Quarterly financial report for the quarter ended June 30, 2024

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 Office of the Commissioner of Lobbying (OCL) Audit and Evaluation Committee.

The OCL mandate is stated in the Lobbying Act (the 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 2024−25 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 2024-25 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, 2024, increased by $601,000 compared to the same quarter of the prior year. The increase in authorities relates to two items. First, there was new funding approved in Budget 2023 to support additional positions in the areas of policy, communication and corporate functions to sustain delivery of the mandate and increase focus on strategic priorities, improve planning, reporting and engagement, and meet government accountability requirements. Second, additional funding was provided to cover salary increases associated with collective bargaining adjustments.

Statement of budgetary expenditures by standard object

The OCL has spent approximately 22% of its authorities at the end of the first quarter of 2024-25. At the same point in time in 2023-24, 19% of authorities had been spent.

The most significant expenditures are for personnel, representing approximately 78% of the planned net budgetary expenditures for the year. Actual personnel expenditures at the end of Q1 represent 17% of the total planned annual expenditures and is slightly higher than the previous year, which was at approximately 15%. Staffing of new positions has taken place, increasing personnel spending, and this increase has been offset by decreases in salary expenses due to planned extended leaves.

Actual other operating costs represent approximately 22% of the planned net budgetary expenditures for the year. At the end of Q1, the actual other operating expenditures represent approximately 5% of the total planned expenditures. This spending rate is slightly higher relative to the previous year at this time, which was at 4%. The rate of spending can be explained, in part, because 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 $304,000 when compared to the previous year results. The increase is primarily related to higher personnel expenditures of $252,000 associated with the staffing of new positions and recently approved collective agreements.

Risks and uncertainties

A financial risk always exists since the Commissioner’s decisions with respect to investigations, in relation to the application of Lobbyists’ Code of Conduct, 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

The reporting relationship for the position entitled Director of Finance and Chief Financial Officer (CFO) has been changed to report to the Executive Director, Corporate Services. This change allows for greater support and oversight over the day-to-day activities of this function. However, the role of the CFO continues to report directly to the Commissioner for all financial matters.

Approval by senior officials

Approved by:

Ottawa, Canada
August 26, 2024

Statement of Authorities (unaudited)

Budgetary expenditures by Standard Object (unaudited)