Quarterly Financial Report for the Quarter Ended December 31, 2014

Table of Contents

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

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 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:

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:

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:

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:

Approved by:



________________________
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)

Fiscal Year 2014-15 (in thousands of dollars)
Authority
Vote/Statutory
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
Total Authorities 7,212 1,112 3,312
Vote 25 - Net operating expenditures 6,764 1,000 2,976
Budgetary statutory authorities - Contributions to employee benefit plans 448 112 336
Fiscal Year 2013-14 (in thousands of dollars)
Authority
Vote/Statutory
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
Total Authorities 10,281 1,372 3,750
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)

Fiscal Year 2014-15 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended December 31, 2014 Year to date used at
quarter-end
Total net budgetary expenditures 7,212 1,112 3,312
Personnel 3,165 617 1,771
Transportation and communications 153 37 101
Information 54 3 18
Professional and special services 3,320 315 1,054
Rentals 434 116 271
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
Fiscal Year 2013-14 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended December 31, 2013 Year to date used at
Quarter-end
Total net budgetary expenditures 10,281 1,372 3,750
Personnel 3,482 672 1,915
Transportation and communications 93 48 121
Information 15 1 11
Professional and special services 6,236 539 1,384
Rentals 344 84 247
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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