Quarterly Financial Report for the Quarter Ended September 30, 2021

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

For the quarter ended September 30, 2020

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 2O2O-27 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.

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 31,2020.

As reflected in the Statement of Authorities, the net budget authorities for year ending March 31.,2021
have increased from 53,616,025 (fiscal 2019-20) to 55,445,035 to date for a variance increase of
S1,830,010. The increase is related to the approved permanent ongoing funding to support ERC's
Program Capacity and integrity in September 2020.

As reflected in the Statement of Authorities, expenditures used in the quarter ending on
December 31,2020, have decreased from $851,516 (fiscal2019-20) to $565,612 for a total variance
increase of $285,904 or 51%. The decrease in expenditures is mainly related to an decrease in travel
and professional and special services expenditures.

As reflected in the Budgetary Expenditures by Standard Object, expenditures used in the quarter ending
on December31, 2020 have decreased from $851,516 (fiscal 2019-20)to $565,612 for a total variance
increase of $285,904 or 51%. The decrease in expenditures is mainly related to an decrease in travel
and professional and special services expenditures

Second quarter expenditures totaled $973,917 for an increase of $270,767 when compared to $703,151 spent during the same period in 2020-21.
Year-to-Date (YTD) expenses recorded to the end of the second quarter totaled $1,775,413 for an increase of $504,469 when compared to $1,270,944 spent during the same period in 2020-21.
Both variances are mainly explained by an increase in personnel expenses and accounting adjustments between Standard Objects, as well as salary overpayment transactions processed in the second quarter of 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 second 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.

Charles Randall Smith
Chairperson

Julie Brunet
Senior Director, Corporate Services, Chief Financial Officer

Ottawa, Canada
Date: November 18, 2021