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Quarterly Report: For the quarter ended June 30, 2022

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2022–23 Main Estimates.

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

Mandate

The National Security and Intelligence Review Agency (NSIRA) is an independent external review body that reports to Parliament. Established in July 2019, NSIRA is responsible for conducting reviews of the Government of Canada’s national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and their activities.

A summary description NSIRA’s program activities can be found in Part II of the Main Estimates. Information on NSIRA’s mandate can be found on its website.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency, consistent with the 2022–23 Main Estimates. 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 money 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 authorities for specific purposes.

Highlights of the fiscal quarter and fiscal year-to-date 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 June 30, 2022.

NSIRA spent approximately 12% of its authorities by the end of the first quarter, compared with 9% in the same quarter of 2021–22 (see graph 1).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q1 2022–23 and Q1 2021–22

Graph: Variance in authorities as at June 30, 2022 - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q1 2022–23 and Q1 2021–22
  2022-23 2021-22
Total Authorities $28.3 $30.2
Q1 Expenditures $3.3 $2.8

Significant changes to authorities

As at June 30, 2022, Parliament had approved $28.3 million in total authorities for use by NSIRA for 2022–23 compared with $30.2 million as of June 30th, 2021, for a net decrease of $1.9 million or 6.3% (see graph 2).

Graph 2: Variance in authorities as at June 30, 2022

Graph: Variance in authorities as at June 30, 2022 - Text version follows
Variance in authorities as at June 30, 2022 (in millions)
  Fiscal year 2021-22 total available for use for the year ended March 31, 2022 Fiscal year 2022-23 total available for use for the year ended March 31, 2023
Vote 1 – Operating 28.5 26.5
Statutory 1.7 1.7
Total budgetary authorities 30.2 28.3

*Details may not sum to totals due to rounding*

The decrease of $1.9 million in authorities is mostly explained by a gradual reduction in NSIRA’s ongoing operating funding.

Significant changes to quarter expenditures

The first quarter expenditures totaled $3.3 million for an increase of $0.5 million when compared with $2.8 million spent during the same period in 2021–22. Table 1 presents budgetary expenditures by standard object.

Table 1

Variances in expenditures by standard object(in thousands of dollars) Fiscal year 2022–23: expended during the quarter ended June 30, 2022 Fiscal year 2021–22: expended during the quarter ended June 30, 2021     Variance $ Variance %
Personnel 2,345 2,312 33 1%
Transportation and communications 44 13 31 23*
Information 5 2 3 150%
Professional and special services 846 196 650 332%
Rentals 10 0 10
Repair and maintenance 31 8 23 288%
Utilities, materials and supplies 16 3 13 433%
Acquisition of machinery and equipment 9 216 (207) (96%)
Other subsidies and payment (2) 12 (14) (117%)
Total gross budgetary expenditures 3,304 2,762 541 20%

Transportation and communications

The increase of $31,000 relates to increased travel, as travel restrictions due to COVID-19 are no longer in place in Canada.

Professional and special services

The increase of $650,000 is explained by a change in the timing of invoicing for the maintenance and services in support of our classified IT network infrastructure.

Rentals

The increase of $10,000 is explained by rent for temporary office space and software support licenses.

Repair and maintenance

The increase of $23,000 is explained by office accommodation fit-up costs.

Utilities, materials and supplies

The increase of $13,000 is explained by the acquisition office supplies.

Acquisition of machinery and equipment

The decrease of $207,000 is explained by a one-time bulk purchase of monitors and other computer equipment made in the first quarter of 2021-22.

Other subsidies and payments

The decrease of $14,000 is explained by a reduction in emergency salary advances and payroll system overpayments. NSIRA is showing a negative balance here because of the acquisition card rebates.

Risks and uncertainties

The ability of NSIRA to access the information it needs to conduct its reviews and complaints investigations is closely tied to the capacity of the reviewed or investigated departments and agencies to respond to NSIRA’s demands. While most pandemic constraints have subsided, there continues to be recruitment challenges in a tight labour market. To address this challenge, NSIRA is experimenting with hybrid workplace approaches, launching internal career development programs and focusing on onboarding practices to attract and retain talent.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach and timelines for the execution of its mandated activities.

Significant changes in relation to operations, personnel and programs

There have been two new Governor-in-Council appointments during the first quarter, Dr. Foluke Laosebikan and Mr. Matthew Cassar. Existing member, Mr. Craig Forcese, has been named Vice Chair of NSIRA.

There have been no changes to the NSIRA Program.

Approved by senior officials:

John Davies
Deputy Head

Pierre Souligny
Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2022–23 Fiscal year 2021–22
  Total available for use for the year ending March 31, 2023 (note 1) Used during the quarter ended June 30, 2022 Year to date used at quarter-end Total available for use for the year ending March 31, 2022 (note 1) Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Vote 1 – Net operating expenditures 26,523 2,872 2,872 28,490 2,3 5,647
Budgetary statutory authorities
Contributions to employee benefit plans 1,728 432 432 1,705 426 426
Total budgetary authorities (note 2) 28,251 3,304 3,304 30,195 2,762 2,762

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2022–23 Fiscal year 2021–22
  Planned expenditures for the year ending March 31, 2023 (note 1) Expended during the quarter ended June 30, 2022 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2022 Expended during the quarter ended June 30, 2021 Year to date used at quarter-end
Expenditures
Personnel 13,245 2,345 2,345 13,222 2,312 2,312
Transportation and communications 597 44 44 673 13 13
Information 372 5 5 375 2 2
Professional and special services 3,506 846 846 5,904 196 196
Rentals 271 10 10 188 0 0
Repair and maintenance 9,722 31 31 8,737 8 8
Utilities, materials and supplies 173 16 16 103 3 3
Acquisition of machinery and equipment 232 9 9 991 216 216
Other subsidies and payments 133 (2) (2) 0 12 12
Total gross budgetary expenditures
(note 2)
28,251 3,304 3,304 30,195 2,762 2,762

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Future oriented financial statement (2022–2023)

Date of Publishing:

Future-Oriented Statement of Operations (Unaudited)

For the Year Ended March 31 (in thousands of dollars)

  Forecast results 2021–22 Planned results 2022–23
Expenses
National Security and Intelligence Reviews and Complaints Investigations 8,696 11,232
Internal Services 13,154 17,373
Total expenses 21,850 28,625
Revenues
Miscellaneous revenues
Total revenues
Net cost of operations after government funding and transfers 21,850 28,625

The accompanying notes form an integral part of these financial statements.

Notes to the Future-Oriented Statement of Operations (Unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2021-22 is based on actual results as at November 30, 2021 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2022-23.

The main assumptions underlying the forecasts are as follows:

  • The National Security and Intelligence Review Agency (NSIRA) will continue to experience important growth in the upcoming year.
  • Significant recruitment efforts will be made across all business lines to reach 100 full-time equivalents (FTEs).
  • The accommodation, infrastructure and systems investments projects will continue in order to support NSIRA’s new expanded mandate and workforce.

These assumptions are made as at December 13, 2021.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing the Future-Oriented Statement of Operations, NSIRA has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

  • the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
  • the implementation of new collective agreements; and
  • other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, NSIRA will not be updating forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2021-22, and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Expenses

Expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

(b) Revenues

Other Revenues are recognized in the period the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the department’s liabilities. Although the deputy head is expected to maintain accounting control, he or she has no authority over the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the department’s gross revenues.

4. Parliamentary authorities

The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the department has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to requested authorities

(in thousands of dollars)

  Forecast results 2021–2022 Planned results 2021–2022
Net cost of operations before government funding and transfers 21,850 28,625
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (245) (404)
Services provided without charge by other government departments (1,155) (1,175)
Increase in vacation pay and compensatory leave (108) (5)
Increase in employee future benefits 11 (4)
Refund of prior years’ expenditures (48) (51)
Total items affecting net cost of operations but not affecting authorities (1,545) (1,639)
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets 136 1,277
Increase in inventory
Increase in prepaid expenses (8) (12)
Total items not affecting net cost of operations but affecting authorities 128 1,265
Requested authorities forecasted to be used 20,433 28,251

(b) Authorities provided/requested

(in thousands of dollars)

  Forecast results 2021–2022 Planned results 2022–2023
Authorities provided/requested:
Vote 1:  Operating Expenditures 28,490 26,523
Statutory amounts 1,705 1,728
Total authorities provided/requested 30,195 28,251
Less:  Estimated unused authorities and other adjustments 9,762
Requested authorities forecasted to be used 20,433 28,251
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Date Modified:

Quarterly Report: For the quarter ended December 31, 2021

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2021–22 Main Estimates.

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

Mandate

The National Security and Intelligence Review Agency (NSIRA) is an independent external review body that reports to Parliament. Established in July 2019, NSIRA is responsible for conducting reviews of the Government of Canada’s national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and their activities.

A summary description NSIRA’s program activities can be found in Part II of the Main Estimates. Information on NSIRA’s mandate can be found on its website.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency, consistent with the 2021–22 Main Estimates. 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 money 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 authorities for specific purposes.

Highlights of the fiscal quarter and fiscal year-to-date 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, 2021.

NSIRA spent approximately 33% of its authorities by the end of the third quarter, compared with 28% in the same quarter of 2020–21 (see graph 1).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q3 2021–22 and Q3 2020–21

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q3 2021–22 and Q3 2020–21
  2021-22 2020-21
Total Authorities $31.3 $24.0
Q3 Expenditures $3.7 $2.7
Year-to-Date Expenditures $10.2 $6.6

Significant changes to authorities

As at December 31, 2021, Parliament had approved $31.3 million in total authorities for use by NSIRA for 2021–22 compared with $24.0 million as of December 31, 2020, for a net increase of $7.3 million or 30.4% (see graph 2).

Graph 2: Variance in authorities as at December 31, 2021

Graph: Variance in authorities as at December 31, 2021 - Text version follows
Variance in authorities as at December 31, 2021 (in millions)
  Fiscal year 2020-21 total available for use for the year ended March 31, 2021 Fiscal year 2021-22 total available for use for the year ended March 31, 2022
Vote 1 – Operating $22.6 $29.6
Statutory $1.4 $1.7
Total budgetary authorities $24.0 $31.3

The increase of $7.3 million in authorities is mostly explained by the ramp-up of approved funding for the mandate of NSIRA and the approval of a funding re-profile into fiscal year 2021–22 for accommodation and infrastructure projects.

Significant changes to quarter expenditures

The third quarter expenditures totaled $3.7 million for an increase of $1.0 million when compared with $2.7 million spent during the same period in 2020–21. Table 1 presents budgetary expenditures by standard object.

Table 1

Variances in expenditures by standard object (in thousands of dollars) Fiscal year 2021-22: expended during the quarter ended December 31, 2021 Fiscal year 2020-21: expended during the quarter ended December 31, 2020 Variance $ Variance %
Personnel 2,654 1,732 922 53%
Transportation and communications 93 19 74 389%
Information 24 37 (13) (35%)
Professional and special services 404 389 15 4%
Rentals 64 41 23 56%
Repair and maintenance 398 189 209 111%
Utilities, materials and supplies 13 21 (8) (38%)
Acquisition of machinery and equipment 72 258 (185) (72%)
Other subsidies and payment (22) (13) (9) 69%
Total gross budgetary expenditures 3,700 2,671 1,029 39%

Details may not sum to totals due to rounding

Personnel

The increase of $922,000 relates to additional staffing to support NSIRA’s mandate.

Transportation and communications

The increase of $74,000 relates to new internet connections as part of the office accommodation fit-up costs.

Repair and maintenance

The increase of $209,000 is explained by office accommodation fit-up costs.

Acquisition of machinery and equipment

The decrease of $185,000 is mainly explained by capital costs not needed in 2021–22 because they were ramp-up and pandemic-related expenditures in 2020–21: buying furniture acquisitions, redesigning office space to accommodate more employees, and equipping NSRIA personnel to work from home.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $10.2 million for an increase of $3.6 million (54%) when compared with $6.6 million spent during the same period in 2020–21. Table 2 presents budgetary expenditures by standard object.

Table 2

Variances in expenditures by standard object(in thousands of dollars) Fiscal year 2021-22: expended during the quarter ended December 31, 2021 Fiscal year 2020-21: expended during the quarter ended December 31, 2020 Variance $ Variance %
Personnel 7,407 5,072 2,335 46%
Transportation and communications 130 37 93 251%
Information 41 78 (37) (47%)
Professional and special services 1,440 731 709 97%
Rentals 81 104 (23) (22%)
Repair and maintenance 611 247 364 147%
Utilities, materials and supplies 25 28 (3) (11%)
Acquisition of machinery and equipment 446 300 146 49%
Other subsidies and payment 18 28 (10) (36%)
Total gross budgetary expenditures 10,199 6,626 3,573 54%

Details may not sum to totals due to rounding

Personnel

The increase of $2,335,000 relates to additional staffing to support NSIRA’s mandate.

Transportation and communications

The increase of $93,000 is mainly explained by the installation of new internet connections as part of the office accommodation fit-up costs, and some relocation and travel expenses.

Professional and special services

The increase of $709,000 is mainly due to information technology support services by the Communications Security Establishment and an increased use of procurement advisory services.

Repair and maintenance

The increase of $364,000 is explained by office accommodation fit-up costs.

Acquisition of machinery and equipment

The increase of $146,000 is mainly explained by informatics equipment acquisitions.

Risks and uncertainties

The ability of NSIRA to access the information it needs to conduct its reviews and complaints investigations is closely tied to the capacity of the reviewed or investigated departments and agencies to respond to NSIRA’s demands. The pandemic continues to hinder the agency’s ability to conduct classified work in the workplace. When combined with existing resource constraints of the reviewed departments and agencies, the conduct of reviews continues to be delayed.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach and timelines for the execution of its mandated activities.

Significant changes in relation to operations, personnel and programs

There have been no new Governor-in-Council appointments during the third quarter.

There have been no changes to the NSIRA Program.

Approved by senior officials:

John Davies
Deputy Head

Pierre Souligny
Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2022–23 Fiscal year 2021–22
  Total available for use for the year ending March 31, 2022 (note 1) Used during the quarter ended December 31, 2021 Year to date used at quarter-end Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended December 31, 2020 Year to date used at quarter-end
Vote 1 – Net operating expenditures 29,615 3,274 8,921 22,565 2,300 5,513
Budgetary statutory authorities
Contributions to employee benefit plans 1,705 426 1,278 1,484 371 1,113
Total budgetary authorities (note 2) 31,319 3,700 10,199 24,049 2,671 6,626

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2021–22 Fiscal year 2020–21
  Planned expenditures for the year ending March 31, 2022 (note 1) Expended during the quarter ended December 31, 2021 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended December 30, 2020 Year to date used at quarter-end
Expenditures
Personnel 13,222 2,654 7,407 11,510 1,732 5,072
Transportation and communications 673 93 130 1,162 19 37
Information 375 24 41 364 37 78
Professional and special services 7,029 404 1,440 3,250 389 731
Rentals 188 64 81 237 41 104
Repair and maintenance 8,737 398 611 6,681 189 247
Utilities, materials and supplies 103 13 25 173 21 28
Acquisition of machinery and equipment 991 72 446 393 257 300
Other subsidies and payments 0 (22) 18 278 (13) 28
Total gross budgetary expenditures
(note 2)
31,319 3,700 10,199 24,049 2,671 6,626

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Financial Statements: NSIRA 2020–21

Date of Publishing:

Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2021, and all information contained in these financial statements rests with the management of the National Security and Intelligence Review Agency (NSIRA). These financial statements have been prepared by management using the Government of Canada’s accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of NSIRA’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in NSIRA’s Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the NSIRA and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2021 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the Annex.

The financial statements of the National Security Intelligence Review Agency have not been audited.

John Davies
Deputy Head

Pierre Souligny
Chief Financial Officer

Ottawa, Canada
December 10, 2021

Statement of Financial Position (Unaudited)

As of March 31 (in thousands of dollars)

  2021 For the Period July 12, 2019 through March 31, 2020
Liabilities
Accounts payable and accrued liabilities (Note 5) 1,519 1,560
Vacation pay and compensatory leave 215 323
Employee future benefits (Note 6b) 316 146
Total liabilities 2,050 2,029
Financial assets
Due from Consolidated Revenue Fund 946 1,536
Accounts receivable and advances (Note 7) 632 90
Total net financial assets 1,578 1,626
Departmental net debt 472 403
Non-financial assets
Prepaid expenses 92 109
Tangible capital assets (Note 8) 2,149 967
Total non-financial assets 2,241 1,076
Departmental net financial position 1,769 673

Contractual obligations (note 9)

The accompanying notes form an integral part of these financial statements.

John Davies
Deputy Head

Pierre Souligny
Chief Financial Officer

Ottawa, Canada
December 10, 2021

Statement of Operations and Departmental Net Financial Position (Unaudited)

For the Year Ended March 31 (in thousands of dollars)

  Planned Results 2021 2021 For the period July 12, 2019 through March 31, 2020
Expenses
Assist the National Security Intelligence Review Agency 12,056 5,769 3,671
Internal Service 13,724 5,893 2,659
Total expenses 25,780 11,662 6,330
Net cost from continuing operations 25,780 11,662 6,330
Net cost of operations before government funding and transfers 25,780 11,662 6,330
Government funding and transfers
Net cash provided by Government of Canada   12,401 3,919
Change in due from Consolidated Revenue Fund   (590) 1,536
Services provided without charge by other government departments (Note 10a)   1,007 611
Transfer of overpayments   (60)
Transfer of assets and liabilities from other government departments   937
Net cost of operations after government funding and transfers   (1,096) (673)
Departmental net financial position – Beginning of year   673
Departmental net financial position – End of year   1,769 673

Segmented information (note 11)

The accompanying notes form an integral part of these financial statements.

Statement of Change in Departmental Net Debt (Unaudited)

For the Year Ended March 31 (in thousands of dollars)

  2021 For the period July 12, 2019 through March 31, 2020
Net cost of operations after government funding and transfers (1,096) (673)
Change due to tangible capital assets
Acquisition of tangible capital assets 1,353 14
Amortization of tangible capital assets (171)
Transfer of tangible capital asset to/from other government department 953
Total change due to tangible capital assets 1,182 967
Change due to prepaid expenses (17) 109
Net increase (decrease) in departmental net debt 69 403
Departmental net debt – Beginning of year 403
Departmental net debt – End of year 472 403

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (Unaudited)

For the Year Ended March 31 (in thousands of dollars)

  2021 For the Period July 12, 2019 through March 31, 2020
Operating activities
Net cost of operations before government funding and transfers 11,662 6,330
Non-cash items:
Amortization of tangible capital assets (171)
Transfer of tangible capital assets to/from other government department 953
Services provided without charge by other government departments (Note 9a) (1,007) (611)
Transfer of overpayments 60
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 542 90
Increase (decrease) in prepaid expenses (17) 109
Decrease (increase) in accounts payable and accrued liabilities 41 (1,560)
Decrease (increase) in vacation pay and compensatory leave 108 (323)
Decrease (increase) in future employee benefits (170) (146)
Transfer of liabilities to other government departments (937)
Cash used in operating activities 11,048 3,905
Capital ingesting activities
Acquisitions of tangible capital assets (Note 8) 1,353 14
Cash used in capital investing activities 1,353 14
Net cash provided by Government of Canada 12,401 3,919

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)

1. Authority and objectives

On July 12, 2019 Bill C-59 enacted the National Security and Intelligence Review Agency Act (NSIRA Act), and repealed the provisions of the Canadian Security Intelligence Service Act (CSIS Act) which governed the activities of Security Intelligence Review Committee (SIRC). The National Security Intelligence Review Agency (NSIRA) has a statutory mandate to review the activities of the Canadian Security Intelligence Service (CSIS) and the Communications Security Establishment (CSE), as well as the national security and intelligence activities of all other federal departments and agencies. To fulfill its review mandate, NSIRA has unfettered access to classified information other than Cabinet confidences. In addition, NSIRA inherited the complaints investigation functions of the SIRC, which was responsible for hearing complaints from members of the public regarding the actions of CSIS, as well as those related to the revocation or denial of security clearances. Going forward, it will also hear complaints regarding the CSE, as well as national security-related complaints regarding the Royal Canadian Mounted Police (RCMP).

To achieve its strategic outcome and deliver results for Canadians, NSIRA articulates its plans and priorities based on the core responsibility and program inventory included below:

Assist the NSIRA

Support the Conduct of Reviews and Investigations, and the Development of Reports

The secretariat will assist NSIRA members in fulfilling the agency’s mandate. The Secretariat will conduct a range of activities to support the agency, including accessing relevant information and providing strategic and expert advice in the conduct of reviews, quasi-judicial investigation of complaints and the development of reports. It will also provide administrative support in arranging for briefings, hearings and consultations with stakeholders and international counterparts, and support to ensure compliance with security requirements.

Internal Services

Internal support services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2. Comparative Information

The comparative information (2019-20) included in these financial statements represent the partial year results of operations for the period July 12, 2019 through March 31, 2021, and the financial position of the NSIRA as at March 31, 2020, including all transferred assets and liabilities.

3. Summary of significant accounting policies

These financial statements are prepared using NSIRA’s accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Parliamentary authorities

NSIRA is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to NSIRA do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 4 provides a reconciliation between the bases of reporting. The planned results amounts in the ”Expenses” and ”Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2020-2021 Departmental Plan. The planned results amounts in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt were prepared for internal management purposes and have not been previously published.

(b) Net cash provided by Government of Canada

NSIRA operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by NSIRA is deposited to the CRF, and all cash disbursements made by NSIRA are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.

(c) Amounts due from or to the CRF

Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that NSIRA is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Expenses

  • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans and workers’ compensation are recorded as operating expenses at their carrying value.

(e) Employee future benefits

  • Pension benefits: Eligible employees participate in the Public Service Pension Plan, a pension plan administered by the Government. NSIRA’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. NSIRA’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.
  • Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(f) Accounts receivable

Accounts receivable are initially recorded at cost and when necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

(g) Non-financial assets

All tangible capital assets having an initial cost of $5,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

Inventories are valued at cost and are comprised of spare parts and supplies held for future program delivery and are not primarily intended for resale. Inventories that no longer have service potential are valued at the lower of cost or net realizable value.

(h) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government’s best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

4. Parliamentary authorities

NSIRA receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, NSIRA has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year authorities used

(in thousands of dollars)

  2021 For the Period July 12, 2019 to March 31, 2020
Net cost of operations before government funding and transfers 11,662 6,330
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (171)
Services provided without charge by other government departments (1,007) (611)
Increase / (decrease) in vacation pay and compensatory leave (108) (76)
Increase / (decrease) in employee future benefits (170) (72)
Refund of prior years’ expenditures 481 (1)
Total items affecting net cost of operations but not affecting authorities (759) (760)
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets 1,353 14
Amortization of tangible capital assets (17) 28
Accounts receivable and advances 12 13
Total items not affecting net cost of operations but affecting authorities 1,348 55
Current year authorities used 12,251 5,625

(b) Authorities provided and used

(in thousands of dollars)

  2021 For the Period July 12, 2019 to March 31, 2020
Authorities provided:
Vote 1 – Operating expenditures 22,592 22,468
Statutory amounts 962 371
Less:
Lapsed: Operating (11,303) (17,214)
Current year authorities used 12,251 5,625

5. Accounts payable and accrued liabilities

The following table presents details of NSIRA’s accounts payable and accrued liabilities.

  2021 For the Period July 12, 2019 to March 31, 2020
Authorities provided:
Accounts payable – Other government departments and agencies 444 306
Accounts payable – External parties 1,075 (8)
Accounts payable and accrued liabilities transferred in from other government department 1,262
Total accounts payable 1,519 1,560
Total accounts payable and accrued liabilities 1,519 1,560

6. Employee future benefits

(a) Pension benefits

NSIRA’s employees participate in the Public Service Pension Plan (the ”Plan”), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 related to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2020-21 expense amounts to $877,610 ($325,594 in 2019-20). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2019-20) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2019-20) the employee contributions.

NSIRA’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan’s sponsor.

(b) Severance benefits

Severance benefits provided to NSIRA’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

(in thousands of dollars)

  2021 For the Period July 12, 2019 to March 31, 2020
Accrued benefit obligation – Beginning of year 146
Accrued benefit obligation transferred in from other government department 74
Expense for the year 170 72
Accrued benefit obligation – End of year 316 146

7. Accounts receivable and advances

The following table presents details of NSIRA’s accounts receivable and advances balances:

  2021 For the Period July 12, 2019 to March 31, 2020
Receivables – Other government departments and agencies 581 (21)
Receivables – External parties 51 11
Employee advances 2
Accounts receivable and advances transferred in from other government department 98
Net accounts receivable 632 90

8. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset Class Amortization Period
Informatics hardware 3 to 10 years
Other equipment 3 to 30 years

(in thousands of dollars)

  Cost Accumulated Amortization Net Book Value
Capital Asset Class Opening Balance Acquisitions Adjustments (1) Disposal and Write- Offs Closing Balance Opening Balance Amortization Adjustments (1) Disposals and Write- Offs Closing Balance 2021 For the period July 12, 2019 to March 31, 2020
Informatics hardware 279 279 120 69 189 90 159
Other equipment 1,012 84 1,096 205 102 307 789 808
Assets under construction 1,269 1 1,270 1,270
Total 1,291 1,353 1 2,645 325 171 496 2,149 967

9. Contractual obligations

The nature of NSIRA’s activities may result in some large multi-year contracts and obligations whereby NSIRA will be obligated to make future payments in order to carry out its programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

  2022 2023 2024 2025 2026 2027 and subsequent Total
Professional and special services 1,019 462 1,481
Information 88 88
Repair and maintenance 6,195 6,195
Rental 117 117
Transportation and communications 111 111
Aquisition of machinery and equipment 376 376
Total 7,906 462 8,368

NSIRA is related as a result of common ownership to all government departments, agencies, and Crown Corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual. NSIRA enters into transactions with these entities in the normal course of business and on normal trade terms.

During the year, NSIRA received common services which were obtained without charge from other government departments as disclosed below.

(a) Common services provided without charge by other government departments

During the year, NSIRA received services without charge from certain common service organizations, related to accommodation, the employer’s contribution to the health and dental insurance plans and workers’ compensation coverage. These services provided without charge have been recorded at the carrying value in NSIRA’s Statement of Operations and Departmental Net Financial Position as follows:

(in thousands of dollars)

  2021 For the Period July 12, 2019 t0 March 31, 2020
Accommodation 451 316
Employer’s contribution to the health and dental insurance plans 556 295
Total 1,007 611

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada are not included in NSIRA’s Statement of Operations and Departmental Net Financial Position. The costs of information technology infrastructure services provided by Shared Services Canada, following the transfer of responsibilities in November 2011 are also not included in NSIRA’s Statement of Operations and Departmental Net Financial Position.

(b) Other transactions with other government departments and agencies

  2021 For the Period July 12, 2019 to March 31, 2020
Expenses 5,595 2,325

11. Segmented information

Presentation by segment is based on NSIRA’s Departmental Results Framework. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 3. The following table presents the expenses incurred and revenues generated for the main program alignments, by major object of expense and by major type of revenue. The segment results for the period are as follows:

  Assist the NSIRA Internal Services 2021 For the period July 12, 2019 to March 31, 2020
Expenses
Salaries and employee benefits 5,380 2,614 7,994 3,996
Professional and special services 302 1,543 1,845 1,361
Accommodation 451 451 316
Transportation and communications 15 73 88 225
Information 109 82 192 78
Acquisition of machinery and equipment 694 694 73
Repair and maintenance (49) 1,307 1,258 115
Amortization of tangible capital assets 171 171
Rental 152 152 51
Utilities, materials and supplies 2 6 8 40
Other 10 (1,201) (1,191) 75
Total expenses 5,769 5,893 11,662 6,330
Net cost from continuing operations 5,769 5,893 11,662 6,330

Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting for Fiscal Year 2021-22 (unaudited)

1. Introduction

This document provides summary information on measures taken by the National Security Intelligence Review Agency (NSIRA) to maintain an effective system of internal control over financial reporting (ICFR) including information on internal control management, assessment results and related action plans.

Detailed information on NSIRA authority, mandate, and programs can be found in our Departmental Plan and Departmental Results Report.

2. Departmental system of internal control over financial reporting

2.1  Internal Control Management

NSIRA recognizes the importance of setting the tone from the top to help ensure that staff at all levels understand their roles in maintaining effective financial systems of ICFR and are well equipped to exercise these responsibilities effectively. NSIRA’s financial transactions can be processed within the financial system by both NSIRA and the Privy Council Office (PCO), in accordance with a Memorandum of Understanding (MOU), and are subject to the same control framework and monitoring activities undertaken at PCO.

NSIRA relies on PCO control measures to a large extent, but also recognizes the importance of ensuring that it implements its own complementary measures. To this end, NSIRA ensures that all managers with financial delegation have completed the appropriate training course prior to exercising their delegation. NSIRA has implemented a rigourous governance and accountability structure to support the oversight of its system of internal control, which includes:

  • Values and ethics framework;
  • Organizational accountability structures as they relate to internal control management to support sound financial management including roles and responsibilities for senior managers in their areas of responsibility;
  • Evidence of effective planning and reporting activities which includes multiple financial reviews and regular financial reporting to all managers including senior management;
  • Integrated risk management and on-going quality assurance and monitoring activities;
  • On-going communication and training on statutory requirements, policies, and procedures for sound financial management and control; and
  • Monitoring and regular updates as needed on internal control management plus assessment results and action.

2.2  Service Arrangements relevant to financial statements

NSIRA relies on other organizations for the processing of certain transactions that are recorded in its financial statements, and relies on these service providers to ensure an adequate system of ICFR is maintained over services provided to NSIRA.

Common Arrangements:
  • Public Services and Procurement Canada, which administers the payment of salaries and the procurement of goods and services, and provides accommodation services
  • Shared Services Canada, which provides IT infrastructure services
  • Treasury Board of Canada Secretariat, which provides information on public service insurance and centrally administers payment of the employer’s share of contributions toward statutory employee benefit plans
Specific Arrangements:
  • As aforementioned, NSIRA’s financial transactions are processed within the financial system by both NSIRA and the Privy Council Office (PCO), in accordance with a Memorandum of Understanding (MOU), and are subject to the same control framework and monitoring activities undertaken at PCO.

3. Departmental assessments results during fiscal year 2021-22

Progress during the 2021-22 fiscal year

NSIRA’s management team has maintained a financial system and an internal control mechanism that ensures that financial information is understandable, relevant, reliable and comparable in concert with the Privy Council Office’s support as per our MOU.  Progress is disclosed in the Annex of PCO’s Statement of Management Responsibility.

New or significantly amended key controls

NSIRA relies on the system of internal control implemented at PCO for the above noted business processes.  New or significantly modified internal controls are disclosed in the Annex of PCO’s statement of management responsibility.

On-going monitoring program

NSIRA’s monitoring program for the above noted business processes leverages PCO’s rotational on-going monitoring plan disclosed in the Annex of PCO’s statement of management responsibility.

4. Departmental action plan

4.1  Progress during fiscal year 2020-21

We understand our responsibility in terms of appropriate financial comptrollership and communication with the public, and we will continue to ensure that financial controls and a rigorous reporting process continue to be in place going forward. Action plans are disclosed in the Annex of PCO’s Statement of Management Responsibility.

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Date Modified:

Quarterly Report: For the quarter ended September 30th, 2021

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2021-22 Main Estimates.

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

Mandate

The National Security and Intelligence Review Agency (NSIRA) is an independent external review body, which reports to Parliament. Established in July 2019, NSIRA is responsible for conducting reviews of the Government of Canada’s national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and their activities.

A summary description of the program activities of NSIRA can be found in Part II of the Main Estimates. For more information on NSIRA’s mandate, please visit its website at https://nsira-ossnr.gc.ca.

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 2021-22 Main Estimates. 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 money 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 authorities for specific purposes.

Highlights of the fiscal quarter and fiscal year-to-date 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, 2021.

NSIRA spent approximately 21% of its authorities by the end of the second quarter, compared with 20% in the same quarter of 2020-21 (see graph 1, below).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q2 2021–22 and Q2 2020–21

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q2 2021–22 and Q2 2020–21
  2021-22 2020-21
Total Authorities $31.3 $20.5
Q2 Expenditures $3.7 $2.7
Year-to-Date Expenditures $6.5 $4.0

Significant changes to authorities

As at September 30, 2021, Parliament had approved $31.3 million in total authorities for use by NSIRA 2021-22 compared with $20.4 million as of September 30, 2020, for a net increase of $10.9 million or 53.4% (see graph 2, below).

Graph 2: Variance in authorities as at September 30, 2021

Graph: Variance in authorities as at September 30, 2021 - Text version follows
Variance in authorities as at September 30, 2021 (in millions)
  Fiscal year 2020-21 total available for use for the year ended March 31, 2021 Fiscal year 2021-22 total available for use for the year ended March 31, 2022
Vote 1 – Operating $19.2 $29.6
Statutory $1.2 $1.7
Total budgetary authorities $20.4 $31.3

The increase of $10.9 million in authorities is mostly explained by the ramp-up of approved funding for the mandate of NSIRA and the approval of a funding reprofile into fiscal year 2021-22 for accommodation and infrastructure projects. 

Significant changes to quarter expenditures

The second quarter expenditures totalled $3.7 million for an increase of $1.0 million when compared with $2.7 million spent during the same period in 2020- 21. Table 1 below presents budgetary expenditures by standard object.

Table 1

Variances in expenditures by standard object(in thousands of dollars) Fiscal year 2021-22: expended during the quarter ended September 30, 2021 Fiscal year 2020-21: expended during the quarter ended September 30, 2020 Variance $ Variance %
Personnel 2,441 2,229 212 10%
Transportation and communications 24 12 12 100%
Information 15 (9) 24 (267%)
Professional and special services 840 275 565 205%
Rentals 17 64 (47) (73%)
Repair and maintenance 205 4 201 100%
Utilities, materials and supplies 9 (3) 12 (400%)
Acquisition of machinery and equipment 158 43 115 100%
Other subsidies and payment 28 42 (14) 100%
Total gross budgetary expenditures 3,737 2,658 1,079 41%

Personnel

The increase of $0.2 million relates to additional staffing to support NSIRA’s departmental mandate. 

Professional and special services

The increase of $0.6 million is mainly due to an agreement for ongoing information technology (IT) support services with a partnering federal organization.

Repair and maintenance

The increase of $0.2 million is explained by office accommodation fit-up costs. 

Acquisition of machinery and equipment

The increase of $0.1 million is mainly explained by the acquisitions of informatics hardware.  

Risks and uncertainties

The COVID-19 pandemic had a significant impact on NSIRA’s ability to grow the organization in a way as would be expected under its new mandate. The physical distancing requirements decreased the ability of staff to concurrently work with departments and agencies subject to reviews.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillset that many positions require. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays, especially during the pandemic.

While NSIRA has been able to secure temporary space to address its immediate space requirements, the pandemic caused significant delays for the fit-up of this space. NSIRA is working closely with Public Services and Procurement Canada and Shared Services Canada to expedite the office expansion plans.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant stakeholders to understand policies, operations and ongoing issues is closely tied to the capacity of the reviewed departments and agencies to respond to the demands of NSIRA. The pandemic impacts including the ability to conduct classified work in the workplace combined with existing resource constraints of the reviewed departments and agencies continue to delay the conduct of reviews.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the execution of its mandate.  

Significant changes in relation to operations, personnel and programs

The pandemic forced changes in the way NSIRA conducts operations. The requirement for physical distancing and the existing challenge with respect to the high security zone accommodation has led NSIRA to authorize staff to work with non-sensitive files from home.

In late March 2021, NSIRA was a victim of a cyber attack on its public network. The attack did not affect its classified networks. That attack led NSIRA to change its IT operating model; since then, NSIRA has been using the Privy Council Office IT infrastructure to conduct activities that are unclassified and up to protected B activities.

The Honourable Marie Deschamps, C.C., currently a member of the National Security and Intelligence Review Agency (NSIRA), became the chair of the NSIRA, effective August 11, 2021.

There have been no new Governor-in-Council appointments during the second quarter.

There have been no changes to the NSIRA Program.

Approved by senior officials:

John Davies
Deputy Head

Pierre Souligny
Senior Director, Corporate Services, Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2021–22 Fiscal year 2020–21
  Total available for use for the year ending March 31, 2022 (note 1) Used during the quarter ended September 30, 2021 Year to date used at quarter-end Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended September 30, 2020 Year to date used at quarter-end
Vote 1 – Net operating expenditures 29,615 3,311 5,647 19,217 2,285 3,213
Budgetary statutory authorities
Contributions to employee benefit plans 1,705 426 852 1,237 371 742
Total budgetary authorities 31,319 3,737 6,499 20,453 2,656 3,955

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2021–22 Fiscal year 2020–21
  Planned expenditures for the year ending March 31, 2022 (note 1) Expended during the quarter ended September 30, 2021 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended September 30, 2020 Year to date used at quarter-end
Expenditures
Personnel 13,222 2,441 4,753 9,592 2,229 3,340
Transportation and communications 673 24 37 968 12 19
Information 375 15 17 303 (9) 41
Professional and special services 7,029 840 1,036 2,708 275 343
Rentals 188 17 17 197 64 64
Repair and maintenance 8,737 205 213 5,945 4 57
Utilities, materials and supplies 103 9 12 144 (3) 7
Acquisition of machinery and equipment 991 158 374 327 43 43
Other subsidies and payments 0 28 40 268 42 42
Total gross budgetary expenditures
(note 2)
31,319 3,737 6,499 20,453 2,656 3,955

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Quarterly Report: For the quarter ended June 30, 2021

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2021-22 Main Estimates.

A summary description of the National Security and Intelligence Review Agency Secretariat (NSIRA) program activities can be found in Part II of the Main Estimates. For information on the mandate of NSIRA, please visit its website at https://nsira-ossnr.gc.ca.

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

Mandate

The NSIRA is an independent external review body, which reports to Parliament. NSIRA was established in July of 2019 and is responsible to conduct reviews of the Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and activities. NSIRA replaces the Security Intelligence Review Committee (SIRC), which reviewed CSIS (Canadian Security Intelligence Service) activities as well as those related to the revocation or denial of security clearances. It also hears complaints regarding the Communication Security Establishment (CSE), as well as national security-related complaints regarding the RCMP.

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 2021-22 Main Estimates. 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.

Highlights of the fiscal quarter and fiscal year-to-date 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 June 30, 2021.

NSIRA spent approximately 9% of its authorities by the end of the first quarter, compared to 5% in the same quarter of 2020-21 (see graph 1 below).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q1 2021–22 and Q1 2020–21

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q1 2021–22 and Q1 2020–21
  2021-22 2020-21
Total Authorities $30.2 $24.3
Q1 Expenditures $2.8 $1.2

Significant changes to authorities

As per graph 2 below as at June 30, 2021, NSIRA had authorities available for use of $30.2 million in 2021-22 compared to $24.3 million as of June 30, 2020, for a net increase of $5.9 million or 24.3%.

Graph 2: Variance in authorities as at June 30, 2021

Graph: Variance in authorities as at June 30, 2021 - Text version follows
Variance in authorities as at June 30, 2021 (in millions)
  Fiscal year 2020-21 total available for use for the year ended March 31, 2021 Fiscal year 2021-22 total available for use for the year ended March 31, 2022
Vote 1 – Operating $22.8 $28.5
Statutory $1.5 $1.7
Total budgetary authorities $24.3 $30.2

The authorities’ increase of $5.9 million is mostly explained by the ramp-up of approved funding for the mandate of NSIRA and the approval of a funding reprofile into fiscal year 2021-22 for accommodation and infrastructure projects.

Significant changes to quarter expenditures

The first quarter expenditures totaled $2.7M for an increase of $1.5M when compared to $1.2M spent during the same period in 2020-21. Table 1 below presents budgetary expenditures by standard object.

Table 1

(in thousands of dollars)

Material Variances to Expenditures by Standard Object YTD Expenditures as of June 30, 2021 YTD Expenditures as of June 30, 2020 Variance $ Variance %
Personnel 2,312 1,111 1,201 108%
Transportation and communications 13 7 6 86%
Information 2 50 (48) (96%)
Professional and special services 196 68 128 188%
Repair and maintenance 8 0 8 100%
Utilities, materials and supplies 3 9 (6) (67%)
Acquisition of machinery and equipment 216 0 216 100%
Other subsidies and payment 12 0 12 100%
Total gross budgetary expenditures 2,762 1,246 1,516 122%

Personnel

The increase of $1.2M relates to additional staffing to support NSIRA’s departmental mandate as well as higher statutory expenditures in 2021-22.

Transportation and communications

The increase of $6K is mainly explained by the relocation of an employee.

Information

The decrease of $48K is explained by lower expenditures for electronic subscriptions.

Professional and special services

The increase of $128K is mainly due to contracts in management consulting, including procurement and business advisory services.

Repair and maintenance

The increase of $8K is explained by office accommodation fit-up costs.

Utilities, Materials and Supplies

The decrease of $6K is mainly explained by lower expenditures for cleaning supplies and personal protective equipment for the pandemic over the previous year.

Acquisition of machinery and equipment

The increase of $216K is mainly explained by the acquisitions of informatics equipment and related cyber security products.

Other Subsidies and payments

The increase of $12K due to multiple payroll system overpayments processed in the first quarter of 2021-22.

Risks and uncertainties

The COVID-19 pandemic had a significant impact on the ability of NSIRA to grow its organization in a way that is commensurate with its new mandate. The physical distancing requirements decreased the ability of staff to concurrently work with departments and agencies subject to reviews. In light of that, NSIRA revised its Review Plan and has advanced the introduction of a new approach to the review of complaints.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillset required for many positions. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays, especially during the pandemic.

While NSIRA has been able to secure temporary space to address its immediate space requirements, significant delays have been incurred for the fit-up of this space due to the pandemic. NSIRA is working closely with Public Services and Procurement Canada and Shared Services Canada to expedite the office expansion plans.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant stakeholders to understand policies, operations and ongoing issues is closely tied to the reviewed departments’ and agencies’ capacity to respond to the demands of NSIRA. The pandemic impacts including the ability to conduct classified work at the workplace combined with existing resource constraints of the reviewed departments and agencies continue to delay the conduct of reviews.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls, which were implemented in 2016.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the conduct of its mandate.

Significant changes in relation to operations, personnel and programs

The pandemic forced changes in the way NSIRA conducts operations. The requirement for physical distancing and the existing challenge with respect to the high security zone accommodation has led NSIRA to authorize staff to work with non-sensitive files from home.

In late March 2021, NSIRA was victim of a cyber attack on its public network. The attack did not affect its classified networks. That attack has led NSIRA to change its Information Technology (IT) operating model and NSIRA has since then been using the Privy Council Office IT infrastructure for the conduct of it’s unclassified and up to protected B activities.

The Honourable Marie Deschamps has also recently been named interim Chair for NSIRA.

There have been no changes to the NSIRA Program.

Approved by senior officials:

John Davies
Deputy Head

Pierre Souligny
Senior Director, Corporate Services, Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2021–22 Fiscal year 2020–21
  Total available for use for the year ending March 31, 2022 (note 1) Used during the quarter ended June 30, 2021 Year to date used at quarter-end Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended June 30, 2020 Year to date used at quarter-end
Vote 1 – Net operating expenditures 28,490 2,336 2,336 22,801 875 875
Budgetary statutory authorities
Contributions to employee benefit plans 1,705 426 426 1,484 371 371
Total budgetary authorities (note 2) 30,195 2,762 2,762 24,285 1,246 1,246

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2021–22 Fiscal year 2020–21
  Planned expenditures for the year ending March 31, 2022 (note 1) Expended during the quarter ended June 30, 2021 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended June 30, 2020 Year to date used at quarter-end
Expenditures
Personnel 13,222 2,312 2,312 11,510 1,111 1,111
Transportation and communications 673 13 13 1,162 7 7
Information 375 2 2 364 50 50
Professional and special services 5,904 196 196 3,250 68 68
Rentals 188 0 0 237 0 0
Repair and maintenance 8,737 8 8 7,134 0 0
Utilities, materials and supplies 103 3 3 173 9 9
Acquisition of machinery and equipment 991 216 216 393 0 0
Other subsidies and payments 0 12 12 63 0 0
Total gross budgetary expenditures
(note 2)
30,195 2,762 2,762 24,285 1,246 1,246

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Quarterly Report: For the quarter ended December 31, 2020

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2020- 21 Main Estimates.

A summary description of the National Security and Intelligence Review Agency Secretariat (NSIRA) program activities can be found in Part II of the Main Estimates. For information on the mandate of NSIRA, please visit its website at http://www.nsira-ossnr.gc.ca.

Mandate

The NSIRA is an independent external review body, which reports to Parliament. NSIRA was established in July of 2019 and is responsible to conduct reviews of the Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and activities.

NSIRA replaces the Security Intelligence Review Committee (SIRC), which reviewed CSIS (Canadian Security Intelligence Service) activities as well as those related to the revocation or denial of security clearances. It also hears complaints regarding the Communication Security Establishment (CSE), as well as national security-related complaints regarding the RCMP.

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 2020-21 Main Estimates. 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.

Highlights of the fiscal quarter and fiscal year-to-date 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, 2020.

NSIRA spent approximately 28% of its authorities by the end of the third quarter, compared to 15% in the same quarter of 2019-20 (see graph 1 below).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q3 2020–21 and Q3 2019–20

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q3 2020–21 and Q3 2019–20
  2020-21 2019-20
Total Authorities $24.0 $24.8
Q3 Expenditures $2.7 $2.0
Year-to-Date Expenditures $6.6 $3.8

Significant changes to authorities

As per graph 2 below as at December 31, 2020, NSIRA had authorities available for use of $24.0 million in 2020-21 compared to $24.8 million as of December 31, 2019, for a net decrease of $0.8 million or 3.2%.

Graph 2: Variance in authorities as at December 31, 2020

Graph: Variance in authorities as at December 30, 2020 - Text version follows
Variance in authorities as at December 31, 2020 (in millions)
  Fiscal year 2019-20 total available for use for the year ended March 31, 2020 Fiscal year 2020-21 total available for use for the year ended March 31, 2021
Vote 1 – Operating $23.6 $22.6
Statutory $1.2 $1.4
Total budgetary authorities $24.8 $24.0

The authorities’ decrease of $0.8 million is mostly explained by a transfer of funding to CSE for the fit-up and maintenance of office space.

Significant changes to quarter expenditures

The third quarter expenditures totaled $2.7M for an increase of $0.7M when compared to $2.0M spent during the same period in 2019-20. Table 1 below presents budgetary expenditures by standard object.

Table 1

Material Variances to Expenditures by Standard Object Fiscal year 2020-21: expended during the quarter ended December 31, 2020 Fiscal year 2019-20: expended during the quarter ended December 31, 2019 Variance $ Variance %
Personnel 1,732 1,504 228 15%
Transportation and communications 19 99 (80) (81%)
Information 37 3 34 1133%
Professional and special services 389 377 12 3%
Rentals 41 4 37 925%
Repair and maintenance 189 47 142 302%
Utilities, materials and supplies 21 14 7 50%
Acquisition of machinery and equipment 257 6 251 4183%
Other subsidies and payment (13) (68) 55 (81%)
Total gross budgetary expenditures 2,671 1,985 686 35%

* Details may not sum to totals due to rounding

Personnel

The increase of $0.2M relates to additional staffing to support NSIRA’s new departmental mandate as well as higher statutory expenditures in 2020-21.

Transportation and communications

The decrease of $80K is mainly explained by the absence of travel due to the COVID-19 pandemic.

Information

The increase of $34K is explained by a contract for communication services.

Rentals

The increase of $37K is mostly due to new fees paid for the maintenance of NSIRA’s Finance and HR systems.

Repair and maintenance

The increase of $142K is explained by office accommodation fit-up costs.

Utilities, Materials and Supplies

The increase of $7K is mainly explained by higher expenditures for cleaning supplies and personal protective equipment due to the pandemic.

Acquisition of machinery and equipment

The increase of $251K is mainly explained by furniture acquisitions and office redesign to accommodate more employees and to equip NSIRA personnel to work from home.

Other Subsidies and payments

The increase of $55K is explained by fewer salary overpayment recoveries processed in the third quarter of 2020-21 compared to 2019-20.

Significant changes to year-to-date expenditures

Year-to-date expenditures recorded to the end of the third quarter totaled $6.7M for an increase of $2.8M when compared to the same year-to-date expenditures in 2019-20. Table 2 below presents budgetary expenditures by standard object.

Table 2

Material Variances to Expenditures by Standard Object YTD Expenditures as of 31 December, 2020 YTD Expenditures as of 31 December 2019 Variance $ Variance %
Personnel 5,072 2,814 2,258 80%
Transportation and communications 37 184 (147) (80%)
Information 78 7 71 1014%
Professional and special services 731 555 176 32%
Rentals 104 43 61 142%
Repair and maintenance 247 53 194 366%
Utilities, materials and supplies 28 20 8 40%
Acquisition of machinery and equipment 300 35 265 757%
Other subsidies and payment 28 76 (48) (63%)
Total gross budgetary expenditures 6,626 3,786 2,840 75%

Details may not sum to totals due to rounding

Personnel

The increase of $2.3M is mainly explained by additional staffing to support NSIRA’s new departmental mandate as well as higher statutory payments.

Transportation and communications

The decrease of $147K is mainly explained by the absence of travel due to the COVID-19 pandemic.

Information

The increase of $71K is explained by higher expenditures for electronic subscriptions and communication consultants.

Professional and special services

The increase of $176K is mainly due to additional management consulting contracts.

Rentals

The increase of $61K is mostly explained by new fees paid for the maintenance of NSIRA’s corporate information technology systems.

Repair and maintenance

The increase of $194K is mainly due to office accommodation fit-up costs.

Utilities, Materials and Supplies

The increase of $8K is mainly explained by higher expenditures of cleaning supplies and personal protective equipment due to the pandemic.

Acquisition of machinery and equipment

The increase of $265K is mainly explained by furniture acquisitions and office redesign to accommodate more employees and to support home offices.

Other Subsidies and payments

The decrease of $48K is due to multiple salary overpayments processed in the first three quarters of 2019-20.

Risks and uncertainties

The COVID-19 pandemic had a significant impact on the ability of NSIRA to grow its organization in a way that is commensurate with its new mandate. The physical distancing requirements decreased the ability of staff to concurrently work with departments and agencies subject to reviews. In light of that, NSIRA revised its Review Plan and has advanced the introduction of a new approach to the review of complaints.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillset required for many positions. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays, especially during the pandemic.

While NSIRA has been able to secure temporary space to address its immediate space requirements, significant delays have been incurred for the fit-up of this space due to the pandemic. The timing at which staff will be able to operate within this high security zone has yet to be determined. NSIRA is working closely with Public Services and Procurement Canada and Shared Services Canada to expedite the office expansion plans.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant stakeholders to understand policies, operations and ongoing issues is closely tied to the reviewed departments’ and agencies’ capacity to respond to the demands of NSIRA. The pandemic impacts including the ability to conduct classified work at the workplace combined with existing resource constraints of the reviewed departments and agencies could delay NSIRA’s ability to deliver on its mandate in a timely way.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls, which were implemented in 2016.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the conduct of its mandate. 

Significant changes in relation to operations, personnel and programs

The pandemic forced changes in the way NSIRA conducts operations. The requirement for physical distancing and the existing challenge with respect to the high security zone accommodation has led NSIRA to authorize staff to work with non-sensitive files from home.

In September 2020, Murray Rankin stepped down as Chair of NSIRA. The Honourable L. Yves Fortier was named acting Chair until the end of his term. Since, The Honourable Dr. Ian Holloway acted as Chair and now The Honourable MarieLucie Morin has been reappointed as acting Chair.

In addition, Faisal Mirza has been appointed as a new member of NSIRA. 

Approved by senior officials:

John Davies
Deputy Head

Pierre Souligny
Senior Director, Corporate Services, Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended December 31, 2020 Year to date used at quarter-end Total available for use for the year ending March 31, 2020 (note 1) Used during the quarter ended December 31, 2019 Year to date used at quarter-end
Vote 1 – Net operating expenditures 22,565 2,300 5,513 23,618 1,854 3,392
Budgetary statutory authorities
Contributions to employee benefit plans 1,484 371 1,113 1,240 131 394
Total budgetary authorities 24,049 2,671 6,626 24,858 1,985 3,786

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Planned expenditures for the year ending March 31, 2021 (note 1) Expended during the quarter ended December 31, 2020 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended December 30, 2019 Year to date used at quarter-end
Expenditures
Personnel 11,512 1,732 5,072 8,677 1,504 2,814
Transportation and communications 1,162 19 37 961 99 184
Information 364 37 78 402 3 7
Professional and special services 3,250 389 731 3,353 377 555
Rentals 237 41 104 229 4 43
Repair and maintenance 6,681 189 247 9,641 47 53
Utilities, materials and supplies 173 21 28 179 14 20
Acquisition of machinery and equipment 293 257 299 1,356 6 25
Other subsidies and payments 278 (13) 28 70 (68) 76
Total gross budgetary expenditures
(note 2)
24,049 2,671 6,626 24,858 1,985 3,786

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Quarterly Report: For the quarter ended September 30th, 2020

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2020- 21 Main Estimates.

A summary description of the National Security and Intelligence Review Agency Secretariat (NSIRA) program activities can be found in Part II of the Main Estimates. For information on the mandate of NSIRA, please visit its website at http://www.nsira-ossnr.gc.ca.

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

Mandate

The National Security and Intelligence Review Agency (NSIRA) is an independent external review body, which reports to Parliament. NSIRA was established in July of 2019 and is responsible to conduct reviews of the Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and activities. NSIRA replaces the Security Intelligence Review Committee (SIRC), which reviewed CSIS (Canadian Security Intelligence Service) activities as well as those related to the revocation or denial of security clearances. Going forward, it will also hear complaints regarding the Communication Security Establishment (CSE), as well as national security-related complaints regarding the RCMP.

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 2020-21 Main Estimates. 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.

Highlights of the fiscal quarter and fiscal year-to-date 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, 2020.

NSIRA spent approximately 20% of its authorities by the end of the second quarter, compared to 34% in the same quarter of 2019-20 (see graph 1 below).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q2 2020–21 and Q2 2019–20

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q2 2020–21 and Q2 2019–20
  2020-21 2019-20
Total Authorities $20.5 $5.3
Q2 Expenditures $2.7 $1.0
Year-to-Date Expenditures $4.0 $1.8

Significant changes to authorities

As per graph 2 below as at September 30, 2020, NSIRA had authorities available for use of $20.5 million in 2020-21 compared to $5.3 million as of September 30, 2019, for a net increase of $15.2 million or 287%.

Graph 2: Variance in authorities as at September 30, 2020

Graph: Variance in authorities as at September 30, 2020 - Text version follows
Variance in authorities as at September 30, 2020 (in millions)
  Fiscal year 2019-20 total available for use for the year ended March 31, 2020 Fiscal year 2020-21 total available for use for the year ended March 31, 2021
Vote 1 – Operating $4.8 $19.2
Statutory $0.5 $1.2
Total budgetary authorities $5.3 $20.5

Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the Fall. As a result, NSIRA is expected to receive full supply for the 2020-21 Main Estimates in December 2020.

The authorities’ increase of $15.2 million is explained by the approval of funding for the mandate of NSIRA. A portion of the increase, $5.0 M, is to be used to initiate temporary and permanent accommodation projects.

Significant changes to quarter expenditures

The second quarter expenditures totaled $2.7M for an increase of $1.7M when compared to $1M spent during the same period in 2019-20. Table 1 below presents budgetary expenditures by standard object.

Table 1

Material Variances to Expenditures by Standard Object Fiscal year 2020-21: expended during the quarter ended September 30, 2020 Fiscal year 2019-20: expended during the quarter ended September 30, 2019 Variance $ Variance %
Personnel 2,229 761 1,468 193%
Transportation and communications 12 55 (43) (78%)
Information (9) 0 (9)
Professional and special services 275 91 184 202%
Rentals 64 14 50 357%
Repair and maintenance 4 6 (2) (33%)
Utilities, materials and supplies (3) 3 (6) (200%)
Acquisition of machinery and equipment 43 23 20 87%
Other subsidies and payment 42 47 (5) (11%)
Total gross budgetary expenditures 2,656 1,000 1,656 166%

Personnel

The increase of $1.5M relates to additional staffing to support NSIRA’s new departmental mandate.

Transportation and communications

The increase of $1.5M relates to additional staffing to support NSIRA’s new departmental mandate.

Information

The decrease of $9K is explained by a reallocation of expenditures between standard objects.

Professional and special services

The increase of $184K is mainly due to large contracts in Management consulting.

Rentals

The increase of $50K is mostly explained by the timing of the invoices as well as new software licence costs.

Utilities, Materials and Supplies

The decrease of $6K is explained by a reallocation of expenses between standard objects.

Acquisition of machinery and equipment

The increase of $20K is mainly explained by furniture acquisitions and office remodelling to accommodate the increased number of employees.

Other Subsidies and payments

The decrease of $5K is due to multiple salary overpayments processed in the second quarter of 2019-20 which didn’t occur in 2020-21

Significant changes to year-to-date expenditures

Year-to-date expenditures recorded to the end of the second quarter totaled $4.0M for an increase of $2.2M when compared to $1.8M spent during the same period in 2019-20. Table 2 below presents budgetary expenditures by standard object.

Table 2

Material Variances to Expenditures by Standard Object YTD Expenditures as of September 30, 2020 YTD Expenditures as of September 30, 2019 Variance $ Variance %
Personnel 3,340 1,310 2,030 155%
Transportation and communications 19 85 (66) (78%)
Information 41 4 37 925%
Professional and special services 343 178 165 93%
Rentals 64 39 25 64%
Repair and maintenance 57 7 50 714%
Utilities, materials and supplies 7 7 0 0%
Acquisition of machinery and equipment 43 28 15 54%
Other subsidies and payment 42 144 (102) (71%)
Total gross budgetary expenditures 3,955 1,801 2,154 120%

Personnel

The increase of $2M is mainly related to staffing to support NSIRA’s new departmental mandate as well as timing of salary recoveries by other government departments.

Transportation and communications

The decrease of $66K is mainly explained by lack of travel due to the COVID-19 pandemic.

Information

The increase of $37K is explained by higher expenditures for electronic subscriptions and communication consultants.

Professional and special services

The increase of $165K is mainly due to large contract in Management consulting.

Rentals

The increase of $25K is mostly explained by new software licence costs.

Acquisition of machinery and equipment

The increase of $15K is mainly explained by furniture acquisitions and office remodelling to accommodate the increase in number of employees.

Other Subsidies and payments

The decrease of $102K is due to multiple Salary Overpayments processed in first two quarters of 2019-20.

Risks and uncertainties

The COVID-19 pandemic had a significant impact on the ability of NSIRA to grow its organization in a way that is commensurate with its new mandate. The physical distancing requirements decreased the ability of staff to concurrently work with departments and agencies subject to reviews. In light of that, NSIRA revised its Review Plan and has advanced the introduction of a new approach to the review of complaints.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillset required for many positions. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays, especially during the pandemic.

While NSIRA has been able to secure temporary space to address its immediate space requirements, the timing at which this staff will be able to operate within this high security zone has still not been determined. NSIRA is working closely with Public Services and Procurement Canada to expedite the fit-up plans.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant internal stakeholders to understand policies, operations and ongoing issues is closely tied to the reviewed departments’ capacity to respond to the demands of NSIRA. The pandemic impacts and existing resource constraints of the reviewed departments could delay NSIRA’s ability to deliver on its mandate in a timely way.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls, which were implemented in 2016.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the conduct of its mandate.

Significant changes in relation to operations, personnel and programs

The pandemic forced changes in the way NSIRA conducts operations. The requirement for physical distancing and the existing challenge with respect to high security zone accommodation has led NSIRA to authorize staff to work with nonsensitive files from home.

Murray Rankin, Chair of NSIRA, has left the Agency. Honourable L. Yves Fortier has been designated acting Chair.

There have been no new Governor-in-Council appointments during the second quarter.

There have been no changes to the NSIRA Program.

Approved by senior officials:

John Davies
Executive Director

Pierre Souligny
Senior Director, Corporate Services, Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended September 30, 2020 Year to date used at quarter-end Total available for use for the year ending March 31, 2020 (note 1) Used during the quarter ended September 30, 2019 Year to date used at quarter-end
Vote 1 – Net operating expenditures 19,217 2,285 3,213 4,809 869 1,538
Budgetary statutory authorities
Contributions to employee benefit plans 1,237 371 742 526 131 263
Total budgetary authorities 20,453 2,656 3,955 5,334 1,000 1,801

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not add to totals due to rounding

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Planned expenditures for the year ending March 31, 2021 (note 1) Expended during the quarter ended September 30, 2020 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended September 30, 2019 Year to date used at quarter-end
Expenditures
Personnel 9,592 2,229 3,340 4,142 761 1,310
Transportation and communications 968 12 19 232 55 85
Information 303 (9) 41 76 4
Professional and special services 2,708 275 343 465 91 178
Rentals 197 64 64 70 14 39
Repair and maintenance 5,945 4 57 4 6 7
Utilities, materials and supplies 144 (3) 7 29 3 7
Acquisition of machinery and equipment 327 43 43 315 23 28
Other subsidies and payments 268 42 42 2 47 144
Total gross budgetary expenditures
(note 2)
20,453 2,656 3,955 5,334 1,000 1,801

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Date Modified:

Quarterly Report: For the quarter ended June 30, 2020

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2020- 21 Main Estimates.

A summary description of the National Security and Intelligence Review Agency Secretariat (NSIRA) program activities can be found in Part II of the Main Estimates. For information on the mandate of NSIRA, please visit its website at http://www.nsira-ossnr.gc.ca.

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

Mandate

The National Security and Intelligence Review Agency (NSIRA) is an independent external review body, which reports to Parliament. NSIRA was established in July of 2019 and is responsible to conduct reviews of the Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and activities. NSIRA replaces the Security Intelligence Review Committee (SIRC), which reviewed CSIS (Canadian Security Intelligence Service) activities as well as those related to the revocation or denial of security clearances. Going forward, it will also hear complaints regarding the Communication Security Establishment (CSE), as well as national security-related complaints regarding the RCMP. 

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 2020-21 Main Estimates. 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.

Highlights of the fiscal quarter and fiscal year-to-date 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 June 30, 2020.

NSIRA spent approximately 5% of its authorities by the end of the first quarter, compared to 15% in the same quarter of 2019-20 (see graph 1 below). 

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q1 2020–21 and Q1 2019–20

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q1 2020–21 and Q1 2019–20
  2020-21 2019-20
Total Authorities $24.3 $5.2
Q1 Expenditures $1.2 $0.8

Significant changes to authorities

As per graph 2 below as at June 30, 2020, NSIRA had authorities available for use of $24.3 million in 2020-21 compared to $5.2 million as of June 30, 2019, for a net increase of $19.1 million or 367%.

Graph 2: Variance in authorities as at June 30, 2020

Graph: Variance in authorities as at June 30, 2020 - Text version follows
Variance in authorities as at June 30, 2020 (in millions)
  Fiscal year 2019-20 total available for use for the year ended March 31, 2020 Fiscal year 2020-21 total available for use for the year ended March 31, 2021
Vote 1 – Operating $4.6 $22.8
Statutory $0.5 $1.5
Total budgetary authorities $5.2 $24.3

The authorities’ increase of $19.1 million is explained by the approval of funding for the mandate of NSIRA. A portion of the increase, $5.0 M, is to be used to initiate temporary and permanent accommodation projects.

Significant changes to quarter expenditures

Year-to-date expenditures recorded to the end of the first quarter totaled $1.2M for an increase of $0.4M when compared to $0.8M spent during the same period in 2019-20. Table 1 below presents budgetary expenditures by standard object. The authorities’ increase of $19.1 million is explained by the approval of funding for the mandate of NSIRA. A portion of the increase, $5.0 M, is to be used to initiate temporary and permanent accommodation projects.

Table 1

(in thousands of dollars)

Material Variances to Expenditures by Standard Object YTD Expenditures as of June 30, 2020 YTD Expenditures as of June 30, 2019 Variance $ Variance %
Personnel 1,111 548 563 103%
Transportation and communications 7 30 (23) (77%)
Information 50 4 46 1150%
Professional and special services 68 87 (19) (22%)
Rentals 0 25 (25) (100%)
Repair and maintenance 0 1 (1) (100%)
Utilities, materials and supplies 9 3 6 200%
Acquisition of machinery and equipment 0 5 (5) (100%)
Other subsidies and payment 0 97 (97) (100%)
Total gross budgetary expenditures 1,246 801 445 56%

Personnel

The increase of $563,000 is mainly related to staffing to support new departmental mandate. 

Transportation and communications

The decrease of $23,000 is mainly explained by lack of travel due to COVID-19 pandemic. 

Information

The increase of $46,000 is explained by higher expenditures for electronic subscriptions.

Professional and special services

The decrease of $19,000 is mainly due to the timing of the invoices for Translation.

Rentals

The decrease of $25,000 is mostly explained by the timing of the invoices as well as lower expenditures on rentals due to the pandemic. 

Utilities, Materials and Supplies

The increase of $6,000 is mostly due an increase in spending for material and supplies.

Acquisition of machinery and equipment

The decrease of $5,000 is mainly explained by delays in acquisitions due to the pandemic. 

Other Subsidies and payments

The decrease of $97,000 is due to multiple Salary Overpayments processed in first quarter of 2019-20. 

Risks and uncertainties

The COVID-19 Pandemic had a significant impact on the ability of NSIRA to grow its organization in a way that is commensurate with its new mandate. The physical distancing requirements decreased the ability of staff to concurrently work with departments and agencies subject to reviews. In light of that, NSIRA revised its Review Plan and has advanced the introduction of a new approach to the review of complaints.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillsets required for many positions. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays, especially during the Pandemic.

While NSIRA has been able to secure temporary space to address its immediate space requirements, the timing at which this staff will be able to operate within this high security zone has still not been determined. NSIRA is working closely with Public Services and Procurement Canada to expedite the fit-up plans.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant internal stakeholders to understand policies, operations and ongoing issues is closely tied to the reviewed departments’ capacity to respond to the demands of NSIRA. The Pandemic impacts and existing resource constraints of the reviewed departments could delay NSIRA’s ability to deliver on its mandate in a timely way.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls, which were implemented in 2016.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the conduct of its mandate. 

Significant changes in relation to operations, personnel and programs

The Pandemic forced some changes in the way NSIRA’s conducts operations. The requirement for physical distancing and the existing challenge with respect to high security zone accommodation has led NSIRA to authorize staff to work with nonsensitive files from home.

There have been no new Governor-in-Council appointments during the first quarter. Charles Fugere has been named new Senior General Counsel with NSIRA.

There have been no changes to the NSIRA Program.  

Approved by senior officials:

John Davies
Executive Director

Pierre Souligny
Senior Director, Corporate Services, Chief Financial Officer

Appendix

Statement of authorities (Unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Total available for use for the year ending March 31, 2021 (note 1) Used during the quarter ended June 30, 2020 Year to date used at quarter-end Total available for use for the year ending March 31, 2020 (note 1) Used during the quarter ended June 30, 2019 Year to date used at quarter-end
Vote 1 – Net operating expenditures 22,801 875 875 4,629 670 670
Budgetary statutory authorities
Contributions to employee benefit plans 1,484 371 371 526 131 131
Total budgetary authorities (note 2) 24,285 1,246 1,246 5,155 801 801

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2020–21 Fiscal year 2019–20
  Planned expenditures for the year ending March 31, 2021 (note 1) Expended during the quarter ended June 30, 2020 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended June 30, 2019 Year to date used at quarter-end
Expenditures
Personnel 11,510 1,111 1,111 3,962 548 548
Transportation and communications 1,162 7 7 232 30 30
Information 364 50 50 76 4 4
Professional and special services 3,250 68 68 265 87 87
Rentals 237 0 0 70 25 25
Repair and maintenance 7,134 4 1 1
Utilities, materials and supplies 173 9 9 29 3 3
Acquisition of machinery and equipment 393 315 5 5
Other subsidies and payments 63 2 97 97
Total gross budgetary expenditures
(note 2)
24,285 1,246 1,246 5,155 801 801

Note 1: Includes only authorities available for use and granted by Parliament as at quarter-end.

Note 2: Details may not sum to totals due to rounding.

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Quarterly Report: For the quarter ended December 31, 2019

Date of Publishing:

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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2019-20 Main Estimates.

A summary description of the National Security and Intelligence Review Agency Secretariat (NSIRA) program activities can be found in Part II of the Main Estimates. For information on the mandate of NSIRA, please visit its website at http://www.nsira-ossnr.gc.ca.

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

Mandate

On June 21, 2019 the National Security and Intelligence Review Agency Act (NSIRA Act) received Royal Assent. This new legislation, which came into force on July 12, 2019, significantly enhances national security accountability in Canada. NSIRA has a statutory mandate to review the activities of the Canadian Security Intelligence Service (CSIS) and of the Communications Security Establishment (CSE), as well as the national security and intelligence activities of all other federal governement departments and agencies. The NSIRA replaces the Security Intelligence Review Committee (SIRC), which reviewed CSIS’s activites and it also replaces the Office of the CSE Commissioner (OCSEC), which reviewed CSE’s activities.

In addition, NSIRA inherited the complaints investigation functions of the Security Intelligence
Review Committee (SIRC), which was responsible for hearing complaints from members of the
public regarding the actions of CSIS, as well as those related to the revocation or denial of
security clearances. Going forward, NSIRA will also hear complaints regarding the CSE, as well
as national security-related complaints regarding the RCMP.

The NSIRA will report its findings and recommendations on an annual basis to Parliament with
its first annual public report planned to be tabled in 2020. The NSIRA is also required to produce
an annual report for Parliament on the disclosure of information under the Security of Canada
Information Disclosure Act.

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 2019- 20 Main Estimates as well as the Supplementary Estimates (A) and Treasury Board (TB) Central Votes. 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.

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.

Highlights of the fiscal quarter and fiscal year-to-date 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,
2019.

NSIRA spent approximately 15% of its authorities by the end of the third quarter, compared to
55% in the same quarter of 2018-19 (see graph 1 below).

Graph 1: Comparison of total authorities and total net budgetary expenditures, Q3 2019–20 and Q3 2018–19

Graph: Comparison of total authorities and total net budgetary expenditures - Text version follows
Comparison of total authorities and total net budgetary expenditures, Q3 2019–20 and Q3 2018–19
  2019-20 2018-19
Total Authorities $24.9 $5.5
Q3 Expenditures $2.0 $0.9
Year-To-Date Expenditures $3.8 $3.0

Significant changes to authorities

As per graph 2 below as at December 31, 2019, NSIRA has authorities available for use of $24.9 million in 2019-20 compared to $5.5 million as of December 31, 2018, for a net increase of $19.4 million or 353%.

Graph 2: Variance in authorities as at December 31, 2019

Graph: Variance in authorities as at December 30, 2019 - Text version follows
Variance in authorities as at December 31, 2019 (in millions)
  Fiscal year 2018-19 total available for use for the year ended March 31, 2019 Fiscal year 2019-20 total available for use for the year ended March 31, 2020
Vote 1 – Operating $5.0 $23.6
Statutory $0.5 $1.2
Total budgetary authorities $5.5 $24.9

The authorities increase of $19.4 million is explained by the approval, through Supplementary Estimates, of funding for the mandate of NSIRA.

Significant changes to quarter expenditures

The third quarter expenditures totaled $2.0M for an increase of $1.1M when compared to $0.9M spent during the same period in 2018-19. Table 1 below presents budgetary expenditures by standard object.

Table 1

(in thousands of dollars)

Material Variances to Expenditures by Standard Object Fiscal year 2019-20 Expended during the quarter ended December 31, 2019 Fiscal year 2018-19 Expended during the quarter ended December 31, 2018 Variance $ Variance %
Personnel 1,504 684 820 120%
Transportation and communications 99 46 53 115%
Information 3 0 3 0%
Professional and special services 377 49 328 669%
Rentals 4 27 (23) (85%)
Repair and maintenance 47 46 1 2%
Utilities, materials and supplies 14 11 3 27%
Acquisition of machinery and equipment 6 29 (23) (79%)
Other subsidies and payment (68) (29) (39) 134%
Total gross budgetary expenditures 1,985 863 1,122 130%

Personnel

The increase of $820,000 is mainly related to staffing to support new departmental mandate. 

Transportation and communications

The increase of $53,000 is mainly explained by higher travel expenditures in support of NSIRA’s expanded mandate.

Professional and special services

The increase of $328,000 is mainly due to the timing of the invoices for Financial Management Services.

Rentals

The decrease of $23,000 is mostly explained by the acquisition of Software licenses in 2018-19.

Acquisition of machinery and equipment

The decrease of $23,000 is mainly explained by furniture acquisitions in 2018-19 in preparation for the creation of NSIRA.

Other Subsidies and payments

The decrease of $39,000 is mostly due to elevated recoveries of salary overpayments processed in the third quarter of 2019-20.

Significant changes to quarter expenditures

The year-to-date expenditures totaled $3.8M for an increase of $0.8M when compared to $3.0M spent during the same period in 2018-19. Table 2 below presents budgetary expenditures by standard object.

Table 2

(in thousands of dollars)

Material Variances to Expenditures by Standard Object YTD Expenditures as of December 30, 2019 YTD Expenditures as of December 30, 2018 Variance $ Variance %
Personnel 2,814 2,267 547 24%
Transportation and communications 184 187 (3) (2%)
Information 7 28 (21) (75%)
Professional and special services 555 229 326 142%
Rentals 43 50 (7) (14%)
Repair and maintenance 53 64 (11) (17%)
Utilities, materials and supplies 20 14 6 43%
Acquisition of machinery and equipment 35 142 (107) (75%)
Other subsidies and payment 76 20 56 280%
Total gross budgetary expenditures 3,787 3,001 786 26%

Personnel

The increase of $547,000 is mainly explained by the staffing actions in support of NSIRA expanded operations.

Information

The decrease of $21,000 is mainly related to the earlier production of the SIRC Annual Report in June 2018.

Professional and special services

The increase of $326,000 is mainly explained by the timing of the invoices in 2019-20.

Acquisition of machinery and equipment

The decrease of $107,000 is mostly due to the Network Infrastructure upgrade project that was completed in 2018-19

Other Subsidies and payments

The increase of $56,000 is mainly explained by growth in the payroll system overpayments in 2019-20.

Risks and uncertainties

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for NSIRA, particularly given the specialized knowledge and skillsets required for many positions. This is further compounded by the requirement for candidates to obtain a Top Secret security clearance, which can incur significant delays.

The ability to expand into additional secure accommodations in a timely manner is also a significant risk for NSIRA, given that its mandate requires it to operate within a high security zone. A lack of secure accommodations would negatively impact the ability of NSIRA to hire large numbers of staff, impeding its ability to deliver on its mandate.

The ability of NSIRA to access the information it needs to do its work and speak to the relevant internal stakeholders to understand policies, operations and ongoing issues is closely tied to the reviewed departments’ capacity to respond to the demands of NSIRA. The resource constraints of the reviewed departments could delay NSIRA’s ability to deliver on its mandate in a timely way.

NSIRA is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls which were implemented in 2016.

Mitigation measures for the risks outlined above have been identified and are factored into NSIRA’s approach to the conduct of its mandate.

Significant changes in relation to operations, personnel and programs

The Security Inteligence Review Committee ceased to exist upon the coming into force of Part 1 of the National Security Act, 2017 on July 12, 2019. The National Security and Intelligence Review Act established a new organization, which has assumed, amongst other things, responsiblities of that Committee. NSIRA is responsible for reviewing intelligence and national security activities across government. This new expanded mandate is expected to bring big changes to Operations and Personnel in the years to come.

NSIRA accessed funds through the 2019-20 Supplementary Estimates (A), as well as funds deemed over from SIRC.

Approved by senior officials:

John Davies
Executive Director

Chantelle Bowers
A/Deputy Executive Director and Senior General Counsel, A/Chief Financial Officer

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