Quarterly Financial Report for the Quarter Ended June 30, 2020

Introduction
Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) 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

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. This report has not been subject to an external audit or review.

The Military Police Complaints Commission of Canada (MPCC) reviews and investigates complaints concerning Military Police (MP) conduct and investigates allegations of interference in MP investigations. It reports its findings and makes recommendations directly to the MP and national defence leadership.

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 MPCC’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates for the fiscal year (FY) 2020‑21. 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 MPCC 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

The Statement of Authorities below shows that the MPCC spent approximately 20% of its authorities in the first quarter of 2020‑21 compared to 20% in previous fiscal year.

The MPCC’s total budgetary expenditures increased by $26,000 in the first quarter of 2020‑21, compared to the same period in previous fiscal year. The major variances are the following:

Personnel expenses during the first quarter increased by $105,000 in comparison to the same period last fiscal year. The increase is a result of additionnal expenditures related to pay for part-time and seasonal employees;
The first quarter of 2020‑21 saw a $57,000 decrease in Professional and Special Services. This decrease is a result of reduced expenditures related to contracts for investigator services, management consulting, professional contracting and consulting services, and other professional services;
There was a decrease of $15,000 in Transportation and Communication expenses in the first quarter. This variance is largely explained by reduced travel expenditures for our investigators as well as for employee training.

The total authorities available for use this fiscal year is $45,000 greater than last fiscal year. This is a result of an addition of $52,000 compensation allocations received through the Main Estimates and a decrease in contributions to employee benefit plan in the amount of $7,000.

Additional Financial Information: Additional financial information on the MPCC’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

An unavoidable risk the MPCC will always face is the uncertainty regarding the number and complexity of complaints it must monitor and/or investigate each year. The MPCC cannot control the time it takes a complaint to be resolved. It must depend upon the efficiency of its investigative partners and the speed with which the Provost Marshal responds to the MPCC’s interim reports.

4. Significant Changes in Relation to Operations, Personnel and Programs

The Full Supply has been delayed this fiscal year, and as a result, the MPCC received 3/12^ths of its Main Estimates in March (supply bill 1) and an additional 6/12^ths in June (supply bill 2). The MPCC anticipates receiving the remaining 3/12^ths in December. In order to ensure compliance with these allocations, the MPCC has put in place additional internal controls to track its purchasing and spending and will be reporting results to the Executive Committee on a quarterly basis.

5. Approval by Senior Officials

This section is to provide the approval of Senior Officials, as required by the Policy on Financial Management.

Approved by:

Original signed by
________________________
Hilary McCormack
Chairperson

Original signed by
________________________
Richard Roulx
Senior Director of Corporate Services

Ottawa, Canada
July 16, 2020

Appendix A - Statement of Authorities (unaudited)

**Statement of Authorities (unaudited) for Fiscal Year 2020‑21** (in thousands of dollars)
Authority Vote/Statutory	Total available for use for the year ended March 31, 2021^{Note *}	Expended during the quarter ended June 30, 2020	Year-to-date used at quarter-end
Vote 1 - Net operating expenditures	4,372	853	853
Budgetary statutory authorities - Contributions to employee benefit plans	430	108	108
Total Authorities	4,802	961	961

**Statement of Authorities (unaudited) for Fiscal Year 2019‑20** (in thousands of dollars)
Authority Vote/Statutory	Total available for use for the year ended March 31, 2020^{Note *}	Expended during the quarter ended June 30, 2019	Year-to-date used at quarter-end
Vote 1 - Net operating expenditures	4,320	826	826
Budgetary statutory authorities - Contributions to employee benefit plans	437	109	109
Total Authorities	4,757	935	935

Appendix B - Statement of Authorities (unaudited)

**Departmental Budgetary Expenditures by Standard Object (unaudited) for Fiscal Year 2020‑21** (in thousands of dollars)
Expenditures	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended June 30, 2020	Year-to-date used at quarter-end
Personnel	3,338	842	842
Transportation and communications	136	4	4
Information	66	1	1
Professional and special services	831	77	77
Rentals	360	23	23
Repair and maintenance	5	0	0
Utilities, materials and supplies	21	1	1
Acquisition of land, buildings and works	3	0	0
Acquisition of machinery and equipment	42	13	13
Other subsidies and payments	0	0	0
Total net budgetary expenditures	4,802	961	961

**Departmental Budgetary Expenditures by Standard Object (unaudited) for Fiscal Year 2019‑20** (in thousands of dollars)
Expenditures	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended June 30, 2019	Year-to-date used at quarter-end
Personnel	3,292	737	737
Transportation and communications	167	19	19
Information	67	8	8
Professional and special services	739	134	134
Rentals	351	30	30
Repair and maintenance	1	0	0
Utilities, materials and supplies	31	5	5
Acquisition of land, buildings and works	13	0	0
Acquisition of machinery and equipment	96	2	2
Other subsidies and payments	0	0	0
Total net budgetary expenditures	4,757	935	935

Date modified:: 2020-08-06