Quarterly Financial Report (unaudited) - 1st Quarter 2012-2013

1. 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. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the CPC's spending authorities granted by Parliament and those used by the agency, consistent with the Main Estimates and Supplementary Estimates for the 2012-13 fiscal year. This quarterly report has been prepared using a special purpose 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.

As part of the departmental performance reporting process, the CPC prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

The quarterly report has not been subject to an external audit or review.

2. Highlights of fiscal quarter and fiscal year to date (YTD) results

The CPC's quarterly and year-to-date spending are in line with that of the previous year. Any difference is due to the timing of purchases. The CPC has spent approximately 20% of its authorities by the first quarter. CPC's expenditures are influenced by the number and complexity of complaints and request for reviews it receives. A significant policing incident or a spike in complaints and/or requests for reviews could significantly increase expenditures and result in resource pressures. The CPC has ensured that there is sufficient flexibility within its budget to respond in a manner that fulfils its mandate.

By the end of the first quarter of 2012-2013, the CPC's expenditures on personnel totalled 26% of its planned expenditures. Given the CPC's small size, the departure or hiring of a handful of employees in one quarter can have a significant impact on the quarter's expenditures. The CPC is anticipating that spending on personnel will remain high throughout the year as it works to ensure that it is fully staffed, should it receive a new mandate.

3. Risks and Uncertainties

This Quarterly Report reflects the results of the current fiscal period in relation to the Main Estimates and Supplementary Estimates A, for which full supply was released on June 29, 2012.

Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-11 levels for the fiscal years 2011-12 and 2012-13. Operating budgets did not include any funds to cover annual salary increases of 1.5% in 2010-11, 1.75% in 2011-12 and 1.5% in 2012-13. The CPC has estimated that for fiscal year 2012-13 the freeze represents a cumulative impact of approximately $210 thousand. Management is reviewing various options to adjust to this constraint in funding for 2012-13 and beyond.

As previously mentioned, the CPC has no control over serious incidents between the RCMP and the public. Such events may impact on workloads across the CPC and have the potential to negatively affect the achievement of service standards. As well, without careful planning, the CPC may not have sufficient financial or human resources to respond to such events. Through the use of supply arrangements for specialized investigators, the tracking of workloads within the CPC, and where needed, the reallocation of staff, the CPC has the capacity to undertake important high profile investigations.

Like all small agencies, the CPC faces the risk of not having the necessary human resources, due to retention and recruitment challenges. To mitigate this risk, the CPC has made it a priority to maintain an effective integrated business and human resources plan and has developed policies to maintain a workplace of choice.

4. Significant changes in relation to operations, personnel and programs

The CPC was not included in the Budget 2012 saving measures and therefore there have not been any significant changes in relation to operations, personnel and programs over the last year.

Approved by:

Statement of Authorities (unaudited)

Statement of Expenditures by Standard Object (unaudited)