5 Financial Information

Operating Budget

The PPSC’s entire budget is dedicated to operations. The organization has neither capital funds nor grants and contributions funds.

In 2011-2012, the budget at the beginning of the year was $172.2 million. It was increased by $14.4 million. This increase included an operating budget carry forward from 2010-2011 ($6.3 million) as well as money for new and renewed initiatives ($5.5 million), and severance pay entitlements and employee benefit adjustments ($2.6 million). At year-end, the budget totalled $186.6 million.

Table 1: Total Budget (millions)
  2011–12 2010–11
Budget at Beginning of the Year Additions Budget at Year-End Budget at Year-End
Total Net Budget 172.2 14.4 186.6 172.9
Personnel (including employee benefit plans) 120.2 6.5 126.7 118.0
Other Operating Costs 65.7 10.6 76.3 68.5
Receipts and Revenues Credited to Vote (13.7) (2.7) (16.4) (13.6)

The increase in budget from 2010-2011 to 2011-2012 was largely due to funding for new initiatives, severance pay and parental leave es,ntitlement adjustments to the employee benefits plan, the relocation of offices, and increased revenues.

Strategic Review Implementation

The strategic review process is part of the federal government’s efforts to control spending and provide value for taxpayers’ money. As part of the process, governmental organizations such as the PPSC review their spending to assess how and whether programs are aligned with priorities, and whether they provide value for money. The PPSC participated in strategic review in 2010-2011, and the results were included in Budget 2011. The PPSC began implementing the following measures in 2011-2012, which will generate savings of $0.5 million in 2012-2013:

  • the PPSC closed its local office in Inuvik, Northwest Territories; and
  • the PPSC relocated four positions from Iqaluit, Nunavut to Yellowknife, Northwest Territories, allowing for more effective service to the Kitikmeot region in Nunavut and the reduction of travel time and costs.

In 2013-2014, the PPSC will save an additional $3.1 million through a restructuring of the National Fine Recovery Program and the elimination of its reserve fund associated with the Integrated Market Enforcement Teams.

Actual Spending

The actual net spending for 2011-2012 came to $156.4 million, an increase of $10.1 million from 2010-2011. The increase was due to additional personnel and employee benefits plan costs for new staffing, severance pay and termination benefits disbursements, and increased spending for leasehold improvements and Crown agents.

Table 2: Total Actual Net Spending (millions)
  2011–12 2010–11
Actual Spending Actual Spending
Total Actual Net Spending 156.4 146.3
Personnel 99.8 90.3
Other Operating Costs 58.0 55.5
Contributions to Employee Benefits Plan 15.0 14.1
Total Spending 172.8 159.9
Receipts and Revenues Credited to Vote (16.4) (13.6)

Spending by Program Activities

The PPSC has three program activities. The budget as well as the actual spending is apportioned approximately 75% for drug, Criminal Code, and terrorism prosecutions, 9% for regulatory offences and economic crime prosecutions, and 16% for internal services.

Table 3: Spending by Program Activity (millions)
  2011–12 2010–11
  Budget at Year-End Actual Spending Unused Authorities Unused Authorities
Total Net Spending 186.6 156.4 30.2 26.6
Drug, Criminal Code, and terrorism prosecution program 136.5 117.1 19.4 18.6
Regulatory offences and economic crime prosecution program 19.2 14 5.2 4.2
Internal Services 30.9 25.3 5.6 3.8

The unused authorities for 2011-2012 were due to frozen allotments ($13.2 million), funds received at the end of the fiscal year with the coming in force of Bill C-10 (mandatory minimum penalties) ($6.5 million), and an operating surplus ($10.5 million). Frozen allotments may not be spent until specific conditions established by Treasury Board have been met.

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