Quarterly Financial Report for the Quarter Ended June 30, 2012

Contents

1 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. 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.

2 Highlights

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:

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:

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:

Approved by:

________________________
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)

Fiscal year 2012-13 ($000)
  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
Total Authorities 4,574 1,106 1,106
Vote 25 – Net operating expenditures 4,272 1,030 1,030
Statutory authorities – Employee Benefit Plans 302 76 76

Fiscal year 2011-12 ($000)
  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
Total Authorities 3,508 752 752
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)

Fiscal year 2012-13 ($000)
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
Personnel 2,020 496 496
Transportation and communications 101 91 91
Information 26 23 23
Professional and special services 2,070 422 422
Rentals 253 53 53
Repairs and maintenance 15 0 0
Utilities, materials and supplies 29 13 13
Acquisition of machinery and equipment 60 8 8

Fiscal year 2011-12 ($000)
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
Personnel 1,960 438 438
Transportation and communications 101 31 31
Information 5 2 2
Professional and special services 1,125 224 224
Rentals 145 42 42
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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