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
Text version of Figure 1
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
Text version of Figure 2
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.
It is an honour and a privilege to be named the inaugural Chair of the National Security and Intelligence Review Agency (NSIRA).
NSIRA is comprised of seven appointed members, working with a Secretariat with expertise in review, law, national security and policy. NSIRA has a mandate to review any Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also investigates complaints from members of the public regarding national security agencies and activities. Its recent creation fills a longstanding gap in Canada’s national security architecture and significantly strengthens our framework for national security accountability.
NSIRA will report on its work through a variety of mechanisms. It is required to produce an unclassified annual report summarizing the full range of its activities, findings, and recommendations. This annual report is to be submitted to the Prime Minister and tabled in both Houses of Parliament. NSIRA is also required to submit annual reports to the Minister of Public Safety and the Minister of National Defence regarding the activities of the Canadian Security Intelligence Service (CSIS) and the Communications Security Establishment (CSE), respectively, as well as an additional annual report to the Minister of Public Safety regarding disclosures under the Security of Canada Information Disclosure Act (SCIDA). As the Chair of NSIRA, I am required on an annual basis to brief the Minister of Public Safety on CSIS’ exercise of its powers, duties and functions, and to do the same for the Minister of National Defence with respect to CSE.
NSIRA will also work with the National Security and Intelligence Committee of Parliamentarians (NSICOP) and the Privacy Commissioner on issues of common interest, to maximize both the effectiveness and the efficiency of national security review activities.
I am grateful for the support that I have received thus far in my new role, and I look forward to continuing to work with my colleagues in the year ahead in fulfilling NSIRA’s important new mandate.
Murray Rankin, Q.C.
Chair, National Security and Intelligence Review Agency
Message from the Executive Director
It is my pleasure to submit the first Departmental Plan for the National Security and Intelligence Review Agency, for 2020-21.
During our first full year of operation, we will focus on transitioning to a much broader mandate, which now includes review of national security and intelligence activities across the Government of Canada, as well as the investigation of complaints related to CSIS, CSE, and national security complaints related to the Royal Canadian Mounted Police (RCMP).
We will focus on building a strong network of partnerships to help us define our research priorities and deliver on our mandate in an increasingly complex national security environment. In doing so, we also want to be more transparent with Canadians. A longer term vision is being developed and will be articulated in greater detail in our forthcoming annual report. Ensuring a healthy work environment so that all employees feel valued and included is key to attaining this vision.
I hope that you find the information below useful in detailing how NSIRA is resourced and intends to fulfill its mandate in the year ahead.
John Davies Executive Director
Plans at a glance
Established in July 2019, NSIRA represents a significant enhancement for national security accountability in Canada. NSIRA has a statutory mandate to review the activities of CSIS and 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 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, it will also hear complaints regarding the CSE, as well as national security-related complaints regarding the RCMP.
In its first full year of operations, NSIRA will focus on ensuring it transitions effectively to a much larger organization with a much broader mandate. This includes: securing new accommodations; effective staffing and knowledge development; establishing strong working relations with review partners and other Canadian review bodies; and, delivering on mandatory reporting requirements as noted in the National Security and Intelligence Review Agency Act. Going forward, as NSIRA’s institutional capacity adapts, reviews will grow in complexity and sophistication, with an increasing focus on inter-agency activities. A key planning tool to be developed is a three-year research plan. This plan will guide resource allocation and staffing decisions over the medium term.
NSIRA is committed to: openness and transparency to connect better with Canadians; methodological excellence to ensure the quality of our work; and, forward thinking and innovation, including how we consider the impacts of new technology and an ever-changing national security environment. NSIRA understands the importance of organizational health and wellness as fundamental to our success. As we act on these values, NSIRA expects to be well positioned to deliver on our mandate.
For more information on the NSIRA’s plans, priorities and planned results, see the “Core responsibilities: planned results and resources, and key risks” section of this report.
Core responsibilities: planned results and resources, and key risks
Assist the National Security and Intelligence Review Agency
Description
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.
Planning highlights
NSIRA will directly contribute to enhancing scrutiny of, and accountability for, national security and intelligence activities undertaken by Government of Canada institutions. This will increase public confidence that these activities are thoroughly reviewed and assessed as to whether they are lawful, reasonable and necessary.
Work in the year ahead will focus on adapting to NSIRA’s broad new mandate. This will involve building knowledge of the national security and intelligence activities of departments and agencies across the Government of Canada, in support of both the review and complaints investigations functions. Staffing new positions with high-quality candidates who can bring specialized knowledge and expertise to the organization will be a key priority.
NSIRA will carry out a number of activities in 2020-21 in support of its new mandate, including:
Supporting the development of reports, including on specific annual mandatory reviews and the NSIRA’s annual public report, which will be submitted to the Prime Minister;
Developing a medium-term research plan that reflects the broad scope of NSIRA’s new review mandate and the modern realities of inter-agency cooperation in the field of national security;
Working actively with its counterparts at the NSICOP, the Office of the Privacy Commissioner, and the Office of the Intelligence Commissioner to foster productive collaboration within the Canadian review community;
Undertaking the investigation of complaints, updating procedures and establishing protocols in relation to the newly expanded aspects of this function;
Exploring ways to continue to build relationships with like-mandated international review bodies to participate in the exchange of best practices; and,
Enhancing NSIRA’s engagement with Canadians on matters of national security and intelligence in order to build public trust.
Gender-based analysis plus
NSIRA is committed to developing a diverse and inclusive workforce comprised of individuals with a broad range of backgrounds and perspectives. The NSIRA Secretariat recently issued its first employee survey to establish baselines on employee demographics as well as on matters related to workplace wellness. In the year ahead, a number of steps will be taken to follow up on this initiative and to foster an inclusive and positive work environment. Greater diversity in the workforce is an important staffing objective for the organization.
NSIRA is also mindful of the potential impact that national security and intelligence activities can have on diverse communities in Canada. This and related issues can arise in the context of reviews as well as complaints, and NSIRA has the authority to scrutinize national security and intelligence activities for signs of bias and discrimination.
In the year ahead, NSIRA will engage Canadians to discuss research planning and priorities, as well as findings and recommendations of interest, and to better understand concerns regarding differential impacts of national security and intelligence activities. This engagement will include a diverse range of stakeholder groups.
NSIRA is also aware of concerns about bias and unfair targeting in the context of new and emerging technologies. In the year ahead, we will work to better understand this issue and the implications that it entails for Canadians. We are also exploring training tools for NSIRA staff to ensure that considerations related to Gender-based analysis plus are incorporated into our review methodology.
Key risks
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 to ensure that NSIRA’s work is conducted in accordance with the highest security standards remains top-of-mind for the organization. In the year ahead, we will work to ensure that employees are aware of and abide by all relevant security protocols, while ensuring that our accommodations and information systems are fit-for-purpose. In this regard, we will work with the national security community to ensure that they have confidence in our approach.
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.
Mitigation measures for the risks outlined above will be developed and factored into NSIRA’s work throughout the year ahead.
Planned results for assisting the National Security and Intelligence Review Agency
NSIRA’s Departmental Results Framework, with accompanying results and indicators, is under development. Additional information on key performance measures will be included in the 2021- 22 Departmental Plan.
Financial, human resources and performance information for NSIRA’s program inventory is available in the GC InfoBase.
Planned budgetary financial resources for assisting the National Security and Intelligence Review Agency
2020–21 budgetary spending (as indicated in Main Estimates)
2020–21 planned spending
2021–22 planned spending
2022–23 planned spending
11,309,411
11,309,411
12,107,192
13,842,015
Financial, human resources and performance information for NSIRA’s program inventory is available in the GC InfoBase.
Planned human resources for assisting the National Security and Intelligence Review Agency
2020–21 planned full-time equivalents
2021–22 planned full-time equivalents
2022–23 planned full-time equivalents
48
75
75
Financial, human resources and performance information for NSIRA’s program inventory is available in the GC InfoBase.
Internal Services: planned results
Description
Internal Services are those groups of related activities and resources that the federal government considers to be services in support of Programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct services that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. These services are:
Management and Oversight Services
Communications Services
Legal Services
Human Resources Management Services
Financial Management Services
Information Management Services
Information Technology Services
Real Property Management Services
Materiel Management Services
Acquisition Management Services
Planning highlights
In this first full year of operations, NSIRA will focus on expanding into additional secure facilities and on staffing vacant positions. The Secretariat is working with officials from the Privy Council Office and Public Services and Procurement Canada to identify opportunities for expansion into an additional high security zone, as well as opportunities to retrofit existing spaces for eventual occupation. On the issue of human resources, the Secretariat is recruiting with a view to ensuring that new staff are diverse and have the necessary skills and core competencies that will provide NSIRA with high-quality support it requires over the long term.
The Secretariat will also work to ensure that staff are equipped with the necessary Information Management/Information Technology (IM/IT) systems, equipment and support services to perform their work, as the organization grows.
Planned budgetary financial resources for Internal Services
2020–21 budgetary spending (as indicated in Main Estimates)
2020–21 planned spending
2021–22 planned spending
2022–23 planned spending
12,975,559
12,975,559
12,107,192
4,614,005
Funding for 2020-21 and 2021-22 is higher than ongoing funding figures due to plans for funds being used for the building and refurbishing of additional office space.
Planned human resources for Internal Services
2020–21 planned full-time equivalents
2021–22 planned full-time equivalents
2022–23 planned full-time equivalents
22
25
25
Financial, human resources and performance information for NSIRA’s program inventory is available in the GC InfoBase.
Spending and human resources
This section provides an overview of the department’s planned spending and human resources for the next three consecutive fiscal years, and compares planned spending for the upcoming year with the current year’s spending.
Planned spending
Departmental spending 2017–18 to 2022–23
The following graph presents planned (voted and statutory) spending over time.
The figures in the graph above reflect the fact that NSIRA was established part-way through the 2019-20 fiscal year, with a coming-into-force date of July 12, 2019. Fiscal Year 2019-20 presents forecast spending for the current fiscal year. Fiscal years 2020-21 to 2022-23 present planned spending based on approved authorities. The planned spending for 2020-21 and 2021-22 includes funding for construction and fit-up of secure office space required by NSIRA for its activities.
Budgetary planning summary for core responsibilities and Internal Services (dollars)
The following table shows actual, forecast and planned spending for NSIRA’s core responsibility and for Internal Services for the years relevant to the current planning year.
Core responsibilities and Internal Services
2017–18 expenditures
2018–19 expenditures
2019–20 forecast spending
2020–21 budgetary spending (as indicated in Main Estimates)
2020–21 planned spending
2021–22 planned spending
2022–23 planned spending
National Security and Intelligence Reviews and Complaints Investigations
N/A
N/A
2,964,990
11,309,411
11,309,411
12,107,192
13,842,015
Subtotal
N/A
N/A
2,964,990
11,309,411
11,309,411
12,107,192
13,842,015
Internal Services
N/A
N/A
4,984,840
12,975,559
12,975,559
12,107,192
4,614,005
Total
N/A
N/A
7,949,830
24,284,970
24,284,970
24,214,384
18,456,020
As NSIRA was created on July 12, 2019, there is no comparative information to provide for prior years. Numbers for 2019-20 are for the reporting period July 12, 2019 – March 31, 2020.
Due to delays in acquiring and fitting up a second office site for the growing organization, NSIRA is expected to lapse funds, allocated for construction and equipping office space in 2019-20. Planned spending for 2022-23 shows the ongoing financial authorities after completion of the office expansion project.
Planned human resources
The following table shows actual, forecast and planned full-time equivalents (FTEs) for the core responsibility in NSIRA’s departmental results framework and for Internal Services for the years relevant to the current planning year.
Human resources planning summary for core responsibilities and Internal Services
Core responsibilities and Internal Services
2017-18 Actual full-time equivalents
2018-19 Actual full-time equivalents
2019-20 Forecast full-time equivalents
2020-21 Planned full-time equivalents
2021-22 Planned full-time equivalents
2022-23 Planned full-time equivalents
Assist the National Security and Intelligence Review Agency
N/A
N/A
24
48
75
75
Subtotal
N/A
N/A
24
48
75
75
Internal Services
N/A
N/A
15
22
25
25
Total
N/A
N/A
39
70
100
100
Accommodations challenges as well as security clearance requirements pushed anticipated staffing actions to future reporting periods. As NSIRA evolves, it will need to prioritize staffing efforts in order to fulfill its expanded mandate.
Estimates by vote
Information on NSIRA’s organizational appropriations is available in the 2020–21 Main Estimates.
Condensed future-oriented statement of operations
The condensed future-oriented statement of operations provides an overview of NSIRA’s operations for 2019–20 to 2020–21.
The amounts for forecast and planned results in this statement of operations were prepared on an accrual basis. The amounts for forecast and planned spending presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.
A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on NSIRA’s website.
Human resources planning summary for core responsibilities and Internal Services
Financial information
2019-20 Forecast results
2020-21 Planned results
Difference (2020-21 planned results minus 2019-20 Forecast results)
Total expenses
8,924,002
25,780,059
16,856,058
Total revenues
248
248
0
Net cost of operations before government funding and transfers
8,923,754
25,779,811
16,856,058
The large increase between planned results for 2020-21 and forecasted results for 2019-20 is due to the later-than-expected royal assent of the National Security and Intelligence Review Agency Act and the coming-into-force of the NSIRA. The difference has been further compounded by the challenge of finding suitable highly secure accommodations and the resulting inability to complete planned hiring in 2019-20.
Corporate Information
Organizational profile
Appropriate minister: The Right Honourable Justin Trudeau, Prime Minister of Canada Institutional head: John Davies, Executive Director Ministerial portfolio: Privy Council Office Enabling instrument:National Security and Intelligence Review Agency Act Year of incorporation / commencement: 2019
Raison d’être, mandate and role: who we are and what we do
“Raison d’être, mandate and role: who we are and what we do” is available on NSIRA‘s website.
Operating context
Information on the operating context is available on NSIRA’s website.
Reporting framework
NSIRA’s Departmental Results Framework, with accompanying results and indicators, is under development. Additional information on key performance measures will be included in the 2021- 22 Departmental Plan.
Supporting information on the program inventory
Supporting information on planned expenditures, human resources, and results related to NSIRA’s program inventory is available in the GC InfoBase.
Supplementary information tables
The following supplementary information tables are available on NSIRA‘s website.
Departmental Sustainable Development Strategy
Gender-based analysis plus
Federal tax expenditures
NSIRA’s Departmental Plan does not include information on tax expenditures that relate to its planned results for 2020–21.
Tax expenditures are the responsibility of the Minister of Finance, and the Department of Finance Canada publishes cost estimates and projections for government-wide tax expenditures each year in the Report on Federal Tax Expenditures. This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis. The tax measures presented in this report are solely the responsibility of the Minister of Finance.
Organizational contact information
National Security and Intelligence Review Agency P.O. Box 2430, Station “D” Ottawa, Ontario K1P 5W5
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures(dépenses budgétaires)
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
core responsibility(responsabilité essentielle)
An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.
Departmental Plan(plan ministériel)
A report on the plans and expected performance of an appropriated department over a 3‑year period. Departmental Plans are usually tabled in Parliament each spring.
departmental priority(priorité)
A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.
departmental result(résultat ministériel)
A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.
departmental result indicator (indicateur de résultat ministériel)
A quantitative measure of progress on a departmental result.
departmental results framework(cadre ministériel des résultats)
A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.
Departmental Results Report(rapport sur les résultats ministériels)
A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.
experimentation(expérimentation)
The conducting of activities that seek to first explore, then test and compare the effects and impacts of policies and interventions in order to inform evidence-based decision-making, and improve outcomes for Canadians, by learning what works, for whom and in what circumstances. Experimentation is related to, but distinct from innovation (the trying of new things), because it involves a rigorous comparison of results. For example, using a new website to communicate with Canadians can be an innovation; systematically testing the new website against existing outreach tools or an old website to see which one leads to more engagement, is experimentation.
full‑time equivalent(équivalent temps plein)
A measure of the extent to which an employee represents a full person‑year charge against a departmental budget. For a particular position, the full‑time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.
gender-based analysis plus (GBA Plus)(analyse comparative entre les sexes plus [ACS Plus])
An analytical process used to assess how diverse groups of women, men and gender-diverse people experience policies, programs and services based on multiple factors including race ethnicity, religion, age, and mental or physical disability.
For the purpose of the 2020–21 Departmental Results Report, those high-level themes outlining the government’s agenda in the 2019 Speech from the Throne, namely: Fighting climate change; Strengthening the Middle Class; Walking the road of reconciliation; Keeping Canadians safe and healthy; and Positioning Canada for success in an uncertain world.
horizontal initiative(initiative horizontale)
An initiative where two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.
non‑budgetary expenditures(dépenses non budgétaires)
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance (rendement)
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.
performance indicator(indicateur de rendement)
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.
performance reporting(production de rapports sur le rendement)
The process of communicating evidence‑based performance information. Performance reporting supports decision making, accountability and transparency.
plan(plan)
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.
planned spending(dépenses prévues)
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.
A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.
program(programme)
Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.
program inventory(répertoire des programmes)
Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.
result(résultat)
A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.
statutory expenditures(dépenses législatives)
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
target (cible)
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
voted expenditures(dépenses votées)
Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.
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
Text version of Figure 1
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
Text version of Figure 2
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.
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
Text version of Figure 1
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
Text version of Figure 2
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
Statement of Management Responsibility Including Internal Control over Financial Reporting
Responsibility for the integrity and objectivity of the accompanying financial statements for the period starting July 12, 2019 and ending March 31, 2020, 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, 2020 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 Executive Director
Pierre Souligny Chief Financial Officer
Ottawa, Canada October 8, 2020
Statement of Financial Position (Unaudited)
As of March 31(in thousands of dollars)
For the Period July 12, 2019 through March 31, 2020
Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31(in thousands of dollars)
For the period July 12, 2019 through March 31, 2020
2019
Net cost of operations after government funding and transfers
(673)
–
Change due to tangible capital assets
Acquisition of tangible capital assets
14
–
Transfer of tangible capital asset to/from other government department
953
–
Total change due to tangible capital assets
967
–
Change due to prepaid expenses
109
–
Net increase (decrease) in departmental net debt
403
–
Departmental net debt – Beginning of year
–
–
Departmental net debt – End of year
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)
For the Period July 12, 2019 through March 31, 2020
2019
Operating activities
Net cost of operations before government funding and transfers
6,330
–
Non-cash items:
Amortization of tangible capital assets
–
–
Transfer of tangible capital assets to/from other government department
953
–
Services provided without charge by other government departments (Note 9a)
(611)
–
Transfer of overpayments
–
–
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances
90
–
Increase (decrease) in prepaid expenses
109
–
Decrease (increase) in accounts payable and accrued liabilities
(1,560)
–
Decrease (increase) in vacation pay and compensatory leave
(323)
–
Decrease (increase) in future employee benefits
(146)
–
Cash used in operating activities
3,905
–
Capital ingesting activities
Acquisitions of tangible capital assets (Note 8)
14
–
Cash used in capital investing activities
14
–
Net cash provided by Government of Canada
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. Government Reorganization
Through the enactment of the NSIRA Act and the repeal of the CSIS Act, the activities and the responsibilities of the defunct SIRC were transferred to NSIRA. As a result, the net assets of $2,349,184 and net liabilities of $1,412,420 have been transferred to the NSIRA, resulting in an adjustment to NSIRA’s net financial position of $936,764.
These financial statements represent the partial year results of operations for the period July 12, 2019 through March 31, 2020, 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 2019-2020 Departmental Plan. Planned results are not presented 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 because these amounts were not included in the 2019-2020 Departmental Plan.
(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)
For the priod July 12, 2019 to March 31, 2020
2019
Net cost of operations before government funding and transfers
6,330
–
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets
–
–
Services provided without charge by other government departments
(611)
–
Increase / (decrease) in vacation pay and compensatory leave
(76)
–
Increase / (decrease) in employee future benefits
(72)
–
Refund of prior years’ expenditures
(1)
–
Total items affecting net cost of operations but not affecting authorities
(760)
–
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets
14
–
Increase / (decrease) in prepaid expenses
28
–
Accounts receivable and advances
13
–
Total items not affecting net cost of operations but affecting authorities
55
–
Current year authorities used
5,625
–
(b) Authorities provided and used
(in thousands of dollars)
For the period July 12, 2019 to March 31, 2020
2019
Authorities provided:
Vote 1 – Operating expenditures
22,468
–
Statutory amounts
371
–
Less:
Lapsed: Operating
(17,214)
–
Current year authorities used
5,625
–
5. Accounts payable and accrued liabilities
The following table presents details of NSIRA’s accounts payable and accrued liabilities.
For the Period July 12, 2019 to March 31, 2020
2019
Authorities provided:
Accounts payable – Other government departments and agencies
306
–
Accounts payable – External parties
(8)
–
Accounts payable and accrued liabilities transferred in from other government department (note 2)
1,262
–
Total accounts payable
1,560
–
Total accounts payable and accrued liabilities
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 2019-20 expense amounts to $325,594 ($0 in 2018-19). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2018-19) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2018-19) 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)
For the Period July 12, 2019 to March 31, 2020
2019
Accrued benefit obligation – Beginning of year
–
–
Accrued benefit obligation transferred in from other government department
74
–
Expense for the year
72
–
Accrued benefit obligation – End of year
146
–
7. Accounts receivable and advances
The following table presents details of NSIRA’s accounts receivable and advances balances:
(in thousands of dollars)
For the Period July 12, 2019 to March 31, 2020
2019
Receivables – Other government departments and agencies
(21)
–
Receivables – External parties
11
–
Employee advances
2
–
Accounts receivable and advances transferred in from other government department
98
–
Net accounts receivable
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 5 years
Other equipment
10 to 15 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
For the period July 12, 2019 to March 31, 2020
2019
Informatics hardware
–
–
279
–
279
–
–
120
–
120
159
–
Other equipment
–
14
998
–
1,012
–
–
204
–
204
808
–
Total
–
14
1,277
–
1,291
–
–
324
–
324
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:
2021
2022
2023
2024
2025
2026 and subsequent
Total
Professional and special services
117
–
–
–
–
–
117
Information
32
–
–
–
–
–
32
Repair and maintenance
74
–
–
–
–
–
74
Transportation and communications
32
–
–
–
–
–
32
Total
7,906
–
–
–
–
–
255
10. Related party transactions
NSIRA is related as a result of common ownership to all government departments, agencies, and Crown Corporations.
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)
For the Period July 12, 2019 to March 31, 2020
2019
Accommodation
316
–
Employer’s contribution to the health and dental insurance plans
295
–
Total
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
For the Period July 12, 2019 to March 31, 2020
2019
Expenses
2,235
–
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
For the period July 12, 2019 to March 31, 2020
2019
Expenses
Salaries and employee benefits
2,971
1,025
3,996
–
Professional and special services
160
1,201
1,361
–
Accommodation
316
–
316
–
Transportation and communications
103
122
225
–
Information
13
65
78
–
Acquisition of machinery and equipment
20
53
73
–
Repair and maintenance
–
115
115
–
Rental
1
50
51
–
Utilities, materials and supplies
10
30
40
–
Other
76
(1)
75
–
Total expenses
3,670
2,660
6,330
–
Net cost from continuing operations
3,670
2,660
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.
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. In accordance with a Memorandum of Understanding, NSIRA’s financial transactions are processed by the Privy Council Office (PCO) within their financial system and are for the most part subject to the same control environment.
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 by PCO within their financial system and are for the most part subject to the same control environment. These services are the subject of a MOU between the two organizations.
3. Departmental assessment results during fiscal year 2019-20
New or significantly amended key controls
As a result of the Covid-19 pandemic, select business processes were modified to enable them to remain operational and effective while key staff work remotely. Digital signatures were introduced consistent with the approach identified by the Office of the Comptroller General to enable financial and other authorizations to continue to operate efficiently and effectively at NSIRA. This impacted multiple processes relying on the use of signatures including expenditures, delegation of authority, and procurement. Year-end close processes were modified as needed due to the requirement for staff to work remotely, however the impacts were not significant. Changes to the resulting redesigned processes have been documented.
On-going monitoring program
NSIRA continues to ensure its compliance with Treasury Board Guidelines
4. Departmental action plan
4.1 Progress during fiscal year 2019-20
NSIRA’s management team, along with the support of the Privy Council Office, has maintained a financial system and an internal control mechanism that ensures that financial information is understandable, relevant, reliable and comparable.
4.2 Departmental action plan for the next fiscal year and subsequent fiscal years
We understand our responsibility in terms of appropriate financial comptrollership and communication with the public, and we will continue to ensure that financial controls are in place and rigourous reporting process are in place going forward.
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 (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 received Royal Assent as part of former Bill C-59, the National Security Act. This new legislation, which came into force on July 12, 2019, significantly alters Canada’s review framework for national security in Canada, and builds on earlier decisions to create a National Security and Intelligence Committee of Parliamentarians (NSICOP). The NSIRA replaces Security Intelligence Review Committee (SIRC), which reviewed the Canadian Security Intelligence Service (CSIS) and it also replaces the Office of the CSE Commissioner (OCSEC), which reviewed the Communications Security Establishment (CSE).
The National Security and Intelligence Review Agency (NSIRA) is an independent and external review body which reports to Parliament. The NSIRA reviews all Government of Canada national security and intelligence activities to ensure that they are lawful, reasonable and necessary. The NSIRA also hears public complaints regarding key national security agencies and activities.
The NSIRA will report its findings and recommendations on an annual basis to Parliament. The NSIRA’s first annual public report will be tabled in 2020. The NSIRA may also report to Parliament more frequently should urgent or important matters arise. 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 . 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.
NSIRA uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of 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, 2019.
NSIRA spent approximately 34% of its authorities by the end of the second quarter, compared to 40% in the same quarter of 2018-19 (see graph 1 below).
Graph 1: Comparison of total authorities and total net budgetary expenditures, Q2 2019–20 and Q2 2018–19
Text version of Figure 1
Comparison of total authorities and total net budgetary expenditures, Q2 2019–20 and Q2 2018–19
2019-20
2018-19
Total Authorities
$5.3
$5.3
Q2 Expenditures
$1.0
$1.1
Year-to-Date Expenditures
$1.8
$2.1
Significant changes to authorities
As per graph 2 below as at September 30, 2019 and Table 1, presented at the end of this document, there was no change in the total authorities available for use by NSIRA compared to previous year, at $5.3 million.
Graph 2: Variance in authorities as at September 30, 2019
Text version of Figure 2
Variance in authorities as at September 30, 2029 (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
$4.8
$4.8
Statutory
$0.5
$0.5
Total budgetary authorities
$5.3
$5.3
Significant changes to quarter expenditures
The second quarter expenditures totaled $1,001M for a decrease of $112K (10%) when compared to $1,113M spent during the same period in 2018-19. Table 1 below presents budgetary expenditures by standard object.
Table 1
Material Variances to Expenditures by Standard Object
Fiscal year 2019-20: expended during the quarter ended September 30, 2019
Fiscal year 2018-19: expended during the quarter ended September 30, 2018
Variance $
Variance %
Personnel
761
890
(129)
(14%)
Transportation and communications
55
94
(39)
(41%)
Information
0
0
0
0%
Professional and special services
91
77
14
18%
Rentals
14
5
9
180%
Repair and maintenance
6
4
2
50%
Utilities, materials and supplies
3
1
2
200%
Acquisition of machinery and equipment
23
13
10
77%
Other subsidies and payment
47
29
18
62%
Total gross budgetary expenditures
1,001
1,113
(112)
(10%)
Personnel
The decrease of $129,000 is mainly related to the timing of salary recovery invoices.
Rentals
The increase of $9,000 is mainly explained by newly acquired Software Licenses.
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 $10,000 is mainly explained by growing operations of NSIRA, which necessitated procurement of additional equipment.
Other Subsidies and payments
This increase of $18,000 is mostly due to multiple Salary Overpayments processed in the second quarter of 2019-20.
Significant changes to year-to-date expenditures
The year-to-date expenditures totaled $1,802M for a decrease of $336K (16%) when compared to $2,138M spent during the same period in 2018-19. Table 2 below presents budgetary expenditures by standard object.
Table 2
Material Variances to Expenditures by Standard Object
YTD Expenditures as of September 30, 2019
YTD Expenditures as of September 30, 2018
Variance $
Variance %
Personnel
1,310
1,583
(273)
(17%)
Transportation and communications
85
141
(56)
(40%)
Information
4
28
(24)
(86%)
Professional and special services
178
180
(2)
(1%)
Rentals
39
22
17
77%
Repair and maintenance
7
19
(12)
(63%)
Utilities, materials and supplies
7
3
4
133%
Acquisition of machinery and equipment
28
113
(85)
(75%)
Other subsidies and payment
144
49
95
194%
Total gross budgetary expenditures
1,802
2,138
(336)
(16%)
Personnel
The decrease of $273,000 is mainly related to multiple Salary Overpayments processed in the first two quarters of 2019-20.
Transportation and communications
The decrease of $56,000 is mainly explained by the employee relocation costs related to an international secondment agreement in 2018.
Information
The decrease of $24,000 is mainly explained by the earlier production of the SIRC Annual Report in June 2018.
Rentals
The increase of $17,000 is mainly explained by newly acquired Software Licenses.
Repair and Maintenance
The decrease of $12,000 is due to SIRC’s end of year 2017-18 relocation project, as well as minor repairs and maintenance to the new SIRC office in the beginning of 2018-19.
Utilities, materials and supplies
The increase of $4,000 is explained by increased need of supplies due to the growing operations of NSIRA.
Acquisition of machinery and equipment
The decrease of $85,000 is mainly related to the Network Infrastructure upgrade project in 2018- 19.
Other Subsidies and payments
The increase of $95,000 is mainly explained by multiple Salary Overpayments processed in the first two quarters of 2019-20.
Risks and uncertainties
This Departmental Quarterly Financial Report (QFR) reflects the results of the current fiscal period in relation to the 2019-20 Main Estimates (full supply for these Estimates were released in June 2019).
NSIRA continues to adapt its operations to the rapid pace of change in the security intelligence environment.
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.
Significant changes in relation to operations, personnel and programs
On June 21, 2019 the bill C-59 to create the National Security and Intelligence Review Agency, or NSIRA, received Royal Assent. 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 replaces SIRC, which reviewed the Canadian Security Intelligence Service (CSIS) and it also replaces the Office of the CSE Commissioner (OCSEC), which reviewed the Communications Security Establishment (CSE). NSIRA also inherits the complaints investigation functions of SIRC, which was responsible for hearing public complaints concerning the actions of CSIS, and complaints related to the Government of Canada security clearance process, as well as specific matters and reports referred under the Citizenship Act and the Canadian Human Rights Act. NSIRA’s complaint mandate has also expanded to include hearing public complaints regarding the CSE, as well as certain complaints regarding the Royal Canadian Mounted Police (RCMP) where there is a national security nexus.
As SIRC transitions to NSIRA in 2019–20, it will need to engage in aggressive hiring efforts to discharge its expanded mandate.
NSIRA accessed funds through the 2019-20 Main Estimates.
Approved by senior officials:
John Davies Executive Director
Chantelle Bowers A/Deputy Executive Director and Senior General Counsel, A/Chief Financial Officer
Appendix
Statement of authorities (Unaudited)
(in thousands of dollars)
Fiscal year 2019–20
Fiscal year 2018–19
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
Total available for use for the year ending March 31, 2019 (note 1)
Used during the quarter ended September 30, 2018
Year to date used at quarter-end
Vote 1 – Net operating expenditures
4,809
869
1,538
4,804
981
1,875
Budgetary statutory authorities
Contributions to employee benefit plans
526
131
263
527
132
263
Total budgetary authorities
5,334
1,000
1,801
5,331
1,113
2,138
Note 1: Pursuant to Bill C‐59 effective July 12, 2019, National Security and Intelligence Review Agency was created. It replaces the Security Intelligence Review Committee. Final expenditures for fiscal year 2019‐20 of the former Security Intelligence Review Committee will be determined at year‐end.
Note 2: Includes only Authorities available for use and granted by Parliament at quarter‐end
Note 3: Details may not add to totals due to rounding
Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)
Fiscal year 2019–20
Fiscal year 2018–19
Planned expenditures for the year ending March 31, 2020 (note 1)
Expended during the quarter ended September 30, 2019
Year to date used at quarter-end
Planned expenditures for the year ending March 31, 2019
Expended during the quarter ended September 30, 2018
Year to date used at quarter-end
Expenditures
Personnel
4,142
761
1,310
3,989
890
1,583
Transportation and communications
232
55
85
223
94
141
Information
76
–
4
73
–
28
Professional and special services
465
91
178
544
77
180
Rentals
70
14
39
67
5
22
Repair and maintenance
4
6
7
3
4
19
Utilities, materials and supplies
29
3
7
28
1
3
Acquisition of machinery and equipment
315
23
28
303
13
113
Other subsidies and payments
2
47
144
2
29
49
Total gross budgetary expenditures
5,334
1,000
1,801
5,331
1,113
2,138
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.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
3rd Party Cookies
This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.
Keeping this cookie enabled helps us to improve our website.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
