Quarterly Financial Report for the Quarter ended September 30, 2020

From: Parole Board of Canada

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, and those used by the department consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2020-21 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 2020-2021 are $38.0 million compared to $49.6 million as of September 30, 2019. The decrease of $11.6 million, or 23.4%, is explained by:

As illustrated in Figure 1, the PBC has spent approximately 63% of its authorities at the end of the second quarter, compared to 47% last year at the same period.

Overall, the PBC’s total net budgetary expenditures remains stable because the decrease of approximately 3% in Travel, Information and Rentals expenditures mainly attributed to the travel restrictions and the impacts of the pandemic is offset by an increase in Acquisitions of Machinery and Equipment and a significant reduction in respendable revenues.

Figure 1 - Second Quarter Expenditures Compared to Annual Authorities

Text equivalent of Figure 1 - Second quarter expenditures compared to annual authorities 
(in thousands of dollars) Fiscal year 2020-21 Fiscal year 2019-20
Authorities 38,014 49,631
Expenditures to date 23,842 23,569
Expenditures Q2 12,073 12,385

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 worth 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 has 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                                                Anik Lapointe CPA CGA
Chairperson                                                    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, 20211
Used during the quarter ended
September 30, 2020
Year-to-date used at quarter-end
Vote 1 – Program expenditures 35,233 10,992 21,400
Vote-netted revenues2 (2,663) (280) (280)
Net program expenditures 32,570 10,712 21,119
Budgetary statutory authority – Contributions to employee benefit plan 5,444 1,361 2,722
Total Budgetary authorities 38,014 12,073 23,842
Fiscal year 2019-20 (in thousands of dollars)
  Total available for use for the year ending
March 31, 20201
Used during the quarter ended
September 30, 2019
Year-to-date used at quarter-end
Vote 1 – Program expenditures 49,663 12,055 24,261
Vote-netted revenues 3 (5,645) (1,073) (2,095)
Net program expenditures 44,018 10,981 22,166
Budgetary statutory authority – Contributions to employee benefit plan 5,613 1,403 2,806
Total Budgetary authorities 49,631 12,385 23,569

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

2 The amount of revenues netted against expenditures reported in the Main Estimates is based on an estimated amount of 11,663 accepted applications multiplied by the portion of the $644.88 user fee that is respendable by PBC ($484).

3 The amount of revenues netted against expenditures reported in the Main Estimates is based on an estimated amount of 12,000 accepted applications multiplied by the portion of the $631.00 user fee that is respendable by PBC ($470).

Departmental budgetary expenditures by Standard Object (unaudited)

  Fiscal year 2020-21 (in thousands of dollars)
  Planned expenditures for the year ending
March 31, 2021
Expended during the quarter ended
September 30, 2020
Year-to-date used at quarter-end
Expenditures      
  Personnel 34,700 11,235 22,765
  Transportation and communications 976 138 230
  Information 28 4 4
  Professional and special services 3,550 721 792
  Rentals 248 26 54
  Repair and maintenance 89 6 9
  Utilities, materials and supplies 201 36 43
  Acquisition of Land, Buildings & Works
174 - -
  Acquisition of machinery and equipment 703 180 198
  Other subsidies and payments 9 7 27
Total gross budgetary expenditures 40,677 12,353 24,122
Less Revenues netted against expenditures:
Vote-netted revenues 2,663 280 280
Total net budgetary expenditures 38,014 12,073 23,842

 

  Fiscal year 2019-20 (in thousands of dollars)
  Planned expenditures for the year ending
March 31, 2019
Expended during the quarter ended
September 30, 2019
Year-to-date used at quarter-end
Expenditures      
  Personnel 49,315 11,567 22,929
  Transportation and communications 2,945 810 1,353
  Information 97 46 50
  Professional and special services 1,582 773 1,002
  Rentals 243 130 151
  Repair and maintenance 61 7 12
  Utilities, materials and supplies 176 31 55
  Acquisition of Land, Buildings & Works 40 9 9
  Acquisition of machinery and equipment 741 74 80
  Other subsidies and payments 76 11 23
Total gross budgetary expenditures 55,276 13,458 25,664
Less Revenues netted against expenditures:
Vote-netted revenues 5,645 1,073 2,095
Total net budgetary expenditures 49,631 12,385 23,569
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