Quarterly Financial Report - For the quarter ended September 30, 2014

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 Treasury Board Accounting Standard 1.3. This quarterly financial report should be read in conjunction with the Main Estimates, the Supplementary Estimates and the previous Quarterly Financial Report .

A summary description of the Security Intelligence Review Committee (SIRC) program activities can be found in Part II of the Main Estimates. For information on the mandate of SIRC, please visit its website at http://www.sirc-csars.gc.ca.

This quarterly report has not been subject to an external audit or review.

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 Main Estimates for the 2014-15 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework (cash basis) 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 appropriations acts or through legislation in the form of statutory spending authority for specific purposes.

SIRC 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 Fiscal Quarter and 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, 2014.

Statement of Authorities

Authorities available for use:

SIRC's total authorities for 2014-15 increased by $133,000 when compared to 2013-14. The increase is explained by funding received for ongoing impacts of salary increases which were in effect since 2013-14 and for the Operating Budget Carry Forward which was received at a later date in 2013-14. These increases are partially offset by a decrease in contributions to employee benefit plans (in accordance with Treasury Board Secretariat guidelines).

Year to date authorities used:

Overall, SIRC's 2014-15 expenditures for the quarter ended September 30, 2014 have increased by $217,000 (or 18%) when compared to the 2013-14 expenditures for the same period. Further information related to this increase is provided in the section below addressing the Statement of Departmental Budgetary Expenditures by Standard Object.

Statement of Departmental Budgetary Expenditures by Standard Object

Authorities available for use:

Please refer to the explanation provided under the Statement of Authorities section for related information.

Year to date authorities used:

The increase of $217,000 in the year-to-date used at quarter-end is mainly explained by:

Personnel

The increase in personnel of $74,000 is mainly due to staffing of new positions as a result of Bill C-38, the Jobs, Growth and Long-term Prosperity Act where SIRC's responsibilities were expanded; and, the return of staff who were on parental leave during the same quarter last fiscal year.

Transportation and communications

The increase in transportation and communications of $40,000 is mainly due to the travel costs for the participation of employees to an international conference for review agencies.

Other subsidies and payments

The increase in other subsidies and payments of $67,000 is due to a one-time transition payment for implementing salary payment in arrears by the Government of Canada.

Risks and Uncertainties

This Departmental Quarterly Financial Report (QFR) reflects the results of the current fiscal period in relation to the 2014-15 Main Estimates (full supply was released on June 19, 2014). SIRC did not request any funding through the 2014-15 Supplementary Estimates (A).

SIRC continues to adapt its operations to the rapid pace of change in the security intelligence environment and is managing the vacancies on the committee in order to minimize the impacts on SIRC’s operations.

Significant Changes in Relation to Operations, Personnel and Programs

In January 2014, the Honourable Deborah Grey has been appointed as Interim Chair of SIRC.

Approved by:

_________________________
Hon. Deborah Grey, P.C., O.C.
Interim Chair
Qualicum Beach, Canada
Date:

_________________________
Michael E. Doucet
Executive Director
Chief Financial Officer
Ottawa, Canada

Statement of Authorities (unaudited)

** includes only Authorities available for use and granted by Parliament at quarter-end

Note: Details may not add to totals due to rounding

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)

** includes only Authorities available for use and granted by Parliament at quarter-end

Note: Details may not add to totals due to rounding