Quarterly Financial Report For the Quarter Ended December 31, 2019

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This quarterly financial report should be read in conjunction with the Main Estimates (and as applicable -Supplementary Estimates and previous interim reports for the current year). It has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. It has not been subject to an external audit or review.

The ERC is an independent administrative tribunal (a distinct organization, separate from the RCMP). It reviews appeals made by RCMP members of certain decisions affecting them that are made by RCMP managers including appeals of decisions:

• to dismiss or to demote an RCMP member, or to impose a financial penalty of more than one day's pay, for contravention of the RCMP Code of Conduct;
• in a harassment complaint investigation;
• to discharge or to demote a member for being absent from duty; and,
• to stop a member's pay and allowances when the member has been suspended from duty.

Based on its review of a file referred to it by the RCMP, the ERC provides findings and recommendations for a final decision in the matter to the Commissioner of the RCMP. The Commissioner (or a delegate) is the final decision maker and is not required to follow the findings or recommendations of the ERC; but if she does not, the RCMP Act requires the Commissioner to include the reasons for not following the recommendations of the ERC in the final decision.

The ERC is the only independent review mechanism available to RCMP members for these matters (which must be referred to the ERC pursuant to the RCMP Act and RCMP Regulations); other than review by the Federal Court, which a party could apply for after a final decision is made by the Commissioner.

The ERC engages in a number of outreach and communications activities which support the administration of its appeal file reviews and which contribute to awareness and understanding of workplace issues within the Force. This includes presentations or discussions with RCMP managers and workplace representatives, the regular publication of the ERC Communiqué and its distribution within the Force as well as occasional articles or discussion papers on topics of interest related to the work of the ERC.

This quarterly report has been prepared by the ERC using an expenditure basis of accounting. The accompanying Statement of Authorities includes the ERC spending authorities granted by Parliament and those used by the ERC consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2019-20 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 moneys 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The ERC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

This section highlights the significant items that contributed to amounts available for use and expenditure used for the quarter ended December 31, 2019.

As reflected in the Statement of Authorities, the net budget authorities for year ending March 31, 2020 have increased from $3,447,938 (fiscal 2018-19) to $3,616,025 to date for a variance increase of $168,087. The increase is part of the $8.1M in additional funding for the ERC starting fiscal year 2017-18 through fiscal year 2020-21 that was announced by the Minister of Public Safety on October 5, 2017. The ERC anticipates a Supplementary Estimates (B) amount of $639,278 previously anticipated in Supplementary Estimates (A).

As reflected in the Statement of Authorities, expenditures used in the quarter ending on December 31, 2019, have increased from $430,185 (fiscal 2018-19) to $851,516 for a total variance increase of $421,331 or 49.5%. The increase in expenditures is mainly related to an increase in salary and professional and special services expenditures.

As reflected in the Budgetary Expenditures by Standard Object, expenditures used during the quarter ending on December 31, 2019, have increased from $430,185 (fiscal 2018-19) to $851,516 for a total variance increase of $421,331 or 49.5%. The increase in expenditures is mainly related to an increase in salary and professional and special services expenditures.

C. Risks and Uncertainties

This ERC Quarterly Financial Report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 25, 2019.

The ERC increased its voted appropriations for fiscal year 2019-20 by $469,597 through the Main Estimates exercise. These funds are part of the $8.1M in additional funding for the ERC that was announced by the Minister of Public Safety on October 5, 2017. The additional funding is reflected through the Annual Reference Level Update starting fiscal year 2017-18 through fiscal year 2020-21.