Quarterly Financial Report for period ending June 30, 2014
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 Canada (CSEC) 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:
- reviewing Communication Security Establishment (CSEC) activities to ensure they comply with the law;
- conducting any investigations deemed necessary in response to complaints about CSEC;
- reviewing and reporting annually to the Minister on review activities carried out under an (ministerial) authorization
- informing the Minister of National Defence and the Attorney General of Canada of any CSEC activities that may not be in compliance with the law; and
- submitting to the Minister for tabling in Parliament, within 90 days after the end of each fiscal year, an annual report on the Commissioner's activities and findings.
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 2014-15 Report on Plans and Priorities and in the Main Estimates available on the following web sites:
http://www.ocsec-bccst.gc.ca/finance/2014-2015/rpp/index_e.php and
http://www.tbs-sct.gc.ca/ems-sgd/me-bpd/20142015/me-bpd02-eng.asp#toc2-91
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 both fiscal years. 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 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.
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 and illustrated in the chart above, the Office's quarterly and year-to-date 2014-15 spending is up $109 thousand from the previous year. This change can be attributed to the following factors:
- an increase of $82 thousand for salaries and benefits;
- an increase of $49 thousand for rent – PWGSC was late in invoicing for rent in 13-14. The rent billings by PWGSC in 14-15 were more timely resulting in an increase in 14-15 of $49,000 over 13-14;
- a decrease of $11 thousand for professional services – information management professional services in the first quarter of 13-14 that were not required in 14-15; and
- an increase of $8 thousand for all other expenditures – the majority of the increase relates to travel costs, 7.6 thousand, for attendance at the 2014 IIRAC (International Intelligence Review Agencies Conference) in London, England.
3. Risks and Uncertainties
Transparency
The current public and media interest in the review and oversight of CSEC continues and it is incumbent on the Office to increase its communications to help ensure that public discourse is based on fact and on information as comprehensive as possible within the confines of the Security of Information Act.
4. Significant changes in relation to operations, personnel and programs
There were no significant changes in relation to operations, personnel and programs.
5. Budget 2012 Implementation
The Office has not been directly affected by the savings measures announced in Budget 2012. However, the Office committed to the Minister to formally review its operations in 16-17 for cost savings following the repayment of reprofiling costs for security retrofit incurred in 2012-13. In the interim, the Office continues to seek more efficient ways to deliver its programs and reduce costs.
Approval by Senior Officials
Original signed by:
The Honourable Jean-Pierre Plouffe, C.D.
Commissioner
J. William Galbraith
Chief Financial Officer
Ottawa, Canada
August 21, 2014
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2015 | Used during the quarter ended June 30, 2014 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 30 - Program Expenses | 1,847 | 436 | 436 |
| Statutory authorities – Contributions to employee benefit plans | 177 | 44 | 44 |
| Total Budgetary authorities | 2,024 | 480 | 480 |
| Total authorities | 2,024 | 480 | 480 |
| Total available for use for the year ended March 31, 2014 | Used during the quarter ended June 30, 2013 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 30 - Program Expenses | 1,979 | 337 | 337 |
| Statutory authorities – Contributions to employee benefit plans | 134 | 34 | 34 |
| Total Budgetary authorities | 2,113 | 371 | 371 |
| Total authorities | 2,113 | 371 | 371 |
Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
| Expenditures: | Planned expenditures for the year ending March 31, 2015 | Expended during the quarter ended June 30, 2014 | Year to date used at quarter-end |
|---|---|---|---|
| Personnel | 1,252 | 336 | 336 |
| Transportation and communications | 36 | 12 | 12 |
| Information | 17 | 2 | 2 |
| Professional and special services | 378 | 52 | 52 |
| Rentals | 310 | 77 | 77 |
| Repair and maintenance | 3 | 0 | 0 |
| Utilities, materials and supplies | 16 | 1 | 1 |
| Acquisition of land, buildings and works | 0 | 0 | 0 |
| Acquisition of machinery and equipment | 12 | 0 | 0 |
| Other subsidies and payments | 0 | 0 | 0 |
| Total gross budgetary expenditures | 2,024 | 480 | 480 |
| Total net budgetary expenditures | 2,024 | 480 | 480 |
| Expenditures: | Planned expenditures for the year ending March 31, 2014 | Expended during the quarter ended June 30, 2013 | Year to date used at quarter-end |
|---|---|---|---|
| Personnel | 904 | 274 | 274 |
| Transportation and communications | 21 | 2 | 2 |
| Information | 20 | 2 | 2 |
| Professional and special services | 838 | 63 | 63 |
| Rentals | 292 | 27 | 27 |
| Repair and maintenance | 3 | 0 | 0 |
| Utilities, materials and supplies | 27 | 3 | 3 |
| Acquisition of land, buildings and works | 0 | 0 | 0 |
| Acquisition of machinery and equipment | 8 | 0 | 0 |
| Other subsidies and payments | 0 | 0 | 0 |
| Total gross budgetary expenditures | 2,113 | 371 | 371 |
| Total net budgetary expenditures | 2,113 | 371 | 371 |
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