Quarterly Financial Report for the Quarter ended December 31, 2019
Statement of Authorities (unaudited)
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 December 31, 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 December 31, 2018 | Year to date used at quarter-end | |
Vote 1 - Operating expenditures | $6,562,095 | $1,393,660 | $3,850,671 | $6,547,882 | $1,626,984 | $3,996,662 |
Budgetary statutory authority - Contributions to employee benefit plans | 620,694 | 155,174 | 465,521 | 611,361 | 152,840 | 458,521 |
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets | - | - | - | 214 | - | - |
Total authorities | $7,182,789 | $1,548,834 | $4,316,192 | $7,159,457 | $1,779,824 | $4,455,183 |
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2019–2020 | Fiscal year 2018–2019 | |||||
---|---|---|---|---|---|---|
Expenditures | Planned expenditures for the year ending March 31, 2020 | Expended during the quarter ended December 31, 2019 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2019 | Expended during the quarter ended December 31, 2018 | Year to date used at quarter-end |
Personnel | $4,867,626 | $1,307,300 | $3,651,107 | $4,723,274 | $1,259,859 | $3,508,269 |
Transportation and communications | 66,300 | 7,208 | 20,943 | 107,750 | 8,172 | 24,250 |
Information | 58,400 | 21,691 | 21,691 | 63,100 | 508 | 902 |
Professional and special services | 1,402,154 | 89,158 | 228,215 | 1,250,719 | 173,234 | 412,124 |
Rentals | 550,000 | 112,670 | 370,629 | 720,000 | 328,558 | 362,742 |
Repair and maintenance | 14,400 | - | 685 | 26,100 | 1,531 | 2,430 |
Utilities, materials and supplies | 13,900 | 7,014 | 8,878 | 25,700 | 6,922 | 29,151 |
Acquisition of land, buildings and works | - | 3,200 | 3,200 | - | - | 109,942 |
Acquisition of machinery and equipment | 200,000 | 8,613 | 10,641 | 237,814 | 1,667 | 5,544 |
Other subsidies and payments | 10,009 | - 8,020 | 203 | 5,000 | -627 | -171 |
Total net budgetary expenditures | $7,182,789 | $1,548,834 | $4,316,192 | $7,159,457 | $1,779,824 | $4,455,183 |
Statement outlining results, risks and significant changes in operations, personnel and program for the quarter ended December 31, 2019
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 December 31, 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
In 2018-2019 and 2019-2020, the Committee’s total authorities included the Main Estimates, the Operating Budget Carry Forward from the previous year and compensation allocations for collective agreements.
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 $23,332.
The Statement of Authorities shows that 60% of authorities available for use were used as of December 31, 2019, compared to 62% during the same period of the preceding fiscal year.
Statement of Departmental Budgetary Expenditures by Standard Object
The quarterly and year-to-date expenditures for the quarter ended December 31, 2019 are $1.548 million and $4.316 million respectively, which represents a quarterly decrease of $0.231 million and a cumulative decrease of $0.139 million compared to the same period in the previous year. This is mainly due to lower spending in the professional and rentals services category. However, these decreases are slightly offset by an increase in the personnel and information expense categories. The significant elements that contributed to these changes are:
- a decrease in the quarterly and year-to-date professional services expenditures due to the completion of the project to implement simplified and green processes;
- an increase in the quarterly and year-to-date personnel expenditures due to an increase in the number of employees in place and the payment of retroactive salaries;
- an increase in quarterly and cumulative information expenses due to the hiring of a communications consultant to improve our information products and tools.
With respect to the quarterly rentals expenses, the decrease is due to the period in which our lease payments were settled. Compared to last year, we do not expect a significant variance in the total year-to-date expenses.
3. Risks and Uncertainties
Following the extraordinary operational challenges faced in 2018-2019, the Committee is still dealing with a significant volume of grievance files.
Throughout 2018-2019, the Committee welcomed a new complement of Governor in Council (GIC) appointed Committee Members who needed to be trained and integrated into the Committee's operations. The Committee also had to address the loss of several senior grievance officers and other key staff within the Registry. These challenges resulted in a considerable delay in the review of all grievance files and subsequent findings and recommendations (F&R) reports.
Additionally, while the Canadian Armed Force implemented an upgraded case management system, it was not able to send grievance referrals to the Committee for a period of approximately four months. In the third quarter of 2018 the Committee received 29 grievance referrals compared to the 119 it received in the fourth quarter. The Committee's case management works best when grievance files referred to the Committee are staggered throughout the fiscal year.
The combination of the Committee's temporarily diminished capacity to review files as well as the unexpected surge of grievance referrals in Q4 created a significant challenge for the Committee in terms of addressing, in a timely fashion, the grievance files. Note should be taken that the Committee established a service standard of four months to complete a grievance review and issue an F&R, starting from the date the Committee receives the grievance.
Due to the residual effects of circumstances and factors beyond its control, in 2019-2020 the Committee continues to face the risk of not being able to provide findings and recommendations within its self-imposed four-month service standard. This is despite the fact that, at present, the Committee has a full complement of fully trained Committee Members.
To mitigate this risk, the Committee is actively reviewing and making improvements to its operational processes and structure while monitoring the grievance caseload, proactively adjusting tactics and optimizing the way grievance files are handled. Additionally, the Committee has decided to strike a special team in 2020. These measures are part of the effort to help issue F&Rs in a timely manner.
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
February 28, 2020
Original signed by
_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Ottawa, Canada
February 28, 2020
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