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

Statement of Authorities (unaudited)

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

Departmental budgetary expenditures by Standard Object (unaudited)

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, a decrease of $10.7K from previous year.

The Statement of Authorities shows that 38% of authorities available for use were expended as of September 30, 2012.

Statement of Departmental Budgetary Expenditures by Standard Object

During the second quarter, the expenditures have decreased by 16% or $271K compared to 2011-12.

The variance in year-to-date expenditures as of September 30, 2012 shows a decrease of 11% or $331K compared to 2011-12. This decrease is primarily due to:

• ($282K) in personnel expenditures (severance pay);
• $8K in transportation and communication;
• $62K in professional and special services (Financial and Informatics consultants);
• ($48K) in rentals (timing of rent payment for September);
• ($69K) 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.

5. Approval by Senior Officials

Approval by Senior Officials is provided, as required by the Policy on Financial Resource Management, Information and Reporting as follows:

Approved by:

Bruno Hamel, Chairperson
Ottawa, Ontario
November 1, 2012

Anne Sinclair, Chief Financial Officer
Ottawa, Ontario
November 1, 2012