Quarterly Financial Report For the quarter ended December 31, 2016

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 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:

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 2016-17, the ODPP had total spending authorities of $194,697 thousand available for use as detailed in Chart 1 and Appendix A. This amount represents the 2016-17 Main Estimates, the unspent authorities from the last fiscal year and the funding for renewed collective agreement. The increase of $7,273 thousand (or 4%) compared to total spending authorities at the same time in an fiscal year 2015-16 ($187,424 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 December 31, 2016

During the third quarter of 2016-17, the ODPP spent $38,878 thousand compared to $42,187 thousand for the same period in 2015-16, as detailed in Appendix B. The decrease of $3,309 thousand (or 8%) is mainly due to the timing of payments.

3.  Year-to-date Authorities and Expenditures as at December 31, 2016

At the end of December 2016, the ODPP had spent $119,529 thousand (or 61%) of its total authorities of $194,697 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 62% of its total authorities.

Chart 1: Year-to-date Authorities and Expenditures as of December 31, 2016, and December 31, 2015 (in thousands of dollars)

Chart 1: Year-to-date Authorities and Expenditures as of December 31, 2016, and December 31, 2015 (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 2016-17 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, 2016, the net budgetary authorities were $194,697 thousand and the net budgetary expenditures were $119,529 thousand. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $187,424 thousand and $117,025 thousand, respectively.

As of December 31, 2016, the net vote authorities were $22,742 thousand and the revenues netted against expenditures were $13,373 thousand. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22,742 thousand and $13,517 thousand, respectively.

As of December 31, 2016, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $217,439 thousand, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $132,902 thousand. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $210,166 thousand and $130,542 thousand, respectively.

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.

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

Government announced expenditure reductions in Budget 2016. The ODPP’s share is $545 thousand broken down as follows: $489 thousand for professional services, $8 thousand for advertising and $48 thousand for travel expenditures.

Approval by Senior Officials

Approved by:


________________________
George Dolhai
A/Director of Public Prosecutions


Ottawa, Canada


________________________
Date




_______________________
Lucie Bourcier CPA, CGA
Chief Financial Officer

Appendix A

Statement of Authorities (unaudited)
  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
December 31, 2016
Year to date used at quarter-end    Total available for use for the year ending 
Mar. 31, 2016
Used during the quarter ended
December 31, 2015
Year to date used  at quarter-end 
Total Authorities 194,697 38,878 119,529   187,424 42,187 117,025
Vote 1 - Net Operating expenditures 172,823 33,124 102,574   166,004 36,590 101,286
Budgetary Statutory Authorities:
Contributions to employee benefit plans
19,882 4,971 14,912   18,878 4,720 14,158
Electoral expenditures
1,992 783 2,043   2,542 877 1,581
Total Budgetary statutory authorities 21,874 5,754 16,955   21,420 5,597 15,739
Total Budgetary Authorities 194,697 38,878 119,529   187,424 42,187 117,025
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 *

Appendix B

Departmental budgetary expenditures by Standard Object (unaudited)

  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
Dec. 31, 2016
Year to date used  at quarter-end    Planned expenditures for the year ending
Mar. 31, 2016
Expended during the quarter ended
Dec. 31, 2015
Year to date used at quarter-end 
Total net budgetary expenditures 194,697 38,878 119,529   187,424 42,187 117,025
Expenditures:
Personnel 136,494 31,250 93,358   132,026 31,018 91,894
Transportation and communications 7,255 1,715 4,054   8,271 1,760 4,018
Information 624 172 411   585 109 370
Professional, special & other services 62,464 10,325 29,888   57,439 12,073 28,976
Rentals 1,670 712  1,459    1,417 1,286 1,417
Repair and maintenance 2,032 379 474   2,021 72 314
Utilities, materials and supplies 1,903 349 929    1,609 417 942
Acquisition of machinery and equipment 1,013 156 622   820 42 341
Other subsidies and payments 3,984 (518) 1,707    5,978 1,745 2,270
Total gross budgetary expenditures 217,439 44,540 132,902   210,166 48,522 130,542
Less Revenues netted against expenditures:
Legal services (22,742) (5,662) (13,373)   (22,742) (6,335) (13,517)
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