Quarterly financial report for the quarter ended December 31, 2024

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 2024-25. 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 $37.5M compared to $35.5M in 2023-24. Authorities available for use have increased by $2.0M compared to 2023-24, this increase is due to the temporary funding received as part of Budget 2023 for preparation activities required to implement the Consumer Privacy Protection Act that was proposed as part of Bill C-27 and compensation adjustments to fund salary increases to meet obligations under new collective agreements.

As of December 31, 2024, the OPC used $25.5M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $22.8M 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 6.5% compared to the previous year while the year-to-date spending has increased by $2.7M or 11.7% 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 professional services expenses related to shared services agreements and expenses related to ongoing projects.

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. The Office continues to deal with a challenging operating context, stemming from an increasingly complex and evolving digital era. 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 2024-25 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 quarter, the OPC launched a review of its resources and structures with the goal to optimize our programs and services to better respond to the needs of Canadians and our evolving operating context, as well as increase compliance in areas with the most significant impact on privacy. Results of the review will be communicated in future reports.

No other significant changes related to operations, personnel or programs occurred during the third quarter of 2024-25.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended December 31, 2024 (in thousands of dollars)

	Fiscal year 2024-25			Fiscal year 2023-24
	Total available for use for the year ending March 31, 2025	Used during the quarter ended December 31, 2024	Year to date used at quarter end	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
Program expenditures	34,018	8,464	22,989	32,069	7,953	20,480
Less: Revenues Netted Against Expenditures	(200)	(47)	(95)	(200)	(59)	(119)
Budgetary statutory authority - Employee benefit plan	3,636	857	2,571	3,639	802	2,407
Total budgetary authorities	37,454	9,274	25,465	35,508	8,696	22,768
TOTAL AUTHORITIES	37,454	9,274	25,465	35,508	8,696	22,768

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended December 31, 2024 (in thousands of dollars)

	Fiscal year 2024-25			Fiscal year 2023-24
	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended December 31, 2024	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended December 31, 2023	Year to date used at quarter end
Expenditures
Personnel	30,791	7,649	21,698	29,262	7,406	19,364
Transportation and communications	421	158	357	380	177	370
Information	420	17	168	365	68	190
Professional and special services	3,980	966	2,299	3,934	705	1,845
Rentals	801	166	625	682	199	647
Repair and maintenance	145	5	29	61	12	68
Utilities, materials and supplies	49	12	21	50	17	24
Acquisition of land, buildings and works	34	2	4	32	-	-
Acquisition of machinery and equipment	513	285	301	442	194	381
Transfer payments	500	63	63	500	-	-
Public debt charges	-	-	-	-	-	-
Other subsidies and paymentsFootnote *	-	(2)	(5)	-	(23)	(2)
Total gross budgetary expenditures	37,654	9,321	25,560	35,708	8,755	22,887
Less: Revenues netted against expenditures
Internal Support Services	(200)	(47)	(95)	(200)	(59)	(119)
Total revenues netted against expenditures	(200)	(47)	(95)	(200)	(59)	(119)
TOTAL NET BUDGETARY EXPENDITURES	37,454	9,274	25,465	35,508	8,696	22,768