Quarterly Financial Report for the Quarter Ended December 31, 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 (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 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 Fiscal Year (FY) 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 FY 2011-12, the MPCC received approval to spend $2.5M to support the Fynes PIH for a period of 3 years beginning in FY 2011-12 and scheduled to end in FY 2013-14. Subsequently, 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 re-profile of lapsed funding from 2011-12 to 2012-13. The reprofile consisted of $509K, for the Fynes PIH and $473K for the Afghanistan PIH.

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 FY 2012-13.

Also, during the second quarter of FY 2012-13, the MPCC began proceedings on a multi-jurisdictional conduct review investigation. 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 FY 2012-13.

The year-to-date expenditures for the third quarter of FY 2012-13 have increased by $102K over the third quarter of FY 2011-12. The increase is attributable to costs related to increased accommodation costs, the Fynes PIH and the multi-jurisdictional conduct review investigation.

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 has 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
December 31, 2012

________________________
Sylvain Roy, Chief Financial Officer
Signed in Ottawa, Canada
December 31, 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 December 31, 2012 Year to date used at quarter end
Total Authorities 8,809 1,292 4,220
Vote 20 – Net operating expenditures 8,537 1,216 3,993
Statutory authorities – Employee Benefit Plans 362 76 227

Fiscal year 2011-12 ($000)
  Total available for use for the year ending March 31, 2012 Expended during the quarter ended December 31, 2011 Year to date used at quarter end
Total Authorities 5,993 1,190 3,039
Vote 20 – Net operating expenditures 5,694 1,115 2,814
Statutory authorities – Employee Benefit Plans 299 75 225

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 December 31, 2012 Year to date used at quarter end
Total net budgetary expenditures 8,809 1,292 4,220
Personnel 2,378 509 1,753
Transportation and communications 455 53 220
Information 28 (22) 21
Professional and special services 5,369 619 1,812
Rentals 413 109 340
Repairs and maintenance 18 1 2
Utilities, materials and supplies 88 16 52
Acquisition of machinery and equipment 60 7 20

Fiscal year 2011-12 ($000)
Expenditures Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended December 31, 2011 Year to date used at quarter end
Total net budgetary expenditures 5,993 1,190 3,039
Personnel 1,986 409 1,318
Transportation and communications 106 40 120
Information 50 33 40
Professional and special services 3,527 606 1,308
Rentals 147 82 167
Repairs and maintenance 3 1 3
Utilities, materials and supplies 35 11 35
Acquisition of machinery and equipment 139 8 48
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