Quarterly financial report for the quarter ended September 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 September 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 September 30, 2023	Year to date used at quarter-end
Vote 1 - Operating expenditures	7,776,858	2,050,183	3,743,515	6,738,678	1,420,591	2,789,267
Budgetary statutory authority - Contributions to employee benefit plans	769,002	192,251	384,501	654,273	163,568	327,136
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets	-	-	-	1,144	1,144	1,144
Total authorities	8,545,860	2,242,434	4,128,016	7,394,095	1,585,303	3,117,547

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 September 30, 2024	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended September 30, 2023	Year to date used at quarter-end
Personnel	6,640,315	1,857,035	3,617,882	5,267,006	1,409,165	2,835,206
Transportation and communications	20,690	7,511	18,047	18,200	8,284	14,097
Information	10,195	-	3,412	12,000	715	3,386
Professional and special services	1,302,505	145,731	216,526	1,353,420	92,905	134,359
Rentals	482,300	215,987	245,790	610,565	63,087	106,890
Repair and maintenance	32,465	-	5,765	17,890	3,660	9,864
Utilities, materials and supplies	10,090	895	1,384	11,260	3,489	3,581
Acquisition of land, buildings and works	-	-	-	-	-	-
Acquisition of machinery and equipment	47,300	16,670	19,996	103,754	5,500	5,575
Other subsidies and payments	-	- 1,395	- 786	-	- 1,502	4,589
Total net budgetary expenditures	8,545,860	2,242,434	4,128,016	7,394,095	1,585,303	3,117,547

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 September 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 $1,151,765 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) until 2026-27. 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 September 30, 2024, 48% of the authorities available for use have been utilized, which is an increase from the 42% utilization rate during the same period in the preceding fiscal year. In both fiscal years 2024-2025 and 2023-2024, 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

During the second quarter of 2024-2025, expenses increased by $657,131 compared to the second quarter of the previous year and Year-to-Date (YTD) expenses increased by $1,010,469. These variances are 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. An additional factor contributing to the variances is the increase in rental costs due to the timing of lease payment settlements.

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 with the time and effort dedicated to staffing positions, has led to higher 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 within the Operations program through workforce capacity management and by reviewing its internal grievance process to address the current caseload. Projects to be completed in the current fiscal period are being reviewed regularly to determine if timelines should be extended or projects deferred to ensure the focus remains on staffing, training and improving the operational process. The Committee’s leadership has also put in place a new vision for the Committee and is actively reviewing the governance framework to ensure the Committee has an effective accountability and decision-making structure. Lastly, fostering work-life balance and implementing engagement strategies to sustain motivation and adapt to change continues to be a focus.

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

With the positions of Chairperson and Full-time Vice-Chairperson now filled, the Committee expects operational changes to begin at the start of the next fiscal year. 

Approved by: