Quarterly Financial Report for the Quarter ended December 31, 2016

From: Parole Board of Canada

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 Accounting Standard 1.3. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates. It has not been subject to an external audit or review.

Authority and Objectives

The Parole Board of Canada (PBC or the Board) is an independent administrative tribunal responsible for making decisions about the timing and conditions of release of offenders to the community on various forms of conditional release. The Board also makes record suspension decisions and recommendations for the exercise of clemency through the Royal Prerogative of Mercy (RPM).

Legislation governing the Board includes the Corrections and Conditional Release Act (CCRA), the Criminal Records Act (CRA), and the Criminal Code. The CCRA empowers the Board to make conditional release decisions for federal offenders and offenders in provinces and territories without their own parole boards. Provincial Boards currently exist in Quebec and Ontario. The CRA entitles the Board to order, deny and revoke record suspensions for convictions under federal acts or regulations. The Governor General or the Governor in Council approves the use of the RPM for those convicted of a federal offence, in all jurisdictions, based on investigations by the Board and recommendations from the Minister of Public Safety.

The Board has one strategic outcome: Conditional release and record suspension decisions and decision processes that safeguard Canadian communities. This strategic outcome is the cornerstone of the Board’s public accountability and reporting of results.

Further details on the Board’s authority, mandate and program activities may be found in the PBC’s Report on Plans and Priorities.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Board’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for the 2016-17 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.

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 Board uses the full accrual method of accounting to prepare and present its annual departmental financial statements which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of Fiscal Quarter and Fiscal Year to Date Results

Significant Changes to Authorities

As at December 31, 2016, total authorities available for the year have increased by $0.9M compared to the same quarter of the previous year, from $48.2M to $49.1M. The major changes are as follows:

Quarter 1:

  • An increase of $0.1 million related to funds received for The Canadian Victims Bill of Rights;
  • An increase of $0.1 million related to the Employee Benefit Plan (EBP).

Quarter 2:

  • A net increase of $0.4 million in regards to the annual amount of operating budget carried-forward from the previous fiscal year; 
  • An increase of $0.1 million related to a reduction for Back Office Transformation which occurred in 2015-16 but not in 2016-17.

Quarter 3:

  • An increase of $0.2 million related to a reduction for Back Office Transformation which occurred in 2015-16 but not in 2016-17.
Third Quarter Expenditures and expenditures to date compared to annual authorities.  Source: PBC. The graph is in the form of a bar chart showing authorities and annual expenditures for the third quarter of 2015-16 and 2016-17.  Authorities. Year 2015-16: $48.2M. Year 2016-17: $49.1M.  Expenditures to date. Year 2015-16: $33.8M. Year 2016-17: $36.2M. Expenditures Q3.  Year 2015-16: $12.0M. Year 2016-17: $11.7M.

Significant Changes to Gross Budgetary Expenditures

Year-to-date (YTD) net spending increased by $2.4M or 7% in 2016-17, compared with the same quarter in 2015-16. Gross budgetary expenditures increased by $1.9M or 5% and the revenue decreased by $490K or 17% in 2016-17 compared to 2015-16. As a percentage of planned expenditures, year-to-date gross spending in the third quarter of 2016-17 increased over that of 2015-16, to 71% compared to 68% ($38.6M in 2016-17 and $36.6M in 2015-16). 

The following paragraphs provide detail of significant changes, focusing on occurrences in the third quarter:

  • Personnel expenditures increased by $85K or 1% in the third quarter of 2016-17 ($709K or 2% increase year-to-date). This increase is largely due to a shortage in full time board members resulting in an increased utilization of part-time at a greater per diem salary cost.
  • Transport and Communications increased by $56K or 12% in the third quarter of 2016-17.  This increase is due to the replenishment of the postage machine that occurred in this quarter of 2016-17 which did not occur in the same quarter of 2015-16. 
  • Information decreased by $6K or 35% compared to the third quarter of 2015-16.  This decrease is due mainly to reduced cost of printing due to implementation of E-File and the Integrated Decision System.  
  • Professional and special services decreased by $245K or 38% in the third quarter of 2016-17 compared to the same period in the previous fiscal year. This is mainly due to the timing differences in recurring payments of legal fees and systems maintenance expenses.  Payments were made in the third quarter of 2015-16 but were not made in the third quarter of 2016-17.   Legal fees were paid in advance starting in 2016-17 and  on a year-to-date basis, expenditures in this area are relatively stable in 2016-17.
  • Repair and maintenance increased by $289K compared with the third quarter of last year. This increase is related to expenditures for the Board’s Edmonton Office relocation and for the Kingston Office renovation.
  • Loans Investments and Advances is a new amount this year due to salary advances and or overpayments made because of various problems related to transition to the new pay system Phoenix.  It increased by $155K in the third quarter to a total of $223K year-to-date for 2016-17.

Significant Changes to Revenues Collected

The number of record suspension applications accepted in the third quarter of 2016-17 was 1,969, which is 5% less than the same quarter in 2015-16. This resulted in a corresponding 5% or $42K decrease in revenues collected in the third quarter of 2016-17 compared to 2015-16.  

Risks and Uncertainties 

The PBC receives its funding through annual Parliamentary authorities. As a result, its operations are affected by any changes in funding approved through Parliament. The Board collects user fees for processing record suspension applications, and has the authority to spend revenues received during the year on activities related to processing applications for record suspensions. If lower than expected volume persists, this will have an impact on the Board’s net financial situation. 

Significant Changes in Relation to Operations, Personnel and Programs

No significant changes in this quarter.

Approval by Senior Officials

Approved by, 

 

Harvey Cenaiko

Chairperson

 

Cathy Gaudet, CPA, CA 

Chief Financial Officer

 

Ottawa, Canada

February 22, 2017

Statement of Authorities (unaudited)

(In thousands of dollars) Fiscal year 2016-2017 Fiscal year 2015-2016
Total available for use for the year ending
March 31, 2017*
Used during the quarter ended
December 31, 2016
Year to date used at quarter-end Total available for use for the year ending
March 31, 2016*
Used during the quarter ended
December 31, 2015
Year to date used at quarter-end
 
Vote 1 – Program expenditures 48,599 11,422 34,001 47,963 11,192 32,226
  Less revenues netted against expenditures 5,645 925 2,368 5,645 967 2,858
Total net Program expenditures 42,954 10,497 31,633 42,318 10,225 29,368
  Budgetary statutory authorities - EBP 6,119 1,530 4,589 5,894 1,473 4,420
Total authorities 49,073 12,027 36,222 48,212 11,698 33,788


Departmental Budgetary Expenditures by Standard Object (unaudited)

(In thousands of dollars) Fiscal year 2016-2017 Fiscal year 2015-2016
Planned expenditures for the year ending
March 31, 2017*
Expended during the quarter ended
December  31, 2016
Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016* Expended during the quarter ended
December 31, 2015
Year to date used at quarter-end
Expenditures
  Personnel 43,977 11,414 33,933 42,955 11,329 33,224
  Transportation and communications 3,960 535 1,521 4,585 479 1,385
  Information 374 11 38 339 17 43
  Professional and  special services 5,362 393 1,639 4,384 638 1,589
  Rentals 198 29 96 249 29 82
  Repair and maintenance 142 315 950 107 26 44
  Utilities, materials and supplies 424 29 74 471 55 126
  Acquisition of machinery and equipment 265 41 62 765 58 105
  Other subsidies and payments 16 30 54 2 34 48
  Loans Investments and Advances - 155 223 - - -
Total gross budgetary expenditures 54,718 12,952 38,590 53,857 12,665 36,646
Total revenues netted against expenditures 5,645 925 2,368 5,645 967 2,858
Total net budgetary expenditures 49,073 12,027 36,222 48,212 11,698 33,788

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

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: