Quarterly Financial Report for the Quarter Ended June 30, 2012
- 1 Introduction
- 2 Highlights
- 3 Risks and Uncertainties
- 4 Significant Changes
- 5 Approval by Senior Officials
- A Statement of Authorities (unaudited)
- B Statement of Expenditures by Standard Object (unaudited)
This quarterly report has been 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. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.
The Commission reviews and investigates complaints concerning military police conduct and investigates allegations of interference in military police investigations. It reports its findings and makes recommendations directly to the military police and national defence leadership.
1.1 Basic Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the MPCC’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for the 2012-13 fiscal year.
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.
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.
As part of the departmental performance reporting process, the MPCC prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.
The quarterly report has not been subject to an external audit or review.
The MPCC’s Main Estimates reference level for 2012-13 is $4,574K, an increase of $1,066K over the previous year. Of this increase, $1,062K is for one year only and is attributable to the Fynes Public Interest Hearing. The remaining $4K is attributable to year-over-year increases in approved salaries and EBP, partially offset by minor reductions in other operating expenditures.
The MPCC had previously secured additional funding for a period of three years to support the Afghanistan Public Interest Hearing (APIH) and Federal Court challenges. This hearing is now completed and the final report has been issued. In the first Quarter, a portion of the Afghan PIH remaining unused funds from 2011-12 was used and identified a surplus of $482K. The MPCC is requesting to access this surplus to supplement the shortfalls identified in the Fynes PIH.
The MPCC received $2,510K, excluding EBP, to support the Fynes Public Interest Hearing (PIH) for a period of 3 years, beginning in FY 11/12 scheduled to end in 2013-14. In the first quarter, the MPCC identified a carry forward of $500K although, due to unexpected costs, financial projections, and an additional two (2) months of hearing now scheduled for the fall of 2012, the MPCC has identified shortfalls. As a result, the MPCC will be seeking access to the remaining Afghan PIH (Special Purpose) funds as a source of funds, additional funding and increase in contracting authorities.
The year-to-date expenditures for the first quarter of 2012-13 increased by $354K over the first quarter of 2011-12. The increase is attributable to the following items:
- $300K in expenditures for the Fynes PIH, comprised mostly of professional services ($206K), and travel expenses ($62K); and
- An increase of $58K in salaries (and EBP), which is due to normal year over year wage increases; and,
Changes to all other expenditures account for a net decrease of $4K during the first quarter of 2012-13 when compared to first quarter of 2011-12.
It should also be noted that in the first quarter of 2012-13, MPCC began proceedings with a Mega Case. Although the expenditures charged to the first quarter are minimal, commitments of approximately $200K were have been made, and the case will have a significant impact on MPCC’s financial situation (see risks and uncertainties below).
3 Risks and Uncertainties
Based on the current quarterly assessment, the following are the high level risks and uncertainties:
- Fynes Public Interest Hearing: additional funding must be secured to cover unforeseen expenditures and for an additional two months of hearings. The MPCC will rely on access the Afghan PIH surplus, seek additional funds and the timing of transfer of such funds, if approved, will impact PIH and the phases there of;
- MPCCs reference levels: additional funding must be secured to cover shortfalls in salary and operating costs which have increased since the last budget review in 2006-07. The MPCC will rely on sources of funds during a period of time of fiscal constraints and restraints;
- Mega Case: the MPCC is currently investigating a mega and complex case which it does not have the funding to support. As a result, the MPCC will require additional funding to continue with future phases of the complaint. This will depend on the source of funds and the timing of transfer of such funds, if approved, will impact on the delivery of the MPCC investigative services and the phases thereof;
- Timing of Funding (allocation)
- Procurement and Contracting
- Information Management
- Information Technology
- Reporting Burden
4 Significant Changes
The MPCC completed the Afghan PIH. The MPCC continues with the Fynes PIH. The MPCC received a mega case. The MPCC has identified shortfalls in it reference levels.
5 Approval by Senior Officials
This section is to provide the approval of Senior Officials, as required by the Policy on Financial Resource Management, Information and Reporting as follows:
Glenn Stannard, Chairperson
Signed in Ottawa, Canada
June 29, 2012
Sylvain Roy, Chief Financial Officer
Signed in Ottawa, Canada
June 29, 2012
A Statement of Authorities (unaudited)
|Total available for use for the year ending March 31, 2013||Expended during the quarter ended June 30, 2012||Year to date used at quarter end|
|Vote 25 – Net operating expenditures||4,272||1,030||1,030|
|Statutory authorities – Employee Benefit Plans||302||76||76|
|Total available for use for the year ending March 31,2012||Expended during the quarter ended June 30, 2011||Year to date used at quarter end|
|Vote 25 – Net operating expenditures||3,209||677||677|
|Statutory authorities – Employee Benefit Plans||299||75||75|
B Statement of Expenditures by Standard Object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31,2013||Expended during the quarter ended June 30, 2012||Year to date used at quarter end|
|Total net budgetary expenditures||4,574||1,106||1,106|
|Transportation and communications||101||91||91|
|Professional and special services||2,070||422||422|
|Repairs and maintenance||15||0||0|
|Utilities, materials and supplies||29||13||13|
|Acquisition of machinery and equipment||60||8||8|
|Expenditures||Planned expenditures for the year ending March 31,2012||Expended during the quarter ended June 30, 2011||Year to date used at quarter end|
|Total net budgetary expenditures||3,508||752||752|
|Transportation and communications||101||31||31|
|Professional and special services||1,125||224||224|
|Repairs and maintenance||3||0||0|
|Utilities, materials and supplies||30||11||11|
|Acquisition of machinery and equipment||139||4||4|
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