Quarterly Financial Report for the Quarter ended June 30, 2021

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in dollars)

	Fiscal year 2021–2022			Fiscal year 2020–2021
	Total available for use for the year ending March 31, 2022*	Used during the quarter ended June 30, 2021	Year to date used at quarter-end	Total available for use for the year ending March 31, 2021*	Used during the quarter ended June 30, 2020	Year to date used at quarter-end
Vote 1 - Operating expenditures	6,358,442	1,472,839	1,472,839	4,702,578	1,270,186	1,270,186
Budgetary statutory authority - Contributions to employee benefit plans	626,642	156,661	156,661	460,125	153,375	153,375
Total authorities	6,985,084	1,629,500	1,629,500	5,162,703	1,423,561	1,423,561

* Includes only Authorities available for use and granted by Parliament at quarter-end

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Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in dollars)

	Fiscal year 2021–2022			Fiscal year 2020–2021
Expenditures	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended June 30, 2021	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended June 30, 2020	Year to date used at quarter-end
Personnel	4,860,707	1,431,700	1,431,700	3,569,128	1,350,123	1,350,123
Transportation and communications	55,389	2,064	2,064	67,050	3,409	3,409
Information	54,734	-	-	43,950	-	-
Professional and special services	785,657	52,176	52,176	685,175	16,592	16,592
Rentals	894,068	121,983	121,983	552,750	28,491	28,491
Repair and maintenance	7,627	-	-	10,800	-	-
Utilities, materials and supplies	35,144	215	215	26,625	15	15
Acquisition of land, buildings and works	54,746	-	-	37,500	-	-
Acquisition of machinery and equipment	235,409	20,460	20,460	150,975	24,914	24,914
Other subsidies and payments	1,603	902	902	18,750	17	17
Total net budgetary expenditures	6,985,084	1,629,500	1,629,500	5,162,703	1,423,561	1,423,561

Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

This quarterly financial report was prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. It should be read in conjunction with the 2021-2022 Main Estimates and the 2020-2021 Quarterly Financial Report for the quarter ended June 30, 2020. 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.

Basis of Presentation

This quarterly financial report was 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 2021-2022 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 is an increase of $1,822 million in the authorities available for use in fiscal year 2021-2022. This variance is due to the timing in which appropriations bills receiving royal assent. Unlike the current fiscal year, in 2020-2021, the Committee received its full fiscal year supply in the third quarter of the year.

Statement of Departmental Budgetary Expenditures by Standard Object

During the first quarter of 2021-2022, expenses increased by $205,939 compared to the first quarter of the previous year. This variance is primarily due to an increase in personnel expenses as a result of the new collective agreement for the Program and Administrative Services (PA) group and an increase in professional and special services for a strategic investment in a cloud-based computing solution. The quarterly increase in rent is attributable to the period in which lease payments were settled.

3. Risks and Uncertainties

The Committee has accumulated a significant backlog of grievance files due to unexpected volumes of referrals over the last few years and staff turnover. It goes without saying that this backlog impacts the Committee's ability to meet its service standards and its objective of issuing findings and recommendations expeditiously. The priority is to eliminate that backlog. This translates into issuing over 300 Findings and Recommendations (F&R) reports this fiscal year and the organization can only achieve this:

• by actively following up with the Canadian Armed Forces to ensure the Committee can accurately predict the number of grievance referrals it can expect to receive; and
• by ensuring that the Committee's grievance review teams remain at full capacity, working efficiently.

The Operations Branch has experienced significant turnover of grievance officers over the past three years. This is a concern given the challenge for micro-organizations to provide typical career development and advancement for employees. To mitigate the risk of not maintaining a diverse, skilled and productive workforce, the Committee will:

• optimize its grievance process, which in turn ensures that the current human resources structure effectively supports the grievance review process (taking into account the new hybrid model workplace environment)
• innovate by embracing best practices and trends in recruitment
• further enhance and secure the workplace for employees, regardless of where they choose to work
• establish a continuously updated pool of qualified candidates
• hire candidates from across Canada

It should be noted that the terms of three Governor-in-Council (GIC) appointees will expire over the next planning period. This will have a significant impact on the Committee's ability to prepare F&R reports in a timely manner. Given that the staffing process for GIC appointments requires preparation and planning, the President and CEO will:

• begin early in the year to work closely with the various stakeholders involved in staffing a Member position; and
• propose staggered GIC appointment dates to ensure continuity of experienced members.

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

The Committee does not anticipate a return to the workplace until April 2022. An internal Workplace Modernization Working Group has been established to map out a safe, secure, modern, hybrid-model workplace for the long term; one that is aligned to the GC Workplace Initiative. The working group is regularly surveying employees to get a clear, definitive sense on how to design the new and improved work environment and to better understand the needs and wants of employees. The Committee's new work environment will empower employees to choose where and how to work, to choose where and how to be most productive, and will provide flexibility and a greater variety of collaborative spaces.

Approved by:

Original signed by

_________________________________________
Christine Guérette, CPA, CGA
Chairperson and Chief Executive Officer
Notre-Dame-du-Laus, Canada
August 20, 2021

Original signed by

_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Gatineau, Canada
August 23, 2021