Quarterly Financial Report (unaudited) - 2nd Quarter 2012-2013

ISSN 2562-6426

For the quarter ended September 30, 2012

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 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

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.

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 38% of its authorities in the second 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 second quarter of 2012-13, the CPC's expenditures on personnel totalled 50% 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

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:

_____________________
Ian McPhail, Q.C.
Interim Chair
Ottawa, Canada
October 31, 2012
_____________________
Helen Banulescu
Chief Financial Officer
Ottawa, Canada
October 31, 2012

Statement of Authorities (unaudited)

Fiscal year 2012–13 (in thousands of dollars)
  Total available for use for the year ending March 31, 2013Footnote * Expended during the quarter ended September 30, 2012 Year-to-date used at quarter-end
Return to footnote * referrer Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 65 – Program expenditures $7,707 $1,376 $2,852
Statutory authorities – Employee benefit plans 576 144 288
Total authorities $8,283 $1,520 $3,140
Fiscal year 2011–12 (in thousands of dollars)
  Total available for use for the year ending March 31, 2012Footnote * Expended during the quarter ended September 30, 2011 Year-to-date used at quarter-end
Return to footnote * referrer Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 65 – Program expenditures $8,047 $1,790 $3,203
Statutory authorities – Employee benefit plans 589 147 295
Total authorities $8,636 $1,937 $3,498

Statement of Expenditures by Standard Object (unaudited)

Fiscal year 2012–13 (in thousands of dollars)
Expenditures Planned expenditures for the year
ending March 31, 2013		 Expensed during the quarter ended
September 30, 2012		 Year-to-date used at quarter-end
Personnel  $5,305 $1,274 $2,668
Transportation and communications 399 47 92
Information  100 3 3
Professional and special services 1,757 133 275
Rentals 111 20 41
Purchased repair and maintenance 52 -  3
Utilities, material and supplies 177 14 23
Acquisition of land, buildings and works 60 - -
Acquisition of machinery and equipment 322 28 34
Other subsidies and payments - 1 1
Total gross expenditures $8,283 $1,520 $3,140
Fiscal year 2011–12 (in thousands of dollars)
Expenditures Planned expenditures for the year
ending March 31, 2012		 Expensed during the quarter
ended September 30, 2011		 Year-to-date used at quarter-end
Personnel  $5,650 $1,657 $2,966
Transportation and communications 647 60 105
Information  250 12 15
Professional and special services 894 131 286
Rentals 77 32 50
Purchased repair and maintenance 349 17 23
Utilities, material and supplies 331 25 41
Acquisition of machinery and equipment 70 3 12
Other subsidies and payments 368 - -
Total gross expenditures $8,636 $1,937 $3,498
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