2012-13 Departmental Performance Report

The Right Honourable Stephen Harper
Prime Minister of Canada

Table of Contents

• Chair’s Message
• Section I: Organizational Overview
  • Raison d’être
  • Responsibilities
  • Strategic Outcome and Program Alignment Architecture
  • Organizational Priorities
  • Risk Analysis
  • Summary of Performance
  • Expenditure Profile
  • Estimates by Vote
• Section II: Analysis of Programs by Strategic Outcome
  • Strategic Outcome
  • Programs
• Section III: Supplementary Information
  • Financial Statements Highlights
  • Supplementary Information Tables
  • Tax Expenditures and Evaluations Report
• Section IV: Other Items of Interest
  • Organizational Contact Information
  • Additional Information
  • Legislation Administered
• Endnotes

Chair’s Message

I am pleased to introduce the Departmental Performance Report of the Security Intelligence Review Committee (SIRC or the Committee) for the fiscal year 2012-13.

As this report represents the summary of my first year as the Chair of the Committee, I take pride in SIRC’s accomplishments and renewed commitment to building and maintaining the public’s trust that the activities of the Canadian Security Intelligence Service (CSIS or the Service) are carried out in a lawful, effective and appropriate manner. This independent reporting to the Parliament of Canada helps to reinforce the Service’s accountability to Parliament and to the citizens of Canada.

This past year has been an active one for the Committee. For the first time, pursuant to section 6(4) of the CSIS Act, the report provided by the Director of CSIS to the Minister of Public Safety was reviewed by SIRC who provides the Minister of Public Safety with a certificate stating the extent to which it is satisfied with the content of the report. This new responsibility included a modest increase to our reference levels. I am proud that, throughout it all, the organization maintained its high level of professionalism and commitment which speaks to the resilience of SIRC’s staff.

Our work is intended to provide expert advice to policymakers and lawmakers on CSIS’s performance, but also to reassure Canadians that CSIS investigates threats to national security in a manner that respects Canada’s core democratic values. The Canadian Security Intelligence Service Act (CSIS Act) continues to guide SIRC’s work in assessing CSIS’s performance against the mandate and authorities conferred upon it by Parliament in 1984. The Committee embraces the belief that balancing collective public safety with individual rights is a hallmark of Canada’s democratic values and aspirations. It is a theme that I am confident will continue to guide SIRC’s work in the future.

______________________________
The Honourable Chuck Strahl, P.C.
Chair

Section I: Organizational Overview

Raison d’être

The Security Intelligence Review Committee is an independent, external review body which reports to Parliament on the operations of the Canadian Security Intelligence Service. The Prime Minister is responsible for this organization.

Parliament has given CSIS powers to enhance the security of Canadians. SIRC ensures that these powers are used legally and appropriately, in order to protect Canadians' rights and freedoms. To do this, SIRC examines past operations of the Service and investigates complaints. It has absolute authority, with the exception of cabinet confidences, to examine all information concerning CSIS activities, no matter how sensitive and highly classified that information may be. The result of this work, vetted and edited to protect national security and personal privacy, are summarized in its Annual Report to Parliament.

Responsibilities

SIRC’s work is designed to provide expert advice to policymakers and lawmakers on CSIS’s performance. It also serves to reassure Canadians that CSIS investigates threats to national security in a manner that respects Canada’s core democratic values. The Canadian Security Intelligence Service Act (CSIS Act) continues to guide SIRC’s work in assessing CSIS’s performance against the mandate and authorities conferred upon it by Parliament in 1984.

Bill C-38, the Jobs, Growth and Long-term Prosperity Act, expanded SIRC’s responsibilities. Pursuant to section 6(4) of the CSIS Act, the report provided by the Director of CSIS to the Minister of Public Safety will now be reviewed by SIRC who will provide the Minister of Public Safety with a certificate stating the extent to which it is satisfied with the content of the report.

Strategic Outcome and Program Alignment Architecture

Organizational Priorities

Risk Analysis

Summary of Performance

Expenditure Profile

Departmental Spending Trend

Bill C-38, the Jobs, Growth and Long-term Prosperity Act, expanded SIRC's responsibilities in 2012-13. Additional funding for salaries and some operating expenses were transferred from Public Safety Canada to SIRC in order for the organization to fulfill its expanded mandate. This transfer increased SIRC’s authorities over what had previously been approved in the 2012-13 Main Estimates. In addition, the significant spending increase in Internal Services is due to the payment of severance pay requested by employees on a voluntary basis following the ratification of specific collective agreements and for employee retirements.

Future year sapending is expected to be flat and in line with the “Planned Spending” noted above.

Estimates by Vote

For information on the Security Intelligence Review Committee’s organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2013 (Volume II)^{Endnote iv}. An electronic version of the Public Accounts 2013 is available on the Public Works and Government Services Canada website.

Strategic Environmental Assessment

During 2012–13 the Security Intelligence Review Committee considered the environmental effects of initiatives subject to The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome

The Canadian Security Intelligence Service (CSIS) carries out its mandate to investigate and report on threats to national security in a manner that respects the rule of law and the rights of Canadians.

Programs

1.1 Reviews

1.2 Complaints

Internal Services

Performance Analysis and Lessons Learned

Reviews

With the exception of the “Percentage of SIRC’s review recommendations accepted by CSIS” target, all other targets for this program were met. For additional information as well as a full summary of SIRC’s recommendations and reports please consult SIRC’s Annual Report^{Endnote v} for 2012-13.

Complaints

The challenge in meeting the service standards in the program were primarily due to the need to reassign active files. During the 2012-13 year, two Members resigned unexpectedly. In addition, there was a longer than anticipated vacancy in SIRC’s legal staff due to the unique skills required by the position and the extensive security clearance process needed prior to being able to appoint individuals.

For additional information on SIRC’s complaint reports, consult SIRC’s Annual Report^{Endnote vi} for 2012-13.

Section III: Supplementary Information

Financial Statements Highlights

Condensed Statement of Operations and Departmental Net Financial Position

The decrease of $142 thousand in the net cost of operations before government funding and transfers from fiscal year 2011-12 to 2012-13 is mainly due to a decrease in salary expenses related to the absence of severance pay cash-out compared to last fiscal year, maternity leave and a decrease of full time employees as a result of reduced spending and fiscal restraint.

The decreases were partially offset by an increase in professional and special services and in transportation and communications.

The increase of $258 thousand in the actual Departmental net financial position is due to a decrease in net liabilities and net financial assets partially offset by the prepaid expenses.

The 2012-13 actual Departmental net financial position is lower by $201 thousand compared to the 2012-13 Planned Results. The difference is mostly explained by less liability in Vacation and Employee Future Benefits and more assets in Due from the Consolidated Revenue Fund, Accounts receivable and Prepaid expenses. The $201 thousand is partially offset by more liability in accounts payable.

Fiscal Year 2013 - Expenses per program

The Security Intelligence Review Committee (SIRC) has three key programs related to its strategic outcome: the review Program, the complaints Program and Internal Services. The 2012-13 total expenses per program are described below:

$904 thousand (29%) was spent under the review Program in fiscal year 2012-13 compared to $1,149 thousand in fiscal year 2011-12. $495 thousand (16%) was spent under the complaints Program in fiscal year 2012-13 compared to $477 thousand in fiscal year 2011-12. $1,695 thousand (55%) was spent under Internal Services in fiscal year 2012-13 compared to $1,610 thousand in fiscal year 2011-12.

The decrease in expenses for the review Program (a decrease of $245 thousand from fiscal year 2011-12) is mainly due to a decrease in salary expenses related to maternity leave and a reduction of full time employees.

The slight increase in expenses for the complaint Program (an increase of $18 thousand from fiscal year 2011-12) is due to an increase in salary expenses related to an internal reallocation and offset by a reduction in professional and special services expenditures.

The increase in expenses for Internal Services (an increase of $85 thousand from fiscal year 2011-12) is due to an increase in professional and special services expenditures and transportation and communications expenditures offset by a reduction in salary expenses and in purchased repair and maintenance expenditures.

Condensed Statement of Financial Position

The departmental net financial position was -$69 thousand at the end of fiscal year 2012-13, which represents a decrease of $258 thousand compared to fiscal year 2011-12. In the following charts, a more granular level of information is provided to explain the details of the departmental financial position.

2013 Liabilities by type

Total net liabilities were $421 thousand at the end of fiscal year 2012-13, which represents a decrease of $255 thousand compared to $676 thousand in fiscal year 2011-12. SIRC’s 2012-13 liabilities primarily include: accounts payable at $299 thousand (71%) and severance pay liability at $118 thousand (28%). The decrease when compared to 2011-12 is mainly due to the absence of severance pay cash-out and less vacation paid to employees.

2013 Assets by type

Total net financial and non-financial assets were $352 thousand in 2012-13, an increase of $3 thousand compared to $349 thousand in fiscal year 2011-12. SIRC’s most important asset is the Due from the Consolidated Revenue Fund at $251 thousand (72%).

Financial Statements

The Security Intelligence Review Committee’s Financial Statements^{Endnote vii} can be found on its website.

Supplementary Information Tables

• Greening Government Operations

All electronic supplementary information tables listed in the 2012–13 Departmental Performance Report can be found on the Security Intelligence Review Committee’s website.

Tax Expenditures and Evaluations Report

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations^{Endnote viii} publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

Section IV: Other Items of Interest

Organizational Contact Information

Security Intelligence Review Committee
P.O. Box 2430 Station “D”
Ottawa, Ontario
K1P 5W5

Telephone: (613) 990-8441
Facsimile: (613) 990-5230

Internet: www.sirc-csars.gc.ca
E-Mail: info@sirc-csars.gc.ca

Additional Information

Legislation Administered

Canadian Security Intelligence Service Act^{Endnote ix}