Quarterly Financial Report for the Quarter Ended September 30, 2013

For the quarter ended September 30, 2013

A. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates (and as applicable -Supplementary Estimates and previous interim reports for the current year). It 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. It has not been subject to an external audit or review. The RCMP External Review Committee (ERC) was not affected by the Canada's Economic Action Plan 2012 exercise.

1.1 Mandate and Program

Under the Royal Canadian Mounted Police (RCMP) Act, the RCMP Commissioner refers all appeals of formal discipline and all discharge and demotion appeals to the ERC unless the member of the RCMP requests that the matter not be referred. In addition, pursuant to section 33 of the RCMP Act, the RCMP Commissioner refers certain types of grievances to the ERC in accordance with regulations made by the Governor in Council. Section 36 of the RCMP Regulations specifies the grievances which the RCMP Commissioner is obliged to refer to the ERC, namely grievances respecting:

The ERC is also responsible for outreach and information dissemination. The ERC ensures that its findings and recommendations in each case are clearly explained for the parties and the RCMP Commissioner. Summaries of the findings and recommendations in each case, as well as articles of interest on the role of the ERC, relevant legal principles and information on related issues are distributed widely.

1.2 Basis of Presentation

This quarterly report has been prepared by the ERC using an expenditure basis of accounting. The accompanying Statement of Authorities includes the ERC spending authorities granted by Parliament and those used by the ERC consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2013-14 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 moneys 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 ERC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

B. Highlights of fiscal quarter and fiscal year to date (YTD) results

This section highlights the significant items that contributed to amounts available for use and expenditure used for the quarter ended September 30th, 2013.

2.1 Authorities Analysis

As reflected in the Statement of Authorities, the net budget authorities have decreased from $1,645,676 (fiscal 2012-13) to $1,644,413 to date in this fiscal year (fiscal 2013-14) for a variance decrease of $1,263. The fiscal year 2013-14 budget authority includes a transfer ($710,001) from RCMP appropriations in support of Public Safety Canada's transitional measures to support the ERC's operations following the signing of the new RCMP policing service agreements. The ERC anticipates a budget carry forward transfer from the central vote in the amount of $41,678, as well as a reimbursement of $24,150 through TB Vote 30 for parental benefits and severance paid. Taking into account these additional amounts, the total variance expected by the end of the year will be $64,565 or 3.9%.

2.2 Expenditure Analysis

As reflected in the Statement of Authorities, expenditures used at quarter end September 30th have decreased from $379,850 (fiscal 2012-13) to $369,349 (fiscal 2013-14) for a total variance decrease of $10,501 or 2.8% from the previous year. Since this decrease in expenditures is not material, it will not affect the decisions of the financial statement users.

2.3 Budgetary Expenditures by Standard Object

As reflected in the ERC Budgetary Expenditures by Standard Object, expenditures used during the quarter ended September 30th have decreased from $379,850 (fiscal 2012-13) to $369,349 (fiscal 2013-14) for a total variance decrease of $10,501 or 2.8% from the previous year.

Most of the decrease was related to a decrease in transportation and professional services expenditures. Since this decrease in expenditures is not material, it will not affect the decisions of the financial statement users.

Comparison of Budgetary Authorities and Expenditures as of September 30, 2013
Image Description
Comparison of Budgetary Authorities and Expenditures as of September 30, 2013
Authorities Expenditures
2013-14 1,644,413 369,349
2012-13 1,645,676 379,850

C. Risks and Uncertainties

This ERC Quarterly Financial Report reflects the results of the current fiscal period in relation to the Main Estimates (and Supplementary Estimates A) for which full supply was released on June 20, 2013.

The ERC was not specifically included in the Budget 2012 saving measures and therefore there have not been any significant changes in relation to operations, personnel and programs over the last year as a direct result.

In previous years, the ERC's base budget was augmented by a series of temporary short-term funding, specifically from the Treasury Board's Management Reserve to allow the ERC to meet the obligations of its mandate and to ensure the accountability of its operations. The terms of these temporary appropriations expired at the end of fiscal year 2011-12. To offset this decrease to its base budget, the RCMP tranferred $710,001 from its appropriations in support of Public Safety Canada's transitional measures to support the ERC's operations following the signing of the new RCMP policing service agreements.

Additionally, the ERC awaits the effect of PWGSC's application of its new accommodation standards, as well as the TB's provision for collective agreement adjustments.

David Paradiso
Interim Chair
Ottawa, Canada
November 14, 2013

Jill Gunn
Acting Executive Director and Senior Counsel
Chief Financial Officer
Ottawa, Canada
November 14, 2013



Statement of Authorities
For the quarter ended September 30, 2013
Fiscal year 2013-2014 Fiscal year 2012-2013
Total available for use for the year ending
31-Mar-14*
Used during the quarter ended
30-Sep-13
Year to date used at quarter end
30-Sep-13
Total available for use for the year ending
31-Mar-13*
Used during the quarter ended
30-Sep-13
Year to date used at quarter end
30-Sep-13
Vote 60 - Operating expenditures 1,540,774 343,440 641,336 1,540,506 353,557 581,150
Budgetary statutory authorities 103,639 25,909 51,819 105,170 26,293 52,585
TOTAL AUTHORITIES 1,644,413 369,349 693,155 1,645,676 379,850 633,735
* includes only Authorities available for use and granted by Parliament at quarter end.
Budgetary Expenditures by Standard Object
For the quarter ended September 30, 2013
Expenditures Fiscal year 2013-2014 Fiscal year 2012-2013
Planned expenditures for the year ending
31-Mar-14
Expensed during the quarter ended
30-Sep-13
Year to date used at quarter end
30-Sep-13
Planned expenditures for the year ending
31-Mar-13
Expensed during the quarter ended
30-Sep-12
Year to date used at quarter end
30-Sep-12
Personnel 699,267 281,520 544,659 700,810 265,180 456,598
Transportation and communications 25,000 2,275 5,173 78,000 4,542 11,030
Information 22,000 14,550 16,960 79,000 15,318 18,497
Professional and special services 860,146 68,055 119,927 730,866 89,651 140,029
Rentals 5,000 534 890 25,000 1,015 1,565
Repair and maintenance - - - - - -
Utilities, material and supplies 18,000 2,415 5,270 13,000 3,968 5,840
Acquisition of land, buildings and works - - - - - -
Acquisition of machinery and equipment 15,000 - 276 19,000 176 176
Transfer payments - - - - - -
Public debt charges - - - - - -
Other subsidies and payments - - - - - -
Total budgetary expenditures 1,644,413 369,349 693,155 1,645,676 379,850 633,735

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