Quarterly Financial Report For the quarter ended December 31, 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 the 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 2017-18, the ODPP had total spending authorities of $191.7 million available for use as detailed in Chart 1 and Appendix A. This amount represents the 2017-18 Main Estimates, the operating budget carry forward from the last fiscal year, and the collective agreement received. The decrease of $3 million (or 2%) compared to total spending authorities at the same time in fiscal year 2016-17 ($194.7 million) is mainly due to a decrease in funding for professional services (collection of outstanding federal fines) as well as a decrease in anticipated expenditures in personnel (employee benefits plan).

2.  Expenditures for the Quarter ended December 31, 2017

During the third quarter of 2017-18, the ODPP spent $44.3 million compared to $38.9 million for the same period in 2016-17, as detailed in Appendix B. The increase of $5.4 million (or 14%), is mainly due to an increase in professional services expenditures due to the timing of payments, combined with a slower collection of revenues compared to the last year.

3.  Year-to-date Authorities and Expenditures as at December 31, 2017

At the end of December 2017, the ODPP had spent $135 million (or 70%) of its total authorities of $191.7 million as detailed in Appendix B. At the same time last year, the ODPP had spent 61% of its total authorities.

Chart 1: Comparison of Budgetary Authorities and Expenditures as of December 31, 2017, and December 31, 2016 (in thousands of dollars)

Chart 1: Year-to-date Authorities and Expenditures as of December 31, 2017, and December 31, 2016 (in thousands of dollars)

Text Description

The chart presents the ODPP's year-to-date net budgetary authorities and net budgetary expenditures as of December 31 for the fiscal years 2017-18 and 2016-17. The chart also shows the net vote authorities and the revenues netted against expenditures for the same period.

As of December 31, 2017, the net budgetary authorities were $191.7 million and the net budgetary expenditures were $135 million. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $194.7 million and $119.5 million, respectively.

As of December 31, 2017, the net vote authorities were $22.7 million and the revenues netted against expenditures were $8.9 million. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22.7 million and $13.4 million, respectively.

As of December 31, 2017, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $214.4 million, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $143.9 million. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $217.4 million and $132.9 million, 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 third quarter of fiscal year 2017-18.

Approval by Senior Officials

Approved by:


________________________
Kathleen Roussel
Director of Public Prosecutions and Deputy Attorney General of Canada


Ottawa, Canada


________________________
Date




_______________________
Mélanie Lamoureux, CPA, CMA
Acting 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 
March 31, 2018Table Note *
Used during the quarter ended
December 31, 2017
Year to date used at quarter-end    Total available for use for the year ending 
March 31, 2017
Used during the quarter ended
December 31, 2016
Year to date used  at quarter-end 
Vote 1 - Net Operating expenditures 171,883 38,848 119,222   172,823 33,124 102,574
Budgetary Statutory Authorities:
Contributions to employee benefit plans
18,216 4,554 13,662   19,882 4,971 14,912
Electoral expenditures
1,554 916 2,136   1,992 783 2,043
Total Budgetary statutory authorities 19,770 5,470 15,798   21,874 5,754 16,955
Total Budgetary Authorities 191,653 44,318 135,020   194,697 38,878 119,529
Non-budgetary Authorities 0 0 0   0 0 0
Total Authorities 191,653 44,318 135,020   194,697 38,878 119,529

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
March 31, 2018
Expended during the quarter ended
December 31, 2017
Year to date used  at quarter-end    Planned expenditures for the year ending
March 31, 2017
Expended during the quarter ended
December 31, 2016
Year to date used at quarter-end 
Expenditures:
Personnel 136,204 30,534 94,728   136,494 31,250 93,358
Transportation and communications 7,864 1,472 4,026   7,255 1,715 4,054
Information 576 153 377   624 172 411
Professional, special & other services 60,147 15,236 41,347   62,464 10,325 29,888
Rentals 2,395 636 1,425   1,670 712  1,459 
Repair and maintenance 1,898 310 395   2,032 379 474
Utilities, materials and supplies 1,568 368 931   1,903 349 929 
Acquisition of machinery and equipment 712 233 530   1,013 156 622
Other subsidies and payments 3,031 (843) 137   3,984 (518) 1,707 
Total gross budgetary expenditures 214,395 48,099 143,896   217,439 44,540 132,902
Less Revenues netted against expenditures:
Legal services   (22,742) (3,781) (8,876)   (22,742) (5,662) (13,373)
Total net budgetary expenditures 191,653 44,318 135,020   194,697 38,878 119,529
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