Quarterly Financial Report For the Quarter ended September 30, 2017

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

A. 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. It has not been subject to an external audit or review. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.

The Office of the Director of Public Prosecutions (ODPP) was created on December 12, 2006, with the coming into force of the Director of Public Prosecutions Act. The ODPP is an independent prosecution service mandated to prosecute offences that are under the jurisdiction of the Attorney General of Canada.

On October 1, 2014, pursuant to amendments to the Canada Elections Act, the Office of the Commissioner of Canada Elections (OCCE) was transferred from Elections Canada to the ODPP. The Commissioner of Canada Elections and the Director of Public Prosecutions exercise their statutory duties independently from each other while operating within the same organization.

The ODPP has two strategic outcomes under its Program Inventories in addition to internal services.

The first is that criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner. The mandate of the ODPP includes:

The second strategic outcome is in respect of the work of the OCCE. It provides that compliance and enforcement activities under the Canada Elections Act and Referendum Act are conducted by the OCCE in a fair, impartial and independent manner. Activities related to this mandate include:

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization.

B. Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the ODPP's spending authorities granted by Parliament, and those used by the ODPP consistent with the Main Estimates and Supplementary Estimates. This quarterly report has been prepared using a 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 fiscal year in which it is issued.

The ODPP 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.

C. Highlights of Fiscal Quarter and Fiscal Year-to-date Results

1.  Spending Authorities

At the end of the second quarter of 2017-18, the ODPP had total spending authorities of $190.2 million available for use as detailed in Chart 1 and Appendix A. This amount represents the 2017-18 Main Estimates and the operating budget carry forward from the last fiscal year. The decrease of $4.1 million (or 2%) compared to total spending authorities at the same time in the fiscal year 2016-17 ($194.3 million) is mainly due to a decrease in funding for professional services (collection of outstanding federal fines) as well as a decrease in anticipated expenditures in personnel (employee benefits plan).

2.  Expenditures for the Quarter ended September 30, 2017

During the second quarter of 2017-18, the ODPP spent $48 million compared to $33.2 million for the same period in 2016-17, as detailed in Appendix B. The increase of $14.8 million (or 45%) is mainly due to an increase in salary expenditures and professional services expenditures due to the renegotiation of collective agreements and the timing of payments, combined with a slower collection of revenues compared to the last year.

3.  Year-to-date Authorities and Expenditures as at September 30, 2017

At the end of September 2017, the ODPP had spent $90.7 million (or 48%) of its total authorities of $190.2 million as detailed in Appendix B. At the same time last year, the ODPP had spent 42% of its total authorities.

Chart 1: Comparison of Budgetary Authorities and Expenditures as of September 30, 2017, and September 30, 2016 (in thousands of dollars)

Chart 1: Comparison of Budgetary Authorities and Expenditures as of September 30, 2017, and September 30, 2016 (in thousands of dollars)

Text Description

The chart presents the ODPP's year-to-date net budgetary authorities and net budgetary expenditures as of September 30 for the fiscal years 2017-18 and 2016-17. The chart also shows the net vote authorities and the revenues netted against expenditures for the same period.

As of September 30, 2017, the net budgetary authorities were $190.2 million and the net budgetary expenditures were $90.7 million. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $194.3 million and $80.7 million, respectively.

As of September 30, 2017, the net vote authorities were $22.7 million and the revenues netted against expenditures were $5.1 million. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22.7 million and $7.7 million, respectively.

As of September 30, 2017, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $212.9 million, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $95.8 million. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $217 million and $88.4 million, respectively.

D. Risks and Uncertainties

The ODPP’s key corporate risks are identified and assessed through an annual update of the Corporate Risk Profile. This year, a number of key risks could have financial impacts should they materialize. Strategies have been put in place to mitigate them.

The funding pressures from the Public Services and Procurement Canada (PSPC) with respect to mandated relocations and/or renovations and the implementation of workplace 2.0 have a significant impact on the budget of the ODPP. The ODPP has developed a Strategic Real Property Plan from 2017 to 2021 that is continually reviewed to realign the funding levels of each project based on urgency.

E. Significant Changes in Relations to Operations, Personnel and Programs

No significant changes were noted during the second quarter of fiscal year 2017-18.

 

Approval by Senior Officials

Approved by:


________________________
Kathleen Roussel
Director of Public Prosecutions and
Deputy Attorney General of Canada


Ottawa, Canada


________________________
Date




_______________________
Mélanie Lamoureux, CPA, CMA
Acting Chief Financial Officer

Appendix A

Statement of Authorities (unaudited)
  Fiscal year 2017-18   Fiscal year 2016-17
(in thousands of dollars) Total available for use for the year ending  Mar. 31, 2018Table Note * Used during the quarter ended Sept. 30, 2017 Year to date used at quarter-end    Total available for use for the year ending  Mar. 31, 2017 Used during the quarter ended Sept. 30, 2016 Year to date used  at quarter-end 
Vote 1 - Net Operating expenditures 170,418 42,570 80,374   172,393 27,519 69,450
Budgetary Statutory Authorities:
Contributions to employee benefit plans
18,216 4,554 9,108   19,882 4,971 9,941
Electoral expenditures
1,554 840 1,220   1,992 661 1,260
Total Budgetary statutory authorities 19,770 5,394 10,328   21,874 5,632 11,201
Total Budgetary Authorities 190,188 47,964 90,702   194,267 33,151 80,651
Non-budgetary Authorities 0 0 0   0 0 0
Total Authorities 190,188 47,964 90,702   194,267 33,151 80,651

Table Notes

Table Note *

Includes only Authorities available for use and granted by Parliament at quarter-end.

Return to table note *

Appendix B

Departmental budgetary expenditures by Standard Object (unaudited)
  Fiscal year 2017-18   Fiscal year 2016-17
(in thousands of dollars) Planned expenditures for the year ending Mar. 31, 2018 Expended during the
quarter ended Sept. 30, 2017
Year to date used  at
quarter-end 
  Planned expenditures for the year ending Mar. 31, 2017 Expended during the
quarter ended Sept. 30, 2016
Year to date
used at
quarter-end 
Expenditures:
Personnel 134,739 34,811 64,194   136,064 21,971 62,108
Transportation and communications 7,864 1,528 2,553   7,255 1,413 2,339
Information 576 131 225   624 163 239
Professional, special & other services 60,147 13,750 26,110   62,464 11,936 19,563
Rentals 2,395 491 789   1,670 375 747
Repair and maintenance 1,898 36 86   2,032 37 95
Utilities, materials and supplies 1,568 267 563   1,903 418 580
Acquisition of machinery and equipment 712 234 297   1,013 382 466
Other subsidies and payments 3,031 128 980   3,984 992 2,225
Total gross budgetary expenditures 212,930 51,376 95,797   217,009 37,687 88,362
Less Revenues netted against expenditures:
Legal services (22,742) (3,412) (5,095)   (22,742) (4,536) (7,711)
Total net budgetary expenditures 190,188 47,964 90,702   194,267 33,151 80,651
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