Quarterly Financial Report for the quarter ended June 30, 2014 (Revised)

Erratum

Date : September 17, 2014


Location : 2.1 Statement of Authorities.
Revision : " The Canadian Transportation Agency's total authorities available for use in 2014-2015, totalling $27,650,000, are similar 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." replaces " The Canadian Transportation Agency's total authorities available for use in 2013-14, $29.63 million, increased by approximately $0.95 million in comparison with the same quarter of 2012-13, as illustrated in the Statement of Authorities and in the Departmental Budgetary Expenditures by Standard Object. The primary reason for the change is related to the decrease in Vote 25 (program expenditures)."
Rationale for the revision: Original amount and explanation were not correct.


Location : 2.1 Statement of Authorities.
Revision : " Authorities available for use in Vote 25 – Program expenditures have slightly increased by a total of $154,000 in 2014-2015 due to the amount received from Treasury Board of Canada Secretariat for collective agreements. This increase was offset by a decrease of $156,000 in the budgetary statutory authorities related to employee benefit plans.  The rate related to employee benefit plans decreased from 17.4 percent in 2013-2014 to 16.5 percent in 2014-2015." replaces "Authorities available for use in Vote 25 (program expenditures) have increased by a total of $0.93 million in 2013-14. This increase is mostly related to two factors. The first factor is an increase of $0.66 million in reimbursement made by the Treasury Board Secretariat in 2013-14 for the payout of severance pay and termination benefits. The second factor relates to the amounts received for collective agreements."
Rationale for the revision: Original amount and explanation were not correct.


Location : Departmental budgetary expenditures by Standing Object (unaudited), Fiscal year 2014-2015.
Revision : " Personnel planned expenditures for the year ending March 31, 2015 are 23,662" replaces " Personnel planned expenditures for the year ending March 31, 2015 are 24,532."
Rationale for the revision: Original amount was not correct.


Location : Departmental budgetary expenditures by Standing Object (unaudited), Fiscal year 2014-2015.
Revision : " Rentals planned expenditures for the year ending March 31, 2015 are 502" replaces " Rentals planned expenditures for the year ending March 31, 2015 are 504."
Rationale for the revision: Original amount was not correct.


Location : Departmental budgetary expenditures by Standing Object (unaudited), Fiscal year 2014-2015.
Revision : " Total net budgetary expenditures planned expenditures for the year ending March 31, 2015 are 27,650" replaces " Total net budgetary expenditures planned expenditures for the year ending March 31, 2015 are 29,631."
Rationale for the revision: Original amount was not correct.

 

1. Introduction

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 Treasury Board under the Treasury Board Accounting Standard (TBAS 1.3). It should be read in conjunction with the Main Estimates, 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 is an independent, quasi-judicial tribunal and economic regulator. It makes decisions and determinations on a wide range of matters involving air, rail and marine modes of transportation under the authority of Parliament, as set out in the Canada Transportation Act and other legislation.

Our mandate includes:

  • Economic regulation, to provide approvals, issue licences, permits and certificates of fitness, and make decisions on a wide range of matters involving federal air, rail and marine transportation.
  • Dispute resolution, to resolve complaints about federal transportation services, rates, fees and charges.
  • Accessibility, to ensure Canada's national transportation system is accessible to all persons, particularly those with disabilities.

Further information on the mandate, roles, responsibilities and programs of the Agency can be found in Part III of the Main Estimates.

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 Agency’s spending authorities granted by Parliament and those used by the Agency, consistent with the Main Estimates and Supplementary Estimates for 2014-2015. 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 monies 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.

As part of the departmental performance reporting process, the Agency prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year to date (YTD) results

Graph 1 – First quarter net budgetary authorities and expenditures per fiscal year
Graph 1 – First quarter net budgetary authorities and expenditures per fiscal year.

Text Version: Graph 1 – First quarter net budgetary authorities and expenditures per fiscal year

The figure illustrates the Agency’s net budgetary authorities and expenditures for the quarter ending June 30, for fiscal years 2013-2014 and 2014-2015 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 : 2013-2014
Net budgetary authorities : 27.65 million dollars
Expenditures for the quarter ending June 30 : 7.11 million dollars 

Time period : 2014-2015
Net budgetary authorities : 27.65 million dollars
Expenditures for the quarter ending June 30 : 6.95 million dollars

2.1 Statement of Authorities

The Canadian Transportation Agency’s total authorities available for use in 2014-2015, totalling $27,650,000, are similar 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.

Authorities available for use in Vote 25 – Program expenditures have slightly increased by a total of $154,000 in 2014-2015 due to the amount received from Treasury Board of Canada Secretariat for collective agreements. This increase was offset by a decrease of $156,000 in the budgetary statutory authorities related to employee benefit plans.  The rate related to employee benefit plans decreased from 17.4 percent in 2013-2014 to 16.5 percent in 2014-2015.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous year, total budgetary expenditures recorded in the first quarter decreased by $152,000, from $7,106,000 to $6,954,000, as illustrated in the budgetary expenditures by Standard Object.

Expenditures related to personnel decreased by $743,000; this difference is mainly attributable to a decrease of $708,000 in expenditures related to payouts for severance pay, termination benefits, and retroactive salaries.  In 2014-2015 and future years, there will be no more payouts for severance pay and termination benefits, as these payments have all been made during the period covering fiscal years 2012-2013 and 2013-2014.

Non-salary expenditures decreased by $101,000; this difference is primarily attributable to the Professional and Special Services category. This is mainly due to a major investment in the development of a new shared case management system that was made at the beginning of 2013-2014. With respect to other budgetary expenditures by Standard Object, we anticipated overall expenditures similar to those of the previous fiscal year. Any difference is primarily attributable to the period in which the purchases were settled.

Finally, the increase of $692,000 in Other subsidies and payments is due to a one-time transition payment for implementing salary payment in arrears by the Government of Canada.  

3. Risks and Uncertainties

The Agency is funded through voted parliamentary spending authorities and statutory authorities for operating expenditures. Delivering departmental programs and services may depend on several risk factors such as economic and political fluctuations, managing new mandates, resource reductions and constraints, technological evolution, government priorities, and central agency or government-wide initiatives.

In 2014-2015, the Agency faces a number of challenges that will put pressure on its budget resources.  For the next two years, the Agency will be required to absorb any increases in collective agreement payments without any additional funding from the centre.  In addition, the Agency launched its new 2014-2017 Strategic Plan, which comprises a number of major projects, including new shared case management system, which will require significant investment.  The Agency will continue to realign its resources through effective budget management to manage these challenges and continue to meet its regulatory responsibilities.

At the corporate level, the Agency must deal with challenges and risks related to reengineering business processes to integrate information systems and transitioning to new shared services arrangements.  During this time of change, the Agency will ensure business continuity and maintain stable operations, while capitalizing on the benefits of new technologies and more effective and efficient processes.

4. Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs over the last year.

Approval by Senior Officials

Approved by

Geoffrey C. Hare
Chair and Chief Executive Officer
Gatineau, Canada
August 20, 2014

Christine Guérette, CPA, CGA
Chief Financial Officer
Gatineau, Canada
August 20, 2014

Statement of Authorities (unaudited)

Fiscal year 2014-2015 (in thousands of dollars)
  Total available for use for the year ending March 31, 2015Note 1Used during the quarter ended June 30, 2014Year to date used at quarter-end
Vote 25 – Program expenditures 24,299 6,116 6,116
Budgetary statutory authorities − Employee Benefit Plans 3,351 838 838
Total authorities 27,650 6,954 6,954
Fiscal year 2013-2014 (in thousands of dollars)
  Total available for use for the year ended March 31, 2014Note 2Used during the quarter ended June 30, 2013Year to date used at quarter-end
Vote 25 – Program expenditures 24,145 6,229 6,229
Budgetary statutory authorities − Employee Benefit Plans 3,507 877 877
Total authorities 27,652 7,106 7,106

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2014-2015 (in thousands of dollars)
ExpendituresPlanned expenditures for the year ending March 31, 2015Expended during the quarter ended June 30, 2014Year to date used  at quarter-end
Personnel 23,662Note 3 5,639 5,639
Transportation and communications 495 69 69
Information 487 143 143
Professional and special services 2,127 272 272
Rentals 502Note 4 117 117
Repair and maintenance 80 2 2
Utilities, materials and supplies 147 17 17
Acquisition of machinery and equipment 140 3 3
Other subsidies and payments 10 692 692
Total net budgetary expenditures 27,650Note 5 6,954 6,954
Fiscal year 2013-2014 (in thousands of dollars)
ExpendituresPlanned expenditures for the year ending March 31, 2014Expended during the quarter ended June 30, 2013Year to date used at quarter-end
Personnel 23,664 6,382 6,382
Transportation and communications 542 84 84
Information 301 31 31
Professional and special services 1,715 425 425
Rentals 234 163 163
Repair and maintenance 344 1 1
Utilities, materials and supplies 236 10 10
Acquisition of machinery and equipment 541 10 10
Other subsidies and payments 75 0 0
Total net budgetary expenditures 27,652 7,106 7,106
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