Quarterly Financial Report for the Quarter Ended December 31, 2024

Table of contents

1. Introduction
2. Highlights of fiscal quarter and fiscal year to date results
3. Risks and Uncertainties
4. Significant changes in relation to operations, personnel, and programs
5. Approval by Senior Officials
6. Appendix A - Statement of Authorities (unaudited)
7. Appendix B - Departmental Budgetary Expenditures by Standard Object (unaudited)

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

1. Introduction

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 report should be read in conjunction with the Main Estimates. This report has not been subject to an external audit or review.

The Military Police Complaints Commission of Canada (the Commission) is an administrative tribunal and oversight agency created by Parliament to provide independent, civilian oversight of the Canadian Forces Military Police. The Commission reviews and investigates complaints concerning military police conduct and investigates allegations of interference in military police investigations. It reports its findings and makes recommendations directly to the Military Police and National Defence leadership. Further details on the Commission’s mandate and responsibilities may be found in the 2024-2025 Departmental Plan.

1.1 Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Commission’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates (as applicable) for the fiscal year 2024-2025. 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 Commission 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 fiscal quarter and fiscal year to date results

Statement of Authorities

The total authorities available this year are $450,000 higher than last year. This increase is primarily due to a permanent transfer of $250,000 and a temporary transfer of $250,000 from the Department of National Defence (DND) received in fiscal year 2024-25. This is partially offset by a lower operating budget carry-forward amount received in 2024-25.

The statement of authorizations also reveals that, as of December 31, 2024, 66% of available authorizations had been utilized, which is very similar to the utilization rate of 69% during the same period last year.

Statement of Departmental Budgetary Expenditures by Standard Object

During the third quarter of 2024-25, expenses increased by $168,000 compared to the same period of the previous year. This variance is mostly explained by an increase of $185,000 in Personnel expenses because of the remaining retroactive pay for Law Practitioner (LP) group, partly offset by a decrease of $32,000 in Professional Services as a result of less expenditures related to investigative services.

The following graph shows the total available authorities and total authorities used in 2024-25 compared to 2023-24.

3. Risks and Uncertainties

The Commission operates on a complaint-based system, making it difficult to predict the number and complexity of complaints it will handle each year. Over the last few years, the Commission has experienced an unforeseeable increase in work related to the volume and complexity of complaints and an increase in its fixed operational costs. The Commission received a budget transfer from the Department of National Defence. This funding enabled us to add resources to an overburdened system to maintain the efficiency and speed of the complaints procedure. However, risks remain, and the Commission will strive to ensure that sufficient funds are available in the future so that we can fulfill our mandate effectively within the allocated budget.

In addition to this risk, the Commission saw an increase in conduct complaint files related to sexual misconduct in the last few years and an increase in the general workload of conduct complaints files, interference files, and Public Interest Investigations. Complex sexual misconduct complaints and public interest complaints are time-consuming and require more resources. The Commission has also experienced significant challenges by the office of the Canadian Forces Provost Marshal in obtaining the information it needs to conduct fair and complete investigations. The Canadian Forces Provost Marshal’s refusal to provide essential documents for investigations has placed a considerable strain on the Commission’s resources to challenge this opposition.

In addition to external investigator expenses, many other costs are incurred, such as legal services, court transcripts, investigator travel, interview transcriptions, and translation of key documents to comply with the Official Languages Act. The costs of these operational services received by external providers increase yearly. We have mitigated some of these increases by streamlining our investigation processes, conducting virtual interviews and reducing our use of contract investigators in favor of employees where appropriate.

Finally, in a micro-organization, employees often hold unique positions with multiple responsibilities. Unlike larger organizations, they do not have a direct feeder group for their roles. Retaining skilled employees and reducing hiring delays when vacancies arise is a constant challenge for our micro-organization. To mitigate this risk, the Commission will continue to be proactive in hiring and offering flexible work arrangements to employees, encourage innovation, and provide development opportunities for staff.

4. Significant Changes in Relation to Operations, Personnel and Programs

In 2023, the Commission had to apply to the Federal Court to compel the Canadian Forces Provost Marshal to fully disclose information in three cases, ensuring fair and thorough investigations. These applications are still ongoing. The issues that led to this litigation have persisted and worsened this fiscal year, significantly increasing costs and delays in the complaints process and undermining the military police’s independent civilian oversight mechanism.

5. Approval by Senior Officials

This section is to provide the approval of Senior Officials, as required by the Policy on Financial Management.

Ottawa, Canada
February 17, 2025

Appendix A - Statement of Authorities (unaudited)

Appendix B - Departmental Budgetary Expenditures by Standard Object (unaudited)