Quarterly Financial Report for the Quarter ended September 30, 2016
Statement of Authorities (unaudited)
| Fiscal year 2016–2017 | Fiscal year 2015–2016 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2017Table note * | Used during the quarter ended September 30, 2016 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2016Table note * | Used during the quarter ended September 30, 2015 | Year to date used at quarter-end | |
| Vote 15 - Program expenditures | 6,448,261 | 1,320,430 | 2,427,188 | 6,450,753 | 1,441,753 | 2,563,494 |
| Contributions to employee benefit plans | 612,859 | 153,215 | 306,430 | 598,307 | 149,577 | 299,154 |
| Total authorities | 7,061,120 | 1,473,645 | 2,733,618 | 7,049,060 | 1,591,330 | 2,862,648 |
Departmental budgetary expenditures by Standard Object (unaudited)
| Fiscal year 2016–2017 | Fiscal year 2015–2016 | |||||
|---|---|---|---|---|---|---|
| Expenditures | Planned expenditures for the year ending March 31, 2017 | Expended during the quarter ended September 30, 2016 | Year to date used at quarter end | Planned expenditures for the year ending March 31, 2016 | Expended during the quarter ended September 30, 2015 | Year to date used at quarter end |
| Personnel | 4,869,959 | 1,061,239 | 2,224,985 | 4,831,137 | 1,162,205 | 2,328,195 |
| Transportation and communications | 85,090 | 9,809 | 17,211 | 93,790 | 9,109 | 25,969 |
| Information | 60,500 | 1,535 | 2,503 | 62,655 | 1,116 | 3,203 |
| Professional and special services | 1,334,471 | 128,701 | 203,008 | 1,297,412 | 137,853 | 207,194 |
| Rentals | 667,900 | 259,256 | 270,407 | 658,966 | 263,493 | 269,339 |
| Repair and maintenance | 4,000 | 8,785 | 9,078 | 15,400 | 1,248 | 1,248 |
| Utilities, materials and supplies | 14,600 | 905 | 2,187 | 18,600 | 3,436 | 7,844 |
| Construction or acquisition of machinery and equipment | 19,600 | 843 | 1,513 | 69,100 | 8,355 | 14,529 |
| All other expenditures | 5,000 | 2,572 | 2,726 | 2,000 | 4,515 | 5,127 |
| Total net budgetary expenditures | 7,061,120 | 1,473,645 | 2,733,618 | 7,049,660 | 1,591,330 | 2,862,648 |
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 and the 2015-2016 Quarterly Financial Report for the quarter ended September 30, 2015. 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 2016-2017 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.
2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results
Statement of Authorities
As reflected in the Committee’s Statement of Authorities, as of September 30, 2016, the total budget authorities have increased by $12,060 (0.2%) from $7,049,060 (2015-2016 fiscal year) to $7,061,120 (2016-2017 fiscal year).
The Statement of Authorities shows that 38.71% of authorities available for use were expended as of September 30, 2016.
Statement of Departmental Budgetary Expenditures by Standard Object
During the second quarter of 2016-2017, expenditures decreased by 7.4% or $117,685 compared to the previous year. This is mainly due to a reduction of $100,966 in Personnel spending, as the Committee did not have its full membership.
3. Risks and Uncertainties
While the Committee is able to make adjustments to its staff and business processes to maintain timeliness, one thing remains out of its control, which is having a sufficient number of Committee members to review grievances regardless of workload fluctuations and diversification.
Under the current legislative theme, grievances referred to the Committee are heard by members appointed by the Governor in Council (GIC). As such, the significance of the statutory requirement under subsection 29.16(1) of the National Defence Act (NDA) for the GIC to appoint the members required for the Committee to perform its functions cannot be overstated. In fact, the Committee’s ability to deliver on its mandate in a timely manner depends on it.
Since February 2016, the Committee is short of the two Vice-Chairpersons that subsection 29.16(1) of the NDA establishes as the minimum necessary to carry out its functions. This, combined with the upcoming expiration of the current Chairperson’s and Chief Executive Officer’s mandate, has placed the Committee in an extremely precarious situation as it pertains to governance and its statutory obligation to deal expeditiously with all members before 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:
_________________________________________
Bruno Hamel, Chairperson & Chief Executive Officer
Ottawa, Canada
November 25, 2016
_________________________________________
Christine Guérette, CPA, CGA, Chief Financial Officer
Ottawa, Canada
November 25, 2016
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