Quarterly Financial Report (unaudited) - 2nd Quarter 2011-2012

For the quarter ended September 30, 2011

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 the 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 2011-2012 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 41% 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 2011-2012, the CPC's expenditures on personnel totalled 52% 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 year-over-year increase in both spending and budget on personnel expenditures is primarily due to the signing of new collective agreements with a number of employee groups. The new agreements terminated the accumulation of severance pay for voluntary departures from the public service and allowed a one-time payout of accumulated severance. The CPC received an increase to its allotment from Treasury Board centrally-managed Vote 30 equal to the amount it paid out for the one-time payment over the quarter.

3. Risks and Uncertainties

This Departmental Quarterly Financial Report (QFR) 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 27, 2011.

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. Management is reviewing various options to adjust to this constraint in funding.

As previously mentioned, the CPC has no control over serious incidents between the RCMP and the public. Such events impact on workloads across the CPC and have the potential to negatively impact 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

There have been no significant changes in relation to operations, personnel and programs over the last year.

Originally signed by:
_____________________
Ian McPhail, Q.C.
Interim Chair
Ottawa, Canada
November 22, 2011

Originally signed by:
_____________________
Helen Banulescu
Chief Financial Officer
Ottawa, Canada
November 22, 2011

Statement of Authorities (unaudited)

Fiscal year 2011-2012 (in thousands of dollars)
Fiscal year 2011-2012 Total available for use for the year ending March 31, 2012 * Used during the quarter ended September 30, 2011 Year to date used 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

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


Fiscal year 2010-2011 (in thousands of dollars)
Fiscal year 2011-2012 Total available for use for the year ending March 31, 2011 * Used during the quarter ended September 30, 2010 Year to date used at quarter-end
Vote 75 – Program expenditures $7,723 $1,979 $3,276
Statutory authorities – Employee Benefit Plans 558 139 279
Total authorities $8,281 $2,118 $3,555

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

Statement of Expenditures by Standard Object (unaudited)

Expenditures: Fiscal year 2011-2012 (in thousands of dollars)
Expenditures: Fiscal year 2011-2012 Planned expenditures for the year ending March 31, 2012 Expended 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, materials 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

Expenditures: Fiscal year 2010-2011 (in thousands of dollars)
Expenditures: Fiscal year 2010-2011 Planned expenditures for the year ending March 31, 2011 Expended during the quarter ended September 30, 2010 Year to date used at quarter-end
Personnel $5,304 $1,129 $2,296
Transportation and communications 583 48 91
Information 386 15 20
Professional and special services 1,497 856 1,036
Rentals 75 17 41
Purchased repair and maintenance 50 6 6
Utilities, materials and supplies 18 24 41
Acquisition of machinery and equipment 22 22
Other subsidies and payments 368 2 2
Total Gross Expenditures $8,281 $2,119 $3,555
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