Date of Publishing:
Introduction
This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the 2024–2025 Main Estimates.
This quarterly report has not been subject to an external audit or review.
Mandate
The National Security and Intelligence Review Agency (NSIRA) is an independent external review body that reports to Parliament. Established in July 2019, NSIRA is responsible for conducting reviews of the Government of Canada’s national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and their activities.
The NSIRA Secretariat supports the Agency in the delivery of its mandate. Independent scrutiny contributes to strengthening the accountability framework for national security and intelligence activities and to enhancing public confidence. Ministers and Canadians are informed whether national security and intelligence activities undertaken by Government of Canada institutions are lawful, reasonable, and necessary
A summary description NSIRA’s program activities can be found in Part II of the Main Estimates. Information on NSIRA’s mandate can be found on its website.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency, consistent with the 2024–2025 Main Estimates. This quarterly report has been prepared using a special-purpose financial reporting framework (cash basis) designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before money can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authorities for specific purposes.
Highlights of the fiscal quarter and fiscal year-to-date results
This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended June 30, 2024.
NSIRA Secretariat spent approximately 19% of its authorities by the end of the first quarter, compared with 19% in the same quarter of 2023–2024 (see graph 1).
Graph 1: Comparison of total authorities and total net budgetary expenditures, Q1 2024–25 and Q1 2023–24
Text version of Figure 1
| 2024-25 | 2023-24 | |
|---|---|---|
| Total Authorities | $18.4 | $23.0 |
| Q1 Expenditures | $3.5 | $4.3 |
Significant changes to authorities
As of June 30, 2024, Parliament had approved $18.4 million in total authorities for use by NSIRA Secretariat for 2024–2025 compared with $23.0 million as of June 30, 2023, for a net decrease of $4.6 million or 20.0% (see graph 2).
Graph 2: Variance in authorities as at June 30, 2024
Text version of Figure 2
| Fiscal year 2023-24 total available for use for the year ended March 31, 2024 | Fiscal year 2024-25 total available for use for the year ended March 31, 2025 | |
|---|---|---|
| Vote 1 – Operating | 21.3 | 16.8.3 |
| Statutory | 1.8 | 1.6 |
| Total budgetary authorities | 23.0 | 18.4 |
*Details may not sum to totals due to rounding*
The decrease of $4.6 million in authorities is mostly explained by a reduction in capital funding for infrastructure projects.
Significant changes to quarter expenditures
The first quarter expenditures totalled $3.5 million for a decrease of $0.8 million when compared with $4.3 million spent during the same period in 2023–2024. Table 1 presents budgetary expenditures by standard object.
Table 1
| Variances in expenditures by standard object (in thousands of dollars) | Fiscal year 2024–25: expended during the quarter ended June 30, 2024 | Fiscal year 2023–24: expended during the quarter ended June 30, 2023 | Variance $ | Variance % |
|---|---|---|---|---|
| Personnel | 3,008 | 2,886 | 122 | 4% |
| Transportation and communications | 58 | 130 | (72) | (55%) |
| Information | 6 | 0 | 6 | 100% |
| Professional and special services | 269 | 1,165 | (896) | (77%) |
| Rentals | 25 | 48 | (23) | (48%) |
| Repair and maintenance | 3 | 24 | (21) | (88%) |
| Utilities, materials, and supplies | 28 | 7 | 21 | 300% |
| Acquisition of machinery and equipment | 12 | 48 | (36) | (75%) |
| Other subsidies and payments | 79 | 4 | 75 | 1875% |
| Total gross budgetary expenditures | 3,488 | 4,312 | (824) | (19%) |
Transportation and communications
The decrease of $72,000 is explained by a change in the timing of invoicing for the internet connection.
Professional and special services
The decrease of $896,000 is mainly explained by a change in the timing of the billing for maintenance and services in support of our classified IT network infrastructure.
Rentals
The decrease of $23,000 is explained by a decrease in cost for the rent for temporary office space.
Repair and maintenance
The decrease of $21,000 is explained by a one-time maintenance contract purchased in fiscal year 2023-2024.
Utilities, materials, and supplies
The increase of $21,000 is explained by unreconciled acquisition card purchases.
Acquisition of machinery and equipment
The decrease of $36,000 is explained by a one-time purchase of a specialized laptop along with a wall mounted charging station and warranty in 2023-2024.
Other subsidies and payments
The increase of $75,000 is explained by an increase in salary overpayments.
Risks and uncertainties
There is a risk that the funding received to offset pay increases anticipated over the coming year will be insufficient to cover the costs of such increases and the year-over-year cost of services provided by other government departments/agencies is increasing significantly.
NSIRA Secretariat is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls.
Mitigation measures for the risks outlined above have been identified and are factored into NSIRA Secretariat’s approach and timelines for the execution of its mandated activities.
Significant changes in relation to operations, personnel and programs
Mr. Charles Fugère was appointed by the Governor-in-Council to be Executive Director of the NSIRA Secretariat on an interim basis on June 3, 2024.
Mr. Marc-André Cloutier, NSIRA Secretariat’s Director General, Corporate Services and CFO since 2023, retired in Q4 of 2023-2024. He has been replaced by Mr. Martyn Turcotte.
Approved by senior officials:
Charles Fugère
Executive Director
Amanda Wark
A/Chief Financial Officer
Appendix
Statement of authorities (Unaudited)
(in thousands of dollars)
| Fiscal year 2024–25 | Fiscal year 2023–24 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2025 (note 1) | Used during the quarter ended June 30, 2024 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2024 (note 1) | Used during the quarter ended June 30, 2023 | Year to date used at quarter-end | |
| Vote 1 – Net operating expenditures | 16,810 | 3,088 | 3,088 | 21,254 | 3,873 | 3,873 |
| Budgetary statutory authorities | ||||||
| Contributions to employee benefit plans | 1,601 | 400 | 400 | 1,755 | 439 | 439 |
| Total budgetary authorities (note 2) | 18,411 | 3,488 | 3,488 | 23,009 | 4,312 | 4,312 |
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 2024–25 | Fiscal year 2023–24 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2025 (note 1) | Expended during the quarter ended June 30, 2024 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended June 30, 2023 | Year to date used at quarter-end | |
| Expenditures | ||||||
| Personnel | 13,205 | 3,088 | 3,088 | 13,303 | 2,886 | 2,886 |
| Transportation and communications | 685 | 58 | 58 | 650 | 130 | 130 |
| Information | 76 | 6 | 6 | 372 | 0 | 0 |
| Professional and special services | 3,577 | 269 | 269 | 3,596 | 1,165 | 1,165 |
| Rentals | 309 | 25 | 25 | 271 | 48 | 48 |
| Repair and maintenance | 436 | 3 | 3 | 4,580 | 24 | 24 |
| Utilities, materials, and supplies | 58 | 28 | 28 | 73 | 7 | 7 |
| Acquisition of machinery and equipment | 65 | 12 | 12 | 132 | 48 | 48 |
| Other subsidies and payments | 0 | 79 | 79 | 33 | 4 | 4 |
| Total gross budgetary expenditures (note 2) |
18,411 | 3,488 | 3,488 | 23,009 | 4,312 | 4,312 |
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.
