Quarterly Financial Report for the Quarter Ended December 31, 2021

Statement outlining results, risks and significant changes in operations, personnel and program

This quarterly report 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. This quarterly financial report should be read in conjunction with the 2021-22 Main Estimatesand previous Quarterly Financial Reports.

A summary description of the RCMP External Review Committee (ERC) program activities can be found in Part II of the Main Estimates.

This quarterly report 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 management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament, or received from Treasury Board Central Votes, and those used by the department, consistent with the Main Estimates for the 2021-22 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.

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 the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended December 31, 2021.

As reflected in the Statement of Authorities, as at December 31, 2021, the ERC had authorities available for use of $6,436,498 compared to $5,446,035 as of December 31, 2020, for a net increase of $990,463 or 18%. The increase is explained by the approval of permanent funding to support Program Capacity and Integrity in September 2020.

The Statement of Authorities shows that the ERC spent approximately 43% of its authorities by the end of the third quarter, compared to 34% during the same period of the preceding fiscal year (see graph 1 below).

Third quarter expenditures totaled $979,271 for an increase of $413,659 when compared to $565,612 spent during the same period in 2020-21.

Year-to-Date (YTD) expenses recorded to the end of the third quarter totaled $2,754,684 for an increase of $918,128 when compared to $1,836,556 spent during the same period in 2020-21.

Both variances are mainly explained by an increase in personnel expenses and various office supplies, as well as salary overpayment transactions processed in 2021-22.

Table 2 in the Annex presents budgetary expenditures by standard object.

Uncertainties brought on by the COVID-19 pandemic have required unprecedented measures in the federal public service. The ERC has adapted rapidly to the recommendations made by public health authorities and central agencies and immediately implemented working from home for all employees. The mental, physical health and safety of our employees is at the forefront at the ERC.

Continuous program improvement remains a priority for the ERC and will be realized through active monitoring and management of the ERC's caseload and case review practices.

The ability to hire a sufficient number of qualified personnel within relevant timelines remains a short- and medium-term risk for the ERC, particularly given the specialized knowledge and skillsets required for many positions.

To mitigate this risk, the ERC will continue focusing on the training and support of the new staff complement hired as part of the permanent program integrity resources.

The third quarter saw an increase in personnel with the virtual onboarding of two new resources as part of the ERC's permanent program integrity resources funding.

Approved by Senior Officials:

Charles Randall Smith
Chairperson

Julie Brunet
Senior Director, Corporate Services, Chief Financial Officer

Ottawa, Canada
Date: February 16, 2022