Quarterly Financial Report (unaudited) - 3rd Quarter 2011-2012

For the quarter ended December 31, 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 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 2011-12 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 65% of its authorities by the third 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 third quarter of 2011-2012, the CPC's expenditures on personnel totalled 75% 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 Quarterly Report reflects the results of the current fiscal period in relation to the Main Estimates and Supplementary Estimates A and B, for which full supply was released on June 27, 2011 and December 19, 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. The 2010-11 operating budget did not include any funds to cover annual salary increases of 1.5%. The CPC has estimated that for fiscal year 2011-12 the freeze represents a cumulative impact of approximately $140 thousand. Management is reviewing various options to adjust to this constraint in funding for 2011-12 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

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

Approved by:

_____________________
Ian McPhail, Q.C.
Interim Chair
Ottawa, Canada
January 25, 2012

_____________________
Helen Banulescu
Chief Financial Officer
Ottawa, Canada
January 25, 2012

Statement of Authorities (unaudited)

Fiscal year 2011-12 (in thousands of dollars)
Fiscal year 2011-12 Total available for use for the year ending
March 31, 2012*
Expended during the quarter ended
December 31, 2011
Year to date used at quarter-end
Vote 65 – Program expenditures $8,056 $2,070 $5,273
Statutory authorities – Employee Benefit Plans 589 147 442
Total authorities $8,645 $2,217 $5,715

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


Fiscal year 2010-11 (in thousands of dollars)
Fiscal year 2010-11 Total available for use for the year ending
March 31, 2011*
Expended during the quarter ended
December 31, 2010
Year to date used at quarter-end
Vote 75 – Program expenditures $7,723 $1,485 $4,761
Statutory authorities – Employee Benefit Plans 558 139 418
Total authorities $8,281 $1,624 $5,179

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

Statement of Expenditures by Standard Object (unaudited)

Expenditures: Fiscal year 2011-12 (in thousands of dollars)
Expenditures: Fiscal year 2011-12 Planned expenditures for the year ending
March 31, 2012
Expensed during the quarter ended
December 31, 2011
Year to date used at quarter-end
Personnel $5,659 $1,250 $4,216
Transportation and communications 647 63 168
Information 250 2 17
Professional and special services 894 748 1,034
Rentals 77 28 78
Purchased repair and maintenance 349 59 82
Utilities, material and supplies 331 28 69
Acquisition of machinery and equipment 70 39 51
Other subsidies and payments 368    
Total Gross Expenditures $8,645 $2,217 $5,715

Expenditures: Fiscal year 2010-11 (in thousands of dollars)
Expenditures: Fiscal year 2010-11 Planned expenditures for the year ending
March 31, 2011
Expensed during the quarter ended
December 31, 2010
Year to date used at quarter-end
Personnel $5,304 $1,118 $3,414
Transportation and communications 583 85 176
Information 386 4 24
Professional and special services 1,497 246 1,282
Rentals 75 30 71
Purchased repair and maintenance 50 94 100
Utilities, material and supplies 18 35 76
Acquisition of machinery and equipment   12 34
Other subsidies and payments 368 - 2
Total Gross Expenditures $8,281 $1,624 $5,179
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