Quarterly Financial Report for the quarter ended December 31, 2021
Management Statement for the Quarter Ending December 31, 2021
This quarterly financial 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 under the Treasury Board Directive on Accounting Standards: GC 4400 Departmental Quarterly Financial Report. It should be read in conjunction with the Main Estimates and Supplementary Estimates for the current year.
The quarterly report has not been subject to an external audit or review.
1.1 Canadian Transportation Agency Mandate
The Canadian Transportation Agency (CTA) is an independent, quasi-judicial tribunal and regulator that has, with respect to all matters necessary for the exercise of its jurisdiction, all the powers of a superior court. The CTA has three core mandates:
- It helps ensure that the national transportation system runs efficiently and smoothly in the interests of all Canadians: those who work and invest in it; the producers, shippers, travelers and businesses who rely on it; and the communities where it operates.
- It protects the human right of persons with disabilities to an accessible transportation network.
- It provides consumer protection for air passengers.
To help advance these mandates, the CTA has three tools at its disposal:
- Rule-making: It develops and enforces ground rules that establish the rights and responsibilities of transportation service providers and users and that level the playing field among competitors. These rules can take the form of binding regulations or less formal guidelines, codes of practice or interpretation notes.
- Dispute resolution: It resolves disputes that arise between transportation providers on the one hand, and their clients and neighbours on the other, using a range of tools from facilitation and mediation to arbitration and adjudication.
- Information provision: It provides information on the transportation system, the rights and responsibilities of transportation providers and users, and its legislation and services.
Further information on the CTA’s mandate, roles, responsibilities and programs can be found in Part III of the Estimates – Departmental Plan.
1.2 Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the CTA's spending authorities granted by Parliament, and those used by the CTA consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2021-2022 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 CTA 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 the Fiscal Year-to-Date (YTD) Results
Details: Graph 1
The figure illustrates the Agency's net budgetary authorities and expenditures for the quarter ended December 31, for fiscal years 2020-2021 and 2021-2022 where budgetary authorities and expenditures, in millions of dollars, is shown on the vertical axis and time period, in fiscal years, is shown on the horizontal axis.
Time period: 2020-2021
Net budgetary authorities: 44,51 million dollars
Year-to-date: 9,42 million dollars
Second quarter expenditures: 26,42 million dollars
Time period: 2021-2022
Net budgetary authorities: 45,16 million dollars
Year-to-date: 10,69 million dollars
Second quarter expenditures: 30,98 million dollars
2.1 Statement of Authorities
The CTA’s total authorities available for use in 2021-2022, totalling $45,163,662, have remained fairly consistent compared to the same period in the previous fiscal year as illustrated in the Statement of Authorities and in the Departmental Budgetary Expenditures by Standard Object below.
2.2 Statement of Departmental Budgetary Expenditures by Standard Object
Compared to the previous year, total budgetary expenditures recorded in the third quarter have increased by $1,265,679, from $9,421,863 to $10,687,542, as illustrated in the Departmental Budgetary Expenditures by Standard Object below. This increase is mainly attributable to an increase in the Professional and special services and the Acquisition of machinery and equipment categories as explained below:
- The expenditures in the Professional and special services category have increased by $442,079 and is primarily due to the costs associated with The Government of Canada Workplace 2.0 Fit-up Standards project.
- The expenditures in the Acquisition of machinery and equipment category have increased by $483,792 and is primarily due to acquisitions of informatics equipment associated with The Government of Canada Workplace 2.0 Fit-up Standards project.
With respect to all other budgetary expenditures by Standard Object, overall expenditures are similar to those of the previous fiscal year. Any difference is primarily attributable to the period in which the purchases were settled.
3. Risks and Uncertainties
Between the time the Air Passenger Protection Regulations (APPR) fully came into force on December 15, 2019, and the start of the pandemic three months later, the CTA received an unprecedented number of complaints: over 11,200 in those three months alone. By comparison, 826 complaints were filed in 2015, 3,367 in 2016, 5,565 in 2017, 7,650 in 2018 and 19,392 in 2019. This is a 23-fold growth in volumes over 5 years and would be challenging for any organization. By the end of 2020-2021, the CTA received 13,275 complaints and carried over approximately 16,000 complaints for processing into 2021-2022. Between the start of 2021-2022 and the end of December 2021, the CTA still received approximately 7,700 complaints, despite the lower volumes of air traffic. While the CTA has received temporary funding increases from Parliament in response to this situation, it mostly had to handle these pressures through reprioritization of resources and substantial productivity gains.
In addition to the increased demand for dispute resolution, there are growing pressures on the CTA's ability to achieve its objectives, due to a significant increase in its legislative and regulatory responsibilities – the regulatory provisions for which the CTA is responsible for has grown by approximately 370 percent. The CTA has taken steps to modernize and increase the efficiency of its processes, but there is a risk that this is not enough to respond to these ongoing pressures.
4. Significant Changes in Relation to Operations, Personnel and Programs
During these difficult times, the CTA continues to maintain its normal operations while its employees practice social distancing. The CTA's dedicated employees are almost all working remotely and provide service using electronic means.
The CTA is facing a unique challenge, as employees will return to work in a brand new facility at 60 Laval Street in Gatineau, Québec. In response to this challenge, the CTA is focusing its efforts on change management, and is consulting its employees on an ongoing basis to seek feedback on future work-site arrangements. These consultations are being completed in an effort to minimize employees' concerns around the return to work and the future work-site. To ensure employees are supported during the transition period, the CTA will continue to prioritize employee mental health and wellness.
Approval by Senior Officials
Chair and Chief Executive Officer
March 1st, 2022
a/ Chief Financial Officer
March 1st, 2022
Statement of Authorities (unaudited)
|Total available for use for the year ending March 31, 2022*||Used during the quarter ended December 31, 2021||Year to date used at quarter-end|
|Vote 1 – Program expenditures||40,557,272||9,535,945||27,529,956|
|Budgetary statutory authorities − Employee Benefit Plans||4,606,390||1,151,597||3,454,791|
|Total available for use for the year ended March 31, 2021*||Used during the quarter ended December 31, 2020||Year to date used at quarter-end|
|Vote 1 – Program expenditures||39,479,955||8,538,752||23,773,333|
|Budgetary statutory authorities − Employee Benefit Plans||5,031,981||883,111||2,649,333|
Departmental Budgetary Expenditures by Standard Object (unaudited)
|Expenditures:||Planned expenditures for the year ending March 31, 2022||Expended during the quarter ended December 31, 2021||Year to date used at quarter-end|
|Transportation and communications||299,427||16,411||60,266|
|Professional and special services||6,037,693||968,945||2,188,272|
|Repair and maintenance||159,632||7,594||19,911|
|Utilities, materials and supplies||96,312||37,197||86,158|
|Acquisition of land, buildings, and works||-||-||-|
|Acquisition of machinery and equipment||1,192,069||505,820||589,235|
|Other subsidies and payments||22,787||(1,375)||22,787|
|Total net budgetary expenditures||45,163,662||10,687,542||30,984,747|
|Expenditures:||Planned expenditures for the year ending March 31, 2021||Expended during the quarter ended December 31, 2020||Year to date used at quarter-end|
|Transportation and communications||224,349||33,965||87,913|
|Professional and special services||2,623,351||526,866||1,027,976|
|Repair and maintenance||246,620||95,456||96,639|
|Utilities, materials and supplies||355,857||61,128||139,445|
|Acquisition of land, building and works||3,522,137||-||-|
|Acquisition of machinery and equipment||1,134,825||22,028||444,687|
|Other subsidies and payments||1,465||449||574|
|Total net budgetary expenditures||44,511,936||9,421,863||26,422,666|