Quarterly Financial Report for period ending June 30, 2012

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 an external audit or review.

1.2 Authority, Mandate and Program

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 program of the Office can be found in the Commission's 2012-13 Report on Plans and Priorities and Main Estimates available on the following websites:  http://www.tbs-sct.gc.ca/rpp/2012-2013/index-eng.asp?acr=1987  and http://www.tbs-sct.gc.ca/est-pre/20122013/me-bpd/docs/me-bpd-eng.pdf.

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 spending authorities granted by Parliament and those used by the department consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2012-2013 fiscal year.  This quarterly report has been prepared using a special purpose financial reporting framework, as prescribed by Treasury Board, designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money 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 (YTD) results

As reflected in the attached Statement of Authorities, the Office's quarterly and year-to-date 2012-13 spending is up $46 thousand from the previous year.  All of the variation can be attributed to timing differences in the payment of invoices.  Invoices for ongoing monthly expenses such as employee benefits, rent and professional services paid in the 1st quarter this year were not all submitted and paid for until the second quarter of 2011-12.

3. Risks and Uncertainties

Accommodations

Work on accommodations is underway and it is hoped that the additional space will be available for use by the third quarter.  Once completed, the Office will be able to engage the staff necessary for both its review and internal service activities.

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

There were no significant changes in relation to operations, personnel and programs.

Approval by Senior Officials

Original signed by:

Honourable Robert Décary, Q.C.
Commissioner

J. William Galbraith
Chief Financial Officer

Ottawa, Canada

September 6, 2012

Statement of Authorities (unaudited)

 (in thousands of dollars)
  Fiscal year 2012-13Fiscal year 2011-2012
Total available for use for the year ending March 31, 2013Used during the quarter ended June 30, 2012Year to date used at quarter-endTotal available for use for the year ended March 31, 2012Used during the quarter ended June 30, 2011Year to date used  at quarter-end
Vote 25 - Program Expenses 1,971 282 282 1,971 246 246
Statutory authorities – Contributions to employee benefit plans 137 33 33 137 23 23
Total Budgetary authorities 2,108 315 315 2,108 269 269
Total authorities 2,108 315 315 2,108 269 269

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)

(In thousands of dollars)
 ExpendituresFiscal year 2012-2013Fiscal year 2011-2012
Planned expenditures for the year ending March 31, 2013Expended during the quarter ended June 30, 2012Year to date used at quarter-endPlanned expenditures for the year ending March 31, 2012Expended during the quarter ended June 30, 2011Year to date used at quarter-end
Personnel 899 231 231 899 219 219
Transportation and communications 177 3 3 177 3 3
Information 79 2 2 79    
Professional and special services 709 51 51 709 42 42
Rentals 165 26 26 165 1 1
Repair and maintenance 5 0 0 5 0 0
Utilities, materials and supplies 15 2 2 15 4 4
Acquisition of land, buildings and works 0 0 0 0 0 0
Acquisition of machinery and equipment 59 0 0 59 0 0
Other subsidies and payments 0 0 0 0 0 0
Total gross budgetary expenditures 2,108 315 315 2,108 269 269
Total net budgetary expenditures 2,108 315 315 2,108 269 269
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