Quarterly Financial Report for the Quarter ended June 30, 2018

Statement of Authorities (unaudited)

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 in the form and manner prescribed by Treasury Board. This quarterly report should be read in conjunction with the 2018-2019 Main Estimates and the 2017-2018 Quarterly Financial Report for the quarter ended June 30, 2017. It has not been subject to an external audit or review.

A summary description of the Military Grievances External Review Committee (Committee) program activities can be found in Part II of the Main Estimates.
https://www.canada.ca/content/dam/tbs-sct/documents/planned-government-spending/main-estimates/2018-19/me-bpd-eng.pdf

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 2018-2019 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 money 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 results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results

Statement of Authorities

There was no significant change in the total authorities available for use by the Committee compared to previous year, with only a slight increase of $38,811 (0.6%).

The Statement of Authorities shows that 17.6% of authorities available for use were expended as of June 30, 2018. This was the same percentage at the same time in the preceding fiscal year.

Departmental budgetary expenditures by Standard Object

During the first quarter of 2018-2019, total expenditures remained stable compared to the previous fiscal year, with a slight increase of $5,120 (0.4%).

However, as highlighted under planned expenditures, the Committee plans to acquire information technology equipment in support of its technology infrastructure renewal strategy. For that reason, the Committee reallocated part of its professional and special services funds to ensure proper funding for this strategy.

3. Risks and Uncertainties

Backlog in grievances

Due to vacancies in the Committee’s membership over the last two years, the Committee has now a backlog of cases. Even though a full complement of members are now in place, there is a risk that, until the backlog is cleared, the Committee will not be able to complete the review of these cases within the productivity norms it has established to meet its statutory obligation to “act expeditiously,” as stated in subsection 29.20(2) of the National Defence Act.

In order to reduce the backlog, while the volume of cases referred to the Committee for review remains high, the Committee needs to rebuild its capacity. There is a risk that reducing the backlog and completing the review of new cases will be challenging in matter of timeliness, as the Committee hires new grievance officers and trains them to bring them to an operational level, as quickly as possible.

Implementation of a new version of the Committee’s case management system

Another risk relates to the implementation of WebCIMS, the Committee’s case management system. The transition to a new version of this system may affect the management of the inventory of grievances at the Committee, leading to further delays. There is a risk that the overall effectiveness of the review process, including the ability to search for precedents, could also be affected, until the implementation of the new version is completed and employees are trained to use it efficiently.

Transformation of internal services and processes

The Committee is working to create a work environment that is conducive to technological innovation. Several initiatives are underway, such as investing in more modern and wireless media, as well as processes using e-signature. However, the Committee will continue implementing more tools to prepare to, and make the most of, the advances identified in the GoC’s new digital policy when it comes into effect. To support and adapt to this new environment, the Committee will modify its information management system to reduce redundancy, increase information sharing and, ultimately, improve the effectiveness of internal services and processes.

During this transformation period, there is a risk that routine activities will be in conflict with the implementation of new initiatives, particularly given the small number of Committee employees. There is as well that the transition associated with both the Committee’s and the government-wide initiatives could interrupt the day-to-day business and ultimately prevent the Committee from effectively delivering on its mandate.

4. Significant changes in relation to operations, personnel and programs

A full complement of Governor in Council appointees (Chairperson, Vice-Chairpersons and members) have now joined the Committee. Most vacant positions on the executive and managers levels have also been filled.

Approved by:

Original signed by

_________________________________________
Christine Guérette, CPA, CGA
Chairperson and Chief Executive Officer
Ottawa, Canada
August 14, 2018

Original signed by

_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Ottawa, Canada
August 14, 2018