Quarterly Financial Report for the Quarter ended June 30, 2015

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) is an independent prosecution service mandated to prosecute criminal and regulatory offences under federal jurisdiction. The ODPP plays an integral role in the criminal justice system, promoting due process and working to safeguard the rights of all those who come into contact with the justice system.

The benefits to Canadians from the work carried out by the ODPP include:

On October 1, 2014, by virtue of the coming into force of amendments to the Canada Elections Act, the Office of the Commissioner of Canada Elections (OCCE) was formally transferred from Elections Canada to the ODPP. The Commissioner and the Director exercise their respective statutory duties independently from each other, even while operating within the same organization.

The ODPP has two strategic outcomes and four program activities in addition to internal services:

Strategic Outcome 1: Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner.

Strategic Outcome 2: Compliance and enforcement activities under the Canada Elections Act and Referendum Act are conducted by the Commissioner of Canada Elections in an independent, impartial and fair manner.

Internal services: 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

• Spending Authorities

At the end of the first quarter of 2015-16, the ODPP had a total funding of $178,718 thousand available for use as detailed in Table 1 and Appendix A. This amount is composed principally of the 2015-16 Main Estimates and new funding for the outsourcing of the collection of the outstanding federal fines. The increase of $10,902 thousand (or 6%) compared to total spending authorities at the same time in fiscal year 2014-15 is mainly due to the new funding for the collection of federal fines and the transfer of the Commissioner of Canada Elections to the ODPP.

Table 1a) Available Authorities of 2015-16 compared to 2014-15 (in thousands of dollars)
Program Expenditures 2015-16 2014-15 Variance
$ %
Total Spending Authorities 178,718 167,816 10,902 6%
Table 1 b) Year-to-date Authorities by Strategic Outcomes and Internal Services at the end of June 30, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures (Vote 1) Statutory Authorities Total
Total 157,298 21,420 178,718
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
138,536 16,173 154,709
Strategic Outcome 2
Compliance and enforcement activities under the Canada Elections Act and Referendum Act are conducted by the Commissioner of Canada Elections in an independent, impartial and fair manner
1,295 2,801 4,096
Internal Services 17,467 2,446 19,913
Year-to-date Authorities by Strategic Outcomes and Internal Services for the Quarter ended June 30, 2015
Strategic Outcome 1 Strategic Outcome 2 Internal Services
86.57% 2.29% 11.14%

• Expenditures for the Quarter ended June 30, 2015

During the first quarter of 2015-16, the ODPP spent $35,298 thousand compared to $41,397 thousand for the same period in 2014-15; the decrease is $6,099 thousand (or 15%). The diminution is mainly due to a reduction in expenditures related to a one-time transition payment for the implementation of salary payments in arrears as well as the timing of expenditures incurred and receipt of revenue.

Table 2a) Expenditures for the Quarters ended June 30, 2015 and June 30, 2014
(in thousands of dollars)
Program Expenditures Expenditures Variance
As at June 30, 2015 As at June 30, 2014 $ %
Total 35,298 41,397 (6,099) -15%
Table 2b) Expenditures by Strategic Outcomes and Internal Services for the Quarter ended
June 30, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures (Vote 1) Statutory
Authorities
Total
Total 30,306 4,992 35,298
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
26,283 4,720* 31,003
Strategic Outcome 2
Compliance and enforcement activities under the Canada Elections Act and Referendum Act are conducted by the Commissioner of Canada Elections in an independent, impartial and fair manner
330 272 602
Internal Services 3,693 0 3,693

* The contributions to employee benefit plans expenditures will be distributed between the two strategic outcomes and internal services in the next quarterly financial reports

Expenditures by Strategic Outcomes and Internal Services for the Quarter ended June 30, 2015
Strategic Outcome 1 Strategic Outcome 2 Internal Services
87.83% 1.71% 10.46%

• Year-to-date Authorities and Expenditures as at June 30, 2015

At the end of June 2015, the ODPP spent $35,298 thousand (or 20%) from its total authorities of $178,718 thousand as shown in Table 3. At the same time last year, the ODPP had spent 25% of its total authorities.

Table 3. Total Year-to-date (YTD) Authorities and Expenditures as at June 30, 2015 and June 30, 2014 (in thousands of dollars)
Program Expenditures 2015 2014
Spending Authorities Total YTD Expenditures Variance
YTD
%
Spending Authorities Total YTD Expenditures Variance
YTD
%
Total 178,718 35,298 20% 167,816 41,397 25%
Year-to-date Authorities and Expenditures as at June 30, 2015 and June 30, 2014 (in thousand of dollars)
2015 2014
Authorities 178,718 167,816
Expenditures 35,298 41,397

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.

Funding is the highest priority for action, and the contributing factors are:

To minimize the risk, the ODPP created committees to control spending and staffing actions. It is also working closely with investigative agencies to anticipate and plan for resource-intensive actions by police.

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

No significant changes were noted during the first quarter of fiscal year 2015-16.

Approval by Senior Officials

Original signed by


________________________
Brian Saunders
Director of Public Prosecutions


Ottawa, Canada


________________________
Date




_______________________
Lucie Bourcier CPA, CGA
Chief Financial Officer

APPENDIX A

Statement of Authorities (unaudited)

  Fiscal Year 2015-16   Fiscal Year 2014-15
(in thousands of dollars) Total available for use for the year ending
March 31, 2016*
Used during the quarter ended
June 30, 2015
Year-to-date used at quarter-end   Total available for use for the year ended
March 31, 2015
Used during the quarter ended
June 30, 2014
Year-to-date used at quarter-end 
Total authorities 178,718 35,298 35,298   167,816 41,397 41,397
Vote 1 – Program expenditures 157,298 30,306 30,306   149,580 36,838 36,838
Statutory authorities       
Electoral expenditures** 2,542 272 272   0 0 0
Contributions to employee benefit plans 18,878 4,720 4,720   18,236 4,559 4,559
Total Statutory authorities 21,420 4,992 4,992   18,236 4,559 4,559
Total Budgetary authorities 178,718 35,298 35,298   167,816 41,397 41,397
Non-budgetary authorities 0 0 0   0 0 0

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

** Under the Statutory authorities, Electoral expenditures funds are part of the costs incurred by the Office of the Commissioner of Canada Elections (OCCE) to ensure the compliance and enforcement of the Canada Elections Act. The OCCE’s functions were carried out under Elections Canada prior to October 1, 2014. Therefore, expenditures related to the OCCE’s activities are reported under Elections Canada for the previous quarter in 2014-15.

APPENDIX B

Departmental budgetary expenditures by Standard Object (unaudited)

  Fiscal Year 2015-16   Fiscal Year 2014-15
(in thousands of dollars) Planned expenditures for the year ending
March 31, 2016
Expended during the quarter ended
June 30, 2015
Year-to-date used at quarter-end   Planned expenditures for the year ended
March 31, 2015
Expended during the quarter ended
June 30, 2014
Year-to-date used at quarter-end
Total net budgetary expenditures 178,718 35,298 35,298   167,816 41,397 41,397
Expenditures:
Personnel 131,973 30,241 30,241   128,758 30,175 30,175
Transportation and communications 7,250 845 845   8,800 822 822
Information 513 76 76   800 117 117
Professional and special services 51,340 6,301 6,301   41,000 8,117 8,117
Rentals 1,242 36 36   1,400 149 149
Repair and maintenance 1,772 12 12   1 300 37 37
Utilities, materials and supplies 1,411 175 175   1,500 181 181
Acquisition of machinery and equipment 719 202 202   2,000 45 45
Other subsidies and payments 5,240 291 291   5,000 3,766 3,766
Total gross budgetary expenditures 201,460 38,179 38,179   190,558 43,409 43,409
Less Revenues netted against expenditures:
Legal Services 22,742 2,881 2,881   22,742 2,012 2,012
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