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2007-08
Departmental Performance Report

National Parole Board

The original version was signed by
The Honourable Peter Van Loan, P.C., M.P.
Minister of Public Safety

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Table of Contents

SECTION I: OVERVIEW

Chairperson’s Message

1. Management Representation Statement
2. Reason for Existence
3. Overview of Priorities
4. Performance Summary
5. Overall Description of NPB Performance
6. Operating Environment and Context

SECTION II: ANALYSIS BY STRATEGIC OUTCOME

1. Quality Conditional Release Decisions
2. Open and Accountable Conditional Release Processes
3. Quality Pardon Decisions

SECTION III: SUPPLEMENTARY INFORMATION

1. Structure for Program Delivery
2. Partnership for Program Delivery
3. Financial Performance Overview
4. National Parole Board – Financial Statements

SECTION IV: OTHER ITEMS OF INTEREST

1. Legislation Administered by the National Parole Board
2. Contacts
3. Horizontal Initiatives

Section I: Overview

Chairperson’s Message

Public safety is the National Parole Board’s (NPB) primary objective and public safety is the standard to which Canadians hold the Board to account. Canadians expect the Board to make conditional release and pardon decisions that support the safe reintegration of offenders in the community. This is not surprising, given the serious consequences of re-offending for victims and the community. For these reasons, the Board’s plans and priorities constantly focus on continuous improvement in all aspects of program delivery, particularly measures that strengthen its capacity for quality conditional release and pardon decision-making.

Continuous improvement is critical because the Board’s decision-making has become even more complex, more challenging in recent years, as we have had to deal with heavy workload demands and a more difficult offender population characterized by longer criminal histories, greater prevalence of violence, more frequent gang affiliations, more serious mental health issues and more serious substance abuse problems.

Information in our Departmental Performance Report (DPR) for 2007-08 demonstrates that we have made solid progress in addressing our plans for improvement. Performance data indicate that 95% of all releases on parole do not result in a new offence and 99% do not result in a new violent offence. In fact, over the last ten years, convictions for violent offences by parolees have declined by 65%. In the same manner, 96% of all pardons awarded remain in force, demonstrating that the vast majority of pardon applicants remain crime free in the community.

The Board’s pursuit of continuous improvement extends beyond its decision-making responsibilities to include measures to address the information needs of victims of crime. In this area in 2007-2008, the Board developed posters and brochures for victims and distributed these materials to victim service providers across the country; created a module on its website that gives victims a virtual tour of an NPB hearing; provided simultaneous translation for victims at hearings; and created a foundation for the use of video-conferencing technology to provide victims with access to our hearings.

At the most basic level, quality program delivery is dependent upon on quality people – quality Board members as decision-makers and quality staff members to support Board members in their decision-making responsibilities. The DPR for 2007-08 highlights the progress that the Board made in effective human resource planning to attract and retain quality employees.

Public safety is our primary objective. Contributing effectively to public safety is no easy task, given the significant challenges that we face in meeting our responsibilities each day. I am confident, however, that the Board is positioned to meet these challenges and to introduce improvements that will continue to result in the safe reintegration of offenders in the community.

Mario Dion
Chairperson, National Parole Board

1. Management Representation Statement

I submit, for tabling in Parliament, the 2007-08 Departmental Performance Report (DPR) for the National Parole Board (NPB). This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in Treasury Board Secretariat guidance;
• It is based on the NPB’s Strategic Outcomes and Program Activity Architecture that were approved by Treasury Board;
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources entrusted to NPB; and
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

Mario Dion
Chairperson, National Parole Board

2. Reason for Existence

The National Parole Board is an independent administrative tribunal responsible for making decisions about the timing and conditions of release of offenders to the community on various forms of conditional release. The Board also makes pardon decisions, and recommendations respecting clemency through the Royal Prerogative of Mercy (RPM).

Legislation governing the Board includes the Corrections and Conditional Release Act (CCRA), the Criminal Records Act (CRA), and the Criminal Code. The CCRA empowers the Board to make conditional release decisions for federal offenders and offenders in provinces and territories without parole boards. In addition, the Board has extensive legislated responsibilities related to openness and accountability, including information for victims of crime, observers at hearings, access to NPB’s registry of decisions, public information and investigation of tragic incidents in the community. The CRA authorizes the Board to grant or revoke pardons for convictions under federal acts or regulations. The Governor General or the Governor in Council approves the use of the RPM for those convicted for a federal offence, following investigations by the Board, and recommendations from the Minister of Public Safety.

Mission and Values

The National Parole Board, as part of the criminal justice system, makes independent, quality conditional release and pardon decisions and clemency recommendations. The Board contributes to the protection of society by facilitating, as appropriate, the timely integration of offenders as law-abiding citizens.

The Mission establishes four core values:

• dedication to the attainment of a just, peaceful and safe society;
• respect for the dignity of individuals and the rights of all members of society;
• commitment to openness, integrity and accountability; and
• belief that qualified and motivated individuals are essential to achieving the Mission.

Total Financial Resources 2007-08 ($000)

Planned	Authorities	Actual
$ 45,346	$ 46,278	$ 43,430

Total Human Resources 2007-08 (FTE)

Planned	Actual	Difference
478	426	52*

* The difference is explained, in part, by the transfer of resources to the Correctional Service of Canada (23 FTE) for the provision of information technology services.

3. Overview of Priorities

Priority	Type	Performance Status
A. Effective management of legislated responsibilities related to quality conditional release decision-making.	Ongoing	Successfully met.
B. Strategic planning to prepare NPB for response to government announcements to introduce amendments to the Corrections and Conditional Release Act.	Previously Committed	Successfully met.
C. Implementation of plans to enable NPB to assume parole decision-making responsibilities for provincial offenders in British Columbia.	New	Successfully met.
D. Improved information management in support of NPB’s conditional release responsibilities through development and implementation of an automated conditional release system.	Previously Committed	Successfully met.
E. Effective management of legislated responsibilities related to open and accountable conditional release processes.	Ongoing	Successfully met.
F. Introduction of measures to provide victims with a more effective voice in conditional release processes.	New	Successfully met.
G. Effective management of legislated responsibilities related to the processing of pardon applications.	Ongoing	Successfully met.
H. Implementation of a new information systems and technology partnership in which the Correctional Service of Canada (CSC) provides NPB’s information technology services.	New	Successfully met.
I.  Integrated human resource and business planning to sustain effective program delivery in the midst of anticipated retirement of significant numbers of senior staff.	Previously Committed	Successfully met.

4. Performance Summary

Results and Resources Structure	Spending 2007-08 ($000)
Strategic Outcome: Quality conditional release decisions which contribute to public protection through the safe reintegration of offenders in the community Program Activity:  Quality Conditional Release Decisions (For details see pages 10 to 15.)	Planned                  $ 34,485 Actual                   $ 34,330 Variance                        155 FTE used                       326
Supporting Priorities	Results
A. Effective management of legislated responsibilities related to conditional release decision-making.  Key indicators include: outcomes of release on parole; numbers/rates of convictions for violent offences for offenders on parole; post-warrant expiry re-offending and return to a federal penitentiary. Performance Status: Successfully Met	Completion of 17,581 conditional release reviews (federal and provincial offenders), as required by the CCRA. 95% of parole releases – no new offence. 99% - no new violent offence; Annual convictions for violent offences by parolees down 65% since 1996/97; 9 in 10 offenders who reach warrant expiry on full parole do not return to a federal penitentiary.
B. Strategic planning to prepare NPB for response to government announcements to introduce amendments to the CCRA. Performance Status: Successfully Met	NPB continued to assess proposals for reform of the CCRA and sentencing practices, including potential impacts on workloads and costs.
C. Implementation of plans to enable NPB to assume parole decision-making responsibilities for provincial offenders in British Columbia. Performance Status: Successfully Met	In 2007-08, NPB completed 449 conditional release reviews for provincial offenders and managed related workloads such as contacts with victims and observers at hearings.
D. Improved information management in support of NPB’s conditional release responsibilities thorough development and implementation of an automated conditional release system (CRS). Performance Status: Successfully Met	Consistent with the project plan and timetable, NPB collected information on user needs for system components and developed plans for acceptance testing for various modules.
Results and Resources Structure	Spending 2007-08 ($000)
Strategic Outcome:  Open and accountable conditional release processes that ensure active involvement and engagement of victims and the public before and after conditional release decisions are made. Program Activity: Conditional Release Openness and Accountability (For details see pages15 to 18.)	Planned               $ 8,917 Actual               $ 6,208 Variance               $ 2,709 FTE used                       66
Supporting Priorities	Results
E. Effective management of legislative responsibilities, related to open and accountable conditional release processes. Key indicators include: the timeliness and quality of information and assistance provided and client satisfaction as measured by surveys of clients and stakeholders. Performance status: Successfully met	NPB had 20,457 contacts with victims, 1,974 observers at hearings, and distributed 6,098 decisions from the decision registry.  Feedback from victims indicates that 90% are satisfied with the quality and timeliness of information and assistance provided by NPB.
F. Introduction of measures to provide victims with a more effective voice in conditional release processes. Performance status: Successfully met	NPB enhanced victims’ access to the conditional release process by: distributing posters about victims’ rights and the CCRA; developing a virtual tour of an NPB hearing for NPB’s website; improving voice amplification equipment at hearings; providing simultaneous translation for victims at hearings; increasing outreach to victims, particularly in Aboriginal and northern communities; and implementing a training plan for staff involved with victims.
Results and Resources Structure	Spending 2007-08 ($000)
Strategic Outcome:  Quality pardon decisions and clemency recommendations which contribute to public protection and support the process of rehabilitation. Program Activity: Pardon Decisions, Clemency Recommendations(For details see pages 19 to 21 )	Planned Spending                                  $ 1,945 Actual Spending                                  $ 2,892 Variance                                 $  (947) FTE used                                          34
Supporting Priorities	Results
G. Effective management of legislated responsibilities related to the processing of pardon applications. Key indicators include the average time required to process pardon applications and the numbers and rates of pardons revoked annually. Performance status: Successfully met	25,021 pardon applications processed. Average process time 10 months. 96% of all pardons awarded remain in force.
Results and Resources Structure	Spending 2007-08
The following priorities support all three of NPB’s strategic outcomes and program activities	For priority H, NPB transferred $2.9 million annually to CSC for services to be provided. Costs for priority I have been included in spending for other priorities.
Supporting Priorities	Results
H. Implementation of a new information technology partnership in which the Correctional Service of Canada provides NPB’s information technology services. Performance Status – Successfully Met	Governance structure created. Resource transfer to CSC completed. NPB integrated in CSC planning and service delivery processes. CSC provided good quality services for NPB.
I. Integrated human resource and business planning to sustain effective program delivery in the midst of anticipated retirement of significant numbers of senior staff. Performance Status – Successfully Met	NPB continued to integrate business and human resource planning. Succession planning was addressed as a priority and knowledge transfer strategies were applied to facilitate transition to a new management cadre. The Board also implemented a contingency plan to address Board member shortages and heavy workloads.

5. Overall Description of NPB Performance

Information on performance demonstrates that the National Parole Board achieved the priorities and commitments identified in its Plans and Priorities for 2007-08.  Data in the report illustrate that parole continues to contribute to public safety.  More than 95% of all parole releases do not result in a new offence, and 99% do not result in a new violent offence.  In fact, the annual number of convictions for violent offences by parolees is 65% lower than a decade ago. Information on re-offending after completion of sentence illustrates that 9 in 10 offenders who reach the end of their sentence on full parole do not return to a federal penitentiary. (Rates of re-offending for these offenders would be higher if provincial sentences were also considered, but NPB does not have the capacity to track provincial re-offending after warrant expiry).

The Board also made progress on three important initiatives related to quality conditional release decision-making. Throughout 2007-08, the NPB participated in consultations on proposals for reform of sentencing, corrections and conditional release. Key areas included mandatory minimum sentences for various offence categories, reduced use of credit for pre-sentencing custody, and introduction of “earned parole”. The Board also took the action necessary to assume parole decision-making responsibilities for provincial offenders in the province of British Columbia, following the province’s decision to discontinue operation of its parole board. In addition, the Board continued work on the development of a new automated system for managing and sharing conditional release information within the Board and with CSC. Progress was made, as planned, in identifying user needs for system modules dealing with file management, case management and victims of crime. NPB also worked with CSC to develop a prototype for the file management module.

Victims, observers at hearings and those who seek access to the Board’s registry of decisions continue to indicate that they are very satisfied with the timeliness and quality of information and assistance that NPB provides (e.g., over 90% of victims). The Board continued to make progress in this area in 2007-08, by, for example, increasing victims’ access to information through distribution of a poster and brochure to victim service providers across the country, and developing a module for its website that provides victims with a virtual tour of an NPB hearing.

In the area of pardons, the Board continued to respond to sharp increases in the annual volumes of applications received. The Board developed a detailed business plan to eliminate a backlog of applications and create long-term sustainability for the pardon program. The planned called for the elimination of the backlog by June 30, 2008. The pardons program continued to contribute to public safety, as 96% of all pardons granted remained in force, demonstrating that the vast majority of pardon recipients remain crime free in the community.

6. Operating Environment and Context

NPB works in a complex environment, demanding effective support for government priorities, careful assessment of criminal justice issues and community concerns and constant attention to quality decision-making to support public safety.

The Board delivers two legislatively based programs – conditional release and pardons and clemency.  NPB also manages a range of internal services that provide critical support for program delivery.  The conditional release area is, by far, the most complex and resource intensive, accounting for more than 90% of annual program expenditures. The high proportion of resources devoted to legislative responsibilities seriously constrains resource flexibility and challenges the Board to seek constant improvement in program delivery.

Conditional Release

NPB’s workloads are shaped by factors beyond its control.  Legislation governing the Board (CCRA) is prescriptive, specifying when and how the Board conducts its business (e.g. when to use hearings).  Workloads are driven by the actions of offenders, victims and the community.  In concrete terms, this means that NPB must deal with high workload volumes, involving critical issues of public safety, in tight timeframes, amid intense public scrutiny.  For example, over the past five years, NPB completed an average of 19,000 conditional release reviews per year for federal offenders. CSC indicates that the federal offender population is increasing.  The Board’s workloads and resource needs are expected to increase accordingly.  Parole reviews for provincial offenders rose from 694 in 2006-07 to 1,059, as the Board assumed responsibility for parole decision-making for provincial offenders in British Columbia.

The Board must also deal with growing complexity in conditional release decision-making, as reflected in three important trends.  The first is a more difficult offender population characterized by longer criminal histories, greater prevalence of violence, more gang affiliations, and more serious substance abuse problems. The second involves the shift toward shorter federal prison sentences, primarily as a result of credit given for pre-sentencing custody. A more difficult offender population with shorter sentences (and less time to benefit from programs/treatment) challenges NPB’s work to assess factors related to risk and safe reintegration in the community.  The third trend involves the need for effective decision processes such as elder-assisted and community-assisted hearings which recognize the needs of Aboriginal offenders.

The openness and accountability provisions of the CCRA continue to present important challenges. Workloads in these areas have grown steadily since introduction of the CCRA in 1992.  In 2007-08, the Board had over 20,000 contacts with victims, almost 2,000 observers at hearings and more than 6,000 requests for decisions from the decision registry. Growth is expected to continue as measures such as enhanced information on the Board’s website and increased community outreach make victims of crime more aware of their ability to obtain information about the offender who harmed them and to observe NPB hearings. As with conditional release decision-making, quality program delivery in this area is critical, given its implications for public safety and public confidence.

The government has announced extensive plans to tackle crime and strengthen community safety, including measures for reform of sentencing, corrections and conditional release. Effective support for these measures continues to be a focal point for the Board. The Board must manage the workload and cost implications of government proposals to introduce mandatory minimum penalties for gun crimes (Bill C-2), and for drug offences (National Anti-Drug Strategy). Introduction of these penalties will lengthen periods of incarceration and therefore increase NPB workloads and costs for conditional release reviews, contacts with victims of crime, etc. Mandatory minimum sentences will, in fact, result in the need for NPB to absorb almost
$1 million in annual cost increases.

Pardons

Workload growth has created a serious situation for the pardon program. Historically, the Board received 15,000 to 20,000 pardon applications annually.  In the past three years, however, application volumes rose sharply, reaching 30,398 in 2007-08. The projected volume of applications for 2008-09 is 37,000. Factors contributing to growth in annual volumes of pardon applications include:

• greater scrutiny by government, private and voluntary sectors of potential employees;
• perceptions by Canadians of the increased value of a pardon for employment, and travel;
• active advertising campaigns by private sector organizations involved in pardons; and
• the increasing number of people eligible to apply for a pardon - the current estimate is 1.5 million people which grows by 60,000 annually.

Growth in applications resulted in a backlog of pardon applications. The Board worked to clear this backlog and put in place measures to create long-term sustainability for the pardon program.  These measures are critical, given the expectation that pardon applications will continue to grow, and possibly reach 50,000 in coming years.

Human Resource Management

The Board’s human resource challenge has two dimensions. The first involves Board members who are Governor-in-Council appointments. The CCRA specifies that the Board shall comprise no more than 45 full-time members who are usually appointed for five years. The Act also provides for the appointment of part-time members to help manage conditional release decision-making workloads. Part-time members are usually appointed for three years. Each year, decision-making workloads require the use of significant numbers of part-time Board members (20 to 30 full-time equivalents). Maintaining sufficient numbers of experienced Board members is a challenge because of the specified terms of appointments (frequent turnover). The NPB must also deal with the reality that following an initial orientation period of five weeks, newly appointed Board members still require three to six months of training and mentoring before they can manage the full scope of their decision-making responsibilities.

The Board faces an equally challenging situation with respect to its staff. Over the next five years, increasing numbers of senior and experienced staff at the Board will be able to retire with no penalty to their pension. Anticipated departures will erode corporate memory and diminish critical knowledge of the law, policy and training. For the Board, whose members are appointed for specified periods, staff provide the continuity of knowledge, and information essential for quality program delivery. For this reason, development of an effective human resource plan for dealing with staff turnover is essential.

Section II: Analysis by Strategic Outcome

Section II provides information on performance in 2007-08 based on NPB’s strategic outcomes and Program Activity Architecture (PAA). The strategic outcomes and PAA reflect the Board’s legislative responsibilities and the areas of performance in which Parliament and the public most frequently express interest.

Data Sources and Reliability

Information for this section was extracted from NPB files and reports, a survey of victims of crime, and two major automated systems – the Offender Management System (OMS), and the Pardons Application Decision System (PADS). Data from OMS and PADS, as well as data collection processes are subject to rigorous review, and correction where necessary. Through these monitoring processes, the Board strives to produce information that is timely and accurate.

1. Quality Conditional Release Decisions

Strategic Outcome: Quality conditional release decisions which contribute to public protection through the safe reintegration of offenders in the community.

Program Activity: Quality Conditional Release Decisions
Program Activity Description: Case review and quality decision-making by Board members; staff support for decision-making; training to ensure professionalism in all aspects of decision-making; and policy development and advice to guide decision-making.

Effectiveness for this activity is assessed by monitoring the outcomes of offenders on parole. Outcomes of release provide a complete picture of performance. Completion of a release by an offender without return to an institution is an indicator of success. Revocation of release for a breach of the conditions is not a positive result for the offender, but from a community perspective it is a positive intervention to reduce risk. Releases which result in a new offence are a negative result. Additional information is provided on violent re-offending by parolees as these incidents have the most serious consequences for the community. Further, the section reports on post-warrant expiry re-offending to provide information on the long-term effectiveness of parole.

Financial Resources 2007/08 ($000)

Planned Spending	Authorities	Actual Spending
$ 34,485	$ 35,240	$ 34,330

Human Resources 2007/08 (FTE)

Planned	Actual	Difference
374	326	48*

* The difference is explained, in part, by the transfer of resources to the Correctional Service of Canada (23 FTE) for the provision of information technology services.

Progress Toward Commitments Made in Report on Plans and Priorities 2007/08

Program Activity	Priorities/Commitments	Recent Progress
Quality conditional release decisions.	Effective management of legislative responsibilities, related to conditional release decision-making.	17,581 conditional release reviews completed: 16,522 for federal offenders; 1,059 for provincial offenders.
		95% of parole releases do not result in a new offence and 99% do not result in a new violent offence.
	Strategic planning to prepare for response to government announcements to introduce amendments to the CCRA and sentencing practices.	The Board consulted on and assessed numerous proposals, including: credit for pre-sentencing custody; mandatory minimum penalties for selected offences; changes to dangerous offender legislation and earned parole.
	Implementation of plans to enable NPB to assume parole decision-making responsibilities for provincial offenders in British Columbia.	Plans implemented successfully. In 2007-08, NPB completed 449 parole reviews for these offenders.
	Improve information management in support of conditional release responsibilities through development of an automated Conditional Release System.	User needs were identified for system modules dealing with file management, case management and victims. Performance status:  successfully met.

The Board uses three indicators related to the performance of parolees in the community:

• outcomes of conditional release;
• convictions for violent offences; and
• post-warrant expiry recidivism.

Information is also provided for offenders on statutory release (SR), although these offenders are released by law, and not at the discretion of the Board.

Outcomes of Conditional Release

Long-term information on outcomes for federal offenders under supervision indicates that:

• over 78% of releases on parole (day and full) are completed successfully;
• 14% of releases on parole are revoked for a breach of condition;
• 8% of releases on parole end in a new offence, 1% ends in a new violent offence;
• 58% of releases on SR are completed successfully, 28% are revoked for a breach of conditions, 13% end with a new offence and 3% end in a new violent offence.

Recent information on the outcomes of release (Table 1) is consistent with long-term trends.  Care should be taken, however, with information for 2007-08, as numbers could change as cases make their way through the court process.

Table 1 - OUTCOMES OF FEDERAL CONDITIONAL RELEASE

RELEASE TYPE/YR.		SUCCESSFUL COMPLETION		REVOCATION for Breach of Condition		TOTAL WITHOUT RE-OFFENDING		REVOCATION WITH OFFENCE				TOTAL REVOCATIONS WITH OFFENCE
								Non Violent		Violent
		#	%	#	%	#	%	#	%	#	%	#	%
Day Parole	2005-06	2483	81.6	397	13.1	2880	94.7	141	4.6	21	0.7	162	5.3
	2006-07	2547	81.9	378	12.2	2925	94	164	5.3	22	0.7	186	6
	2007-08	2511	83.5	391	13	2902	96.4	96	3.2	11	0.4	107	3.6
Full Parole*	2005-06	985	70.8	262	18.8	1247	89.6	128	9.2	17	1.2	145	10.4
	2006-07	972	71	255	18.6	1227	89.6	133	9.7	9	0.7	142	10.4
	2007-08	990	72.9	262	19.3	1252	92.2	94	6.9	12	0.9	106	7.8
Statutory Release	2005-06	3244	58.5	1652	29.8	4896	88.3	519	9.4	131	2.4	650	11.7
	2006-07	3266	58.4	1648	29.5	4914	87.9	540	9.7	136	2.4	676	12.1
	2007-08	3348	58.8	1739	30.6	5087	89.4	496	8.7	110	1.9	606	10.6

* Full parole includes only those offenders serving indeterminate sentences as offenders serving indeterminate sentences can only successfully complete full parole by dying.

Information on the outcomes of release for provincial offenders in the regions where NPB exercised parole decision-making authority for these offenders indicates that over the past ten years, 78% of releases were completed successfully, 3% resulted in a new offence, and 0.3% resulted in a new violent offence. In real numbers, 16 of 5,344 parole releases for provincial offenders in the last ten years, resulted in a new violent offence.

Offenders with Life Sentences for Murder

"Lifers" represent a growing segment of the federal offender population. In 2007-08 they represented 19% of the federally incarcerated population and 32% of day and full parolees.  Offenders with life sentences are not entitled to statutory release.  Successful completion rates for day parole for offenders with life sentences are higher than rates for most other groups of offenders, and rates of re-offending are lower.  For example, over the past 10 years, 92% of day paroles for lifers have been successfully completed compared with 81% for offenders serving a determinate sentence. Table 2 provides information on outcomes for day parole by offence of conviction in 2006-07 and 2007-08. The group most likely to re-offend is the property offence group, followed by those incarcerated for a violent but non-sexual offence.

TABLE 2 - OUTCOMES for FEDERAL DAY PAROLE by OFFENCE of CONVICTION (%)

Outcome	Murder		Sex Offence		Violent Non-Sex		Drugs		Property		Total
	06/07	07/08	06/07	07/08	06/07	07/08	06/07	07/08	06/07	07/08	06/07	07/08
Successful Completions	91.5	92.6	94.4	93.0	77.7	78.2	87.1	87.2	71.3	75.4	81.9	83.5
Revoked for breach of  conditions	7.0	6.9	4.5	7.0	16.1	17.4	8.9	10.1	15.9	17.4	12.2	13.0
Revocations with offence
Non-violent	1.1	0.6	1.1	0.0	4.6	3.4	4.1	2.7	12.5	6.8	5.3	3.2
Violent	0.4	0.0	0.0	0.0	1.7	1.0	0.0	0.0	0.3	0.3	0.7	0.4
Total	1.5	0.6	1.1	0.0	6.3	4.4	4.1	2.7	12.8	7.2	6.0	3.6

Offenders serving life sentences for murder and released on full parole remain on parole for life.  Long-term follow-up for this group indicates that about 9% re-offend.  Since 1994-95, 1,886 offenders with life sentences for murder have had 2,120 full parole supervision periods.  By March 31, 2008, 65% of these supervision periods were still active. The outcomes of the remaining cases were as follows:

• 13% involved the death of the offender on full parole.
• 13% were revoked for a breach of conditions.
• 6% were revoked for a non-violent offence.
• 3% were revoked for a violent offence.

Convictions for Violent Offences - Federal Offenders

• From 1996-97 to 2006-07, the annual number of convictions for violent offences by day and full parolees declined by 65%.
• Rates of conviction per 1,000 parolees also declined sharply (from 38 to 16 for day parole and from 13 to 3 for full parole).
• Comparison of violent conviction rates and violent crime rates in Uniform Crime Reports shows that full parolees are no more likely than the general public to commit a violent crime.

TABLE 3 – CONVICTIONS FOR VIOLENT OFFENCES BY RELEASE TYPE AND THE RATES OF CONVICTION PER 1000 OFFENDERS UNDER SUPERVISION

YEAR	DAY PAROLE(convictions)	RATES PER 1,000	FULL PAROLE (convictions)	RATES PER 1,000	STATUTORY RELEASE (convictions)	RATES PER 1,000	TOTAL CONVICTIONS
1996/97	39	38	55	13	160	67	254
1997/98	38	30	49	12	157	63	244
1998/99	36	24	38	9	138	55	212
1999/00	58	37	47	10	160	57	265
2000/01	35	25	40	9	167	60	242
2001/02	33	25	33	8	149	52	215
2002/03	23	18	27	7	148	51	198
2003/04	20	15	21	5	149	50	190
2004/05	22	18	28	7	137	46	187
2005/06	21	15	21	5	131	43	173
2006/07*	22	16	11	3	137	43	170
2007/08*	13	10	15	4	110	35	138

* Figures may fluctuate during the 12 to 18 months following fiscal year end as offenders proceed through the courts.

Post Warrant Expiry Reoffending

Post-warrant expiry re-offending information is based on readmissions to a federal institution for offenders who completed their sentence on full parole or SR or were incarcerated to the end of their sentence. Long-term follow-up (sentences completed between 1992-93 and 1997-98) indicates that about 26% of these offenders have returned to a federal penitentiary. There are, however, differing rates of re-offending for offenders within this group:

• 11% who reached warrant expiry on full parole have returned to a federal institution;
• 32% of offenders who reached warrant expiry on SR, have returned to a federal institution;
• 36% of offenders who remained incarcerated to warrant expiry (e.g., detained), have returned to a federal institution.

Parole is founded on the principle that gradual release, based on effective programs and treatment, quality risk assessment, and effective community supervision enhances community safety.  Information on post-warrant expiry re-offending reinforces this theory, suggesting that the detailed process of case preparation and risk assessment used by NPB and CSC for parole decision-making is effective in identifying those offenders most likely to remain free from violent crime in the community.  Post-warrant expiry re-offending, as reported, deals only with federal re-offending (i.e., a new sentence of two years or more). If all new offences (e.g., fines, sentences of less than two years) were considered, the rate of re-offending would increase. NPB does not have access to this information at this time.

Lessons learned-quality conditional release decisions:

In 2007-08, NPB carried-out a number of activities designed to support quality decision-making, including:

• evaluation of the Board’s orientation and training program for Board members that produced numerous recommendations to enhance the content and delivery of training. NPB is currently developing an action plan to respond to these recommendations.
• introduction, based on assessment of issues related to visible minority offenders, of a new policy for the Hallmarks of a Quality Hearing which allows for the use of a cultural interpreter should such assistance be required by Board members.
• implementation of new policy for the use of video-conferencing technology to facilitate Board member involvement in hearings.

Open and Accountable Conditional Release Processes

Strategic Outcome:  Open and accountable conditional release processes that ensure active involvement and engagement of victims and the public before and after conditional release decisions are made.

Program Activity:  Conditional Release Openness and Accountability.
Program Activity Description:  Information for victims of crime; assistance for observers at hearings and those who seek access to NPB’s decision registry; public information; and investigation of incidents in the community.

This program activity is designed to ensure that the Board operates in an open and accountable manner, consistent with the provisions of the CCRA, and that it shares information effectively in support of public safety.  Work in this area recognizes that NPB operates in a difficult environment in which timely sharing of accurate information is fundamental to effective partnership and public trust.  Results for this area are assessed by monitoring the timeliness of information shared, by conducting surveys of those who receive information and assistance from the Board (e.g. victims), and by conducting relevant management reviews and investigations.

Financial Resources 2007-08 ($000)

Planned Spending	Authorities	Actual Spending
$ 8,917	$ 8,089	$ 6,208

Note:  Actual spending was less than planned spending primarily as a result of funding related to victims of crime that was placed in a frozen allotment pending changes to the CCRA.

Human Resources 2007-08 (FTE)

Planned	Actual	Difference
77	66	11

Progress Toward Commitments Made in Report on Plans and Priorities 2007-08

Progress Activity	Priorities/Commitments	Recent Progress
Conditional Release Openness and Accountability	Effective management of legislative responsibilities related to open and accountable conditional release processes.	20,457 contacts with victims, 1,974 observers at hearings, distribution of 6,098 decisions from the decision registry.
	Introduction of measures to provide victims with a more effective voice in conditional release processes.	NPB improved access to information about parole (website, posters); improved voice amplification equipment in hearings; provided simultaneous translation at hearings; enhanced outreach to victims, (e.g., in Aboriginal communities); and improved training for NPB staff.
		Performance status: successfully met.

The CCRA requires the Board to provide information for victims of crime, allow observers at its hearings and provide access to its decisions through a registry of decisions. Performance reporting in this area has two components dealing with outputs and outcomes:

• the volume of NPB activity in response to demands for information/assistance (outputs); and
• the satisfaction of those who receive information and assistance from the Board (outcomes).

Contacts with Victims:

In 2007-08, the Board had over 20,000 contacts with victims.  Most were victims of violence, such as sexual assault, or the family of murder victims. The vast majority (95%) of victims surveyed in past years have expressed satisfaction with the quality and timeliness of information provided by NPB staff.

Observers at Hearings:

The Board had 1,974 observers at its hearings in 2007-08. The increase in observers in the past years can be attributed to growing public awareness of the observer provisions of the CCRA and the federal fund to pay the travel costs for victims to attend NPB hearings. Most observers (90%) agree that the hearing process is rigorous and that Board members are very thorough in reviewing information for decision-making.

Victims’ Presentations:

In 2007-08, victims made 244 presentations at hearings. Most were family members of murder or manslaughter victims.  The majority of presentations (88%) were in person. The remainder came in the form of audio or video tapes.  There has been an increase in the number of victims making presentations at hearings which appears to be linked to the fund to pay travel costs for victims to attend NPB hearings.

Decision Registry:

The CCRA permits access to specific NPB decisions and to decisions for research purposes through NPB's decision registry. For specific cases, any person who demonstrates an interest may, on written application to NPB, have access to the contents of the registry. Information that would jeopardize the safety of a person, reveal the source of information obtained in confidence, or adversely influence the reintegration of the offender is deleted. For research purposes, people may apply to the Board for access to decisions and receive information after the decisions have been screened to remove all personal identifiers.

The CCRA does not define the contents of the "registry of decisions", or what constitutes demonstrating interest in a case; however, in keeping with the concepts of openness and accountability, the Board makes available the complete risk assessment and decision documentation of Board members. Individuals demonstrate an interest by writing to the Board to ask for access to the decision registry.  In 2007-08, the Board released 6,098 decisions from the registry.  Victims access the registry most frequently (58%), followed by media (41%).

Lessons learned - victims, observers and the decision registry:

In response to recommendations from victims’ advocates, the Board began to explore the use of video-conferencing technology to enhance access by victims to NPB hearings. To support progress in this area, the Board continues to assess the need for policy and training and consider measures to ensure that sufficient resources are available to support proper implementation of this new approach. Effective progress also requires that NPB work in partnership with CSC to ensure that video-conferencing equipment is available in hearing rooms and in various sites in the community to support productive use of this technology.

3. Quality Pardon Decisions

Strategic Outcome:  Quality pardon decisions and clemency recommendations which contribute to public protection and support the process of rehabilitation.

Program Activity:  Pardon Decisions/Clemency Recommendations.

Program Activity Description:  Case review and quality decisions to grant, deny or revoke pardons; support for pardon decision-making; development of pardons policy; collection of pardon revenues; and development of recommendations for clemency.

A pardon is a formal attempt to remove the stigma of a criminal record for people found guilty of a federal offence who, after satisfying their sentence and a specific waiting period, have shown themselves to be responsible citizens. A pardon is, therefore, a means to facilitate safe community reintegration.  Assessment of results in this area considers efficiency (the average time required to process pardon applications) and effectiveness (rates of revocation of pardons).

Financial Resources 2007-08 ($000)

Planned Spending	Authorities	Actual Spending
$ 1,945	$2,949	$2,892

Human Resource 2007-08 (FTE)

Planned	Actual	Difference
28	34	(6)

Historically, the Board received 15,000 to 20,000 pardon applications per year; however in 2005-06 and 2006-07, applications rose to 27,900 and 26,600 respectively. Workload growth continued in 2007-08, as applications reached 30,398. These increases generated workloads in excess of process capacity, leading to a backlog of applications. In response, NPB developed an action plan to enhance productivity in the short-term and to establish sustainability for the pardon program in the long-term. This plan calls for a wide range of improvements, including: policy refinement; technological advancements; process streamlining; creation of a team to eliminate the backlog of the applications; removal of the cap on the amount of revenues from user fees that NPB can access yearly; establishment of service standards for application processing; and increasing the user fee to align it with current operational and program realities.

NPB charges a $50.00 user fee for the processing of pardon applications.  The Board may access 70% of revenues collected. The RCMP has access to 30% of user fees collected.  Fees do not represent the full cost of a pardon.  The fee was set at $50.00 so as not to serve as an impediment for Canadians who wish to benefit from a pardon.

Progress Toward Commitments Made in Report on Plans And Priorities 2007-08

Program Area	Priorities/Commitments	Recent Progress
Pardons	Effective management of legislative responsibilities related to the processing of pardon applications.	25,021 applications processed – average process time, 10 months. 96% of all pardons awarded remain in force.
		Plans developed to eliminate the backlog of applications and establish sustainability for the pardons program.
		Performance status: successfully completed.

The Criminal Records Act (CRA) authorizes the Board to:  grant pardons for offences prosecuted by indictment, if it is satisfied the applicant is of good conduct, and is conviction-free for five years; and issue pardons for summary convictions, following a conviction free period of three years.  In 2007-08, the average processing time for all pardons was 10 months.  For cases involving summary convictions only, the average process time was six weeks.

Table 4 – Pardons Granted / Issued and Denied by Year

Decision	2002-03		2003-04		2004-05		2005-06		2006-07		2007-08
	#	%	#	%	#	%	#	%	#	%	#	%
Granted	7,204	49	8,761	55	17,800	78	3,951	46	7076	47	14,514	58
Issued	7,232	49	6,832	43	4,745	21	4,402	51	7672	52	10,332	41
Sub-Total	14,436	98	15,593	98	22,545	98	8,353	98	14,748	99	24,846	99
Denied	286	2	265	2	375	2	196	2	103	1	175	1
Total	14,722	100	15,858	100	22,920	100	8,549	100	14,851	100	25,021	100
Average Process Time	17 months		17 months		12 months		11 months		13 months		10 months

The pardon revocation/cessation rate remains less than 4%, demonstrating that most people remain crime free after receipt of a pardon. The CRA includes two categories of revocation. The first is for offences that the court dealt with summarily. The Board reviews these cases and assesses the need to revoke. The second involves automatic revocation for an indictable offence. For this category, the RCMP notifies the Board of the offence, and the pardon ceases to exist.

TABLE 5 - PARDON REVOCATIONS

Period	Cumulative Pardons Granted/Issued to Date	Pardons Revoked / Ceased during the Year	Cumulative Pardons Revoked/Ceased	Cumulative Revocation/Cessation Rate (%)
2003/04	306,985	1,314	10,594	3.45
2004/05	329,530	557	11,151	3.38
2005/06	337,883	456	11,607	3.44
2006/07	352,631	2397	14,004	3.97
2007/08	377,477	581	14,585	3.86

Lessons learned – sustainability for the pardon program:

Heavy and growing workloads related to pardons pointed clearly to the need for NPB to develop a resource management tool that would facilitate the development of resource needs for various workload scenarios. In response, the Board developed a resource formula, based on analysis of extensive operational data that will enable it to improve planning and program delivery. In particular, the formula will prove very useful in enabling the Board to ensure that it has sufficient capacity to process applications, consistent with the service standards that are being developed.

Strategic Management Priorities

For 2007-08, the Board continued work on two strategic management priorities that support all of its program activities. The first involves integrated business and human resource planning to ensure that the Board has sufficient numbers of Board members and staff, with the knowledge and skills to meet program needs. Entering 2007-08, the Board faced a significant shortage of Board members to meet conditional release decision-making workloads. In response, the Board developed a contingency plan designed to limit workloads, while maximizing the availability of Board members for decision-making purposes. Implementation of the contingency plan continued through the first six months of 2007-08 and proved successful. Despite limited resource capacity, the Board was able to meet workload demands. The Board also took action to deal with significant turnover among key staff. Implementation of the Board’s succession plan continued to ensure that the quality of program delivery was not jeopardized by the loss of significant corporate memory and experience.

The second strategic management priority focused on the Board’s new partnership arrangement with the Correctional Service of Canada in which the Board transferred $2.9 million annually to the Service in return for the provision of information technology services. In this, partnership arrangement, the Board sets its information technology priorities and user needs. The Service provides a range of services including desk top support, network maintenance and support,  technical aspects of system development, and system support. During 2007-08, work related to the partnership dealt with governance and effective consultation processes. Throughout the year, CSC provided effective technology services for the Board.

Section III: Supplementary Information

1. Structure for Program Delivery

The Board carries-out its work through six offices across the country and the national office in Ottawa. The national office makes clemency recommendations and pardon decisions and develops related policies. It is also responsible for a range of activities related to conditional release, including investigations, appeal decisions, policy development, and Board member training. As well, the national office provides leadership for planning, resource management, communications, performance reporting and corporate services.

Conditional release decisions are made by Board members in the regions.  Board members are supported by staff who schedule hearings, ensure that information for decision-making is received and shared with the offender, provide policy advice, and communicate conditional release decisions to the offender, CSC and others, as required.  Staff in regions also provide information for victims, make arrangements for observers at hearings, and manage requests for access to the Board’s decision registry, and provide training for Board members.

2. Partnership for Program Delivery

Partnership is integral to effective NPB operations.  As the Board's key partner, CSC provides information for NPB decision-making (from external sources, and internally generated). If the Board grants release, CSC supervises offenders in the community.  Clearly, the Board shares accountability for "outcomes".  When parolees succeed, “success” is the result of many players in the system, as well as the offender.

CSC and NPB Working Relationship - Conditional Release

CSC Responsibilities for Offenders	NPB Decision-Making Responsibilities
Care and custody.
Programs and treatment.
Work release, temporary absences (TA) (TA authority delegated by NPB in many cases).
Information for NPB decisions: external (e.g., police, courts); produced by CSC (e.g., programs/treatment, recommendations).	Review of cases and decisions for: TAs for specific groups (e.g., lifers); the timing and conditions of release of offenders on day and full parole.
Statutory release (SR) occurs by law at 2/3rds of sentence.  Recommendations to NPB on the need for special conditions for SR.	Decisions to impose special conditions on SR.
Supervision of offenders released on TAs, parole and SR.  Information for NPB post-release decisions.	Post-release decisions (revoke or maintain release, revise conditions).
Recommendations to NPB for detention of offenders past SR to warrant expiry.	Detention decisions.
Supervision of long-term supervision offenders (LTSO).	Imposition of special conditions on LTSO.

The RCMP also works with the Board in the processing of pardon applications.  The RCMP provides NPB with information on criminal histories, and periods of crime-free behaviour for pardon applicants.  When the Board issues or grants a pardon, it notifies the RCMP which seals the pardoned record.  In the case of pardon revocation, the Board and the RCMP share information to support NPB decision-making, and RCMP responsibilities for management of information within the Canadian Police Information Centre (CPIC).

3. Financial Performance Overview

The National Parole Board’s total authorities, consisting of Main Estimates, and subsequent Supplementary Estimates were $46,278,237. This consisted of $41,151,799 in operating resources, and $5,118,244 for the Employee Benefit Plan.

Actual expenditures were $43,429,660 and resulted in a reported Public Accounts lapse of $2,848,577. This is a total lapse of approximately 6.1% of total authorities, indicating that the Board was able to manage its resources successfully for 2007-08.

The Board applied its resources to three program areas - quality conditional release decisions; open, accountable conditional release processes; and quality pardon decisions, clemency recommendations.

Financial Summary Tables

The financial tables presented in this section provide the following information on NPB:

• Total Main Estimates as reported in the 2007-08 Estimates.
• Total planned spending at the beginning of the year, as reported in the 2007-08 Estimates: Report on Plans and Priorities. This includes Main Estimates plus anticipated approvals planned through subsequent Supplementary Estimates exercises.
• Total authorities as approved by Parliament (Public Accounts of Canada for 2007-08).
• Total actual spending (Public Accounts of Canada for 2007-08).

Please note that the figures in the following tables have been rounded to the nearest thousand. Because of rounding, figures may not add to the totals shown.

This table offers a comparison of the Main Estimates, Planned Spending, Total Authorities and Actual Spending for the most recently completed fiscal year, as well as historical figures for Actual Spending.

Table 1: Comparison of Planned to Actual Spending (including FTEs)

	2005-06 Actual	2006-07 Actual	2007-08
			Main Estimates	Planned Spending (1)	Total Authorities (2)	Total Actuals (2)
Quality conditional release decisions	32,704	33,962	33,314	34,485	35,240	34,330
Open, accountable conditional release processes	5,818	6,561	7,954	8,917	8,089	6,208
Quality pardon decisions, clemency recommendations	4,319	2,823	1,931	1,945	2,949	2,892
Total	42,841	43,346	43,199	45,346	46,278	43,430
Less: Non-respendable revenue	714	969	N/A	700	N/A	1,438
Plus: Cost of services received without charge*	4,966	5,263	N/A	5,603	N/A	5,064
Total Departmental Spending	47,093	47,640	N/A	50,249	N/A	47,055
Full-time Equivalents	404	416	N/A	478	N/A	426

1) from the 2007/08 Report on Plans and Priorities. 2) from the 2007/08 Public Accounts.
* Services received without charge usually include accommodation provided by PWGSC, the employer's share of employees' insurance premiums, Workers' Compensation coverage provided by Social Development Canada, and services received from the Department of Justice Canada.

This table basically replicates the summary table listed in the Main Estimates. Resources are presented to Parliament in this format. Parliament approves the voted funding and the statutory information is provided for information purposes.

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007–08
		Main Estimates	Planned Spending (1)	Total Authorities (2)	Total Actuals (2)
35	Operating expenditures	37,884	40,032	41,152	38,306
(S)	Contributions to employee benefit plans	5,315	5,315	5,118	5,118
(S)	Spending of proceeds from the disposal of surplus Crown assets	-	-	8	5
	Total	43,199	45,347	46,278	43,430

1) from the 2007-08 Report on Plans and Priorities
2) from the 2007-08 Public Accounts
(S) indicates expenditures the Department is required to make that do not require an appropriation Act

Respendable Revenue

The Board does not have any Respendable Revenue.

Non-respendable Revenue

There is a $50.00 user fee for the processing of pardon applications.  Of the $50.00, the Board can access $35.00. The remaining $15.00 go to the RCMP.  The Board is not allowed to respend revenues from this fee in the year they are collected.  It can, however, access these revenues the following fiscal year through the Supplementary Estimates process.  In 2007-08, the pardon user fee generated revenues of $1,438,491.  Of this total, the Board could access 70% or $1,006,944 in 2008-09.

Table 3: Sources of Respendable and Non-respendable Revenue

	Actual 2005-06	Actual 2006-07	2007-08
			Main Estimates	Planned Revenue	Total Authorities	Actual
Pardon user fees	714	969	N/A	700	N/A	1,438
Total Non-respendable Revenue	714	969	N/A	700	N/A	1,438

Table 4: User Fees Act

A. User Fee	Fee Type	Fee-setting Authority	Date Last Modified	2007-08					Planning Years
				Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard	Performance Results	Fiscal Year	Forecast Revenue ($000)	Estimated Full Cost ($000)
Pardons User fee ($50.00)	Other Products and Services	Treasury Board Decision T.B. #822475 (1995) T.B. #826954 (1999)	Fee introduced 1995,  modified in 1999	410	1007	To be determined (TBD)	Under Development	In 2007-08, the average process time for a pardon was 10 months.	2008–09 2009–10 2010–11	800 800 800	TBD TBD TBD
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Regulatory Service	Access to Information Act	1992	0	0*	333	Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The Access to Information Act provides fuller details: http://lois.justice.gc.ca/en/A-1/.	Response times 100% within Performance Standard:  Access to Information Act Total 15 requests: within 30 days = 13 requests 31-60 days = 2 requests 61-90 days = 1 request Privacy Act Total 326 requests: within 30 days = 252 requests  31-60 days = 64 requests 61-90 days 10 requests	2008–09 2009–10 2010–11	0 0 0	333 333 333
			Total	410	1007	333			Total 2008-09 Total 2009-10 Total 2010-11	800 800 800	TBD TBD TBD

(1)  Costs are not estimated full costs.  Instead, they represent direct costs for NPB.
* The Board is authorized to retain $35.00 or 70% of the fees received. Based on these rates, the Board earned $1,006,944 in 2007/08. These funds will be accessible by the Board in 2008-09.
**The revenues earned in this area amounted to $45.00 in 2007-08.

Table 4B: Policy on Service Standards for External Fees

A. External Fee	Service Standard	Performance Result	Stakeholder Consultation
Pardon User fee ($50.00)	Under development	In 2007/08, the average process time for pardon applications was 10 months.  For cases involving summary convictions only, the average process time was 3-5 months. In terms of program effectiveness, 96% of all pardons awarded remain in force, demonstrating that the vast majority of pardon applicants remain crime free.	As part of the business plan for pardons, the Board plans to hold consultations on the user fees in the 2008/09 fiscal year.  These consultation will set the stage for service standards for processing pardon applications by April 1, 2009.
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Response provided within 30 days following receipt of request, the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The Access to Information Act provides fuller details: http//loijustice.gc.ca/en/A-1/.	Response times 100% within Performance Standard:  Access to Information Act total of 16 requests: within 30 days = 13 requests 31-60 days = 1 request 61-90 days = 1 request Privacy Act total 326 requests:  within 30 days = 252 requests 31-60 days = 100 requests 61-90 days = 10 requests.	The service standards are established by the Access to Information Act and Regulations.

4. National Parole Board – Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in this report rests with the National Parole Board management.  These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements.  Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality.  To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Board’s financial transactions.  Financial information submitted to the Public Accounts of Canada and included in the Board’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Board.

The financial statements of the Board have not been audited.

Mario Dion                    Anne Gagne
Chairperson                   A/Senior Financial Officer
Ottawa, Canada
July 18^th, 2008

National Parole Board

Statement of Operations (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Expenses (Note 4)
Conditional release decisions	37,670	38,366
Conditional release openness and accountability	7,081	7,591
Pardons decisions and clemency recommendations	3,158	3,976
Total expenses	47,909	49,933
Revenues (Note 5)
Conditional release decisions	5	1
Conditional release openness and accountability	-	-
Pardons decisions and clemency recommendations	1,439	969
Total revenues	1,444	970
Net cost of operations	46,465	48,963

The accompanying notes form an integral part of these financial statements.

National Parole Board

Statement of Financial Position (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
ASSETS
Financial assets
Accounts receivable and advances (Note 6)	527	496
Total financial assets	527	496
Non-financial assets
Prepaid expenses	201	255
Tangible capital assets (Note 7)	1 302	3 331
Total non-financial assets	1 503	3 586
TOTAL	2 030	4 082
LIABILITIES
Accounts payable and accrued liabilities	3 558	3 295
Vacation pay & compensatory leave	1 346	1 389
Deferred revenue (Note 8)	-	351
Employee severance benefits (Note 9)	5 764	5 996
TOTAL	10 668	11 031
EQUITY OF CANADA	(8 638)	(6 949)
TOTAL	2 030	4 082

Contingent liabilities (Note 10)
The accompanying notes form an integral part of these financial statements.

National Parole Board

Statement of Equity of Canada (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	(6,949)	(6,447)
Net cost of operations	(46,465)	(48,963)
Current year appropriations used (Note 3)	43,430	43,346
Revenue not available for spending	(1,548)	(983)
Services received without charge from other government departments (Note 11)	5,064	5,263
Transfer of capital assets to Correctional Services Canada (Note 7)	(2,243)	-
Change in net position in the Consolidated Revenue Fund (Note 3)	73	835
"Equity of Canada, end of year	(8,638)	(6,949)

The accompanying notes from an integral part of these financial statements.

National Parole Board

Statement of Cash Flow (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Operating activities
Net cost of operations	46,465	48,963
Non cash items:
Services received without charge from other departments	(5,064)	(5,263)
Amortization of tangible capital assets	(198)	(1,572)
Net loss on disposal of tangible capital assets	(10)	(1)
Variations in Statement of Financial Position:
Decrease (increase) in liabilities	363	(79)
Increase in financial assets	31	348
Increase (decrease) in prepaid expenses	(54)	116
Cash used by operating activities	41,533	42,512
Capital investment activities
Acquisitions of tangible capital assets  (Note 7)	427	688
Proceeds from disposal of tangible capital assets	(5)	(2)
Cash used by capital investment activities	422	686
Financing activities
Net Cash Provided by Government	41,956	43,198

The accompanying notes form an integral part of these financial statements.

National Parole Board

Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

Although the National Parole Board (NPB) is a federal government department, it is an independent administrative tribunal responsible for making decisions about the timing and conditions of release of offenders to the community on various forms of conditional release. The Board also makes pardons decisions, and recommendations for clemency through the Royal Prerogative of Mercy.

Legislation governing the Board includes the Corrections and Conditional Release Act (CCRA), the Criminal Records Act (CRA), and the provisions of the Criminal Code.The CCRA empowers the Board to make conditional release decisions for federal offenders and offenders in provinces and territories without their own parole boards. Provincial Boards currently exist in Quebec and Ontario. The CRA entitles the Board to issue, grant, deny or revoke pardons for convictions under federal acts or regulations. The Governor General or the Governor in Council exercises authority regarding the use of the Royal Prerogative of Mercy for those convicted of a federal offence in all jurisdictions based on investigations by the Board and recommendations provided to the Solicitor General of Canada.

The Board has three strategic outcomes which are the cornerstones of its public accountability and reporting of results.  They are:

1. Conditional release decisions which contribute to public protection through safe reintegration of offenders in the community;
2. Open and accountable conditional release processes that ensure active involvement and engagement of victims of crime and the public, before and after conditional release decisions are made; and,
3. Pardon decisions and clemency recommendations, which contribute to public protection and support the process of rehabilitation. 

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

1. Parliamentary appropriations – the Board is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Board do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.
2. Net Cash Provided by Government – The Board operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by the Board is deposited to the CRF and all cash disbursements made by the Board are paid from the CRF.  The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions with other departments of the federal government.
3. Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Board. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
4. Revenues:
   • Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
   • Revenues that have been received but not yet earned are presented as deferred revenues.  These revenues are recognized in the period in which the related expenses are incurred.
5. Expenses – Expenses are recorded on the accrual basis:
   • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
   • Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans, worker’s compensation and legal services are recorded as operating expenses at their estimated cost.
6. Employee future benefits:
   • Pension benefits:  Eligible employees participate in the Public Service Superannuation Plan, administered by the Government of Canada.  The Board’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan.  Current legislation does not require the Board to make contributions for any actuarial deficiencies of the Plan.
   • Severance benefits:  Employees are entitled to severance benefits under labour contracts or conditions of employment.  These benefits are accrued as employees render the services necessary to earn them.  The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
7. Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
8. Contingent liabilities – Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur.  To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded.  If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
9. Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $1,000 or more are recorded at their acquisition cost.  The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.
   Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

   Asset Class	Amortization period
   Machinery and equipment	3 to 5 years
   Other equipment	15 years
   Motor vehicles	7 years
   Leasehold Improvements	Term of lease
   Assets under construction	Once in service, in accordance with asset type

10. Measurement uncertainty –– The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

The National Parole Board receives all of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in a prior year, current or a future year.  Accordingly, the Board has different net results of operations for the year on a government funding basis than on an accrual accounting basis.  The differences are reconciled in the following tables:

(in thousands of dollars)

	2008	2007
a) Reconciliation of net cost of operations to current year appropriations used:
Net cost of operations	46 465	48 963
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
Services received without charge (Note 11)	(5,064)	(5,263)
Amortization of tangible capital assets	(198)	(1,572)
Prepaid expenses previously charged to appropriation	(125)	(114)
Loss on disposal of tangible capital assets	(14)	(3)
Revenue not available for spending	1 548	983
Employee severance benefits	232	(415)
Justice legal fees	-	(184)
Vacation pay and compensatory leave	43	30
Other	46	1
Total	42 933	42 426
Adjustments for items not affecting net cost of operations but affecting appropriations: Add:
Acquisitions of capital assets	427	688
Prepaid expenses	70	232
Current year appropriations used	43 430	43 346
b) Appropriations provided and used
Vote 35 - Program expenditures	41 153	40 319
Statutory amounts	5 126	4 994
Total appropriations provided	46 279	45 313
Less:
Appropriations available for future years	(3)	(2)
Lapsed appropriations: Program expenditures	(2,846)	(1,965)
Current year appropriations used	43 430	43 346
c) Reconciliation of net cash provided by Government to current year appropriations used
Net cash provided by Government	41 956	43 198
Revenue not available for spending	1 548	983
Total	43 504	44 181
Change in net position in the Consolidated Revenue Fund
Variation in financial assets	31	(348)
Variation in accounts payable and accrued liabilities	263	(311)
Variation in deferred revenue	(351)	5
Other	(16)	(181)
Total	(73)	(835)
Current year appropriations used	43 430	43 346

4. Expenses

The following table presents details of expenses by category:

(in thousands of dollars)

	2008	2007
Personnel	37,485	37,907
Professional and other services	2,881	3,378
Accomodation	2,654	2,550
Travel	2,604	2,454
Materials and supplies	652	856
Telecommunication services	362	345
Relocation	313	105
Postage, freight, express, and cartage	230	236
Amortization expense	198	1,572
Purchased repair and maintenance	185	240
Rentals	175	193
Information services	152	86
Miscellaneous expenditures	18	11
Total	47,909	49,933

5. Revenues

The following table presents details of revenue by category:

(in thousands of dollars)

	2008	2007
Pardon service fees	1,439	969
Other	5	1
Total	1,444	970

6. Accounts Receivable and Advances

The following table presents details of accounts receivables and advances:

(in thousands of dollars)

	2008	2007
Receivables from other Federal Government departments and agencies	503	472
Receivables from external parties	19	19
Employee advances	5	5
Total	527	496

7. Tangible Capital Assets

(in thousands of dollars)

		Machinery & equipment	Informatics hardware	Informatics software	Other equipment	Motor vehicles	Leasehold improvements	Assets under construction	Total
Cost	Opening Balance	400	2,266	3,070	1,094	580	98	25	7,533
	Acquisitions & Transfers	46	-	-	166	215	25	-25	427
	Disposals & Write-offs	121	2,266	3,070	75	63	-		5,595
	Closing Balance	325	-	-	1,185	732	123	-	2,365
Accumulated amortization	Opening Balance	270	1,807	1,305	460	298	62	-	4,202
	Amortization	40	-	-	69	73	16	-	198
	Disposals & Write-offs	100	1,807	1,305	65	61	-	-	3,338
	Closing Balance	210	-	-	464	310	78	-	1,062
	2008 Net Book Value	115	-	-	720	422	45	-	1,302
	2007 Net Book Value	130	459	1,765	634	282	36	25	3,331

Amortization expense for the year ended March 31, 2008 is $198 (2007 - $1,572).

The disposal of all the informatics hardware, software, machinery and equipment capital assets amounting to $2,243,000 reflects the Net Book Value of assets transferred to Correctional Services Canada effective 1 April 2007. As of that date, Correctional Services Canada assumed responsibility for providing Information Technology services to the National Parole Board.

8. Deferred Revenue

Deferred revenue represents the balance at year-end of unearned revenue stemming from the collection of pardon fees upon receipt of the application. While the fees are received with the application, revenue is recognized only once the screening for eligibility and completeness is carried out.

	2008	2007
Opening balance	351	346
Pardon fees received		1,238
Fees returned		(264)
Revenue recognized	(351)	(969)
Closing balance	0	351

Effective 1 April 2007, the process for the accounting for pardon fees received was made more efficient such that the requirement for a deferred revenue account is no longer required.

9. Employee Benefits

(a) Pension benefits: The Board’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Board contribute to the cost of the Plan. The 2007-08 expense for the Board amounts to $3,731,200 ($3,677,549 in 2006-07), which represents approximately 2.1 times (2.2 times in 2006-07) the contributions by employees.

The Board’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.

(b) Severance benefits: The Board provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits measured as at March 31, is as follows:

(in thousands of dollars)

	2008	2007
Accrued benefit obligation, beginning of year	5 996	5 581
Expense for the year	322	1 016
Benefits paid during the year	(554)	(601)
Accrued benefit obligation, end of year	5 764	5 996

10. Contingent liabilities

Claims have been made against the Board in the normal course of operations (conditional release decisions). Legal proceedings for 20 claims in relation to victims, victims’ families and offenders totalling approximately $ 76.5 M were still pending as at March 31, 2008 ($ 85.0 M in 2007). The potential liabilities arising from the cases pending at March 31, 2008 are considered to be minimal by management as the Board is an independent administrative tribunal and is provided with an immunity clause (Section 154) in the Corrections and Conditional Release Act making the likelihood of future loss negligible. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. The existence and amount of liability depend upon the future outcome of these claims, which are not currently determinable. No accrual for this contingency has been made in the financial statements.

11. Related party transactions

The Board is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The Board enters into transactions with these entities in the normal course of business and on normal trade terms. Also during the year, the Board received services, which were obtained without charge from other Government departments as presented in part (a).

(a) Services provided without charge:

During the year the Board received without charge from other departments, accommodation, legal fees and the employer’s contribution to the health and dental insurance plans and worker’s compensation. These services without charge have been recognized in the Board's Statement of Operations as follows:

(in thousands of dollars)

	2008	2007
Accommodation	2,654	2,550
Employer's contribution to the health insurance plan, dental insurance plan and workers compensation	2,143	2,416
Legal services	267	297
Total	5,064	5,263

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The cost of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada are not included as an expense in the Board's Statement of Operations.

(b) Payables and receivables outstanding at year-end with related parties:

(in thousands of dollars)

	2008	2007
Accounts receivable with other Federal Government departments and agencies	503	472
Accounts payable to other Federal Government departments and agencies	127	360

12. Comparative Information

Comparative figures have been reclassified to conform to the current year’s presentation.

Section IV: Other Items of Interest

1. Legislation Administered by the National Parole Board

The Minister has sole responsibility to Parliament for the following Acts:

• Corrections and Conditional Release Act
  • S.C. 1992, c.20, as amended by S.C. 1995, c.42, S.C.
  • 1997, c.17 and its Regulations
• Criminal Records Act
  • R.S. 1985, c.C-47

The Minister shares responsibility to Parliament for the following Acts:

• Criminal Code
  • R.S. 1985, c. C-46
• Prisons and Reformatories Act
  • R.S. 1985, c. P-20
• Letters Patent constituting the Office of Governor General of Canada (1947)
  • Canada Gazette, 1947, Part I, Vol. 81, p. 3104, reprinted in R.S. 1985, Appendix II, No. 31

2. Contacts

Office	Address
National Office	Director, Communications 410 Laurier Avenue West Ottawa, On                                                         Phone: (613) 954-6547 K1A 0R1                                                            Fax: (613) 957-3241
Atlantic Region	Regional Director 1045 Main Street Unit 101 Moncton, NB                                                      Phone: (506) 851-6345 K1A 0R1                                                            Fax: (506) 851-6926
Quebec Region	Regional Director 200 René-Lévesque Blvd. W. 10th floor, Suite 1001 – West Tower Montreal, Qc                                                      Phone: (514) 283-4584 K1A 0R1                                                            Fax: (514) 283-5484
Ontario Region	Regional Director 516 O’Connor Drive Kingston, ON                                                     Phone: (613) 634-3857 K1A 0R1                                                            Fax: (613) 634-3861
Prairies Region	Regional Director 101 – 22nd Street East 6th floor Saskatoon, SK                                                    Phone: (306) 975-4228 K1A 0R1                                                            Fax: (306) 975-5892 or Scotia Place, Scotia 2 – Suite 401 10060 Jasper Avenue Edmonton, AB                                                   Phone: (780) 495-3404 K1A 0R1                                                            Fax: (780) 870-2498
Pacific Region	Regional Director 32315 South Fraser Way Room 305 Abbotsford, BC                                                  Phone: (604) 870-2468 K1A 0R1                                                            Fax: (604) 870-2498

The National Parole Board's internet site address is: http://www.npb-cnlc.gc.ca/

3. Horizontal Initiatives

1. Name of Horizontal Initiative: Firearms
2. Name of Lead Department(s): Canada Firearms Center
3. Start Date of the Horizontal Initiative: 1995
4. End Date of the Horizontal Initiative Ongoing
5. NPB Funding: $858,000 per year.
6. Description of the Horizontal Initiative: Reduce firearms tragedies, including accidental injuries or death and the criminal use of firearms.
7. Shared Outcome(s): Safer communities
8. Governance Structure(s): Roles/responsibilities set out in legislation (e.g. Firearms Act.)
9. Federal Partners Involved in each Program
   • Canada Firearms Centre, RCMP, Public safety and Emergency Preparedness Canada, Justice Department for International Trade, Canada Border Services, Correctional Service Canada, Office of the Privacy Commissioner, Office of Information Commissioner, Treasury Board Secretariat.
10. Names of Programs
    • (a) Quality conditional release decisions.
11. Total Allocation
    • N/A
12. Forecasted Spending for 2007-08
    • $ 858,000
13. Actual Spending in 2007-08
    • $ 858,000
14. Planned Results for 2007-08
    • Planned spending in 2007/08 was intended to provide NPB with the capacity to manage workloads related to changes in the Criminal Code which support the Firearms initiative. These changes provided longer sentences for firearms convictions and created the need for more conditional release reviews.
15. Achieved Results, 2007-08
    • In 2007/08, NPB completed over 1400 reviews for offenders with firearms convictions.
      Since 1999/00, the Board has completed over 15,000 reviews involving offenders with firearms convictions.