Quarterly financial report for the quarter ended June 30, 2023

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 2023-2024 Main Estimates and the 2022-2023 Quarterly Financial Report for the quarter ended June 30, 2022. 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 2023-2024 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 $70,570 in the authorities available for use in fiscal year 2023-2024.  This increase is directly attributed to funding received for compensation adjustments, which were implemented following recent updates to the agreements and terms and conditions of employment for Executives (EX) and Governor in Council (GIC) members.

The Statement of Authorities also shows that 22% of authorities available for use were used as of June 30, 2022 and 2023.

Statement of Departmental Budgetary Expenditures by Standard Object

During the first quarter of 2023-2024, expenses increased by $16,062 compared to the first quarter of the previous year. This variance is primarily due to an increase in rentals, attributable to increased cloud services monthly fees.

3.     Risks and uncertainties

The continued shortage of resources in Operations and ongoing staffing processes are causing some staff in Operations to experience higher than normal workloads. Additionally, some employees within the organization are facing productivity barriers due to the implementation of new technologies.

As of June 2023, the positions of Chairperson and Full-time Vice-chairperson remain vacant. While the expectation is that they will be appointed before end of the fiscal year, the Committee is aware that new leadership often brings significant change to the organization’s structure and processes.

Recruiting and retaining staff remain a constant challenge, especially in today's job market. The Committee is not immune to staff shortages and knows that it must be creative and innovative to attract and retain talent.

To mitigate these significant risks, the Committee has put in place a number of strategies. Among others, senior management and managers will ensure that every employee has a reasonable workload and will promote mental health and a good work-life balance. Also, the Operations program, through its regular process reviews, will incorporate and leverage a modern and digital environment in order to ensure that it maintains the most effective and efficient grievance review process. An investment will be made in improving employees' digital skills and in the professional development of its managers. Finally, the organizational structure, management committees and governance framework will be analyzed and adjusted as necessary to ensure the Committee has an effective accountability and decision-making structure.

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

With the positions of Chairperson and Full-time Vice-Chairperson vacant, the Committee expects operational changes when these high-level positions are filled.