Quarterly Financial Report for the Quarter ended June 30, 2016 (2016-2017 Q1): 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

The quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act and is consistent with the Treasury Board Accounting Standard 1.3- Departmental and Agency Quarterly Financial Report. This quarterly report should be read in conjunction with the Main Estimates. It has not been subject to an external audit or review.

A summary description of the Military Grievances External Review Committee (the Committee) 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 Committee’s spending authorities granted by Parliament and those used by the Committee, consistent with the Main Estimates for the 2016–17 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 Committee uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

In 2016–17, the changes to departmental authorities were reflected in the 2016–17 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 by the Committee have not undergone a significant change from the previous year, as the increase was only $12,135.

The Statement of Authorities shows that 18.66% of authorities available for use were expended as of June 30, 2016.

Statement of Departmental Budgetary Expenditures by Standard Object

During the first quarter of 2016–17, expenditures have decreased by 0.89% or $11,345 compared to the previous year. This is mainly due to $9,458 reduction in Transportation and Communication, as there were fewer Committee members travelling to attend meetings and conferences.

3. Risks and Uncertainties

The Committee 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 Committee 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.

While the Committee is able to make adjustments to its staff and business processes to maintain timeliness regardless of workload changes, one thing remains out of our control, which is having a sufficient number of Committee members to deal with workload volume increase and diversification. Committee members, who are appointed by the Governor in Council, have a statutory obligation to review grievances and provide findings and recommendations (F&R) reports in an expeditious manner. Whatever adjustments the Committee does to its internal review process and staffing processes, if there are not enough members appointed to issue F&R reports, the grievance process' timeliness becomes at risk. As current members' mandates expired, or are about to expire, and our workload is expected to remain heavy, our ability to deliver on our mandate in a timely manner depends on it.

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:

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Bruno Hamel, Chairperson & Chief Executive Officer
Ottawa, Canada
July 22^nd, 2016

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Christine Guérette, CPA, CGA, Chief Financial Officer
Ottawa, Canada
July 22^nd, 2016