Quarterly Financial Report for the quarter ended September 30, 2024 - Secretariat of the National Security and Intelligence Committee of Parliamentarians

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 financial report should be read in conjunction with the 2024-25 Main Estimates, as well as previous Quarterly Financial Reports. This quarterly report has not been subject to an external audit or review.

Mandate

The National Security and Intelligence Committee of Parliamentarians Act received Royal Assent on June 22, 2017. It formally establishes the Secretariat of the National Security and Intelligence Committee of Parliamentarians (the Secretariat). The Secretariat assists the National Security and Intelligence Committee of Parliamentarians in fulfilling its mandate, which is to review:

• The legislative, regulatory, policy, administrative and financial framework for national security and intelligence;
• Any activity carried out by a department that relates to national security or intelligence, unless the activity is an ongoing operation, and the appropriate Minister determines that the review would be injurious to national security; and
• Any matter relating to national security or intelligence that a minister of the Crown refers to the Committee.

The Secretariat ensures the Committee receives timely access to relevant, classified information and strategic and expert advice in the conduct of reviews by the Committee. It assists in the development of reports and provides support to ensure compliance with security requirements.

The Secretariat developed a Departmental Results Framework and an accompanying Program Inventory in 2020-21 and began implementing both in 2021-22. The details of the Departmental Results Framework and the Program Inventory are included in the Secretariat’s 2024-25 Departmental Plan.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament and those used by the department, consistent with the 2024-25 Main Estimates and Supplementary Estimates (as applicable) for 2024-25 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. 

The Secretariat 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.

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

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended September 30, 2024.

The Secretariat spent approximately 33% of its authorities by the end of the second quarter, compared to 32% in the same quarter of 2023-24 (see graph 1 below).

Graph 1: Comparison of total authorities and total net budgetary expenditures as of Q2 2024-2025 and 2023-2024

Significant changes to authorities

As depicted in graph 2 below (as of September 30, 2024) and Annex A, presented at the end of this document, the Secretariat has authorities available for use of $3.9 million in 2024-25 compared to $3.8 million as of September 30, 2023, for a net increase of $0.1 million or 3%.

Graph 2: Variance in Authorities as at September 30, 2024

Significant changes to expenditures

The second quarter expenditures totaled $861,000 for an increase of $463,000 (116%) when compared to $398,000 spent during the same period in 2023-24. Table 1 below presents budgetary expenditures by standard object.

Table 1 – Material variances to expenditures by standard object quarterly comparison

Personnel

The total increase of $78,000 is mainly attributed to the timing of salary recoveries from other government departments. Additionally, in this quarter the Committee began functioning at a full Committee complement with the appointment of a new Member.

Professional and special services

The increase of $349,000 in Professional and special services is mainly attributed to a timing difference in receiving information technology support services for the Secretariat’s offices. Invoices for the current fiscal year were received in Q2, as opposed to previous year invoices which were received in Q1. The Secretariat also commenced using a professional transcription service in this quarter.

Rentals

The increase of $24,000 in Rentals is mainly attributed to timing differences in receiving rental invoices for the Secretariat’s offices.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $1,282,000 for an increase of $117,000 (10%) when compared to $1,165,000 spent during the same period in 2023-24. Table 2 below presents budgetary expenditures by standard object.

Table 2 – Material variances to expenditures by standard object year-to-date comparison

Personnel

No variances of note.

Risks and uncertainties

The Secretariat has conducted staffing competitions during this fiscal period to ensure that it has a full staff complement of 10 full-time equivalents in 2023-24 and thereafter. This will increase expenditures in upcoming fiscal periods but will not exceed the Secretariat’s budgetary allocations for personnel.

No other financial pressures are foreseen, and the Secretariat anticipates continuing operations within its existing funding envelope.

Significant changes in relation to operations, personnel and programs

There are no changes to report in relation to Operation, Personnel and Programs.

Approval by senior officials

Annexes A & B

Annex A

For the quarter ended September 30, 2024
Statement of authorities (unaudited) (note 2)

Annex B

For the quarter ended September 30, 2024
Departmental budgetary expenditures by Standard Object (unaudited) (note 2)