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 2023–24 Main Estimates.
This quarterly report has not been subject to an external audit or review.
Mandate
The National Security and Intelligence Review Agency (NSIRA) is an independent external review body that reports to Parliament. Established in July 2019, NSIRA is responsible for conducting reviews of the Government of Canada’s national security and intelligence activities to ensure that they are lawful, reasonable and necessary. NSIRA also hears public complaints regarding key national security agencies and their activities.
A summary description NSIRA’s program activities can be found in Part II of the Main Estimates. Information on NSIRA’s mandate can be found on its website.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency, consistent with the 2023–24 Main Estimates. This quarterly report has been prepared using a special-purpose financial reporting framework (cash basis) designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before money can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authorities for specific purposes.
Highlights of the fiscal quarter and fiscal year-to-date results
This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended September 30, 2023.
NSIRA Secretariat spent approximately 33% of its authorities by the end of the second quarter, compared with 23% in the same quarter of 2022–23 (see graph 1).
Graph 1: Comparison of total authorities and total net budgetary expenditures, Q2 2023–24 and Q2 2022–23
Text version of Figure 1
| 2023-24 | 2022-23 | |
|---|---|---|
| Total Authorities | $24.3 | $29.7 |
| Q2 Expenditures | $3.8 | $3.6 |
| Year-to-Date Expenditures | $8.1 | $6.9 |
Significant changes to authorities
As at September 30, 2023, Parliament had approved $24.3 million in total authorities for use by NSIRA Secretariat for 2023–24 compared with $29.7 million as of September 30th, 2022, for a net decrease of $5.4 million or 18.2% (see graph 2).
Graph 2: Variance in authorities as at September 30, 2023
Text version of Figure 2
| Fiscal year 2022-23 total available for use for the year ended March 31, 2023 | Fiscal year 2023-24 total available for use for the year ended March 31, 2024 | |
|---|---|---|
| Vote 1 – Operating | 28.0 | 22.6 |
| Statutory | 1.7 | 1.7 |
| Total budgetary authorities | 29.7 | 24.3 |
*Details may not sum to totals due to rounding*
The decrease of $5.4 million in authorities is mostly explained by a gradual reduction in NSIRA Secretariat’s ongoing operating funding due to an ongoing construction project nearing completion.
Significant changes to quarter expenditures
The second quarter expenditures totalled $3.8 million for an increase of $0.2 million when compared with $3.6 million spent during the same period in 2022–2023. Table 1 presents budgetary expenditures by standard object.
Table 1
| Variances in expenditures by standard object(in thousands of dollars) | Fiscal year 2023–24: expended during the quarter ended September 30, 2023 | Fiscal year 2022–23: expended during the quarter ended September 30, 2022 | Variance $ | Variance % |
|---|---|---|---|---|
| Personnel | 3,014 | 2,903 | 111 | 4% |
| Transportation and communications | 62 | 70 | (8) | (11%) |
| Information | 4 | 0 | 4 | 100% |
| Professional and special services | 504 | 578 | (74) | (13%) |
| Rentals | 25 | 39 | (14) | (36%) |
| Repair and maintenance | 3 | 33 | (30) | (91%) |
| Utilities, materials and supplies | 50 | 12 | 38 | 317% |
| Acquisition of machinery and equipment | 4 | 4 | 0 | 0% |
| Other subsidies and payment | 118 | 3 | 115 | 3833% |
| Total gross budgetary expenditures | 3,784 | 3,642 | 142 | 4% |
Repair and maintenance
The decrease of $30,000 is due to the timing of invoicing for an ongoing capital project.
Utilities, materials and supplies
The increase of $38,000 is due to a temporarily unreconciled suspense account.
Other subsidies and payments
The increase of $115,000 is explained by an increase in payroll system overpayments which were subsequently resolved.
Significant changes to year-to-date expenditures
The year-to-date expenditures totalled $8.1 million for an increase of $1.1 million (17%) when compared with $6.9 million spent during the same period in 2022–23. Table 2 presents budgetary expenditures by standard object.
Table 2
| Variances in expenditures by standard object(in thousands of dollars) | Fiscal year 2023–24: year-to-date expenditures as of September 30, 2023 | Fiscal year 2022–23: year-to-date expenditures as of September 30, 2022 | Variance $ | Variance % |
|---|---|---|---|---|
| Personnel | 5,900 | 5,248 | 652 | 12% |
| Transportation and communications | 192 | 114 | 78 | 68% |
| Information | 4 | 5 | (1) | (20%) |
| Professional and special services | 1,669 | 1,424 | 245 | 17% |
| Rentals | 73 | 49 | 24 | 49% |
| Repair and maintenance | 27 | 64 | (37) | (58%) |
| Utilities, materials and supplies | 57 | 28 | 29 | 104% |
| Acquisition of machinery and equipment | 52 | 13 | 39 | 300% |
| Other subsidies and payment | 122 | 1 | 121 | 12100% |
| Total gross budgetary expenditures | 8,096 | 6,946 | 1,150 | 17% |
Personnel
The increase of $652,000 relates to an increase in average salary and an increase in full time equivalent (FTE) positions.
Transportation and communications
The increase of $78,000 is due to the timing of invoicing for the organization’s internet connections.
Professional and special services
The increase of $245,000 is explained by an increase in IT support costs and guard services associated to a capital construction project.
Repair and maintenance
The decrease of $37,000 is due to the timing of invoicing for an ongoing capital project.
Utilities, materials and supplies
The increase of $29,000 is due to a temporarily unreconciled suspense account.
Acquisition of machinery and equipment
The increase of $39,000 is mainly explained by the one-time purchase of a specialized laptop.
Other subsidies and payments
The increase of $121,000 is explained by an increase in payroll system overpayments which were subsequently resolved.
Risks and uncertainties
The Secretariat assisted NSIRA in its work with the departments and agencies subjected to reviews to ensure a timely and unfettered access to all the information necessary for the conduct of reviews. While work remains to be done on this front, we acknowledge the improvements in cooperation and support to the independent review process demonstrated by some reviewees.
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
There have been two new Governor-in-Council appointments during the Second quarter, Ms. Colleen Swords and Mr. Jim Chu.
There have been no changes to the NSIRA Secretariat Program.
Approved by senior officials:
John Davies
Deputy Head
Marc-André Cloutier
Director General, Corporate Services, Chief Financial Officer
Appendix
Statement of authorities (Unaudited)
(in thousands of dollars)
| Fiscal year 2023–24 | Fiscal year 2022–23 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2024 (note 1) | Used during the quarter ended September 30, 2023 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2023 (note 1) | Used during the quarter ended September 30, 2022 | Year to date used at quarter-end | |
| Vote 1 – Net operating expenditures | 22,564 | 3,345 | 7,218 | 27,931 | 3,210 | 6,082 |
| Budgetary statutory authorities | ||||||
| Contributions to employee benefit plans | 1,755 | 439 | 878 | 1,728 | 432 | 864 |
| Total budgetary authorities (note 2) | 24,319 | 3,784 | 8,096 | 29,659 | 3,642 | 6,946 |
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 2023–24 | Fiscal year 2022–23 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2024 (note 1) | Expended during the quarter ended September 30, 2023 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2023 | Expended during the quarter ended September 30, 2022 | Year to date used at quarter-end | |
| Expenditures | ||||||
| Personnel | 13,303 | 3,014 | 5,900 | 13,245 | 2,903 | 5,248 |
| Transportation and communications | 650 | 62 | 192 | 597 | 70 | 114 |
| Information | 371 | 4 | 4 | 372 | 0 | 5 |
| Professional and special services | 4,906 | 504 | 1,669 | 4,914 | 578 | 1,424 |
| Rentals | 271 | 25 | 73 | 271 | 39 | 49 |
| Repair and maintenance | 4,580 | 24 | 27 | 9,722 | 33 | 64 |
| Utilities, materials and supplies | 73 | 50 | 57 | 173 | 12 | 28 |
| Acquisition of machinery and equipment | 132 | 4 | 52 | 232 | 4 | 13 |
| Other subsidies and payments | 33 | 118 | 122 | 133 | 3 | 1 |
| Total gross budgetary expenditures (note 2) |
24,319 | 3,784 | 8,096 | 29,659 | 3,642 | 6,946 |
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.
