Quarterly Financial Report For the Quarter ended September 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 second quarter of 2016-17, the ODPP had total spending authorities of $194,267 thousand available for use as detailed in Chart 1 and Appendix A. This amount represents the 2016-17 Main Estimates and the operating budget carry forward from the last fiscal year. The increase of $6,896 thousand (or 4%) compared to total spending authorities at the same time in the fiscal year 2015-16 ($187,371 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 September 30, 2016

During the second quarter of 2016-17, the ODPP spent $33,151 thousand compared to $39,540 thousand for the same period in 2015-16, as detailed in Appendix B. The decrease of $6,389 thousand (or 16%) is mainly due to the timing of payments.

3.  Year-to-date Authorities and Expenditures as at September 30, 2016

At the end of September 2016, the ODPP had spent $80,651 thousand (or 42%) of its total authorities of $194,267 thousand as detailed in Appendix B. At the same time last year, the ODPP had spent 40% of its total authorities.

Chart 1: Year-to date Authorities and Expenditures as of September 30, 2016, and September 30, 2015 (in thousands of dollars)

Chart 1: Year-to date Authorities and Expenditures as of September 30, 2016, and September 30, 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 September 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 September 30, 2016, the net budgetary authorities were $194,267 thousand and the net budgetary expenditures were $80,651 thousand. For the same period in the previous fiscal year, net budgetary authorities and net budgetary expenditures were $187,371 thousand and $74,838 thousand, respectively.

As of September 30, 2016, the net vote authorities were $22,742 thousand and the revenues netted against expenditures were $7,711 thousand. For the same period in the previous fiscal year, net vote authorities and revenues netted against expenditures were $22,742 thousand and $7,182 thousand, respectively.

As of September 30, 2016, the total budgetary authorities, combining net budgetary authorities and net vote authorities totalled $217,009 thousand, and the total budgetary expenditures, combining net budgetary expenditures and revenues netted against expenditures totalled $88,362 thousand. For the same period in the previous fiscal year, the total budgetary authorities and the total budgetary expenditures totalled $210,113 thousand and $82,020 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:


________________________
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 September 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 September 30, 2015 Year to date used  at quarter-end 
Total Authorities 194,267 33,151 80,651   187,371 39,540 74,838
Vote 1 - Net Operating expenditures 172,393 27,519 69,450   165,951 34,389 64,695
Budgetary Statutory Authorities:
Contributions to employee benefit plans
 19,882 4,971 9,941   18,878 4,720 9,439
Electoral expenditures
 1,992 661 1,260   2,542 431 704
Total Budgetary statutory authorities 21,874 5,632 11,201   21,420 5,151 10,143
Total Budgetary Authorities 194,267 33,151 80,651   187,371 39,540 74,838
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 Sept 30, 2016		 Year to date used  at
quarter-end 		   Planned expenditures for the year ending Mar 31, 2016 Expended during the
quarter ended Sept 30, 2015		 Year to date
used at
quarter-end 
Expenditures:
Personnel 136,064 21,971 62,108   131,973 30,636 60,876
Transportation and communications 7,255 1,413 2,339   8,271 1,412 2,258
Information 624 163 239   585 185 261
Professional, special & other services 62,464 11,936 19,563   57,439 10,603 16,904
Rentals 1,670 375 747   1,417 95 131
Repair and maintenance 2,032 37 95   2,021 229 241
Utilities, materials and supplies 1,903 418 580   1,609 350 525
Acquisition of machinery and equipment 1,013 382 466   820 96 299
Other subsidies and payments 3,984 992 2,225   5,978 234 525
Total gross budgetary expenditures 217,009 37,687 88,362   210,113 43,840 82,020
Less Revenues netted against expenditures:
Legal services (22,742) (4,536) (7,711)   (22,742) (4,300) (7,182)
Total net budgetary expenditures 194,267 33,151 80,651    187,371 39,540 74,838
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