Quarterly Financial Report for the Quarter Ended June 30, 2023
Table of contents
- Highlights of fiscal quarter and fiscal year to date results
- Risks and Uncertainties
- Significant changes in relation to operations, personnel and programs
- Approval by Senior Officials
- Appendix A - Statement of Authorities (unaudited)
- Appendix B - Departmental Budgetary Expenditures by Standard Object (unaudited)
Statement outlining results, risks and significant changes in operations, personnel and program
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. This report has not been subject to an external audit or review.
The Military Police Complaints Commission of Canada (the Commission) reviews and investigates complaints concerning Military Police conduct and investigates allegations of interference in Military Police investigations. It reports its findings and makes recommendations directly to the Military Police and National Defence leadership. Further details on the Commission’s mandate and responsibilities may be found in the 2023-2024 Departmental Plan.
1.1 Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Commission’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates for the fiscal year 2023‑24. 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.
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 Commission uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results 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
This section highlights the significant variances between actual expenditures and planned expenditures that affected both the quarter and the year to date results, compared to the same period the preceding fiscal year.
The Statement of Authorities below shows that the Commission spent approximately 25% of its authorities in the first quarter of 2023‑24 compared to 21% in 2022‑23. Similarly, the Commission’s total budgetary expenditures increased by $178,000 in the first quarter of 2023‑24, compared to the same period in 2022‑23. This variance is mostly explained by an increase in the following areas:
- Personal expenses in the first quarter increased by $196,000 compared to the previous fiscal year. Unlike the first quarter of last fiscal year, the Commission was now fully staffed, including a full-time Chairperson for the first time since October 2021.
- There was an increase in the cost of internal support services received from other federal government departments through service level agreements. Fixed costs make up half of the Commission’s operating budget and increase every year.
The total authorities available for use this fiscal year is $29,000 less than the last fiscal year. From 2017-18 to 2022-23, the Commission had been drawing $60,000 annually from a frozen allotment reprofile on collective bargaining obligations, resulting from an excess lapse in our Personnel allotments in 2015-16. Starting this fiscal year, we are no longer receiving this amount. The Commission has also received $30,000 in new compensation allocations through the Main Estimates, and an additional $1,000 towards employee benefit plan contributions.
Additional Financial Information: Additional financial information on the Commission’s financial and expenditure management can be found in the Departmental Plans, the Annual Reports, the Departmental Results Reports, the Future-oriented Financial Statements, the Quarterly Financial Reports and the Annual Financial Statements.
3. Risks and Uncertainties
The Commission is complaint based and therefore a risk the Commission will always face is the uncertainty regarding the number and complexity of complaints it must monitor and/or investigate each year. Within the last few years, the Commission has experienced an unforeseeable increase in expenses related to the quantity and complexity of complaints. The reality is that it is difficult to predict if this recent rise is a trend that will continue.
Since 2022, the Commission has seen an increase in conduct complaint files related to sexual misconduct, as well as an increase in the general workload of conduct complaints files, review/interference files, and Public Interest Investigations. These files require more resources. In addition to external investigator expenses, many other costs are incurred, such as legal services, court transcripts, investigator travel, interview transcriptions, and translation of key documents to comply with the Official Language Act. These operational services received by external providers increase year after year.
While the number and complexity of files continue to grow steadily, the Commission’s funding has remained unchanged since 2013. Combined with the increase in our fixed costs, there is a risk that the Commission will reach its financial breaking point in the near future.
In terms of Human Resources Management, working in a micro-organization, Commission employees often occupy unique positions. It is important to retain skilled employees and reduce hiring delays when vacancies arise. This is a constant challenge, especially for a micro-organization. To mitigate this risk, the Commission will continue to be proactive in hiring staff and offering flexible work arrangements to employees.
4. Significant Changes in Relation to Operations, Personnel and Programs
Me Tammy Tremblay was appointed as the Chairperson of the Commission and commenced her term on January 3, 2023. This change brings stability to the position, as it had not been permanently staffed since October 2021.
Throughout the first quarter of 2023‑24, the Commission maintained the implementation of its efficient hybrid model established in the first half of 2022 and which took effect in September 2022. In addition, progressive solutions have been put in place to increase the global on-site presence of employees, balancing the benefits of the hybrid model, and fostering employee collaboration.
5. Approval by Senior Officials
Original signed by
Me Tammy Tremblay, MSM, CD, LLM
Original signed by
Acting Senior Director, Corporate Services and Chief Financial Officer
August 10, 2023
Appendix A - Statement of Authorities (unaudited)
|Total available for use for the year ended March 31, 2024Note *||Used during the quarter ended June 30, 2023||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||4,409||1,092||1,092|
|Budgetary statutory authorities - Contributions to employee benefit plans||447||112||112|
|Total available for use for the year ended March 31, 2023Note *||Used during the quarter ended June 30, 2022||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||4,439||877||877|
|Budgetary statutory authorities - Contributions to employee benefit plans||446||149||149|
Appendix B - Departmental Budgetary Expenditures by Standard Object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31, 2024||Expended during the quarter ended June 30, 2023||Year to date used at quarter-end|
|Transportation and communications||62||24||24|
|Professional and special services||750||88||88|
|Repair and maintenance||8||0||0|
|Utilities, materials and supplies||12||0||0|
|Acquisition of land, buildings and works||20||0||0|
|Acquisition of machinery and equipment||120||10||10|
|Other subsidies and payments||0||0||0|
|Total net budgetary expenditures||4,856||1,204||1,204|
|Expenditures||Planned expenditures for the year ending March 31, 2023||Expended during the quarter ended June 30, 2022||Year to date used at quarter-end|
|Transportation and communications||80||2||2|
|Professional and special services||771||45||45|
|Repair and maintenance||11||0||0|
|Utilities, materials and supplies||17||1||1|
|Acquisition of land, buildings and works||11||0||0|
|Acquisition of machinery and equipment||70||17||17|
|Other subsidies and payments||0||0||0|
|Total net budgetary expenditures||4,885||1,026||1,026|
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