Quarterly Financial Report ending September 30, 2016

Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

1.1 Background to the Quarterly Report

As per the Treasury Board Accounting Standard (TBAS) 1.3, the Office of the Communications Security Establishment Commissioner (Office) is submitting its quarterly report.

This section of the quarterly financial report should be read in conjunction with the Main Estimates (and as applicable - Supplementary Estimates and previous interim reports for the current year).  The 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 financial report has not been subject to external audit or review.

1.2 Authority, Mandate and Program

The position of Communications Security Establishment Commissioner was created to review the activities of Communications Security Establishment (CSE) to determine whether it performs its duties and functions in accordance with the laws of Canada.  This includes having due regard for the privacy of Canadians.

The Commissioner derives his authority and mandate from the National Defence Act:

In addition the Commissioner also has a mandate under the Security of Information Act to receive information from persons who are permanently bound to secrecy seeking to release special operational information on the grounds that it is in the public interest.

Further information on the mandate, roles, responsibilities and programs of the Office can be found in the Office's 2016–17 Report on Plans and Priorities and in the
Main Estimates.

1.3 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting.  The accompanying Statement of Authorities includes the Office's spending authorities granted by Parliament and those used by the Office consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2016–17 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 monies 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 Office 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.

2. Highlights of fiscal quarter and fiscal year-to-date results

It should be noted that the Authorities in the Statement of Authorities and the Planned Expenditures in Table 1: Departmental Budgetary Expenditures by Standard Object have been adjusted to account for the receipt of the operating budget carry-forward ($85,435) from fiscal year 2015–16.

Second Quarter

Highlights of the second fiscal quarter

As reflected in the attached Statement of Authorities and in Table 1 Departmental Budgetary Expenditures by Standard Object (below) and illustrated in the chart (above), the Office's second quarter spending in 2016–17 is down $155 thousand from the same quarter of the previous year. 

This decrease can be attributed to the following factors:

Year-to-date

Highlights of year to date

As reflected in the attached Statement of Authorities and in Table 1 Departmental Budgetary Expenditures by Standard Object (below) and illustrated in the chart (above), the Office's year to date spending in 2016–17 is down $58 thousand from the year-to-date expenditures in 2015–16.

This change can be attributed to the following factors:

3. Risks and Uncertainties

The program is being delivered as intended within the resources available.  The Office is in the process of filling a review officer position to ensure program delivery is not impacted.

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

The Office is in the process of filling a full-time review officer position as a result of an employee departure during the second quarter. There were no significant changes in relation to operations and programs.

5. Approval by Senior Officials

Original signed by:

The Honorable Jean-Pierre Plouffe, CD
Commissioner

J. William Galbraith
Chief Financial Officer

Ottawa, Canada
November 10, 2016

Statement of Authorities (unaudited)

Fiscal year 2016–17 (in thousands of dollars)
  Total available for use for the year ending March 31, 2017 Used during the quarter ended Sept 30, 2016 Year to date used at quarter-end
Vote 1 - Program Expenses 2,026 393 803
Statutory authorities – Contributions to employee benefit plans 185 47 93
Total Budgetary authorities 2,211 440 896
Total authorities 2,211 440 896
Fiscal year 2015–16 (in thousands of dollars)
  Total available for use for the year ended March 31, 2016 Used during the quarter ended Sept 30, 2015 Year to date used at quarter-end
Vote 1 - Program Expenses 1,942 550 864
Statutory authorities – Contributions to employee benefit plans 181 45 90
Total Budgetary authorities 2,123 595 954
Total authorities 2,123 595 954

Table 1: Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2016–17 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended Sept 30, 2016 Year to date used at quarter-end
Personnel 1,323 317 634
Transportation and communications 32 4 10
Information 24 10 14
Professional and special services 446 48 96
Rentals 317 54 130
Repair and maintenance 4 1 1
Utilities, materials and supplies 27 6 11
Acquisition of land, buildings and works 0 0 0
Acquisition of machinery and equipment 38 0 0
Other subsidies and payments 0 0 0
Total gross budgetary expenditures 2,211 440 896
Total net budgetary expenditures 2,211 440 896
Fiscal year 201516 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended Sept 30, 2015 Year to date used at quarter-end
Personnel 1,258 389 687
Transportation and communications 40 3 9
Information 17 7 12
Professional and special services 470 63 110
Rentals 310 127 127
Repair and maintenance 1 1 1
Utilities, materials and supplies 17 5 8
Acquisition of land, buildings and works 0 0 0
Acquisition of machinery and equipment 10 0 0
Other subsidies and payments 0 0 0
Total gross budgetary expenditures 2,123 595 954
Total net budgetary expenditures 2,123 595 954
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