Quarterly financial report for the quarter ended June 30, 2025

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

This quarterly report was prepared by management as required by Section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the OPC Main and Supplementary Estimates.

The OPC’s mandate is overseeing compliance with both the Privacy Act (PA), which covers the personal information-handling practices of federal government institutions, and the Personal Information Protection and Electronic Documents Act (PIPEDA), Canada’s federal private sector privacy law.

Detailed information on the OPC’s authority, mandate and programs can be found in our Departmental Plan (DP) and the Main Estimates.

Basis for Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Office’s spending authorities granted by Parliament and those used by the Office, consistent with the Main Estimates and the Supplementary Estimates (as applicable) for fiscal year 2025-26. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities. (More information)

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.

The OPC uses full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

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

Highlights of fiscal quarter and fiscal year to date (YTD) Results

This section highlights the significant variances between actual expenditures and planned expenditures that affected both the quarter and the year-to-date results, compared to the same period the preceding fiscal year.

Statement of authorities analysis

As reflected in the statement of authorities table, the authorities available for use for the year are $38.4M, which represents the full supply, compared to $34M in 2024-25. The variance between both fiscal years is mainly explained by the additional temporary funding received as part of Budget 2023 for preparation activities required to implement the Consumer Privacy Protection Act that was proposed as part of Bill C-27, the funding received for the collective agreements, and adjustments to the employee benefits plan.

As of June 30, 2025, the OPC used $8.9M of its authorities available for use while for the same period in the preceding fiscal year, the OPC had used $7.6M of its authorities available for use.

The OPC provides Internal Support Services to other small government departments related to the provision of information technology services. Pursuant to section 29.2 of the Financial Administration Act, Internal Support Services agreements are recorded as revenues.

Budgetary expenditures by standard object analysis

As per the departmental budgetary expenditures by standard object table, the OPC’s quarterly spending has increased by $1.2M or 16% compared to the previous year. This increase is mainly attributable to an increase in personnel expenditures due to new hirings, increases in salary ranges following new collective bargaining implementation and investments in OPC’s internal Artificial Intelligence (AI) strategy to deliver artificial intelligence capabilities within the Office with a view to develop and expand practical AI expertise within the office and demonstrate the safe and responsible adoption of AI within the Government of Canada context.

Risks and Uncertainties

The OPC’s key corporate risks are identified and assessed through its strategic planning process, which includes an environmental scanning exercise and an update of its Corporate Risk Profile. This year again, the Office continues to deal with a challenging operating context, stemming from the growing digital economy. For more information on these challenges, and how the OPC is addressing them, please refer to the section titled Plans at a glance and Operating Context of the OPC’s 2025-26 Departmental Plan.

In addition, the OPC continues to take actions to mitigate the issues arising with the Phoenix pay system for its employees and to monitor closely any salary payments adjustments that may be required, including salary adjustments resulting from recent collective bargaining agreements.

Significant changes in relation to operations, personnel and programs

As previously reported, the OPC launched a review of its resources and structures in the third quarter of fiscal year 2024-25. The exercise culminated in the adoption of a Transformation Plan and the implementation of a new structure on January 21, 2025 resulting in a reorganization from four to three sectors to reduce overhead costs and maximize effectiveness and impact. This resulted in the decrease of two executive positions representing a 10% reduction of the Office’s executive cadre. Following the transformation, a new structure was established for Compliance, Promotion and Enforcement, which led to the creation of two new directorates, the redistribution of staff, and the movement of directors into new roles on May 1st, 2025

The objectives of the changes implemented are to allow the OPC to be nimbler and reallocate funds to compliance activities.

No other significant changes related to operations, personnel or programs occurred during the first quarter of 2025-26.

Approval by Senior Officials:

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Statement of authorities (unaudited)

For the quarter ended June 30, 2025 (in thousands of dollars)

Item	Fiscal year 2025-26			Fiscal year 2024-25
	Total available for use for the year ending March 31, 2026	Used during the quarter ended June 30, 2025	Year to date used at quarter end	Total available for use for the year ending March 31, 2025	Used during the quarter ended June 30, 2024	Year to date used at quarter end
Program expenditures	34,522	7,842	7,842	30,754	6,787	6,787
Less: Revenues Netted Against Expenditures	(200)	-	-	(200)	-	-
Budgetary statutory authority – Employee benefit plan	4,113	1,028	1,028	3,428	857	857
Total budgetary authorities	38,435	8,870	8,870	33,982	7,644	7,644
Total authorities	38,435	8,870	8,870	33,982	7,644	7,644

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Departmental budgetary expenditures by standard object (unaudited)

For the quarter ended June 30, 2025 (in thousands of dollars)

Item	Fiscal year 2025-26			Fiscal year 2024-25
	Planned expenditures for the year ending March 31, 2026	Expended during the quarter ended June 30, 2025	Year to date used at quarter end	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended June 30, 2024	Year to date used at quarter end
Expenditures
Personnel	30,997	7,703	7,703	28,267	6,440	6,440
Transportation and communications	489	39	39	421	110	110
Information	602	77	77	420	147	147
Professional and special services	3,766	489	489	3,032	520	520
Rentals	1,126	334	334	801	401	401
Repair and maintenance	165	-	-	145	8	8
Utilities, materials and supplies	35	5	5	49	2	2
Acquisition of land, buildings and works	47	-	-	34	-	-
Acquisition of machinery and equipment	899	202	202	513	8	8
Transfer payments	500	-	-	500	-	-
Public debt charges	-	-	-	-	-	-
Other subsidies and paymentsFootnote *	9	21	21	-	8	8
Total gross budgetary expenditures	38,635	8,870	8,870	34,182	7,644	7,644
Less: revenues netted against expenditures
Internal Support Services	(200)	-	-	(200)	-	-
Total revenues netted against expenditures	(200)	-	-	(200)	-	-
Total net budgetary expenditures	38,435	8,870	8,870	33,982	7,644	7,644