Quarterly Financial Report For the Quarter ended September 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

1. Spending Authorities

At the end of the second quarter of 2015-16, the ODPP had a total funding of $187,371 thousand available for use as detailed in Table 1 and Appendix A. This amount is composed principally of the 2015-16 Estimates and the operating budget carry forward from the last fiscal year. The increase of $13,099 thousand (or 8%) 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 1. Year-to-date Authorities by Strategic Outcomes and Internal Services at the end of September 30, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures
(Vote 1)
Statutory Authorities Total
Total Spending Authorities 165,951 21,420 187,371
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
146,155 16,173 162,328
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
1,515 2,845 4,360
Internal Services 18,281 2,402 20,683

2. Expenditures for the Quarter ended September 30, 2015

During the second quarter of 2015-16, the ODPP spent $39,540 thousand compared to $35,676 thousand for the same period in 2014-15, as detailed in Appendix B. The increase of $3,864 thousand (or 11%), compared with expenditures in the same quarter in fiscal year 2014-15, is mainly due to an increase in the provision of prosecution services by Crown Agents and an increase in salary expenses due to the transfer of the Commissioner of Canada Elections to the ODPP.

Table 2. Expenditures by Strategic Outcomes and Internal Services for the Quarter ended
September 30, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures
(Vote 1)
Statutory
Authorities
Total
Total Expenditures 34,389 5,151 39,540
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
29,850 3,457 33,307
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
335 561 896
Internal Services 4,204 1,133 5,337

3. Year-to-date Authorities and Expenditures as at September 30, 2015

At the end of September 2015, the ODPP had spent $74,838 thousand (or 40%) of its total authorities of $187,371 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 44% of its total authorities.

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 has taken steps to control spending and staffing actions. It is also working closely with investigative agencies to anticipate and plan for resource-intensive actions by them.

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

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

 

Approval by Senior Officials

Approved by:


________________________
Brian Saunders, Q.C.
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 Mar 31, 2016* Used during the quarter ended Sept 30, 2015 Year to date used at quarter-end Sept 30, 2015   Total available for use for the year ending Mar 31, 2015 Used during the quarter ended Sept 30, 2014 Year to date used at quarter-end Sept 30, 2014
Total Authorities 187,371 39,540 74,838   174,272 35,676 77,073
Vote 1 - Net Operating expenditures 165,951 34,389 64,695   156,036 31,117 67,955
Budgetary Statutory Authorities:
Contributions to employee benefit plans
18,878 4,720 9,439   18,236 4,559 9,118
Electoral expenditures**
2,542 431 704   0 0 0
Total Budgetary statutory authorities 21,420 5,151 10,143   18,236 4,559 9,118
Total Budgetary Authorities 187,371 39,540 74,838   174,272 35,676 77,073
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 compliance with, 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 quarters 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 Mar 31, 2016 Expended during the
quarter ended Sept 30, 2015
Year to date used at
quarter-end Sept 30, 2015
  Planned expenditures for the year ending Mar 31, 2015 Expended during the
quarter ended Sept 30, 2014
Year to date
used at
quarter-end Sept 30, 2014
Expenditures:
Personnel 131,973 30,636 60,876   128,758 29,865 60,040
Transportation and communications 8,271 1,412 2,258   9,720 1,391 2,213
Information 585 185 261   883 123 240
Professional, special & other services 57,439 10,603 16,904   45,283 7,464 15,581
Rentals 1,417 95 131   1,546 288 437
Repair and maintenance 2,021 229 241   1,436 121 158
Utilities, materials and supplies 1,609 350 525   1,657 325 506
Acquisition of machinery and equipment 820 96 299   2,209 122 167
Other subsidies and payments 5,978 234 525   5,522 281 4,047
Total gross budgetary expenditures 210,113 43,840 82,020   197,014 39,980 83,389
Less Revenues netted against expenditures:
Legal services (22,742) (4,300) (7,182)   (22,742) (4,304) (6,316)
Total net budgetary expenditures 187,371 39,540 74,838   174,272 35,676 77,073
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