Quarterly Financial Report for the Quarter ended December 31, 2021

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)

Statement outlining results, risks and significant changes in operations, personnel and program for the quarter ended December 31, 2021

1. Introduction

This quarterly financial report was prepared 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 December 31, 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 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

In 2020-2021 and 2021-2022, the Committee's total authorities included the Operating Budget Carry-Forward from the previous year.

As reflected in the Committee's Statement of Authorities, as of December 31, 2021, the total budget authorities have increased by $148,571 from previous year. This increase is mainly due to amounts received from the Treasury Board Secretariat to fund new collective agreements.

The Statement of Authorities also shows that 69% of authorities available for use were used as of December 31, 2021, compared to 67% during the same period of the preceding fiscal year.

Statement of Departmental Budgetary Expenditures by Standard Object

During the third quarter of 2021-2022, expenses increased by $69,341 compared to the third quarter of the previous year, while Year-to-Date (YTD) expenses increased by $268,281. Both increases are 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 due to the timing of salary recoveries from other government departments.

3. Risks and Uncertainties

In 2021, the Committee saw a sharp increase in the number of grievance referrals received (322) from the Canadian Armed Forces (CAF) and yet we were able to issue 341 Findings and Recommendations (F&R) reports, which was only possible through the implementation of aggressive and unsustainable strategies. The Committee's funding has remained unchanged since its inception in 2000 while the demand for our services continues to grow exponentially year after year. There is a risk that without additional funding or significant reallocation of funds from other areas, the Committee will not be able to keep up with the continued increase in grievance referrals from the CAF. To mitigate the current risks, the Committee will focus its efforts on two priorities.

Firstly, we must keep in mind that the terms of three Governor-in-Council (GIC) appointees will expire over the next planning period. This could have a significant impact on the Committee's ability to issue F&R reports in a timely manner, either if the renewals are not made prior to the expiry of the current terms or if the current Members are not reappointed. Given that the staffing process for GIC appointments requires preparation and planning, the President and CEO began early in the year to work closely with the various stakeholders involved in staffing a Member position. She specifically proposed staggering GIC appointment dates to ensure continuity of experienced Members. Secondly, it is essential we ensure staffing within Operations stabilizes at optimal levels. We must focus on attraction and retention, which remain a concern, especially for a micro-organization that is neither widely known across government nor can offer extensive professional development. We will continue to offer flexible work arrangements to our employees and make their well-being a priority. We will also implement modern staffing processes as well as hire from across Canada.

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

The Committee does not anticipate a return to the workplace until the end of the pandemic. An internal working group was established to implement a new safe, secure, modern and hybrid workplace for the long term that is consistent with the Government of Canada Workplace Initiative. The Committee's new work environment will allow employees to choose where and how to work, choose where and how to be most productive, and 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
February 3, 2022

Original signed by

_________________________________________
Jean-François Poirier, CPA, CGA
Chief Financial Officer
Val-des-Monts, Canada
February 7, 2022