Quarterly Financial Report for the Quarter ended June 30, 2019

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in dollars)
Fiscal year 2019–2020 Fiscal year 2018–2019
Total available for use for the year ending March 31, 2020Table note * Used during the quarter ended June 30, 2019 Year to date used at quarter-end Total available for use for the year ending March 31, 2019Table note * Used during the quarter ended June 30, 2018 Year to date used at quarter-end
Vote 1 - Operating expenditures 6,181,230 1,210,797 1,210,797 6,150,062 1,036,291 1,036,291
Budgetary statutory authority - Contributions to employee benefit plans 620,694 155,174 155,174 611,361 152,840 152,840
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets - - - 214 - -
Total authorities 6,801,924 1,365,971 1,365,971 6,761,637 1,189,131 1,189,131

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in dollars)
Fiscal year 2019–2020 Fiscal year 2018–2019
Expenditures Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended June 30, 2019 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended June 30, 2018 Year to date used at quarter-end
Personnel 4,677,515 1,195,766 1,195,766 4,633,473 1,055,439 1,055,439
Transportation and communications 66,300 7,157 7,157 107,750 5,315 5,315
Information 58,400 - - 63,100 197 197
Professional and special services 1,211,400 56,126 56,126 942,700 101,845 101,845
Rentals 550,000 94,850 94,850 720,000 20,314 20,314
Repair and maintenance 14,400 - - 26,100 - -
Utilities, materials and supplies 13,900 1,232 1,232 25,700 743 743
Acquisition of machinery and equipment 200,000 1,980 1,980 237,814 3,327 3,327
Other subsidies and payments 10,009 8,860 8,860 5,000 1,951 1,951
Total net budgetary expenditures 6,801,924 1,365,971 1,365,971 6,761,637 1,189,131 1,189,131

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 2019-2020 Main Estimates and the 2018-2019 Quarterly Financial Report for the quarter ended June 30, 2018. It has not been subject to an external audit or review.

A summary description of the Military Grievances External Review Committee (Committee) core responsibilities can be found in Part II of the Main Estimates. https://www.canada.ca/content/dam/tbs-sct/documents/planned-government-spending/main-estimates/2019-20/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 2019-2020 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 $40,287.

The Statement of Authorities shows that 20% of authorities available for use were expended as of June 30, 2019, compared to 18% during the same period of the preceding fiscal year.

Departmental budgetary expenditures by Standard Object

During the first quarter of 2019-2020, expenses increased by $176,840 compared to the first quarter of the previous year. This is mainly due to an increase in salaries, as all vacant positions at the executive level are now staffed.

For all other expenditures by standard object, overall expenditures will be similar to those of the previous fiscal year. The variances are mainly due to the period in which the payments were settled.

3. Risks and Uncertainties

In 2019-2020, the Committee faces risks to the timely delivery of its mandate – namely related to difficulties in reviewing all grievances referred to it and in managing its human resources.

With respect to reviewing his grievances, there is a risk that the Committee will not be able to deliver on its mandate to provide its findings and recommendations as expeditiously as the circumstances and the considerations of fairness permit. This risk is two-fold; the first being the Committee’s increased inventory of active grievance files due to the challenges faced in 2018-2019, the second being the fact that the Committee does not control the number of grievances referred to it as a demand-driven organization. In addition, this year, the Committee is also facing additional challenges that will make it even more difficult to anticipate the workload in light of new initiatives within the Canadian Armed Forces (CAF), including the recent introduction of the integrated complaint and conflict management (ICCM) initiative. The ICCM now integrates previously separate CAF conflict resolution systems with the aim of bringing closure, early and effectively to all complaints. To mitigate this risk, the Committee will actively monitor the grievance review caseload, adjust in real time, and optimize the way grievance files are handled.

With respect to managing its human resources, the Committee faces a risk of shortages of employees and skillsets that could prevent it from fulfilling its mandate. To mitigate this risk, the Committee will closely monitor the achievement of activities related to its strategic objective of attracting and retaining a diverse, inclusive and highly qualified workforce, which are to update its action plan on workplace well-being, and to develop a competency profile for all its positions, including performance measures.

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
July 17, 2019

Original signed by

_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Ottawa, Canada
July 17, 2019

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