Quarterly Financial Report for the Quarter ended June 30, 2021

From: Parole Board of Canada

Official Title: Parole Board of Canada Quarterly Financial Report for the Quarter ended June 30, 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

Total authorities available for fiscal year 2021-22 are $55.4 million compared to $31.4 million as of June 30, 2020. The increase of $24.0 million, or 76%, is explained by:

• $16.0 million increase related to receiving full supply of the Main Estimates in June this year compared to December last year due to COVID-19 pandemic ;
• $3.9 million of additional funds received for workload capacity for the Conditional Release Decisions core responsibility;
• $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; and;
• $1.8 million in signed collective agreements.

As illustrated in Figure 1, the PBC has spent approximately 21% of its authorities at the end of the first quarter, compared to last year (37%). This 16% variance is due to a higher amount of authorities compared to the previous year while the expenditures remain the same.

Overall, expenditures have remained stable compared to the previous year. However, when looking at individual types of expenditures; personnel expenditures have increased in 2021-22 due to the signing of collective agreements; the increase was offset by having one pay period less in 2021-22 compared to previous fiscal year. Professional Services have increased due to fact that PBC has signed a master service agreement with CSC for the provision of IM/IT services. This increase was offset by an increase in revenues this year compared to last year’s first quarter when no revenues were collected as a result of COVID-19 pandemic impacts.

Figure 1 - First 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:

• Evidence-based decision-making could be affected by a range of factors.
• 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.
• The current information technology and information management capacity and operations may not be able to meet the PBC’s evolving and growing needs.

Significant changes in relation to operations, personnel and programs

Since March 2020, and the declaration from the World Health Organization following the outbreak of COVID-19. For the protection of personnel and that of communities’ right across the country, efforts are still being 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 are still in place 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 are still working from home until further notice.

• Offices remain open, however most employees work from home to comply with the health measures for physical distancing and to keep employees and Canadians safe.

Approval by Senior Officials

Approved by,

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)