privacy Commissioner of Canada’s (OPC) Main and Supplementary Estimates.

The mandate of the OPC is overseeing compliance with both the Privacy Act, 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 federal private-sector privacy law.

Detailed information on the OPC’s authority, mandate and programs can be found in our Departmental Plan (DP) and 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 2023-24. 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 $30.6 million, which represents the OPC’s 2023-24 Main Estimates amount and the operating budget carry forward. Authorities available for use have increased by $0.2 million compared to 2022-23. The variance between both fiscal years is mainly explained by the funding received for the collective agreements and adjustments to the employee benefits plan.

As of September 30, 2023, the OPC used $14.1 million of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $14.2 million 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 of 2023-24 has increased by $0.3 million or 4.2% compared to the previous year while the year-to-date spending has decreased slightly by $0.1 million or 0.7% when compared to the same period last fiscal year.

The year-to-date spending decrease is mainly attributable to a decrease in personnel expenditures due to staff turnover and the Canadian federal worker strike which has been compensated by an increase in professional services expenses related to shared services agreements.

Risks and Uncertainties

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 on how the OPC is addressing them, please refer to the section titled Plans at a glance and Operating Context of the OPC’s 2023-24 Departmental Plan.

In addition, the OPC continues to take actions to mitigate the issues arising with the Phoenix pay system for its employees and to monitor closely any salary payments adjustments that may be required, including salary adjustments resulting from recent collective bargaining agreements.

Significant changes in relation to operations, personnel and programs

During the period covered by this report, a new director of the Information Management and Technology Services Directorate has joined the OPC.

No other significant changes related to operations or programs occurred during the second quarter of 2023-24.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended September 30, 2023 (in thousands of dollars)

	Fiscal year 2023-24			Fiscal year 2022-23
	Total available for use for the year ending March 31, 2024	Used during the quarter ended September 30, 2023	Year to date used at quarter end	Total available for use for the year ending March 31, 2023	Used during the quarter ended September 30, 2022	Year to date used at quarter end
Program expenditures	27,571	6,835	12,527	27,419	6,537	12,652
Less: Revenues Netted Against Expenditures	(200)	(60)	(60)	(200)	(52)	(52)
Budgetary statutory authority - Employee benefit plan	3,210	803	1,605	3,141	786	1,571
Total budgetary authorities	30,581	7,578	14,072	30,360	7,271	14,171
TOTAL AUTHORITIES	30,581	7,578	14,072	30,360	7,271	14,171

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended September 30, 2023 (in thousands of dollars)

	Fiscal year 2023-24			Fiscal year 2022-23
	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended September 30, 2023	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2023	Expended during the quarter ended September 30, 2022	Year to date used at quarter end
Expenditures
Personnel	24,948	6,515	11,957	24,814	6,365	12,276
Transportation and communications	380	76	193	333	68	120
Information	365	96	122	365	90	114
Professional and special services	3,321	647	1,140	3,228	515	1,033
Rentals	681	62	448	630	88	414
Repair and maintenance	61	41	56	59	39	56
Utilities, materials and supplies	50	4	7	105	2	8
Acquisition of land, buildings and works	32	-	-	134	-	-
Acquisition of machinery and equipment	443	179	187	391	149	170
Transfer payments	500	-	-	500	10	10
Other subsidies and paymentsFootnote *	-	18	22	1	(3)	22
Total gross budgetary expenditures	30,781	7,638	14,132	30,560	7,323	14,223
Less: revenues netted against expenditures
Internal Support Services	(200)	(60)	(60)	(200)	(52)	(52)
TOTAL NET BUDGETARY EXPENDITURES	30,581	7,578	14,072	30,360	7,271	14,171