Quarterly Financial Report for the Quarter ended September 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 September 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.

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

In 2017-2018 and 2018-2019, the Committee’s total authorities included the Main Estimates and the Operating Budget Carry Forward from the previous year.

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 $39,776.

The Statement of Authorities shows that 38% of authorities available for use were expended as of September 30, 2018, compared to 40% during the same period of the preceding fiscal year.

Departmental budgetary expenditures by Standard Object

During the second quarter of 2018-2019, expenditures have decreased by $127,347 compared to the second quarter of the previous fiscal year. This is mainly due to a decrease in rent, as invoices for the building lease were processed at different times. This decrease is partly offset by an increase in the acquisition of land, buildings and works related to the installation of a new air conditioner for the server room as part of the office retrofit project, and an increase in professional and special services for consultants working on technology innovation initiatives.

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

3. Risks and Uncertainties

Backlog in grievances

Given the backlog of cases at the Committee and the risk the backlog poses to the Committee’s statutory obligation to “act expeditiously,” as stated in subsection 29.2(2) of the National Defence Act, it is imperative that the Committee find a way to temporarily increase its productivity while maintaining the highest standard in the quality of its independent review.

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

A second risk relates to the implementation of a new version of WebCIMS, the Committee’s case management system. The transition to this new technology has the potential to affect how the Committee’s inventory of grievances is managed, leading to additional delays. There is a risk that as employees adapt to the new version of WebCIMS, the overall effectiveness of the military grievances review process may also be affected.

Transformation of internal services and processes

While the Committee’s internal services continue to transform, 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. In addition, the transition associated with Committee and government-wide initiatives has the potential to interrupt day-to-day business and prevent the Committee from effectively delivering on its mandate.

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

All vacant positions at the executive level have been filled. The Committee’s executive cadre is now fully staffed.

Approved by:

Original signed by

_________________________________________
Christine Guérette, CPA, CGA
Chairperson and Chief Executive Officer
Ottawa, Canada
November 19, 2018

Original signed by

_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Ottawa, Canada
November 19, 2018