Quarterly Financial Report for the Quarter ended December 31, 2018
Statement of Authorities (unaudited)
Fiscal year 2018–2019 | Fiscal year 2017–2018 | |||||
---|---|---|---|---|---|---|
Total available for use for the year ending March 31, 2019Table note * | Used during the quarter ended December 31, 2018 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2018Table note * | Used during the quarter ended December 31, 2017 | Year to date used at quarter-end | |
Vote 1 - Operating expenditures | 6,547,882 | 1,626,984 | 3,996,662 | 7,183,457 | 1,510,296 | 4,026,661 |
Budgetary statutory authority - Contributions to employee benefit plans | 611,361 | 152,840 | 458,521 | 562,442 | 140,611 | 421,832 |
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets | 214 | - | - | 588 | - | - |
Total authorities | 7,159,457 | 1,779,824 | 4,455,183 | 7,746,487 | 1,650,907 | 4,448,493 |
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2018–2019 | Fiscal year 2017–2018 | |||||
---|---|---|---|---|---|---|
Expenditures | Planned expenditures for the year ending March 31, 2019 | Expended during the quarter ended December 31, 2018 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2018 | Expended during the quarter ended December 31, 2017 | Year to date used at quarter-end |
Personnel | 4,723,274 | 1,259,859 | 3,508,269 | 4,929,871 | 1,075,873 | 3,328,014 |
Transportation and communications | 107,750 | 8,172 | 24,250 | 68,200 | 11,004 | 25,620 |
Information | 63,100 | 508 | 902 | 28,800 | 1,448 | 4,058 |
Professional and special services | 1,250,719 | 173,234 | 412,124 | 1,162,428 | 152,381 | 317,839 |
Rentals | 720,000 | 328,558 | 362,742 | 710,000 | 151,221 | 495,671 |
Repair and maintenance | 26,100 | 1,531 | 2,430 | 5,200 | 5,043 | 6,354 |
Utilities, materials and supplies | 25,700 | 6,922 | 29,151 | 10,600 | 962 | 3,002 |
Acquisition of land, buildings and works | - | - | 109,942 | 594,400 | - | - |
Acquisition of machinery and equipment | 237,814 | 1,667 | 5,544 | 231,988 | 252,975 | 266,452 |
Other subsidies and payments | 5,000 | (627) | (171) | 5,000 | - | 1,483 |
Total net budgetary expenditures | 7,159,457 | 1,779,824 | 4,455,183 | 7,746,487 | 1,650,907 | 4,448,493 |
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 December 31, 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, the Operating Budget Carry Forward from the previous year and Compensation Allocations. In 2017-2018, the total authorities also included the Supplementary Estimates (B).
The total authorities available for use by the Committee have decreased by $587,030 compared to last fiscal year. This is mainly due to the Supplementary Estimates (B) granted by Parliament in the third quarter of 2017-2018 for the Committee's Space Optimization Project (retrofit).
The Statement of Authorities shows that 62% of authorities available for use were expended as of December 31, 2018, compared to 57% during the same period of the preceding fiscal year. This higher percentage is explained by the fact that expenses related to the retrofit project were processed in the last quarter of fiscal year 2017-2018.
Departmental budgetary expenditures by Standard Object
During the third quarter of 2018-2019, expenditures have increased by $128,917 compared to the third quarter of the previous fiscal year. This is mainly due to an increase in salaries, since all vacant positions at the executive level have been filled. It is also attributable to the Committee’s rent, as invoices for the first nine months of the building lease were all processed in the third quarter in 2018-2019. This increase is partly offset by a decrease in the acquisition of machinery and equipment related to purchases of information technology equipment in 2017-2018, in support of the retrofit project and the Committee's asset management lifecycle.
Although the total year-to-date expenditures since the beginning of the fiscal year are similar to the total for the same period last year, there are significant variances by standard object. In addition to the changes explained above, the year-to-date expenditures for acquisition of land, buildings and works have increased, since invoices for the retrofit project were all processed in the fourth quarter of 2017-2018. However, a decrease of more than $15,000 in our monthly rent as a result of the retrofit project reduced the year-to-date expenses for rentals.
3. Risks and Uncertainties
Delay in grievance review
The Committee currently faces delays in completing its review of referred grievances. This poses a risk to its statutory obligation to “act expeditiously,” as stated in subsection 29.2(2) of the National Defence Act. To mitigate this risk, the Committee will implement some temporary solutions to 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 timing of a new version of WebCIMS, the Committee’s case management system. The transition to this new technology has the potential to affect the Committee’s effectiveness in the days following the release, leading to possible, temporary delays. To mitigate this risk, the Committee will ensure adequate training and timely technical support for employees.
Transformation of internal services and processes
The transition related to various initiatives, some internal to the Committee, others driven by central agencies, has the potential to interrupt day-to-day business and prevent the Committee from effectively delivering on its mandate. While the Committee’s internal services continue to transform, there is a risk that implementing new initiatives will create delays in routine activities, particularly given the small number of Committee employees. To mitigate this risk, internal services will monitor its workload and allocate resources to priority areas as necessary.
4. Significant changes in relation to operations, personnel and programs
There have been no significant changes in relation to operations, personnel and programs during the current quarter.
Approved by:
Original signed by
_________________________________________
Christine Guérette, CPA, CGA
Chairperson and Chief Executive Officer
Ottawa, Canada
January 31, 2019
Original signed by
_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Ottawa, Canada
January 31, 2019
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