Quarterly financial report for the quarter ended June 30, 2024

Statement of Authorities (unaudited) (in dollars)

	Fiscal year 2024-2025			Fiscal year 2023-2024
	Total available for use for the year ending March 31, 2025Footnote *	Used during the quarter ended June 30, 2024	Year to date used at quarter-end	Total available for use for the year ending March 31, 2024Footnote *	Used during the quarter ended June 30, 2023	Year to date used at quarter-end
Vote 1 - Operating expenditures	7,478,021	1,693,332	1,693,332	6,430,370	1,368,676	1,368,676
Budgetary statutory authority - Contributions to employee benefit plans	769,002	192,250	192,250	654,273	163,568	163,568
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets	-	-	-	319	-	-
Total authorities	8,247,023	1,885,582	1,885,582	7,084,962	1,532,244	1,532,244

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

	Fiscal year 2024-2025			Fiscal year 2023-2024
Expenditures	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended June 30, 2024	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended June 30, 2023	Year to date used at quarter-end
Personnel	6,341,478	1,760,847	1,760,847	4,958,698	1,426,041	1,426,041
Transportation and communications	20,690	10,536	10,536	18,200	5,813	5,813
Information	10,195	3,412	3,412	12,000	2,671	2,671
Professional and special services	1,302,505	70,795	70,795	1,353,420	41,454	41,454
Rentals	482,300	29,803	29,803	610,565	43,803	43,803
Repair and maintenance	32,465	5,765	5,765	17,890	6,204	6,204
Utilities, materials and supplies	10,090	489	489	11,260	92	92
Acquisition of land, buildings and works	-	-	-	-	-	-
Acquisition of machinery and equipment	47,300	3,326	3,326	102,929	75	75
Other subsidies and payments	-	609	609	-	6,091	6,091
Total net budgetary expenditures	8,247,023	1,885,582	1,885,582	7,084,962	1,532,244	1,532,244

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 2024-2025 Main Estimates and the 2023-2024 Quarterly Financial Report for the quarter ended June 30, 2023. 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 2024-2025 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 2024-2025, there has been an increase of $1,162,061 in the authorities available for use. This increase can be primarily attributed to a transfer received in the third quarter of fiscal year 2023-2024 from the Department of National Defence (DND). This transfer is necessary to enable the Committee to increase its capacity to produce Findings and Recommendations (F&R) reports expeditiously. It is also explained by funding received for in-year compensation adjustments required by various collective agreements and terms and conditions of employment.

The Statement of Authorities also reveals that, as of June 30, 2024, 23% of the authorities available for use have been utilized, which is similar to the 22% utilization rate during the same period in the preceding fiscal year.

Statement of Departmental Budgetary Expenditures by Standard Object

During the first quarter of 2024-2025, expenses increased by $353,338 compared to the first quarter of the previous year. This variance is primarily due to an increase in personnel expenses, following the staffing of vacant positions, including the Chairperson and Full-Time Vice-Chairperson, and updated compensation rates.

3. Risks and uncertainties

As with any organization, the Committee continues to deal with diverse and challenging operating realities. The first quarter of 2024-2025 was a significant transition period. The Committee welcomed a new Chairperson and Vice-Chairperson, bringing new leadership at the helm. Additionally, the unpredictability of the volume and rate at which grievances are referred creates uncertainties and a certain level of risk in relation to planned staffing. The Committee received a high number of grievance referrals in the first half of the year which, coupled the time and effort dedicated to staff, has led to higher than normal workloads. The Committee is focussing its efforts on staffing vacant positions but there remains a risk of delays and other impacts on projects.

The Committee is planning to mitigate these risks through workforce capacity management within the Operations program to address the current caseload. Projects to be completed in the current fiscal period are being reviewed regularly to determine if any should have a timeline extension or placed on hold to ensure the focus remains on staffing vacant positions. The Committee’s leadership is also engaged in putting in place a new vision for the Committee and reviewing the grievance review process. The organizational structure, management committees and governance framework continue to be analyzed and adjusted as necessary to ensure the Committee has an effective accountability and decision-making structure. Last but not least, the mental health of employees is paramount. Fostering work-life balance and implementing engagement strategies to sustain motivation continues to be a dominant focus of leadership.

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

The Committee gained new leadership as the terms for the new Chairperson and Full-time Vice-Chairperson began at the beginning of the first quarter of 2024-2025.

Approved by: