Quarterly Financial Report for the Quarter ended December 31, 2021

Statement outlining results, risks and significant changes in operations, personnel and program

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates. 

A summary description of the Parole Board of Canada (PBC), raison d’être and core responsibilities can be found in Part II of the Main Estimates.

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

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the PBC’s spending authorities granted by Parliament and those used by the department consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2021-22 fiscal year and any respendable revenue earned and available for use to quarter end. 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 money 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 PBC 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.

Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results

As of December 31 2021, total authorities available for fiscal year 2021-22 are $58.0 million compared to $52.8 million for the same period last year. The increase of $5.2 million, or 10%, is explained as follows:

• $2.7 million from the transfer from Correctional Services Canada (CSC) to establish an alternative cost recovery mechanism for the provision of information management and information technology (IM/IT) services;
• $1.3 million in signed collective agreements; and;
• $1.2 million related to the greater amount of Operating Budget Carry Forward compared to 2020-21.

As illustrated in Figure 1, the PBC has spent approximately 71% of its authorities at the end of the third quarter, compared to 72% last year at the same period.

Overall, expenditures have increased $3.6 million, or 9% compared to the previous year in relation to the additional funding received.

Figure 1 - Third Quarter Expenditures Compared to Annual Authorities

Risks and Uncertainties

The PBC operates in a dynamic and complex environment that requires it to be efficient, adaptive and innovative. It uses integrated risk management, including a Corporate Risk Profile that is updated annually, to identify and respond to challenges and opportunities.
The PBC’s key risks and uncertainties are as follows:

• There is a risk that evidence-based decision-making could be affected by a range of factors.
• There is a risk that key activities and functions could be adversely affected, unless the PBC is able to recruit, stabilize, strengthen competencies and capacity, and retain its workforce, while ensuring a healthy and respectful workplace.
• There is a risk that the PBC’s IT capacity and operations will not meet the PBC’s current and evolving needs and support business continuity functions.

Significant changes in relation to operations, personnel and programs

In March 2020, the World Health Organization declared a global pandemic following the outbreak of COVID-19. For the protection of personnel and that of communities’ right across the country, efforts were made to take all public health precautions to prevent the further spread of COVID-19. As a result of COVID-19, the following significant changes occurred in relation to operations, personnel and programs:

• In line with the Government of Canada’s Chief Human Resources Officer’s recommendation and to ensure the PBC is adhering to federal and provincial public safety requirements, employees were asked to work from home as of March 16, 2020 until further notice.
• While offices remain open, most employees are working from home whenever and wherever possible to comply with the health measures for physical distancing to keep employees and Canadians safe. At the PBC, a maximum of 30% of employees are allowed to work from their desk within PBC’s office space.

Approval by Senior Officials

Approved by,

                                                                                                                       
Jennifer Oades                                                Anik Lapointe CPA CGA
Chairperson                                                    Chief Financial Officer

Ottawa, Canada

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)