Quarterly Financial Report - For the quarter ended December 31, 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 and the previous Quarterly Financial Reports.

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 Appropriation 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 December 31, 2014.

Statement of Authorities

Authorities available for use:

SIRC's total authorities for 2014-15 decreased by $95,000 when compared to 2013-14. The decrease is mainly explained by funding received in 2013-14 for salary-related costs for parental leave and severance pay.

Year to date authorities used:

Overall, SIRC's 2014-15 expenditures for the quarter ended December 31, 2014 have increased by $183,000 (or 9%) 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 $184,000 in the year-to-date used at quarter-end is mainly due to:

Personnel

The increase in personnel of $49,000 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. This increase is partially offset by less spending for severance pay, parental leave, pay in lieu of leave and contributions to employee benefit plans.

Transportation and communications

The increase in transportation and communications of $38,000 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 $73,000 is mainly due to a one-time transition payment made by SIRC to implement salary payment in arrears which is a government-wide initiative.

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) and the 2014-15 Supplementary Estimates (B).

SIRC continues to adapt its operations to the rapid pace of change in the security intelligence environment.

Significant Changes in Relation to Operations, Personnel and Programs

SIRC had no significant changes during this period.

Approved by: (original signed by:)

_________________________
Hon. Deborah Grey, P.C., O.C.
Interim Chair
Calgary, Canada
Date: February 23, 2015

_________________________
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

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