Quarterly Financial Report for the Quarter Ended September 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 29% of its authorities in the second quarter of 2023‑24 compared to 18% in 2022‑23. The Commission’s total authorities increased by $222,000 from last quarter, which is the amount of the Operating Budget Carry-Forward received. Similarly, the Commission’s total budgetary expenditures increased by $551,000 in the second quarter of 2023‑24, compared to the same period in 2022‑23. This variance is mostly explained by increases in expenditure in the following areas:
- Personal expenses in the second quarter have increased by $283,000 compared to the second quarter of the previous fiscal year. This increase, similar to the first quarter of 2023-24, can be attributed to the Commission now being fully staffed, including a full-time Chairperson for the first time since October 2021.
- The second quarter of 2023-24 has brought an increase in expenditure related to Rentals of $156,000 in comparison to the same period last year. This amount can be attributed to a timing delay in the billing of invoices for monthly rent. The invoices for the previous quarter were paid in this quarter.
- The Commission has also seen an increase of $74,000 in Professional Services. This is mainly the result of an increase in expenditure related to investigative services in the second quarter compared to both the first quarter of the current fiscal year, and the second quarter of 2022-23. While there has been less spending on legal services in this quarter compared to the last quarter, expenditures on language training have increased this fiscal year compared to the previous.
- Transportation and Communications bring another expenditure increase of $26,000 from the previous fiscal year, explained in part by increased expenditures related to public servant travel for employee training ($18,000), and an increase in Internet Enterprise services ($8,000) received from Shared Services Canada.
The total authorities available for use this fiscal year is $27,000 less than 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.
The following graph shows that after two quarters, the Commission has spent more than half its authorities, which is significantly higher compared to the same period last fiscal year. This signals a need for additional funding, as many of these expenditures are unavoidable.
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, with several responsibilities but without a direct feeder group unlike in larger organizations. 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
During the second quarter of 2023-24, the Commission communicated to the Department of National Defence the need for additional funding to be able to deliver on its mandate. A transfer of $300,000 was agreed and has been included in the Commission’s 2023-24 Supplementary Estimates B request. The Commission is expecting to receive this temporary funding towards the end of 2023, therefore, to be reflected in the third quarter financial report. This funding was requested due to the higher costs related to both an increase in number and complexity of complaints filed with the Commission.
5. Approval by Senior Officials
This section is to provide the approval of Senior Officials, as required by the Policy on Financial Management.
Original signed by
Me Tammy Tremblay, MSM, CD, LL.M
Original signed by
Chief Financial Officer
November 15, 2023
Appendix A - Statement of Authorities (unaudited)
|Total available for use for the year ended March 31, 2024Note *||Used during the quarter ended September 30, 2023||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||4,631||1,381||2,473|
|Budgetary statutory authorities - Contributions to employee benefit plans||447||112||224|
|Total available for use for the year ended March 31, 2023Note *||Used during the quarter ended September 30, 2022||Year to date used at quarter-end|
|Vote 1 - Net operating expenditures||4,659||905||1,782|
|Budgetary statutory authorities - Contributions to employee benefit plans||446||37||186|
Appendix B - Departmental Budgetary Expenditures by Standard Object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31, 2024||Expended during the quarter ended September 30, 2023||Year to date used at quarter-end|
|Transportation and communications||82||28||52|
|Professional and special services||920||165||253|
|Repair and maintenance||13||2||2|
|Utilities, materials and supplies||15||1||1|
|Acquisition of land, buildings and works||20||0||0|
|Acquisition of machinery and equipment||120||16||26|
|Other subsidies and payments||0||0||0|
|Total net budgetary expenditures||5,078||1,493||2,697|
|Expenditures||Planned expenditures for the year ending March 31, 2023||Expended during the quarter ended September 30, 2022||Year to date used at quarter-end|
|Transportation and communications||80||2||4|
|Professional and special services||861||91||136|
|Repair and maintenance||11||0||0|
|Utilities, materials and supplies||17||0||1|
|Acquisition of land, buildings and works||11||0||17|
|Acquisition of machinery and equipment||190||0||0|
|Other subsidies and payments||0||0||0|
|Total net budgetary expenditures||5,105||942||1,968|
- Date modified: