Quarterly Financial Report for the Quarter Ended September 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 Military Police Complaints Commission (MPCC) 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 ongoing reference level is $3.5MFootnote 1 annually and has not significantly changed over the past 5 years.

The MPCC’s Main Estimates reference levels for 2012-13 are $4.6M. The increase, of $1.1M, from the on-going level, is due to special purpose funding approved for the Fynes Public Interest Hearing (PIH).

In 2011-12, the MPCC received $2.5M to support the Fynes PIH for a period of 3 years beginning in FY 11/12 and scheduled to end in 2013-14. Due to delays in launching the Fynes PIH and a longer than expected process to finalize the Afghanistan PIH Final Report, the MPCC required a reprofiling of lapsed funding in 2011-12 to 2012-13. The reprofile consists of $509K, for the Fynes PIH and $473K, for the Afghanistan PIH, and approval will be sought through the Supplementary Estimates B.

During the Fynes PIH initial phases, the MPCC had to readjust the PIH plan, update the budget plan to include unplanned and unanticipated activities, and readjust the hearing schedule itself due to delays in the start up. The main reason for the revised PIH plan was due to the additional two months of hearings combined with a two month pre-hearing preparation. These events were not foreseeable until well into the PIH. Furthermore, additional legal requirements which were not anticipated by any of the parties until recently have been identified. Even at this stage of the PIH, additional unplanned and unforeseen activities continue to surface. As a result the MPCC sought and secured approval for additional funding for the Fynes PIH in the amount of $3.3M over three years beginning in 2012-13.

Also, during the first quarter of 2012-13, the MPCC began proceedings on a large complex case. To offset significant costs related to the case the MPCC sought and received approval for funding in the amount $1.7M over a three year period beginning in 2012-13.

The year-to-date expenditures for the second quarter of 2012-13 have increased by $227K over the second quarter of 2011-12. The increase is attributable to costs related to the Fynes PIH and the large complex case.

3 Risks and Uncertainties

Based on the quarterly assessment, the following are the high level risks and uncertainties;

4 Significant Changes

There have been significant changes in the following areas;

Operations

The MPCC concluded the Afghanistan PIH and all related activities.

During this quarter, the MPCC sought additional funds to support the Fynes PIH and a large complex case.

Reference Level

The MPCC conducted a program review and have identified reference level shortfalls or gaps. Additional reviews and consultation has been initiated to determine the approach to address these gaps.

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
September 30, 2012

________________________
Sylvain Roy, Chief Financial Officer
Signed in Ottawa, Canada
September 30, 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 September 30, 2012 Year to date used at quarter end
Total Authorities 4,574 1,321 2,427
Vote 20 – Net operating expenditures 4,272 1,245 2,275
Statutory authorities – Employee Benefit Plans 302 76 152

Fiscal year 2011-12 ($000)
  Total available for use for the year ending March 31,2012 Expended during the quarter ended September 30, 2011 Year to date used at quarter end
Total Authorities 3,508 1,097 1,849
Vote 20 – Net operating expenditures 3,209 1,022 1,699
Statutory authorities – Employee Benefit Plans 299 75 150

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 September 30, 2012 Year to date used at quarter end
Total net budgetary expenditures 4,574 1,321 2,427
Personnel 2,020 511 1,007
Transportation and communications 101 63 154
Information 26 20 43
Professional and special services 2,070 592 1,014
Rentals 253 118 171
Repairs and maintenance 15 1 1
Utilities, materials and supplies 29 13 26
Acquisition of machinery and equipment 60 3 5

Fiscal year 2011-12 ($000)
Expenditures Planned expenditures for the year ending March 31,2012 Expended during the quarter ended September 30, 2011 Year to date used at quarter end
Total net budgetary expenditures 3,508 1,097 1,849
Personnel 1,960 471 909
Transportation and communications 101 49 80
Information 5 5 7
Professional and special services 1,125 478 702
Rentals 145 43 85
Repairs and maintenance 3 2 2
Utilities, materials and supplies 30 13 24
Acquisition of machinery and equipment 139 36 40
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