Quarterly Financial Report For the quarter ending September 30, 2016 (unaudited)

Published on November 29, 2016

Table of contents

• Introduction
• Authority and objectives
• Basis of presentation
• Highlights of fiscal quarter and fiscal year-to-date results
  • Significant changes to authorities
  • Significant changes to gross budgetary expenditures
  • Significant changes in revenues netted against expenditures
• Risks and uncertainties
• Significant changes in relation to operation, personnel and programs
  • Policy and Corporate Affairs Branch – A/ Senior Vice-President Gerry Thom
  • Strategic Direction and Renewal Branch – Vice-President Tim Pettipas
  • Oversight Branch – Vice-President Stan Lee
  • Services and Innovation Branch – Vice-President Stéphanie Poliquin
• Approved by senior officials
• Table 1: Statement of Authorities (unaudited)
• Table 2: Departmental budgetary expenditures by standard object (unaudited)

Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2016-17.

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.

The quarterly report has been reviewed by the Internal Audit Committee of the Public Service Commission.

Authority and objectives

The Public Service Commission (PSC) is an independent agency established under the Public Service Employment Act (PSEA) and listed in schedules I.1 and IV of the Financial Administration Act.

The PSC is mandated to:

• Make appointments to and within the public service, based on merit and free from political influence. The PSEA provides the authority to the Commission to delegate to deputy heads its authority to make appointments to positions in the public service. This authority is currently delegated to the deputy heads subject to the PSEA, across the federal government;
• Administer the provisions of the PSEA that are related to the political activities of employees and deputy heads. Part 7 of the PSEA recognizes the right of employees to engage in a political activity, while maintaining the principle of political impartiality in the public service. It also sets out specific roles and responsibilities for employees and for the PSC related to political activities; and
• Oversee the integrity of the staffing system and, in collaboration with other stakeholders, ensure non-partisanship. This oversight role includes: The regulatory authority and policy-setting function, ongoing support and guidance and the monitoring of the staffing performance of delegated organizations, the conduct of audits that provide an independent assessment of the performance and management of staffing activities and the conduct of investigations of staffing processes and improper political activities by public servants.

A summary description of the PSC's programs can be found in section II of the 2016-17 Report on Plans and Priorities.

Basis of presentation

Management has prepared this quarterly report using an expenditure basis of accounting for both expenditures and revenues. The accompanying Statement of Authorities includes the organization's spending authorities granted by Parliament and those used by the organization, 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 monies 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.

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

Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the net increase in resources available for the current year and in actual expenditures for the quarter ended September 30, 2016. In reading these highlights, it is important to note that the Public Service Commission (PSC) has the authority to re-spend revenues received from other government departments and agencies in a fiscal year – of an amount not to exceed $14,252K – to offset expenditures incurred in that fiscal year arising from the provision of assessment and counselling services and products.

Significant changes to authorities

The net increase of $0.1M, from $87.7M in 2015-16 to $87.8M in 2016-17, as per Table 1: Statement of Authorities, is mainly related to the following:

• A net decrease of $0.4M resulting from transfers to other government departments and agencies for the implementation of enterprise-wide government initiatives (e.g., Public Service Pay Centre, Learning and Development and Back Office Transformation);
• A net increase of $0.3M for applicable salary and wage increases and revisions to the rate used to determine the Employee Benefit Plan cost estimates; and
• An increase of $0.2M from Parks Canada for the receipt of its contribution to the Public Service Resourcing System.

Significant changes to gross budgetary expenditures

As of September 30, 2016, total gross budgetary expenditures show an increase of $0.2M, from $20.6M in 2015-16 to $20.8M in 2016-17 as per Table 2: Departmental budgetary expenditures by standard object.

The variance is mainly attributable to the following:

• A decrease of $0.9M in personnel expenditures, which is explained by:
  • Decrease due to the transition towards system-wide audits resulting from the implementation of the New Direction in Staffing;
  • Delays in the processing of acting pay, terminable allowance for personnel psychologists and basic salary increments; and
  • Delays in the processing of severance pay for retired employees;
• A general increase of $0.9M in transportation and telecommunications, professional and special services and in rentals is mainly due to the timing of the receipt and disbursement of corresponding invoices in two different quarters; and
• An increase of $0.2M in other subsidies and payments due to salary overpayments recognized by the Public Service Pay Center.

Significant changes in revenues netted against expenditures

As of September 30, 2016, the PSC is forecasting a total of $8.5M in annual re-spendable revenues for the current fiscal year, which is slightly above the levels of last year's second quarter ($8.1M).

The collection of Assessment and Counselling Services revenues at the end of the second quarter accounts for 35% of overall revenues anticipated for the current fiscal year, which is consistent with the same quarter of the previous fiscal year (33%).

Risks and uncertainties

The Public Service Commission (PSC) operates in a dynamic and complex environment that requires it to be efficient, adaptive and innovative. It uses integrated risk management, including the annual development of a Corporate Risk Profile, to identify and respond to challenges and opportunities.

The PSC's key risks and the corresponding mitigation strategies are outlined in section I of the 2016-17 Report on Plans and Priorities.

Significant changes in relation to operation, personnel and programs

As of July 4^th, the Public Service Commission (PSC) implemented a re-alignment in order to achieve a better integration and collaboration across the organization. These changes were made to support the PSC's renewed vision and mission and built on the foundation for public service renewal established through the New Direction in Staffing.

Policy and Corporate Affairs Branch – A/ Senior Vice-President Gerry Thom

The Communications and Parliamentary Affairs, Human Resources Management and Access to Information and Privacy Directorates joined with the Staffing Support and Priority and Policy Development Directorates to form the new Policy and Corporate Affairs Branch. The Finance and Administration, and Audit and Evaluation Directorates also form part of this Branch in an administrative capacity but report functionally to the President. This approach allows the PSC to fully deliver on integrated results.

Strategic Direction and Renewal Branch – Vice-President Tim Pettipas

This branch consist of two directorates: The Office of Renewal, (which includes the former Business Transformation Directorate) and the Horizontal Integration Directorate (formerly part of the Policy Branch). It is now responsible for strategic policy, alignment of key PSC activities and outreach to the broader Government of Canada agenda and special projects aimed at supporting strategic recruitment across the public service.

Oversight Branch – Vice-President Stan Lee

The Political Activities and Non-partisanship Directorate (formerly of Policy Branch) joined the Audit and Data Services team to form the new Oversight Branch. As a result of this change, the PSC's key oversight functions related to the staffing system and non-partisanship were brought together within a single branch.

Services and Innovation Branch – Vice-President Stéphanie Poliquin

The Information Technology and Services Directorate (ITSD) (formerly part of Corporate Management Branch) joined the directorates of the former Staffing and Assessment Services Branch to create the Services and Innovation Branch. The new Branch supports integrated business innovation and service excellence. As a result of this change, ITSD is better positioned as a strategic partner in innovation, while continuing to provide services to the PSC as a whole.

There were no changes to the Investigations Branch, the Corporate Secretariat, or Legal Services.

During the period covered by this report, Christine Donoghue was the Acting President of the PSC.

Approved by senior officials

 

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Original signed by: Christine Donoghue
Acting President
Signed on: November 21, 2016

 

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Original signed by: Philip Morton, CPA, CGA
Chief Financial Officer
Signed on: November 21, 2016

 

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Original signed by: Eva Jacobs, CPA, CGA
Deputy Chief Financial Officer
Signed on: November 21, 2016

Gatineau, Canada
Date of publication: November 29, 2016