Quarterly Financial Report for the Quarter Ended June 30, 2015
Table of contents
- 1. Introduction
- 2. Highlights of fiscal quarter and fiscal year to date (YTD) results
- 3. Risks and uncertainties
- 4. Significant changes in relation to operations, personnel and programs
- 5. Approval by Senior Officials
- A. Statement of Authorities (unaudited)
- B. Departmental budgetary expenditures by standard object (unaudited)
Statement outlining results, risks and significant changes in operations, personnel and program
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) 2015-16. 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.
2. Highlights of fiscal quarter and fiscal year to date (YTD) results
The Statement of Authorities below shows that the MPCC spent approximately 16% of its authorities in the first quarter of 2015-16 compared to 21% in 2014-15.
The MPCC’s total budgetary expenditures decreased by $267,000 in the first quarter of 2015-16, compared to the same period in 2014-15. There were five significant variances explaining this decrease:
- There was a decrease of $250,000 in Professional and Special Services in the first quarter. This is mostly due to a decrease in legal fees and translation fees related to the Fynes Public Interest Hearing (PIH) and the Multi-jurisdictional Conduct Review Complaint which were high during the first quarter of 2014-15. There has also been a decrease in consultant and temporary help services which were heavily used in the first quarter of 2014-15 while staffing actions were ongoing;
- The decrease of $79,000 in rentals is a result of delays in being billed for April, May and June’s occupancy lease payments by PWGSC;
- The decrease of $54,000 under Other Subsidies and Payments is due to a one-time transition payment for implementing salary payment in arrears by the Government of Canada in the first quarter of 2014-15. There are no payments this fiscal year;
- The decrease of $15,000 in Transportation and Communications is due to a decrease in travel in the first quarter, primarily travel by the Chairperson and travel of MPCC personnel to the CACOLE conference which was held this year in Ottawa;
- The personnel expenses during the first quarter increased by $147,000 in comparison to the same period last fiscal year. This is primarily attributable to an increase in staffing resulting in fewer vacant positions.
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
An unavoidable risk the MPCC will always face is the uncertainty regarding the number and complexity of complaints it must monitor and/or investigate each year. The MPCC cannot control the time it takes a complaint to be resolved. It must depend upon the efficiency of its investigative partners and the speed with which the Provost Marshal responds to the MPCC’s interim reports.
The MPCC’s caseload continues to grow with an increase of 29% new cases in the past five years. Some cases are carried over from year to year. One notable case, involving a complex, multi-jurisdictional investigation, has taken four years to make its way from initial review to interim report..
The funds set aside in December 2013 to cover the cost of renovating MPCC offices and converting its large boardroom into a hearing room remain unspent. Renovations have not yet begun due to a number of factors: the lengthy project management system used by the lease holder (Public Works and Government Services Canada), and the requirement to adhere to the Government of Canada’s fit-up standards as outlined in the Workplace 2.0 Initiative. The MPCC has had to renegotiate its lease beyond 2017, causing further delays and a re-profiling of funds into FY 2015-16.
Work on the renovation to the MPCC offices in expected to begin in September 2015.
4. Significant changes in relation to operations, personnel and programs
There were no significant changes in relation to operations, personnel and programs in the 1st quarter of FY 2015-16.
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:
Original signed by
Michel Séguin, Interim Chairperson
Original signed by
Elsy Chakkalakal, A/Chief Financial Officer
August 21, 2015
A. Statement of Authorities (unaudited)
|Total available for use for the year ended March 31, 2016*||Expended during the quarter ended June 30, 2015||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||5,158||782||782|
|Budgetary statutory authorities - Contributions to employee benefit plans||457||114||114|
|Total available for use for the year ended March 31, 2015*||Expended during the quarter ended June 30, 2014||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||5,171||1,051||1,051|
|Budgetary statutory authorities - Contributions to employee benefit plans||448||112||112|
* Includes only Authorities available for use and granted by Parliament at quarter-end.
B. Departmental budgetary expenditures by standard object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31, 2016||Expended during the quarter ended June 30, 2015||Year to date used at
|Total net budgetary expenditures||5,615||896||896|
|Transportation and communications||103||19||19|
|Professional and special services||985||166||166|
|Repair and maintenance||1||0||0|
|Utilities, materials and supplies||41||4||4|
|Acquisition of land, buildings and works||859||0||0|
|Acquisition of machinery and equipment||18||2||2|
|Other subsidies and payments||0||0||0|
|Expenditures||Planned expenditures for the year ending March 31, 2015||Expended during the quarter ended June 30, 2014||Year to date used at
|Total net budgetary expenditures||5,619||1,163||1,163|
|Transportation and communications||128||34||34|
|Professional and special services||1,195||416||416|
|Repair and maintenance||2||0||0|
|Utilities, materials and supplies||52||10||10|
|Acquisition of land, buildings and works||615||0||0|
|Acquisition of machinery and equipment||22||1||1|
|Other subsidies and payments||0||54||54|
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