Quarterly financial report for the quarter ended December 31, 2023

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 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 $35.5M compared to $31.6M in 2022-23. Authorities available for use have increased by $3.9M compared to 2022-23, this increase is due to: the operating budget carry forward from 2022-23 to 2023-24, compensation adjustments to fund salary increases to meet obligations under new collective agreements and the temporary funding received as part of Budget 2023 to reduce the backlog of privacy complaints and to undertake more in-depth investigations of privacy breaches across public and private organizations and to improve response rates to privacy complaints from Canadians.

As of December 31, 2023, the OPC used $22.8M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $22.0M 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 increased by $0.9M or 11.6% compared to the previous year while the year-to-date spending has increased by $0.8M or 3.7% 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 expenditures as the OPC has resumed some in-person activities where appropriate; and
• An increase in professional services expenses related to shared services agreements and expenditures for computer equipment and license fees for applications software.

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 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

OPC authorities have increased following the approval of temporary funding received as part of Budget 2023 to reduce the backlog of privacy complaints and  to undertake more in-depth investigations of privacy breaches across public and private organizations and to improve response rates to privacy complaints from Canadians. Measures were taken to ensure staffing and contracting processes are commenced as quickly as possible following a recently Treasury Board approval (accelerated staffing strategies, leveraging of existing pools of qualified candidates, secondments of employees from other federal departments or agencies, etc.).

During the period covered by this report, a director was appointed to the new International, Provincial and Territorial Relations Directorate and a new Director of Technology Analysis Directorate has joined the OPC.

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

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended December 31, 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 December 31, 2023	Year to date used at quarter end	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
Program expenditures	32,069	7,953	20,480	28,672	7,060	19,713
Less: Revenues Netted Against Expenditures	(200)	(59)	(119)	(200)	(53)	(105)
Budgetary statutory authority - Employee benefit plan	3,639	802	2,407	3,141	785	2,356
Total budgetary authorities	35,508	8,696	22,768	31,613	7,792	21,964
TOTAL AUTHORITIES	35,508	8,696	22,768	31,613	7,792	21,964

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended December 31, 2023 (in thousands of dollars)

	Fiscal year 2023-24			Fiscal year 2022-23
	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	29,262	7,406	19,364	26,067	6,849	19,125
Transportation and communications	380	177	370	334	143	263
Information	365	68	190	365	121	235
Professional and special services	3,934	705	1,845	3,227	564	1,597
Rentals	682	199	647	630	62	476
Repair and maintenance	61	12	68	59	1	57
Utilities, materials and supplies	50	17	24	105	18	26
Acquisition of land, buildings and works	32	-	-	134	-	-
Acquisition of machinery and equipment	442	194	381	391	105	276
Transfer payments	500	-	-	500	-	10
Other subsidies and paymentsFootnote *	-	(23)	(2)	1	(18)	4
Total gross budgetary expenditures	35,708	8,755	22,887	31,813	7,845	22,069
Less: Revenues netted against expenditures
Internal Support Services	(200)	(59)	(119)	(200)	(53)	(105)
TOTAL NET BUDGETARY EXPENDITURES	35,508	8,696	22,768	31,613	7,792	21,964