Quarterly Financial Report for the Quarter ended June 30, 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 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.

Graph: Comparison of Budgetary Authorities and Expenditures as of June 30, 2016, and June 30, 2015 (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 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 June 30, 2016, the net budgetary authorities were $185,665 thousand and the net budgetary expenditures were $47,500 thousand. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $178,718 thousand and $35,298 thousand, respectively.

As of June 30, 2016, the net vote authorities were $22,742 thousand and the revenues netted against expenditures were $3,175 thousand. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22,742 thousand and $2,881 thousand, respectively.

As of June 30, 2016, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $208,407 thousand, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $50,675 thousand. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $201,460 thousand and $38,179 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.

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

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 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 
Total Authorities 185,665 47,500 47,500   178,718 35,298 35,298
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
19,882 4,970 4,970   18,878 4,720 4,720
Electoral expenditures
1,992 599 599   2,542 272 272
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
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 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 
Expenditures:
Personnel 136,064 40,137 40,137   131,973 30,241 30,241
Transportation and communications 6,363 926 926   7,250 845 845
Information 547 76 76   513 76 76
Professional, special & other services 56,135 7,627 7,627   51,340 6,301 6,301
Rentals 1,464 372 372   1,242 36 36
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:
Legal services (22,742) (3,175) (3,175)   (22,742) (2,881) (2,881)
Total net budgetary expenditures 185,665  47,500  47,500    178,718 35,298 35,298
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