Quarterly Financial Report for the Quarter ended June 30, 2012: Statement of Authorities (unaudited)

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in dollars)
Fiscal year 2012–2013 Fiscal year 2011–2012
Total available for use for the year ending March 31, 2013* Used during the quarter ended June 30, 2012 Year to date used at quarter-end Total available for use for the year ending March 31, 2012 Used during the quarter ended June 30, 2011 Year to date used at quarter-end
Vote 15 - Net operating expenditures 6,062,076 1,102,631 1,102,631 6,059,621 1,171,840 1,171,840
Contributions to employee benefit plans 610,029 152,507 152,507 623,452 155,863 155,863
Total authorities 6,672,105 1,255,138 1,255,138 6,683,073 1,327,703 1,327,703

* Includes only Authorities available for use and granted by Parliament at quarter-end.

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)(in dollars)
Fiscal year 2012–2013 Fiscal year 2011–2012
Expenditures Planned expenditures for the year ending March 31, 2013 Expended during the quarter ended June 30, 2012 Year to date used at quarter end Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended June 30, 2011 Year to date used at quarter end
Personnel 3,966,149 955,441 955,441 4,087,073 1,004,881 1,004,881
Transportation and communications 195,150 23,344 23,344 200,000 28,041 28,041
Information 45,300 3,645 3,645 50,000 2,964 2,964
Professional and special services 1,683,260 154,090 154,090 1,455,000 98,039 98,039
Rentals 606,556 99,030 99,030 620,000 147,312 147,312
Repair and maintenance 27,400 2,088 2,088 30,000 1,370 1,370
Utilities, materials and supplies 25,790 4,583 4,583 35,000 7,264 7,264
Acquisition of machinery and equipment 122,500 12,917 12,917 206,000 37,832 37,832
Total net budgetary expenditures 6,672,105 1,255,138 1,255,138 6,683,073 1,327,703 1,327,703

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Program

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates, Supplementary Estimates as well as Canada’s Economic Action Plan 2012 (Budget 2012). It 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 Accounting Standard 1.3. It has not been subject to an external audit or review.

A summary description of the Canadian Forces Grievance Board (the Board) program activities can be found in Part II of the Main Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Board's spending authorities granted by Parliament and those used by the Board, consistent with the Main Estimates for the 2012–2013 fiscal year. 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 moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

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

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012–2013, frozen allotments will be established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.

2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

Statement of Authorities

The total authorities available for use for the Board have not undergone a significant change ($11K) from previous year.

Expenditures during the first quarter decreased by $72K compared to 2011-12. The Statement of Authorities shows that 18.8% of authorities available for use were expended as of June 30, 2012.

Statement of Departmental Budgetary Expenditures by Standard Object

Compared to 2011-12, the variance of spending at the end of the first quarter of 2012-13 shows an decrease of $72K or 5.47% which was primarily due to:

  • ($49K) in personnel expenditures (parental and sick leave without pay);
  • ($5K) in Transportation and communication;
  • ($48K) in rentals (timing of the June rent payment);
  • $56K for professional and special services (Financial and Informatics consultants), and
  • ($25K) in the acquisition of machinery and equipment.

3. Risks and Uncertainties

This Quarterly Financial Report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 29, 2012.

Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-11 levels for the fiscal years 2011-12 and 2012-13. Management believes that this budget freeze will not create a significant financial risk for the Board as long as there is no significant increase in grievance files referred.

The Board has no control over the number of grievances referred to it in any given year. Consequently, unanticipated fluctuations in the volume of cases referred may have an impact on both personnel and operating costs. To mitigate this risk the Board continues to improve financial forecasting by the ongoing monitoring of the workload planning assumptions and by obtaining the most up-to-date workload information possible.

4. Significant Changes to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during the current quarter.

Approved by:

[The original version was signed by Bruno Hamel]

Bruno Hamel, Chairperson
Ottawa, Ontario
July 10, 2012

[The original version was signed by Anne Sinclair]

Anne Sinclair, Chief Financial Officer
Ottawa, Ontario
July 10, 2012

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