Quarterly Financial Report for the Quarter ended December 31, 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 December 31, 2024	Year to date used at quarter-end	Total available for use for the year ending March 31, 2024Footnote *	Used during the quarter ended December 31, 2023	Year to date used at quarter-end
Vote 1 - Operating expenditures	$ 8,220,517	$ 1,766,422	$ 5,509,937	$ 7,660,330	$ 2,034,105	$ 4,823,372
Budgetary statutory authority - Contributions to employee benefit plans	769,002	192,251	576,752	654,273	163,568	490,704
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets	-	-	-	1,144	-	1,144
Total authorities	$ 8,989,519	$ 1,958,673	$ 6,086,689	$ 8,315,747	$ 2,197,673	$ 5,315,220

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

	Fiscal year 2024-2025			Fiscal year 2023-2024
	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended December 31, 2024	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended December 31, 2023	Year to date used at quarter-end
Expenditures
Personnel	$ 7,083,974	$ 1,698,841	$ 5,316,723	$ 6,153,658	$ 1,683,982	$ 4,519,188
Transportation and communications	20,690	10,588	28,635	18,200	7,889	21,986
Information	10,195	155	3,567	12,000	1,045	4,431
Professional and special services	1,302,505	112,499	329,025	1,388,420	111,680	246,039
Rentals	482,300	116,641	362,431	610,565	341,203	448,093
Repair and maintenance	32,465	6,251	12,016	17,890	778	10,642
Utilities, materials and supplies	10,090	4,937	6,321	11,260	1,177	4,758
Acquisition of land, buildings and works	-	-	-	-	17,984	17,984
Acquisition of machinery and equipment	47,300	887	20,883	103,754	31,154	36,729
Other subsidies and payments	-	7,874	7,088	-	781	5,370
Total net budgetary expenditures	$ 8,989,519	$ 1,958,673	$ 6,086,689	$ 8,315,747	$ 2,197,673	$ 5,315,220

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 December 31, 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 $673,772 in the authorities available for use. This increase can be primarily attributed to the temporary transfer from the Department of National Defence (DND) received in fiscal year 2024-2025. This transfer is necessary to enable the Committee to increase its capacity to produce Findings and Recommendations (F&R) reports expeditiously. Also, due to recent collective agreements updates, our authorities have increased accordingly to cover salary adjustments.

The Statement of Authorities also reveals that, as of December 31, 2024, 68% of the authorities available for use have been utilized, which is an increase from the 64% 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 third quarter of 2024-2025, expenses decreased by $239,000 compared to the third quarter of the previous year, while Year-to-Date (YTD) expenses increased by $771,469. The quarterly decrease is primarily attributed to a decline in rentals costs. This is primarily due to the timing of lease payment settlements, but also reflects a reduction in lease costs resulting from a reduction of our office footprint. The YTD increase is mainly due to an increase in personnel expenses, following the staffing of vacant positions, including the Chairperson and Full-Time Vice-Chairperson, as well as updated compensation rates.

3. Risks and uncertainties

As with any organization, the Committee continues to deal with diverse and challenging operating realities. The third quarter of 2024-2025 continued to be a significant transition period. The Committee established a new vision, held a strategic planning session and began the work to review its grievance review process. Potential delays in Governor in Council (GIC) appointments early in the next fiscal year, stemming from possible government disruptions or elections, pose a risk to operational productivity. 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, led to higher workloads that carried over into the next quarter. The third quarter saw an average number of grievance referrals and the Committee focussed its efforts on staffing vacant positions but there remains a risk of delays on projects.

The Committee is planning to mitigate these risks within the Operations program through workforce capacity management, including the onboarding of three operations employees in the fourth quarter. It will continue to review and refine its grievance review process to effectively manage the current caseload, streamline operations, and maximize output with existing resources. Additionally, it will develop contingency plans to mitigate the impact of potential delays in GIC appointments. The Committee will continue quarterly risk profile reviews and make operational adjustments if necessary. Projects to be completed in the current fiscal period are being reviewed regularly and timelines will be extended and some projects deferred to ensure the focus remains on training and supporting new employees and improving the operational process. The Committee will focus on outreach with Canadian Armed Forces (CAF) stakeholders to be kept informed of any changes in the CAF grievance process. 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

The Committee expects operational changes to be implemented at the start of the next fiscal year.

Approved by: