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Quarterly financial report for the quarter ended June 30, 2022

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 2022-23 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 2022-23 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

The total authorities available for use as at June 30, 2022, increased by $666,000 compared to the same quarter of the prior year. The increase reflects the approval of the Budget 2021 funds sought in the Supplementary Estimates B ($653,000) and ARLU compensation.

Statement of Budgetary Expenditures by Standard Object

The OCL has spent approximately 21% of its authorities at the end of the first quarter of 2022-23.

The most significant expenditures are for personnel representing approximately 76% of the total amount spent as at June 30, 2022. Actual personnel costs versus planned total spending at the end of Q1 are 16% and is the same as in the prior year. Although ongoing challenges to recruit specialized IM/IT talent still exist, the OCL was able to fill most of the positions.

Actual other operating costs represent approximately 20% of the annual planned expenditures related to other operating costs, which is the same as the previous year for the same period. This is explained by the fact that the OCL acquires some of its corporate services from other government entities through Memoranda of Understanding (MOUs) for information technology, human resources and financial services, and some of the invoices for services rendered for the first quarter were not received before the end of the quarter and consequently, not reflected in this report.

The organization’s spending at the end of the first quarter increased by $122,000 when compared to the previous year results. The increase is composed of higher personnel expenditures of $113,000 and an increase in operating expenditures of $9,000.

Risks and Uncertainties

In connection with Budget 2021, Treasury Board approved ongoing funding to hire five employees to enhance IM/IT systems as well as ongoing funding for evergreening IT equipment. In addition, Treasury Board approved a one time increase for FY 2021-22 for an analysis of the feasibility of moving some OCL IT systems to a cloud platform. OCL encountered difficulty finding consultant resources for this analysis in FY 2021-22 and the money was not spent. Discussions are ongoing with TBS to reprofile this funding to FY 2022-23. As of June 30, 2022, there is some degree of uncertainty as to when the remaining newly created IM/IT position will be filled. It is likely that a portion of the personnel funds that are included in the newly approved funding will be lapsed if the position remains unfilled. The financial and HR risks are high priority and staffing actions are proceeding.

A financial risk always exists since the Commissioner’s decisions with respect to investigations and applications for exemption from the five-year prohibition on lobbying 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.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in the organization during the current quarter related to programs.

Approval by senior officials

Approved by:

Nancy Bélanger
Commissioner of Lobbying

Charles Dutrisac
Director of Finance and
Chief Financial Officer

Ottawa, Canada
August 18, 2022

Statement of Authorities (unaudited)

Fiscal Year 2022-23 (in thousands of dollars)
Total available for use for the year ending March 31, 2023 Used during the quarter ended June 30, 2022 Year to date used at quarter-end
Budgetary Authorities
Vote 45 - Program Expenditures
4,767 975 975
Budgetary Statutory Authorities
Employee Benefit Plans
522 131 131
Total Budgetary Authorities 5,289 1,106 1,106
Fiscal Year 2021-22 (in thousands of dollars)
Total available for use for the year ending March 31, 2022 Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Budgetary Authorities
Vote 45 - Program Expenditures
4,188 875 875
Budgetary Statutory Authorities
Employee Benefit Plans
435 109 109
Total Budgetary Authorities 4,623 984 984

Budgetary expenditures by Standard Object (unaudited)

Fiscal Year 2022-23 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2023 Expended during the quarter ended June 30, 2022 Year to date used at quarter-end
Personnel 4,002 845 845
Transportation and Communications 54 9 9
Information 20 35 35
Professional and Special Services 1,081 187 187
Rentals 59 27 27
Repair and Maintenance
Utilities, Material and Supplies 9
Acquisitions of Machinery and Equipment 64 3 3
Other Payments
Total Net Budgetary Expenditures 5,289 1,106 1,106
Fiscal Year 2021-22 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2022 Expended during the quarter ended June 30, 2021 Year to date used at quarter-end
Personnel 3,373 733 733
Transportation and Communications 73 11 11
Information 30 18 18
Professional and Special Services 1,040 194 194
Rentals 63 27 27
Repair and Maintenance 3
Utilities, Material and Supplies 10 1 1
Acquisitions of Machinery and Equipment 31
Other Payments
Total Net Budgetary Expenditures 4,623 984 984
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