Quarterly Financial Report for the Quarter ended June 30, 2020

From: Parole Board of Canada

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

Erratum

Date: March 8, 2021

The following revisions are made to the previously published Quarterly Financial Report to correct the actual amount of authorities available and to include impacts of the COVID-19 pandemic.

In the “Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results” section, the actual total authorities available for fiscal year 2020-21 are $31.4 million and not $47.3 million as previously stated. Due to the COVID-19 pandemic, the Parole Board of Canada (PBC) did not receive full supply of the Main Estimates in June as in the previous year. This change in authorities is now reflected in the section and in the “Statement of Authorities” table as the previous figures did not reflect the reduced authorities available for use as a result of limited sessions in Parliament related to COVID-19 pandemic.

In the “Risks and Uncertainties” and “Significant changes in relation to operations, personnel and programs” sections, we added the description of the impacts of the pandemic, similarly to what was added in the report for the quarter ended in September 2020.

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 2020-2021 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

Total authorities available for fiscal year 2020-21 are $31.4 million compared to $47.4 million as of June 30, 2019. The decrease of $16.0 million, or 34%, is explained by:

As illustrated in Figure 1, the PBC has spent approximately 37% of its authorities at the end of the first quarter, compared to last year (24%). The variance is due to a lower amount of authorities compared to the previous year.

Overall, expenditures have remained stable compared to the previous year, although personnel expenditures increased due to the rate increase from 20% to 27% of Employee Benefit Plan. This increase was offset by a reduction in revenues and expenditures (travel and professional services) related to COVID-19 pandemic impacts.

Figure 1 - First Quarter Expenditures Compared to Annual Authorities

Text version of Figure 1
 (in thousands of dollars)  Fiscal year 2020-21  Fiscal year 2019-20
 Authorities 31,408 47,390
 Expenditures to date 11,769 11,184
 Expenditures Q1 11,769 11,184

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:

The pandemic has temporarily brought a major shift to how we do our work, and that has required some quick thinking from our policy and operations to adapt PBC policies, write instructional guidance to staff and Board members and align our new operational realities as best as possible to legislative imperatives while still keeping Canadians safe.

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:

Additionally, a significant change worthy of mention is in 2017, the Service Fees Act came into force and replaced the User Fees Act. It imposed new requirements on Departments’ charging user fees, which include a requirement to increase fees on an annual basis according to the Consumer Price Index (CPI). The first annual CPI increases were due to start in 2019-20, on an anniversary date selected by the program. The PBC selected March 31, 2020 as the implementation date to increase the user fee for record suspensions to $644.88 from $631.00.

Approval by Senior Officials

Approved by,

 
 

Jennifer Oades
Chairperson

Anik Lapointe, CPA, CGA
Chief Financial Officer

Ottawa, Canada

Statement of Authorities (unaudited)

 

Fiscal year 2020-21 (in thousands of dollars)

 

Total available for use for the year ending
March 31, 2021Note de bas de page 1

Used during the quarter ended
June 30, 2020

Year-to-date used at quarter-end

Vote 1 – Program expenditures

29,711

10,408

10,408

Vote netted revenuesNote de bas de page 2

(3,747)

0

0

Net program expenditures

25,964

10,408

10,408

Budgetary statutory authority – Contributions to employee benefit plan

5,444

1,361

1,361

Total Budgetary authorities

31,408

11,769

11,769

 

Fiscal year 2019-20 (in thousands of dollars)

 

Total available for use for the year ending
March 31, 2020Note de bas de page 1

Used during the quarter ended
June 30, 2019

Year-to-date used at quarter-end

Vote 1 – Program expenditures

47,422

10,803

10,803

Vote netted revenuesNote de bas de page 3

(5,645)

(1,022)

(1,022)

Net program expenditures

41,777

9,781

9,781

Budgetary statutory authority – Contributions to employee benefit plan

5,613

1,403

1,403

Total Budgetary authorities

47,390

11,184

11,184

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2020-21 (in thousands of dollars)
Planned expenditures for the year ending
March 31, 2021
Used during the quarter ended
June 30, 2020
Year-to-date used at quarter-end
Expenditures
  Personnel 28,030 11,530 11,530
  Transportation and communications 1,948 91 91
  Information 62 1 1
  Professional and special   services 4,089 71 71
  Rentals 145 27 27
  Repair and maintenance 413 3 3
  Utilities, materials and supplies 174 7 7
  Acquisition of machinery and equipment 289 18 18
  Other subsidies and payments 5 20 20
Total gross budgetary expenditures 35,155 11,769 11,769
Less Revenues netted against expenditures:
  Vote-netted revenues 3,745 0 0
Total net budgetary expenditures 31,408 11,769 11,769
Fiscal year 2019-20 (in thousands of dollars)
Planned expenditures for the year ending
March 31, 2020
Used during the quarter ended
June 30, 2019
Year-to-date used at quarter-end
Expenditures
  Personnel 42,297 11,362 11,362
  Transportation and communications 3,000 543 543
  Information 223 4 4
  Professional and special   services 5,036 229 229
  Rentals 200 22 22
  Repair and maintenance 1,023 5 5
  Utilities, materials and supplies 287 24 24
  Acquisition of machinery and equipment 948 5 5
  Other subsidies and payments 21 12 12
Total gross budgetary expenditures 53,035 12,206 12,207
Less Revenues netted against expenditures:
  Vote-netted revenues 5,645 1,022 1,022
Total net budgetary expenditures 47,390 11,184 11,185
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