Quarterly Financial Report for the Quarter ended June 30, 2017

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 Inventories 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 first quarter of 2017-2018, the ODPP had total spending authorities of $181,427 thousand available for use as detailed in Chart 1 and Appendix A. This amount represents the 2017-2018 Main Estimates. The decrease of $4,238 thousand (or 2%) compared to total spending authorities at the same time in fiscal year 2016-2017 ($185,665 thousand) is mainly due to a decrease in funding for the collection of outstanding federal fines and a decrease in anticipated expenditures for the Employee Benefits Plan.

2.  Expenditures for the Quarter ended June 30, 2017

During the first quarter of 2017-2018, the ODPP spent $42,738 thousand compared to $47,500 thousand for the same period in 2016-2017, as detailed in Appendix B. The decrease of $4,764 thousand (or 10%) is mainly due to a decrease in salary expenditures offset by an increase in the provision of the prosecution services due to the timing of payments.

3.  Year-to-date Authorities and Expenditures as at June 30, 2017

At the end of June 2017, the ODPP had spent $42,738 thousand (or 24%) of its total authorities of $181,427 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 26% of its total authorities.

Chart 1: Comparison of Budgetary Authorities and Expenditures as of June 30, 2017, and June 30, 2016 (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 June 30 for the fiscal years 2017-18 and 2016-17. The graph also shows the net vote authorities and the revenues netted against expenditures for the same period.

As of June 30, 2017, the net budgetary authorities were $181,427 thousand and the net budgetary expenditures were $42,738 thousand. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $185,665 thousand and $47,500 thousand, respectively.

As of June 30, 2017, the net vote authorities were $22,742 thousand and the revenues netted against expenditures were $1,683 thousand. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22,742 thousand and $3,175 thousand, respectively.

As of June 30, 2017, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $204,169 thousand, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $44,421 thousand. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $208,407 thousand and $50,675 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. This year, a number of key risks could have financial impacts should they materialize. Strategies have been put in place to mitigate them.

The funding pressures from the Public Services and Procurement Canada (PSPC) with respect to mandated relocations and/or renovations and the implementation of workplace 2.0 have a significant impact on the budget of the ODPP. The ODPP has developed a Strategic Real Property Plan from 2017 to 2021 that is continually reviewed to realign the funding levels of each project based on urgency.

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

No significant changes were noted during the first quarter of fiscal year 2017-18.

Approval by Senior Officials

Approved by:


________________________
Kathleen Roussel
Director of Public Prosecutions


Ottawa, Canada


________________________
Date




_______________________
Lucie Bourcier CPA, CGA
Chief Financial Officer

Appendix A

Statement of Authorities (unaudited)
  Fiscal year 2017-18   Fiscal year 2016-17
(in thousands of dollars) Total available for use for the year ending 
Mar. 31, 2018Table Note *
Used during the quarter ended
June 30, 2017
Year to date used at quarter-end    Total available for use for the year ending 
Mar. 31, 2017
Used during the quarter ended
June 30, 2016
Year to date used  at quarter-end 
Vote 1 - Net Operating expenditures 161,657 37,805 37,805   163,791 41,931 41,931
Budgetary Statutory Authorities:
Contributions to employee benefit plans
18,216 4,554 4,554   19,882 4,970 4,970
Electoral expenditures
1,554 379 379   1,992 599 599
Total Budgetary statutory authorities 19,770 4,933 4,933   21,874 5,569 5,569
Total Budgetary Authorities 181,427 42,738 42,738   185,665 47,500 47,500
Non-budgetary Authorities 0 0 0   0 0 0
Total Authorities 181,427 42,738 42,738   185,665 47,500 47,500

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 2017-18   Fiscal year 2016-17
(in thousands of dollars) Planned expenditures for the year ending
Mar. 31, 2018
Expended during the quarter ended
June 30, 2017
Year to date used  at quarter-end    Planned expenditures for the year ending
Mar. 31, 2017
Expended during the quarter ended
June 30, 2016
Year to date used at quarter-end 
Expenditures:
Personnel 134,739 29,382 29,382   136,064 40,137 40,137
Transportation and communications 6,983 1,025 1,025   6,363 926 926
Information 511 94 94   547 76 76
Professional, special & other services 53,408 12,360 12,360   56,135 7,627 7,627
Rentals 2,127 298 298   1,464 372 372
Repair and maintenance 1,685 50 50   1,782 58 58
Utilities, materials and supplies 1,392 297 297   1,669 162 162
Acquisition of machinery and equipment 632 62 62   889 84 84
Other subsidies and payments 2,692 853 853   3,494 1,233 1,233
Total gross budgetary expenditures 204,169 44,421 44,421   208,407 50,675 50,675
Less Revenues netted against expenditures:
Legal services (22,742) (1,683) (1,683)   (22,742) (3,175) (3,175)
Total net budgetary expenditures 181,427 42,738 42,738   185,665 47,500 47,500
Date modified: