Quarterly Financial Report for the Quarter ended
September 30, 2024

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 Treasury Board. It should be read in conjunction with the Main Estimates. This report has not been subject to an external audit or review.

The Parole Board of Canada (PBC) is an independent administrative tribunal that, as part of the Canadian criminal justice system, makes independent, quality conditional release, record suspension/pardons and expungement decisions, as well as clemency recommendations, in a transparent and accountable manner, while respecting diversity and the rights of offenders and victims.

Further details on the PBC’s authority, mandate and program activities can be found in the Departmental Plan and Part II of the Main Estimates.

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 2024-25 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 September 30, 2024, the total authorities available for fiscal year 2024-25 are $76.0 million compared to $79.3 million. The decrease from the previous fiscal year of $3.2 million, or 4.1%, is explained mainly by:

Total planned spending for fiscal year 2024-25 is $77.4 million compared $76.8 million in 2023-24. This is a slight increase of $0.6 or 1%.

The expenditures to date in 2024-25 are higher compared to 2023-24, this is as a result of:

Figure 1 - Second Quarter Expenditures Compared to Annual Authorities

Figure 1 -Second Quarter Expenditures Compared to Annual Authorities
Text equivalent of Figure 1 - Second Quarter Expenditures Compared to Annual Authorities
Date Authorities Expenditures to date Expenditures Q2
2024-25 76,010 38,002 21,069
2023-24 79,259 33,334 18,727

Risks and Uncertainties

In 2024-25, the PBC’s three corporate risks are:

  1. Quality Decision-Making - There is a risk that evidence-based decision-making could be affected by a range of factors including:

    •     Variations in national consistency that impact processes, practices, and training;
    •     Loss of critical mass of Board members for effective decision-making;
    •     The requirement to adapt Board member training based on new trends and changing legal landscape;
    •     Ability to ensure that decision-making policy approaches adequately respond to the diverse needs of the offender population for conditional release decisions; and
    •     Effectiveness of information management systems to support decisions.
  2. Human Capital (Board members and Employees) - There is a risk that key activities and functions could be adversely affected, unless the PBC is able to recruit and retain staff, strengthen competencies and capacity, while ensuring an inclusive and diverse workplace that is competitive among public sector partners and adaptable in the context of an emerging hybrid work environment. Board members (Governor-in-Council (GIC) appointments) are appointed to the PBC for a three or five year term following an open, transparent and merit based process from diverse backgrounds to ensure satisfactory vacancy management. Board members participate in a rigorous orientation and training program that continues throughout their tenure. The absence of an evolving and adaptable training program could present a risk for decision-making.
  3. Information Technology (IT) - 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 given the aging nature of the PBC’s IT infrastructure and government enterprise systems, the increasing public expectation for efficient and accessible means to communicate with government, and the need to balance IT program integrity needs with other corporate integrity pressure points and central agency requirements.

Significant changes in relation to operations, personnel and programs

In Budget 2023, the government committed to reducing spending by $14.1 billion over the next five years, starting in 2023-24, and by $4.1 billion annually after that. The PBC is achieving these reductions by returning A-Base funding associated with the Canadian Drugs and Substance Strategy (CDSS) initiative; and finding efficiencies and/or design or administration cost-saving service delivery approaches while maintaining core program delivery with minimal operational impacts and residual risks.

Approval by Senior Officials

Approved by: 

_____________________________
Joanne Blanchard
Chairperson 

__________________________________
Claudine Legault, CPA
Chief Financial Officer

Statement of Authorities (unaudited)
  Fiscal year 2024-25 (in thousands of dollars)
  Total available for use for the year ending March 31, 20251 Used during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Vote 1 – Program expenditures 69,172 19,235 34,333
Vote – Netted Revenues – Acquisition Services*  (500) - -
Net program expenditures 68,672 19,235 34,333
Budgetary statutory authority – Contributions to employee benefit plan 7,338 1,834 3,669
Total Budgetary authorities 76,010 21,069 38,002

*Invoices were submitted in October

Statement of Authorities (unaudited)
  Fiscal year 2023-24 (in thousands of dollars)
  Total available for use for the year ending March 31, 20241 Used during the quarter ended September 30, 2023 Year-to-date used at quarter-end
Vote 1 – Program expenditures 72,180 16,256 29,011
Vote-Netted Revenues – Pardons & Record Suspension fees  (330) - -
Net program expenditures 71,850 16,256 29,011
Budgetary statutory authority – Contributions to employee benefit plan 7,409 2,471 4,323
Total Budgetary authorities 79,259 18,727 33,334

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

Departmental budgetary expenditures by Standard Object (unaudited)
  Fiscal year 2024-25 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2025 Expended during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Expenditures
  Personnel 63,648 16,452 32,267
  Transportation and communications 2,208 345 850
  Information 167 3 66
  Professional and special services 10,861 4,118 4,582
  Rentals 352 66 108
  Repair and maintenance 78 24 33
  Utilities, materials and supplies 125 21 34
  Acquisition of machinery and equipment 211 38 50
  Other subsidies and payments 7 2 12
Total gross budgetary expenditures 77,657 21,069 38,002
Less Revenues netted against expenditures:
Vote-netted revenues – Acquisition Services* 262 - -
Total net budgetary expenditures 77,395 21,069 38,002

*Invoices were submitted in October

Departmental budgetary expenditures by Standard Object (unaudited)
  Fiscal year 2023-24 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2024 Expended during the quarter ended September 30, 2023 Year-to-date used at quarter-end
Expenditures
  Personnel 63,072 14,755 28,479
  Transportation and communications 2,428 297 849
  Information 96 9 57
  Professional and special services 10,333 3,553 3,712
  Rentals 363 24 75
  Repair and maintenance 49   9   14
  Utilities, materials and supplies 156 35 45
  Acquisition of machinery and equipment 261 32 75
  Other subsidies and payments 1 13 28
Total gross budgetary expenditures 76,759  18,727 33,334
Less Revenues netted against expenditures:
Vote-netted revenues – Pardons & Record Suspension fees - - -
Total net budgetary expenditures 76,759 18,727 33,334

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