Quarterly Financial Report (unaudited) - 1st Quarter 2013-2014

ISSN 2562-6426

For the quarter ended June 30, 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.

Mandate

The Commission for Public Complaints Against the RCMP (CPC) is an independent agency created by Parliament and is not part of the Royal Canadian Mounted Police (RCMP). The CPC's fundamental role is to provide civilian review of the conduct of RCMP members in carrying out their policing duties, thereby holding the RCMP accountable to the public. The CPC ensures that complaints about the conduct of RCMP members are examined fairly and impartially. Its findings and recommendations help identify, correct and prevent the recurrence of policing problems caused by the conduct of specific RCMP members or by deficiencies in RCMP policies or practices. The CPC has the authority to make findings and recommendations, but cannot impose discipline or make monetary awards to complainants. A summary description of the CPC program activities can be found in Part II of the Main 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 2013–14 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 28% 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 2013–14, the CPC's expenditures on personnel totalled 36% 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, as can the payment of retroactive pay and accumulated severance due to the signing of new collective agreements. The CPC is anticipating that spending on personnel will remain high throughout the year as it works to ensure that it is fully staffed to ensure a smooth transition to the Civilian Review and Complaints Commission.

3. Risks and uncertainties

This quarterly report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 20, 2013.

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 maintains the necessary flexibility to undertake important high profile investigations.

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

The CPC was not included in the Budget 2012 saving measures and therefore has not reduced its personnel or programs. On June 19, 2013, Bill C-42, An Act to amend the Royal Canadian Mounted Police Act and to make related and consequential amendments to other Acts, received royal assent. The act creates the Civilian Review and Complaints Commission for the RCMP (CRCC), replacing the existing CPC. The mandate of the new CRCC will include the existing complaint intake, investigation and review functions, as well as new authorities to work jointly with other law enforcement review bodies, conduct reviews of specified RCMP activities, undertake research, conduct outreach efforts, and provide independent observation of investigations of serious incidents involving RCMP members. In addition, the CRCC will be required to implement enhanced reporting to provinces which contract for RCMP services. The provisions which create the CRCC will come into force on a date set by an Order in Council. The government has indicated that it will increase the existing appropriation level of the CPC to meet the demands of the new mandate.

Approved by:

_____________________
Ian McPhail, Q.C.
Interim Chair
Ottawa, Canada
July 15, 2013
_____________________
Helen Banulescu
Chief Financial Officer
Ottawa, Canada
July 15, 2013

Statement of expenditures by standard object (unaudited)

Fiscal year 2013-14 (in thousands of dollars)
  Total available for use for the year ending March 31, 2014Note * Expended during the quarter ended June 30, 2013 Year to date used at quarter-end

* Includes only Authorities available for use and granted by Parliament at quarter-end.
Vote 65 – Program expenditures $4,850 $1,402 $1,402
Statutory authorities– Employee Benefit Plans 576 144 144
Total authorities $5,426 $1,546 $1,546
Fiscal year 2012-13 (in thousands of dollars)
  Total available for use for the year ending March 31, 2013Note * Expended during the quarter ended June 30, 2012 Year to date used at quarter-end
Vote 65 – Program expenditures $7,466 $1,476 $1,476
Statutory authorities – Employee Benefit Plans 576 144 144
Total authorities $8,042 $1,620 $1,620

* Includes only Authorities available for use and granted by Parliament at quarter-end.

Statement of expenditures by standard object (unaudited)

Fiscal year 2013-14 (in thousands of dollars)
Expenditures: Planned expenditures for the year ending March 31, 2014 Expensed during the quarter ended June 30, 2013 Year to date used at quarter-end
Personnel $3,882 $1,402 $1,402
Transportation and communications 246 54 54
Information 55 3 3
Professional and special services 869 56 56
Rentals 105 9 9
Purchased repair and maintenance 42 - -
Utilities, material and supplies 115 5 5
Acquisition of land, buildings and works 32 - -
Acquisition of machinery and equipment 80 17 17
Other subsidies and payments - - -
Total Gross Expenditures $5,426 $1,546 $1,546
Fiscal year 2012-13 (in thousands of dollars)
Expenditures: Planned expenditures for the year ending March 31, 2013 Expensed during the quarter ended June 30, 2012 Year to date used at quarter-end
Personnel $5,305 $1,392 $1,392
Transportation and communications 349 46 46
Information 55 - -
Professional and special services 1,621 142 142
Rentals 111 21 21
Purchased repair and maintenance 42 3 3
Utilities, material and supplies 177 10 10
Acquisition of land, buildings and works 60 - -
Acquisition of machinery and equipment 322 6 6
Other subsidies and payments - - -
Total Gross Expenditures $8,042 $1,620 $1,620
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