Quarterly financial report for the quarter ended September 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 September 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 September 30, 2024	Year to date used at quarter-end
Vote 1 - Operating expenditures	7,888,659	2,031,257	3,817,356	7,776,858	2,050,183	3,743,515
Budgetary statutory authority - Contributions to employee benefit plans	996,675	249,169	498,338	769,002	192,251	384,501
Budgetary statutory authority - Spending of proceeds from the disposal of surplus Crown assets	-	-	-	-	-	-
Total authorities	8,885,334	2,280,426	4,315,694	8,545,860	2,242,434	4,128,016

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 September 30, 2025	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended September 30, 2024	Year to date used at quarter-end
Personnel	7,510,888	2,002,873	3,896,051	6,640,315	1,857,035	3,617,882
Transportation and communications	37,000	3,742	17,669	20,690	7,511	18,047
Information	3,500	- 2,706	115	10,195	-	3,412
Professional and special services	675,046	71,129	121,729	1,302,505	145,731	216,526
Rentals	521,500	152,795	210,254	482,300	215,987	245,790
Repair and maintenance	81,300	5	7,075	32,465	-	5,765
Utilities, materials and supplies	18,100	5,862	10,610	10,090	895	1,384
Acquisition of land, buildings and works	-	-	-	-	-	-
Acquisition of machinery and equipment	38,000	46,887	52,352	47,300	16,670	19,996
Other subsidies and payments	-	- 161	- 161	-	- 1,395	- 786
Total net budgetary expenditures	8,885,334	2,280,426	4,315,694	8,545,860	2,242,434	4,128,016

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 September 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 2025–26, the authorities available for use increased by $339,474 due to three key factors: a permanent transfer from Operating to Personnel; compensation adjustments resulting from the updated 2024–25 collective agreements; and a higher operating budget carry-forward compared to the previous year.

The Statement of Authorities also shows that, as of September 30, 2025, 49% of the authorities available for use have been utilized, closely aligning with the 48% utilization rate at the same point in the previous fiscal year. This consistency reflects stable spending patterns and indicates that expenditure remains on track with financial forecasts.

Statement of Departmental Budgetary Expenditures by Standard Object

Total operating expenditures increased by $37,992 compared to the second quarter of the previous year. In this past quarter, personnel expenses increased by $145,838; however, this was largely offset by lower spending on professional services and rentals. The decrease in professional services mainly reflects reduced training costs and temporary help services. In addition, some Information Technology (IT) licensing costs are now centrally covered by Shared Services Canada, contributing further to the overall reduction in operating expenditures.

3. Risks and uncertainties

The second quarter of 2025-2026 continued to be a significant transition period. The Committee implemented changes to its grievance review process to gain efficiencies in April 2025 and by the end of the second quarter, they have proven to be yielding results. However, there are risks associated with these changes that the Committee has been examining. For example, the high level of productivity achieved in the second quarter could lead to employee fatigue and a corresponding decline in output. Additionally, the Committee’s part-time Governor in Council (GIC) position remains vacant. 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. Lastly, fostering work-life balance and implementing engagement strategies to sustain motivation and adapt to change continues to be a focus. This includes launching a leadership program to assist managers in helping their employees adapt to change. 

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

There were no significant changes in relation to operations, personnel and programs in the second quarter. As significant changes were implemented in the first quarter of 2025-2026, more time is needed before considering any additional changes. 

Approved by: