Quarterly financial report for the quarter ended December 31, 2020

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. It should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review. However, it has been reviewed by the OCL Audit and Evaluation Committee.

The OCL mandate is stated in the Lobbying Act and covers three areas of activity:

• Establish and maintain the Registry of Lobbyists, which contains and makes public the information disclosed by lobbyists;
• Develop and implement educational programs to foster public awareness of the requirements of the Act; and
• Undertake investigations to ensure compliance with the Act and the Lobbyists' Code of Conduct.

Further details on the OCL’s programs may be found in the 2020–21 Departmental Plan and in the Main Estimates.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the OCL’s spending authorities granted by Parliament and those used by the organization consistent with the Main Estimates for the 2020-21 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 OCL uses the full accrual method of accounting to prepare and present its annual 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

Statement of authorities

In comparison to the previous fiscal year total appropriations as at December 31, 2020 decreased by $365,000. The decrease is mainly attributable to the specified purpose allotment for relocation of the office of $350,000 received in the previous fiscal year and to the personnel compensation and employee benefits plan of $15,000.

The difference of $190,000 between the main estimates ($4,557,000) and total authorities ($4,747,000) is explained by a carryforward from the previous fiscal year of $174,000 and personnel authority adjustments of $16,000.

Statement of Budgetary Expenditures by Standard Object

The OCL has spent 70% of its authorities at the end of the third quarter of 2020–21. The most significant expenditures are for personnel which amount to 69% of annual planned expenditures for that standard object and are 75% of the total amount spent as of December 31, 2020.

The other operating costs amount to 74% of the annual planned expenditures for those purposes. This includes expenditures that the OCL incurs for some of its corporate services from other government entities through Memoranda of Understanding (MOUs) for information technology, human resources and financial services.

The organization’s spending at the end of the third quarter decreased by $35,000 when compared to the previous year results. This is as a result of a decrease in expenditures linked to the office relocation ($298,000), a decrease in other expenditures and professional services of $37,000 and offset by an increase of $300,000 in personnel expenditures.

Risks and Uncertainties

A financial risk arises due to the fact that the Commissioner’s decisions may be subject to judicial review by the Federal Court. The current amount allocated for funding legal work would be insufficient in the event of a significant litigation. As well, the organization’s core system, the Lobbyists’ Registration System (LRS), relies on two external consultants since the OCL does not have the internal capacity to maintain and develop the system. The OCL may be at risk should the external consultants who possess this substantial corporate memory concerning its design and operation can no longer provide their services.

Significant changes in relation to operations, personnel and programs

In September 2019, the positions of Director of Investigations and Corporate Services were temporarily combined and held by one FTE. In September 2020, due to workload, these positions reverted to being two distinct positions to be held by two FTEs. There were no other significant changes during the current quarter.

Approval by senior officials

Approved by:

Ottawa, Canada
February 18, 2021

Statement of authorities (unaudited)

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

Budgetary expenditures by Standard Object (unaudited)