Quarterly Financial Report
for the Quarter ended June 30, 2016
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. 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 and offences under the Canada Elections Act.
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:
- providing legal advice to federal investigative agencies and government departments on the criminal law implications of investigations and prosecutions;
- initiating and conducting federal prosecutions; and
- intervening in matters that raise questions of public interest that may affect the conduct of prosecutions or related investigations.
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:
- using non-punitive and informal corrective measures in response to certain situations of non-compliance and of formal measures for others, such as compliance agreements, injunctions, and applications for the judicial deregistration of a registered party; and
- taking enforcement measures to respond to situations of non-compliance, including deciding which matters will be referred to the ODPP for possible prosecution and what charges will be recommended.
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 first quarter of 2016-17, the ODPP had total spending authorities of $185,665 thousand available for use as detailed in the Graph and Appendix A. This amount represents the 2016-17 Main Estimates. The increase of $6,947 thousand (or 4%) compared to total spending authorities at the same time in the fiscal year 2015-16 ($178,718 thousand) is mainly due to the increase in funding to collect outstanding federal fines; to support the implementation of the Protecting Canadians from Online Crime Act; and to support measures to implement the Canadian Victims Bill of Rights.
2. Expenditures for the Quarter ended June 30, 2016
During the first quarter of 2016-17, the ODPP spent $47,500 thousand compared to $35,298 thousand for the same period in 2015-16, as detailed in Appendix B. The increase of $12,202 thousand (or 35%) is mainly due to an increase in the provision of the prosecution services, and an increase in other expenditures due to the timing of payments.
3. Year-to-date Authorities and Expenditures as at June 30, 2016
At the end of June 2016, the ODPP had spent $47,500 thousand (or 26%) of its total authorities of $185,665 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 20% of its total authorities.
D. Risks and Uncertainties
Funding pressures resulting from the mandated relocations and/or renovations of offices and the implementation of Workplace 2.0 will have a significant impact on the budget of the ODPP. The ODPP has developed a Strategic Real Property Plan for 2015 to 2019. The ODPP continually reviews the Plan to ensure funds are aligned for each project based on urgency.
In 2016-17, new funding pressures estimated at between $3 million to $5 million may emerge for the relocation of the Brampton/Mississauga and Montreal offices and renovations to realign the ODPP’s footprint to the reduced number of square metres allocated to his space envelope.
E. Significant Changes in Relations to Operations, Personnel and Programs
In accordance with Government’s announced expenditure reductions in Budget 2016, the ODPP was notified that it is expected to meet target reduction for its professional services ($1,370 thousand), advertising ($8 thousand) and travel expenditures ($48 thousand). The ODPP has sought an adjustment to the spending base for professional services to exclude crown agents.
The ODPP uses both staff counsel and agents to manage its workload. A reduction in agents would result into higher costs of operations as the workload cannot be reduced. The ODPP is waiting for a response from the Secretariat of Treasury Board. In the event the ODPP has to absorb the reduction, it may be faced with pressures to decline to prosecute certain type of offences.
Approval by Senior Officials
Brian Saunders, Q.C.
Director of Public Prosecutions
Lucie Bourcier CPA, CGA
Chief Financial Officer
|Fiscal year 2016-17||Fiscal year 2015-16|
|(in thousands of dollars)||Total available for use for the year ending Mar 31, 2017Table Note *||Used during the quarter ended June 30, 2016||Year to date used at quarter-end||Total available for use for the year ending Mar 31, 2016||Used during the quarter ended June 30, 2015||Year to date used at quarter-end|
|Vote 1 - Net Operating expenditures||163,791||41,931||41,931||157,298||30,306||30,306|
|Budgetary Statutory Authorities:|
Contributions to employee benefit plans
|Total Budgetary statutory authorities||21,874||5,569||5,569||21,420||4,992||4,992|
|Total Budgetary Authorities||185,665||47,500||47,500||178,718||35,298||35,298|
- Table Note *
Includes only Authorities available for use and granted by Parliament at quarter-end.
|Fiscal year 2016-17||Fiscal year 2015-16|
|(in thousands of dollars)||Planned expenditures for the year ending Mar 31, 2017||Expended during the quarter ended June 30, 2016||Year to date used at quarter-end||Planned expenditures for the year ending Mar 31, 2016||Expended during the quarter ended June 30, 2015||Year to date used at quarter-end|
|Transportation and communications||6,363||926||926||7,250||845||845|
|Professional, special & other services||56,135||7,627||7,627||51,340||6,301||6,301|
|Repair and maintenance||1,782||58||58||1,772||12||12|
|Utilities, materials and supplies||1,669||162||162||1,411||175||175|
|Acquisition of machinery and equipment||889||84||84||719||202||202|
|Other subsidies and payments||3,494||1,233||1,233||5,240||291||291|
|Total gross budgetary expenditures||208,407||50,675||50,675||201,460||38,179||38,179|
|Less Revenues netted against expenditures:|
|Total net budgetary expenditures||185,665||47,500||47,500||178,718||35,298||35,298|
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