Quarterly financial report for the quarter ended September 30, 2023

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 September 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

In fiscal year 2023-2024, there has been an increase of $81,516 in the authorities available for use. This increase can be primarily attributed to funding received for compensation adjustments for Executives (EX) and Governor in Council (GIC) members, retroactively covering the years 2018, 2019, 2020, and 2021.

The Statement of Authorities also reveals that, as of September 30, 2023, 42% of the authorities available for use have been utilized, which is a decrease from the 46% utilization rate during the same period in the preceding fiscal year.

In both fiscal years 2023-2024 and 2022-2023, the Committee's total authorities incorporated the carry-forward of the Operating Budget from the previous year.

Statement of Departmental Budgetary Expenditures by Standard Object

In the second quarter of 2023-2024, expenses decreased by $288,093 compared to the same period in the previous year, and Year-to-Date (YTD) expenses decreased by $272,031.

These variances are primarily attributed to a decrease in rental expenses, which can be attributed to the timing of lease payments.

3.     Risks and uncertainties

The Committee’s key corporate risks are identified and assessed through its strategic planning process on a quarterly basis, including an environmental scanning exercise and an update of its risk profile. As with any organization on a regular basis, the Committee continues to deal with diverse and challenging operating realities. The continued shortage of Governor-in-Council appointees and resources in Operations Branch is resulting in higher-than-normal workloads for some Operations staff, as well as an impact on the ability to complete findings and recommendations reports at estimated levels. Additionally, some employees within the organization are facing productivity barriers due to the implementation of new technologies. Keeping up with the quick pace of change in the digital environment while doing their jobs can be challenging.

Recruiting and retaining staff remain also 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. However, implementation of new technologies will be phased in manageable units over time so to give employees the opportunity to adapt and learn new processes. 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.