Quarterly financial report for the quarter ended June 30, 2025

Statement of Authorities (unaudited) (in dollars)

	Fiscal year 2025-2026			Fiscal year 2024-2025
	Total available for use for the year ending March 31, 2026Footnote *	Used during the quarter ended June 30, 2025	Year to date used at quarter-end	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
Vote 1 - Operating expenditures	$ 7,514,758	$ 1,786,098	$ 1,786,098	$ 7,478,021	$ 1,693,332	$ 1,693,332
Budgetary statutory authority - Contributions to employee benefit plans	996,675	249,169	249,169	769,002	192,250	192,250
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets	-	-	-	-	-	-
Total authorities	$ 8,511,433	$ 2,035,267	$ 2,035,267	$ 8,247,023	$ 1,885,582	$ 1,885,582

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

	Fiscal year 2025-2026			Fiscal year 2024-2025
Expenditures	Planned expenditures for the year ending March 31, 2026	Expended during the quarter ended June 30, 2025	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended June 30, 2024	Year to date used at quarter-end
Personnel	$ 7,510,888	$ 1,893,178	$ 1,893,178	$ 6,341,478	$ 1,760,847	$ 1,760,847
Transportation and communications	17,120	13,927	13,927	20,690	10,536	10,536
Information	14,655	2,821	2,821	10,195	3,412	3,412
Professional and special services	388,645	50,599	50,599	1,302,505	70,795	70,795
Rentals	505,815	57,459	57,459	482,300	29,803	29,803
Repair and maintenance	30,655	7,070	7,070	32,465	5,765	5,765
Utilities, materials and supplies	9,300	4,748	4,748	10,090	489	489
Acquisition of land, buildings and works	-	-	-	-	-	-
Acquisition of machinery and equipment	34,355	5,465	5,465	47,300	3,326	3,326
Other subsidies and payments	-	-	-	-	609	609
Total net budgetary expenditures	$ 8,511,433	$ 2,035,267	$ 2,035,267	$ 8,247,023	$ 1,885,582	$ 1,885,582

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 2025-2026 Main Estimates and the 2024-2025 Quarterly Financial Report for the quarter ended June 30, 2024. 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 2025-2026 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 2025-2026, there has been an increase of $264,410 in the authorities available for use. This increase can be primarily attributed to the permanent transfer from our Operating Budget to Personnel Budget. This transfer increased our Budgetary statutory authority - Contributions to employee benefit plans by $227,673. This transfer was necessary to enable the Committee to stabilize its salary budget and properly align with related expenditures.

The Statement of Authorities also reveals that, as of June 30, 2025, 24% of the authorities available for use have been utilized, closely aligning with the 23% utilization rate reported during the same period in the previous fiscal year. This utilization rate demonstrates stability in spending and confirms that expenditures are on track with financial forecasts.

Statement of Departmental Budgetary Expenditures by Standard Object

During the first quarter of 2025-2026, operational expenditures increased by $149,685 compared to the first quarter of the previous year. This variance is primarily due to an increase in personnel expenses resulting from new salary rates established through collective bargaining, as well as the staffing of vacant positions within the grievance review process unit.

3. Risks and uncertainties

The first quarter of 2025-2026 continued to be a significant transition period. As of April 2025, the Committee implemented changes to its grievance review process to gain efficiencies; there are risks associated with these changes that will only be able to be reviewed at a later date. The Committee’s part-time Governor in Council (GIC) appointee’s term ended in the first quarter and no replacement has been appointed yet. Delays stem from the writ period and the consequent pause in the GIC appointment process. This has posed a risk to operational productivity and created uncertainty as to when a new appointment would take place.

The Committee is mitigating the impact of delays in GIC appointments within the Operations program through workforce capacity management. 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. The Committee will focus on outreach with Canadian Armed Forces (CAF) stakeholders to be kept informed of any changes related 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 implemented changes to its internal grievance review process to gain efficiencies and it also had a part-time GIC appointment term end without any replacement, which is expected to affect operational capacity in future quarters.

Despite the improvements made to the grievance review process in the first quarter, the operational capacity of the Committee was negatively impacted by the loss of a part-time GIC appointee.

Approved by: