Quarterly Financial Report for the Quarter Ended December 31, 2014
Table of Contents
- 1. Introduction
- 2. Highlights of fiscal quarter and fiscal year to date (YTD) results
- 3. Risks and Uncertainties
- 4. Significant changes in relation to operations, personnel and programs
- 5. Approval by Senior Officials
- A. Statement of Authorities (unaudited)
- B. Departmental Budgetary Expenditures by Standard Object (unaudited)
Statement outlining results, risks and significant changes in operations, personnel and program
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 Military Police Complaints Commission of Canada (MPCC) reviews and investigates complaints concerning Military Police (MP) conduct and investigates allegations of interference in MP investigations. It reports its findings and makes recommendations directly to the MP and national defence leadership.
1.1 Basis of 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 fiscal year (FY) 2014-15. 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.
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 FY in which it is issued.
The MPCC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. 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.
2. Highlights of fiscal quarter and fiscal year to date (YTD) results
The Statement of Authorities below shows that the MPCC spent approximately 15% of its authorities in the third quarter of FY 2014-15 compared to 13% in 2013-14. The difference can be attributed to the following:
Operating Budget: The MPCC’s traditional on-going annual budget was $3,561,961 (including EBP). As of December 2013, the MPCC’s on-going budget increased to $4,673,496 (including EBP).
The total authorities increased during the third quarter by $1,432,000 as a result of the following:
- A re-profile of $1,506,000 to support the Fynes Public Interest Hearing (PIH) through the Supplementary B Estimates;
- A re-profile of $875,486 to support a Conduct Review related to a multi-jurisdictional investigation through the Supplementary B Estimates;
- $941,024 re-profiled through the Annual Reference Level Update (ARLU) from FY 2014-15 into FY 2015-16 as a result of delays in beginning renovations to the MPCC offices;
- An increase to salaries of $6,240, and reductions of $10,000 for the Web Renewal Initiative, $660 allocated towards the Canada School of Public Service’s new business model and $3,809 in late fees.
The MPCC’s total budgetary expenditures decreased by $260,000 (19%) in the third quarter of FY 2014-15, compared to the same period in FY 2013-14. There were five significant variances:
- The decrease of $224,000 in Professional and Special Services in FY 2014-15 compared to the same period in 2013-14 is mostly due to a decrease in legal services in the amount of $193,000 and a decrease of $27,000 in investigative services. The high amounts last fiscal year were a result of the Fynes PIH;
- There was a decrease of $9,000 in Acquisition of Machinery and Equipment in this quarter compared to the same period last fiscal year, as a result of no new purchases this quarter;
- The increase in Rentals is mainly due to the timing of processing the December 2013 lease payment of $29,000. There were no timing issues this quarter;
- There was a decrease of $11,000 in Transportation and Telecommunications compared to the same period last fiscal year. The higher amount last fiscal year was a result of higher travel costs associated with the Fynes PIH;
- The decrease of $55,000 in Personnel expenses in the third quarter of FY 2014-15 compared to the same period in the previous year is a result of ongoing staffing actions. The Personnel expenses during the first three quarters represent 56% of total planned Personnel expenditures. The major contributor to this decrease is due to the timing of processing payments for salary recovery as a result of several employees on secondment with the MPCC.
Fynes PIH: In 2013, the MPCC received a total of $1,798,673 in special purpose funding via the Main Estimates process and carried forward $2,244,195, from the previous year, to support the Fynes PIH.
Multi-jurisdictional Conduct Review Complaint: In 2013, the MPCC received a total of $254,437 in special purpose funding via the Main Estimates process and carried forward $1,105,364, from the previous year, to support the Conduct Review.
Additional Financial Information: Additional financial information on the MPCC’s financial and expenditure management can be found in the Reports on Plans and Priorities, the Annual Reports, the Departmental Performance Reports, the Future-oriented Financial Statements, the Quarterly Financial Reports and the Annual Financial Statements.
3. Risks and Uncertainties
Based on the quarterly assessment, the following are the high level risks and uncertainties:
- Accommodations / Renovations / Fit-up Standards;
- Business Continuity and Resumption; and
- Information Technology.
These risks may have an impact on the MPCC’s operations. The MPCC completes quarterly assessments to ensure the risks are appropriately identified and managed in order to mitigate them.
Included in the December 2013 funding was a one-time transfer to accommodate personnel and to renovate the boardroom which could be converted into a hearing room at any time, including the fit-up of the floor. The MPCC completed the requirements to launch the renovations which were part of the business case costing, a precursor to the funding.
The MPCC is dependent on Public Works and Government Services of Canada (PWGSC) as the lease holder and as a result, the renovations have not begun. PWGSC must adhere to their National Project Management System and phases which are lengthy and require substantial approval processes, internal to PWGSC, even though a substantial amount of funding has been secured by the MPCC. In addition to the renovations, PWGSC must adhere to the new Fit-up Standard 2.0 which has also initiated a renegotiation of the lease renewal beyond 2017, causing further delays and will require re-profiling into FY 2015-16.
4. Significant changes in relation to operations, personnel and programs
There were no significant changes in relation to operations, personnel and programs in the third quarter of FY 2014-15.
However, the MPCC is forecasting an increase in personnel (salaries) surplus due to the lengthy staffing processes associated with the newly created positions as a result of the program integrity review.
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 M. Stannard, O.O.M., Chairperson
Signed in Ottawa, Canada
December 31, 2014
Sylvain Roy, Chief Financial Officer
Signed in Ottawa, Canada
December 31, 2014
A. Statement of Authorities (unaudited)
|Total available for use for the year ended March 31, 2015*||Expended during the quarter ended December 31, 2014||Year to date used at quarter-end|
|Vote 25 - Net operating expenditures||6,764||1,000||2,976|
|Budgetary statutory authorities - Contributions to employee benefit plans||448||112||336|
|Total available for use for the year ended March 31, 2014*||Expended during the quarter ended December 31, 2013||Year to date used at quarter-end|
|Vote 25 - Net operating expenditures||9,936||1,289||3,491|
|Budgetary statutory authorities - Contributions to employee benefit plans||345||83||259|
* Includes only Authorities available for use and granted by Parliament at quarter-end.
B. Departmental Budgetary Expenditures by Standard Object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31, 2015||Expended during the quarter ended December 31, 2014||Year to date used at
|Total net budgetary expenditures||7,212||1,112||3,312|
|Transportation and communications||153||37||101|
|Professional and special services||3,320||315||1,054|
|Repair and maintenance||2||0||1|
|Utilities, materials and supplies||62||24||37|
|Acquisition of land, buildings and works||0||0||0|
|Acquisition of machinery and equipment||22||0||1|
|Other subsidies and payments||0||0||58|
|Expenditures||Planned expenditures for the year ending March 31, 2014||Expended during the quarter ended December 31, 2013||Year to date used at
|Total net budgetary expenditures||10,281||1,372||3,750|
|Transportation and communications||93||48||121|
|Professional and special services||6,236||539||1,384|
|Repair and maintenance||16||0||0|
|Utilities, materials and supplies||33||19||38|
|Acquisition of land, buildings and works||0||0||0|
|Acquisition of machinery and equipment||62||9||34|
|Other subsidies and payments||0||0||0|
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