Quarterly Financial Report For the quarter ended December 31, 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) 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 Alignment Architecture 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 Office of Commissioner of Canada Elections 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 third quarter of 2015-16, the ODPP had total spending authorities of $187,424 thousand available for use as detailed in Table 1 and Appendix A. This amount includes the 2015-16 Main Estimates, the unused funds carried forward from the last fiscal year and new funding to pay for the outsourcing of the collection of federal fines. The increase of $12,202 thousand (or 7%) compared to total spending authorities at the same time in fiscal year 2014-15 ($175,222 thousand) is mainly due to the new funding for the collection of federal fines and the transfer of the OCCE to the ODPP.

Table 1. Year-to-date Authorities by Strategic Outcomes and Internal Services at the end of December 31, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures (Vote 1) Statutory Authorities Total
Total Spending Authorities 166,004 21,420 187,424
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
146,205 16,173 162,378
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
1,517 2,845 4,362
Internal Services 18,282 2,402 20,684

2. Expenditures for the Quarter ended December 31, 2015

Table 2. Expenditures by Strategic Outcomes and Internal Services for the Quarter ended
December 31, 2015 (in thousands of dollars)
Strategic Outcome and Internal Services Program Expenditures (Vote 1) Statutory
Authorities
Total
Total Expenditures 36,590 5,597 42,187
Strategic Outcome 1
Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner
30,734 3,953 34,687
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
328 942 1,270
Internal Services 5,528 702 6,230

3. Year-to-date Authorities and Expenditures as at December 31, 2015

At the end of December 2015, the ODPP had spent $117,025 thousand (or 62%) of its total authorities of $187,424 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 66% of its total authorities.

Graph: Year-to date Authorities and Expenditures as of December 31, 2015, and December 31, 2014 (in thousands of dollars)

Graph: Year-to date Authorities and Expenditures as of December 31, 2015, and December 31, 2014 (in thousands of dollars)

Text Description

The graph presents the ODPP's year-to-date net budgetary authorities and net budgetary expenditures as of December 31 for the fiscal years 2014-15 and 2015-16. The graph also shows the net vote authorities and the revenues netted against expenditures for the same period.

As of December 31, 2015, the net budgetary authorities were $187,424 thousand and the net budgetary expenditures were $117,025 thousand. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $175,222 thousand and $114,960 thousand,  respectively.

As of December 31, 2015, the net vote authorities were $22,742 thousand and the revenues netted against expenditures were $13,517 thousand. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22,742 thousand and $12,978 thousand, respectively.

As of December 31, 2015, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $210,166 thousand, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $130,542 thousand. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $197,964 thousand and $127,938 thousand, respectively.

D. Risks and Uncertainties

The ODPP’s key corporate risks are identified and assessed through an annual update of the Corporate Risk Profile. For the third quarter of 2015-16 there were no significant financial risks or uncertainties identified.

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

No significant changes were noted during the third 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, 2016Table Note *
Used during the quarter ended
Dec 31, 2015
Year to date used at quarter-end 
Dec 31, 2015
Total available for use for the year ending 
Mar 31, 2015Table Note *
Used during the quarter ended
Dec 31, 2014
Year to date used  at quarter-end 
Dec 31, 2014
Total Authorities 187,424 42,187 117,025 175,222 37,887 114,960
Vote 1 - Net Operating expenditures 166,004 36,590 101,286 156,838 33,180 101,135
Budgetary Statutory Authorities:
Contributions to employee benefit plans
18,878 4,720 14,158 18,236 4,559 13,677
Electoral expendituresTable Note **
2,542 877 1,581 148 148 148
Total Budgetary statutory authorities 21,420 5,597 15,739 18,384 4,707 13,825
Total Budgetary Authorities 187,424 42,187 117,025 175,222 37,887 114,960
Non-budgetary Authorities 0 0 0 0 0 0

Table Notes

Table Note *

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

Return to table note *

Table Note **

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.

Return to table note **

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
Dec 31, 2015
Year to date used  at quarter-end 
Dec 31, 2015
Planned expenditures for the year ending
Mar 31, 2015
Expended during the quarter ended
Dec 31, 2014
Year to date used at quarter-end
Dec 31, 2014 
Expenditures:
Personnel 132,026 31,018 91,894 129,622 30,680 90,720
Transportation and communications 8,271 1,760 4,018 9,731 1,250 3,463
Information 585 109 370 885 144 384
Professional, special & other services 57,439 12,073 28,976 45,354 11,395 26,976
Rentals 1,417 1,286 1,417 1,546 474 911
Repair and maintenance 2,021 72 314 1,436 100 258
Utilities, materials and supplies 1,609 417 942 1,659 348 855
Acquisition of machinery and equipment 820 42 341 2,209 141 307
Other subsidies and payments 5,978 1,745 2,270 5,522 17 4,064
Total gross budgetary expenditures 210,166 48,522 130,542 197,964 44,549 127,938
Less Revenues netted against expenditures:
Legal services (22,742) (6,335) (13,517) (22,742) (6,662) (12,978)
Total net budgetary expenditures 187,424 42,187 117,025 175,222 37,887 114,960
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