2019–20 Quarterly Financial Report (for the second quarter ended September 30, 2019)

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

Introduction

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. It should be read in conjunction with the Main Estimates and Supplementary Estimates. The quarterly report has not been subject to an external audit or review.

Raison d’être

The Office of the Public Sector Integrity Commissioner of Canada (the Office) was established to implement the Public Servants Disclosure Protection Act, which came into force in April 2007.

The Commissioner reports directly to Parliament. The President of the Treasury Board is responsible for tabling the Office's Departmental Plan and Departmental Results Report in Parliament.

The Office contributes to strengthening accountability and increases oversight of government operations by providing:

• public servants and members of the public with an independent and confidential process for making disclosures of wrongdoing in, or relating to, the federal public sector. The Office receives and investigates these disclosures, reports founded cases of wrongdoing to Parliament and makes recommendations to chief executives on corrective measures; and
• public servants and former public servants with a mechanism for making complaints of reprisal. The Office receives and investigates these complaints of reprisal and can refer cases to the Public Servants Disclosure Protection Tribunal.

Further details on the Office’s authority, mandate and program activities can be found in the Main Estimates (Part II) and in its corporate publications.

Basis of 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 Supplementary Estimates for the fiscal year ending March 31, 2020. 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 fiscal year in which it is issued.

The Office uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of the fiscal quarter and the fiscal year-to-date results

This section highlights the significant variance in resources available for the year and net changes in actual expenditures for the quarter ended September 30, 2019, in comparison to the prior year.

From 2018–19 to 2019–20, total budgetary authorities available for use increased by $20,409 (0.4%). This change is mainly the result of:

• An increase of $48,722 in vote 1 authorities in 2019–20 because of funds received for employees’ collective agreements.
• A decrease of $76,000 in vote 1 authorities due to a transfer of funds from other operating expenditures to salary and wages, where a transfer price of 20% of the actual salary must be set aside for the Employees Benefit Plan.
• An increase of $68,726 in budgetary statutory authorities due to the $76,000 transfer of funds and as well the adjustment of the Employee Benefit Plan annual rate, as directed by the Treasury Board.

Budgetary expenditures used during the second quarter of 2019–20 increased by $512,897 (25.6%) as compared to the same quarter last year. The major changes in expenditures by standard object are summarized as follows:

• an increase of $153,893 in the acquisition of work and refit of the Office new location.
• an increase of $174,097 in the acquisition of equipment and furniture attributable to the Office move to the new location.
• an increase of $112,785 in salary expenditures attributable to the timing differences in payments of salaries and benefits to personnel.
• an increase of $80,677 in transportation and communications primarily due to the increase in travel cost required for investigations and telecommunications costs incurred for the Office relocation.
• an overall decrease of $8,555 in other expenditures are attributable to the timing differences in billing and payments between 2018–19 and 2019–20.

Risks and uncertainties

The Office continues to operate in a sensitive environment where there still exists a culture of resistance to whistleblowing within the federal public service due to various factors, including fear of reprisal. Decisions by individuals to disclose wrongdoing or submit a complaint of reprisal, the complexity of cases, as well as the legislative requirements and the Office’s service standards are major contributors to the workload. In turn, this drives the need to retain and recruit key skilled positions, such as investigators and case analysts.

Volume of cases does fluctuate by month throughout the year, and the complexity of each case can vary significantly. However, if there was a continued and significant increase in the number of cases and/or investigations, the Office runs the risk of not being able to process all files in a timely manner.

Significant changes in relation to operations, personnel and programs

There were no significant changes to operations, personnel and programs during the second quarter ended September 30, 2019.

Approval by Senior Officials

Approved by:

Ottawa, Canada
November 19, 2019

Statement of Authorities (unaudited)

Fiscal Year 2019–20

Fiscal Year 2018–19

* Includes only authorities available for use and granted by Parliament at quarter end.

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2019–20

Fiscal Year 2018–19