Royal Canadian Mounted Police

Quarterly Financial Report for the Quarter Ended December 31, 2023

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

On this page

  1. List of charts
  2. List of tables
  3. List of acronyms and abbreviations
  4. Introduction
  5. Highlights of fiscal quarter and fiscal year-to-date results
  6. Risks and uncertainties
  7. Significant changes in relation to operations, personnel and programs
  8. Annex A: Statement of Authorities (unaudited)
  9. Annex B: Budgetary expenditures by standard object (unaudited)

List of charts

List of tables

List of acronyms and abbreviations

CA
Chartered Accountant
CPA
Chartered Professional Accountant
DNA
Deoxyribonucleic acid
IT
Information technology
RCMP
Royal Canadian Mounted Police

1. Introduction

This quarterly financial 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 Treasury Board. The report should be read in conjunction with the Main Estimates for 2023-24. The quarterly report has not been subject to an external audit or review.

Mandate

The Minister of Public Safety is the minister responsible for the Royal Canadian Mounted Police. The responsibilities of the RCMP are set out in section 18 of the Royal Canadian Mounted Police Act. The RCMP's mandate is multi-faceted, it includes preventing and investigating crime; maintaining peace and order; enforcing laws; contributing to national security; ensuring safety of state officials, visiting dignitaries and foreign missions; and providing vital operational support services to other police and law enforcement agencies within Canada and abroad.

Further information on the mandate, roles, responsibilities and programs of the RCMP can be found in the Main Estimates (Part II of Estimates) and the Departmental Plan and Departmental Results Report (Part III of Estimates).

Basis of presentation

This quarterly report has been prepared by management using the expenditure basis of accounting. The accompanying Statement of Authorities includes the RCMP’s spending authorities granted by Parliament and those used by the department consistent with the Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B) and allotment adjustments for Operating and Capital carry forwards, paylist and compensation. 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.

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 authority for specific purposes.

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

The RCMP is funded through annual appropriations and is, therefore, impacted by any changes in funding approved through Parliament. In addition, it receives a significant portion of funding through vote netted revenue from the provision of policing services to provinces, territories, municipalities and first nations communities, as well as from cost sharing agreements with provinces and territories for the provision of DNA analysis by the RCMP. The RCMP also receives vote netted revenue authorities to bill Parliamentary Protective Service for the provision of security services throughout the Parliamentary precinct and the grounds of Parliament Hill and for the administration of the RCMP's Pension Plan.

The RCMP's authorities are allocated in a number of discrete envelopes with varying sources of funds. A number of Special Purpose Allotments have been created over the years to manage the various programs and/or initiatives.

2. Highlights of the fiscal quarter and fiscal year-to-date results

The following section provides financial results and explanations for the quarter ended December 31, 2023 as compared to the quarter ended December 31, 2022. The following graph illustrates the net budgetary authorities and expenditures for the quarter ended December 31, 2023, along with comparative figures for the quarter ended December 31, 2022, for the department's combined Vote 1 - Operating, Vote 5 - Capital, Vote 10 - Grants and Contributions and statutory elements.

Chart 1: Highlights of the third quarter and the fiscal year-to-date

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2023-24 2022-23
Net budgetary authorities $5,153.5 million $4,837.3 million
Year to date $3,604.0 million $3,564.8 million
Third quarter expenditures to date $1,350.7 million $1,147.5 million

Significant changes to authorities

For the period ending December 31, 2023, the RCMP has $5,135.5 million in total authorities. This amount includes the Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B), Operating and Capital Carry Forwards, paylist reimbursement, compensation adjustments and proceeds from the disposal of Crown assets.

As illustrated in the table below, total authorities as at December 31, 2023 increased by $316.2 million compared to the third quarter of fiscal 2022-23.

Table 1: Cumulative variance in authorities available for use in 2023-24 in comparison to 2022-23 (in thousands of dollars) Table 1 footnote 1
Based on the end of the third quarter (December) Total authorities Year over year variance
2023-24 2022-23 Authorities Percentage
Gross operating 5,486,990 5,038,215 448,775 9%
Less: Vote netted revenues 2,032,365 1,771,565 260,800 15%
Vote 1 - Net operating 3,454,626 3,266,651 187,975 6%
Vote 5 - Capital 381,789 372,078 9,711 3%
Vote 10 - Grants and contributions 741,465 668,925 72,539 11%
Total voted authorities 4,577,879 4,307,654 270,225 6%
Pensions and other employee benefits - Members of the Force 483,469 456,145 27,324 6%
Contributions to employee benefit plans (public servants) 86,334 68,254 18,080 27%
Pensions under the Royal Canadian Mounted Police Pension Continuation Act 5,000 5,000 - 0%
Proceeds from the disposal of Crown assets under the Surplus Crown Assets Act 780 257 523 204%
Total statutory authorities 575,584 529,657 45,927 9%
Total budgetary authorities 5,153,463 4,837,311 316,152 7%

Table 1 footnotes

Table 1 footnote 1

Totals may not add due to rounding.

Return to table 1 footnote 1 referrer

Explanation of changes in voted and statutory authorities

Vote 1 - Gross operating

The organization's Vote 1 increased by $448.8 million compared to the third quarter of 2022-23, mainly due to:

  • an increase of $260.8 million in Vote Netted Revenues as a result of higher ongoing collections from Contract Policing Partners resulting from the National Police Federation collective bargaining
  • an increase of $113.2 million in compensation adjustments for public service employees and members of the RCMP
  • an increase of $78.5 million in funding for occupational and supplemental health costs for Members as designated under the Royal Canadian Mounted Police Act
  • an increase of $4.9 million in funding related to the organisation’s Operating Budget Carry Forward
  • a decrease of $24.3 million in funding related to the settlement of the Tiller class action lawsuit
  • A net increase of $15.7 million related to following projects and initiatives:
    • Increase of $13.5 million for aviation safety and security modernisation initiatives
    • Increase of $6.3 million in funding for the renewal of the federal framework for the legalization and regulation of cannabis
    • Increase of $5.8 million in funding to address the Freedom Convoy and Emergencies Act related activities including public inquiries, parliamentary studies, Access to Information requests, criminal/civil proceedings, and conduct security investigations
    • Increase of $3.8 million for the First Nations Community Policing Service
    • Increase of $3.0 million in support of service delivery excellence to veterans
    • Increase of $2.3 million in funding to address systemic racism in the RCMP
    • Decrease of $9.0 million in funding to provide a national body-worn camera program for frontline. officers to improve public transparency and accountability of the RCMP
    • Decrease of $5.1 million in funding for Canada’s firearm control framework
    • Decrease of $4.9 million in funding to other previously approved and new initiatives

Vote netted revenues

  • The organization's Vote Netted Revenues authority increased by $260.8 million compared to the third quarter of 2022-23 as a result of anticipated higher ongoing collections from Contract Policing Partners resulting from the National Police Federation collective bargaining.

Vote 5 - Gross capital

The organization's Vote 5 increase of $9.7 million, compared to third quarter of 2022-23, mainly due to:

  • an increase of $20.8 million in funding for real property and movable assets, as a result of a reprofile to address supply chain delays
  • an increase of $15.3 million in funding in support of the Ontario, Quebec and National Capital Region radio renewal initiative
  • an increase of $11.0 million in funding to implement the National Cybercrime solution IM/IT project
  • an increase of $2.2 million in funding related to the organisations Capital Budget Carry Forward
  • a decrease of $27.9 million in funding in support of real property programs
  • a decrease of $7.8 million in funding in support of ensuring security and prosperity in the digital age initiative
  • a net decrease of $3.9 million in funding to other previously approved initiatives

Vote 10 - Grants and contributions

The organization's Vote 10 increase of $72.5 million, compared to third quarter of 2022-23, mainly due to:

  • a net increase of $58.7 million in funding to compensate members of the RCMP for injuries received in the performance of duty
  • an increase of $13.8 million in contribution funding to enhance Canada’s firearms control framework

Statutory authorities

The organization's Employee Benefits Plan authority increased by $45.9 million compared to the third quarter of 2022-23, mainly due to:

  • an increase of $38.7 million as a result of changes to collective agreements, changes in the attribution of RCMP members and public service employees’ costs, as well as changes in their respective rates
  • an increase of $5.2 million in public service employees and members of the RCMP Employee Benefits Plan related to new and previously approved initiatives
  • an increase of $1.5 million related to Compensation adjustments for public service employees and members of the RCMP.
  • an increase of $0.5 million related to the Proceeds from the Disposal of Crown Assets under the Surplus Crown Assets Act.

Explanation of significant variances from previous year expenditures

As identified in Table 2, the total year-to-date net expenditures for the period ended December 31, 2023, have increased by $39.3 million (or 1%) compared to previous year. As observed in table 3, RCMP’s gross budgetary expenditures increased by $344 million (or 7%) compared to the same period. The increases in gross budgetary expenditures were largely offset by increased revenue collections for the third quarter, which is attributable to both the timing of collections and increased costs being invoiced to contract policing partners as compared to the prior year.

Table 2: Year to date expenditure at quarter end (in thousands of dollars) Table 2 footnote 1
Expenditures during the quarter ended December 31, 2023 2023-24 2022-23 Variance Percentage
Vote 1 - Net Operating expenditures 2,602,089 2,641,983 (39,894) (2%)
Vote 5 - Capital expenditures 186,704 153,904 32,800 21%
Vote 10 - Grants and contributions 438,385 435,908 2,477 1%
Budgetary statutory authorities 376,856 332,986 43,870 13%
Total authorities 3,604,034 3,564,781 39,253 1%

Table 2 footnotes

Table 2 footnote 1

Totals may not add due to rounding.

Return to table 2 footnote 1 referrer

The increase in net budgetary expenditures ($39.3 million) is mainly due to timing of payments and the phases related to various capital projects, the acquisition of vehicles ($32.8 million), as well as higher employee benefit plan costs as a result of full-time equivalents growth coupled with the ratification of new collective bargaining agreements ($43.9 million). These increases were partially offset by a reduction in net operating expenditures ($39.8 million) due to the timing of revenue collections from contract policing partners.

The RCMP continues to experience increases in overall expenditures related to the implementation of newly approved initiatives and mandated responsibilities.

Lastly, inflation has resulted in a steep rise in the price of goods and services. It is observed that multiple standard objects had significant increases in year-over-year expenditures primarily for this reason.

Expenditures by standard object at quarter end (in thousands of dollars)

Table 3: Year-to-date expenditures by standard object at quarter end (in thousands of dollars) table 3 footnote 1 table 3 footnote 2
Standard objects 2023-24 2022-23 Variance Percentage
Personnel 3,276,920 3,047,170 229,750 8%
Transportation and communications 196,852 176,794 20,058 11%
Information 3,035 2,489 546 22%
Professional and special services 480,980 439,260 41,720 9%
Rentals 120,040 106,985 13,055 12%
Repair and maintenance 73,432 61,124 12,308 20%
Utilities, materials and supplies 128,910 125,829 3,081 2%
Acquisition of land, buildings and works 51,831 59,061 (7,230) (12%)
Acquisition of machinery and equipment 179,309 154,296 25,013 16%
Transfer payments 440,439 438,627 1,812 0%
Public debt charges 411 437 (26) (6%)
Other subsidies and payments 72,743 68,212 4,531 7%
Total gross budgetary expenditures 5,024,902 4,680,284 344,618 7%
Less: Revenues and other reductions 1,420,868 1,115,503 305,365 27%
Total net budgetary expenditures 3,604,034 3,564,781 39,253 1%

Table 3 footnotes

Table 3 footnote 1

Totals may not add due to rounding.

Return to table 3 footnote 1 referrer

Table 3 footnote 2

There is not a direct correlation between total expenditure and revenue trends as expenditures reflect total RCMP, whereas revenues are related primarily to contract policing activities.

Return to table 3 footnote 2 referrer

Expenditure analysis by standard object

Personnel

The increase in expenditures by $229.8 million (or 8%) is attributed to a year-over-year increase in full-time equivalents as well as higher pay expenditures for regular members and public service employees. With the ratification of various collective agreements, the RCMP has seen year-over-year increases with regard to personnel expenditures, including associated employee benefits plan expenditures and prior year retroactive pay, through the third quarter of the fiscal year 2023-24 in comparison to 2022-23.

Transport and communications

The increase in expenditures by $20.0 million (or 11%) is mainly related to increases in the frequency and overall travel costs, as well as the rise in training costs in 2023-24.

Information

The increase in expenditures by $0.55 million (or 22%) is mainly attributed to the printing services for firearms communications regarding recent announcements and an increase in advertising and publication services due to increased effort in recruiting.

Professional and special services

The increase in expenditures by $41.7 million (or 9%) is mainly due to increased Member Health costs and Professional and Contracting services expenditures due to timing of invoices.

Rentals

The increase in expenditures by $13.1 million (or 12%) is mainly due to the increased cost of building rentals and the timing of invoices for service level agreements with Public Services and Procurement Canada.

Purchased repair and maintenance

The increase in expenditures by $12.3 million (or 20%) is mainly due to the various life cycle costs for assets, Heating Ventilation and Air Conditioning, vehicle maintenance and structural repairs, offset by a decrease to building repairs.

Acquisition of land, buildings and works

The decrease in expenditures by $7.2 million (or 12%) is mainly due to the timing of payments and the phases related to various capital projects.

Acquisition machinery and equipment

The increase in expenditures by $25.0 million (or 16%) is mainly due to incremental costs for the acquisition of vehicles, and increased costs related to equipment and office expenses, offset by decreases in software and communications equipment acquisitions.

Revenues and other reductions

The increase in vote netted revenues by $305.4 million (or 27%) is attributable to both the timing of collections and increased costs being invoiced to contract partners as compared to the prior year.

3. Risks and uncertainties

The RCMP's risk environment, as noted in the 2021-24 Corporate Risk Profile, continues to help guide funding decisions. Five risks in particular have been identified with a High-risk rating:

  1. Recruitment, retention and modernized skillsets - the risk that the RCMP will be unable to adequately attract and retain diverse groups of employees with the appropriate skills, attributes, characteristics and mindset to police the crimes of the future
  2. Expanding commitments - the risk that the RCMP's commitments continue to expand without sufficient resources, impeding its ability to deliver on priorities and core services
  3. IT Infrastructure and Systems - the risk that the RCMP's IT infrastructure, systems and applications will become increasingly inadequate to support the administrative and operational requirements of the organization
  4. Technology - the risk that the RCMP may not have the technology to sufficiently combat the changing nature of crime
  5. Employee wellness - maximize opportunities to promote and optimize employee wellness as well as support employees who experience stress, trauma or serious injury as a result of the nature of policing work and the environments in which they operate.

Other risks noted in the Corporate Risk Profile are: strategic decision-making; transformation resistance; and, intelligence and information sharing.

Additionally, the operational nature of the RCMP is impacted by inflationary increases to cost of goods and services, and due to the size of the organization these types of increases have significant impacts on expenditures.

Quarterly monitoring of all identified corporate risks and their mitigations is ongoing.

4. Significant changes in relation to operations, personnel and programs

By the end of the third quarter, the following change to the senior ranks of the department has occurred:

In December 2023, Rob O’Reilly, previously RCMP’s Chief Learning Officer, became interim Chief Human Resources Officer at the Royal Canadian Mounted Police after the departure of the Chief Human Resources Officer, Nadine Huggins.

In November 2023, Kathy Thompson, previously the Associate Deputy Minister, Chief Administrative Officer of the RCMP, became Assistant Superintendent at the Office of the Superintendent of Financial Institutions. No replacement has been named as of yet.

Approved by senior officials

Approved by Commissioner Mike Duheme, February 15, 2024, in Ottawa Canada.

Annex A: Statement of Authorities (unaudited)

Table 4: 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 Table 4 footnote 1 Used during the quarter ended December 31, 2023 Year to date used at quarter-end Total available for use for the year ending March 31, 2023 Table 4 footnote 1 Used during the quarter ended December 31, 2022 Year-to-date used at quarter-end
Gross operating expenditures 5,486,990 1,512,493 4,023,012 5,038,215 1,343,081 3,757,486
Less: vote netted revenues 2,032,365 513,605 1,420,923 1,771,565 532,858 1,115,503
Vote 1 - Net operating expenditures 3,454,626 998,888 2,602,089 3,266,651 810,223 2,641,983
Vote 5 - Capital expenditures 381,789 80,050 186,704 372,078 70,168 153,904
Vote 10 - Grants and contributions 741,465 146,423 438,385 688,925 145,301 435,908
Pensions and other employee benefits - Members of the Force 483,469 103,738 311,705 456,145 104,499 280,630
Contributions to employee benefit plans (public servants) 86,334 20,884 62,650 68,254 16,467 49,399
Pensions under the Royal Canadian Mounted Police Pension Continuation Act 5,000 661 2,053 5,000 828 2,719
Refunds of amounts credited to revenues in previous years 0 26 54 0 4 12
Proceeds from the disposal of Crown assets under the Surplus Crown Assets Act 780 2 394 257 0 226
Court awards 0 0 0 0 0 0
Statutory authorities 575,584 125,311 376,856 529,657 121,798 332,986
Total budgetary authorities 5,153,463 1,350,672 3,604,034 4,857,311 1,147,490 3,564,781

Table 4 footnotes

Table 4 footnote 1

Includes only authorities available for use and granted by Parliament at quarter-end as well as a statutory authority for proceeds from the disposal of Crown assets.

Return to table 4 footnote 1 referrer

Annex B: Budgetary expenditures by standard object (unaudited)

Table 5: 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 Expended during the quarter ended December 31, 2023 Year-to-date used at quarter-end Planned expenditures for the year ending March 31, 2023 Expended during the quarter ended December 31, 2022 Year-to-date used at quarter-end
Expenditures
Personnel 4,405,064 1,202,999 3,276,920 3,972,464 1,061,379 3,047,170
Transportation and communications 255,018 71,315 196,852 246,680 63,972 176,794
Information 4,366 1,189 3,035 3,907 1,197 2,489
Professional and special services 624,501 177,173 480,980 607,022 169,966 439,260
Rentals 167,827 58,821 120,040 161,119 53,754 106,985
Repair and maintenance 132,057 29,102 73,432 128,995 25,945 61,124
Utilities, materials and supplies 185,303 46,341 128,910 179,275 45,616 125,829
Acquisition of land, buildings and works 135,364 20,374 51,831 127,757 23,813 59,061
Acquisition of machinery and equipment 355,964 74,539 179,309 345,222 68,872 154,296
Transfer payments 746,465 147,084 440,439 673,925 146,129 438,627
Public debt charges 1,360 137 411 667 145 437
Other subsidies and payments 172,538 35,175 72,743 161,843 19,560 68,212
Total gross budgetary expenditures 7,185,828 1,864,249 5,024,902 6,608,876 1,680,348 4,680,284
Less revenues netted against expenditures
Vote netted revenues 2,032,365 513,577 1,420,868 1,771,565 532,858 1,115,503
Total revenues netted against expenditures 2,032,365 513,577 1,420,868 1,771,565 532,858 1,115,503
Total net budgetary expenditures 5,153,463 1,350,672 3,604,034 4,837,311 1,147,490 3,564,781
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