Quarterly Financial Report for the quarter ended June 30, 2015

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 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 is an independent, quasi-judicial tribunal and economic regulator. It makes decisions and determinations on a wide range of matters within the federal transportation system 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 2015-2016. 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.
  • Details: 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 2014-2015 and 2015-2016 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 : 2014-2015
    Net budgetary authorities : 27.65 million dollars
    Expenditures for the quarter ending Juen 30 : 6.95 million dollars 

    Time period : 2015-2016
    Net budgetary authorities : 27.73 million dollars
    Expenditures for the quarter ending June 30 : 6.51 million dollars

2.1 Statement of Authorities

The Canadian Transportation Agency’s total authorities available for use in 2015-2016, totalling $27,733,404, increased slightly 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.

Authorities available for use in Vote 25 – Program expenditures have increased by a total of $82,782 in 2015-2016. This increase is primarily due to an increase in the budgetary statutory authorities relating to employee benefit plans. The rate related to employee benefit plans increased from 16.5 percent in 2014-2015 to 16.8 percent in 2015-2016.

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 $445,031, from $6,953,508 to $6,508,477, as illustrated in the Departmental Budgetary Expenditures by Standard Object below. This decrease is primarily due to the change in Other subsidies and payments as a result of the one-time transition payment for the Government of Canada's implementation of salary payments in arrears that occurred in 2014-2015.

With respect to all other budgetary expenditures by Standard Object, we anticipated overall expenditures to be 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

The Agency's budget allocation has remained essentially flat for the past nine years. During this time, the Agency has assumed new mandates: implementing regulations for all-inclusive air price advertising, providing new arbitration services for shippers and railway companies on rail level of service, as well as other responsibilities related to the Fair Rail for Grain Farmers Act and the Safe and Accountable Rail Act.

In addition, the Agency is dealing with an ongoing number of air travel complaints, the majority of which are related to consumer protection.  Over the next several years, the Agency's workload in this and other areas may continue to increase.   

At the same time, there is a great deal of change occurring internally. While the Agency has launched initiatives to increase efficiency, reduce back-office costs and enhance service delivery, it faces challenges and risks as it transitions to new shared services arrangements and reengineers its business processes for integration into a new shared case management system. For instance, there is some uncertainty regarding the timing and implementation costs for new shared service arrangements.  Finally, the statutory review of the Canada Transportation Act – the Agency's enabling legislation – will be concluding in December 2015 and could eventually result in the establishment of new responsibilities for the Agency.

As part of the mitigation strategy to deal with rising demands and static resources, the Agency has developed an updated risk management framework to facilitate monitoring and reporting, and will continue to integrate planning, priority setting and financial decision-making in order to strategically manage its workload and mitigate risks.

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 quarter.

Approval by Senior Officials

Approved by:

Scott Streiner

Chairman and Chief Executive Officer

Gatineau, Canada

September 18, 2015

 

Christine Guérette, CPA, CGA

Chief Financial Officer

Gatineau, Canada

September 18, 2015

Statement of Authorities (unaudited)

Fiscal year 2015-2016
  Total available for use for the year ending March 31, 2016Footnote 1 Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Total authorities 27,733,404 6,508,477 6,508,477
Vote 25 – Program expenditures 24,313,366 5,653,467 5,653,467
Budgetary statutory authorities − Employee Benefit Plans 3,420,038 855,010 855,010
Fiscal year 2014-2015
  Total available for use for the year ended March 31, 2015Footnote 2 Used during the quarter ended June 30, 2014 Year to date used at quarter-end
Total authorities 27,650,622 6,953,508 6,953,508
Vote 25 – Program expenditures 24,299,370 6,115,695 6,115,695
Budgetary statutory authorities − Employee Benefit Plans 3,351,252 837,813 837,813

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2015-2016
  Planned expenditures for the year ending
March 31, 2016
Expended during the quarter ended
June 30, 2015
Year to date used at quarter-end
 Total net budgetary expenditures 27,733,404 6,508,477 6,508,477
Expenditures:      
 Personnel 23,777,409 5,772,214 5,772,214
 Transportation and communications 552,235 67,118 67,118
 Information 413,163 30,773 30,773
 Professional and special services 1,820,178 466,438 466,438
 Rentals 580,945 81,436 81,436
 Repair and maintenance 56,440 273 273
 Utilities, materials and supplies 190,421 25,286 25,286
 Acquisition of machinery and equipment 342,613 60,867 60,867
 Other subsidies and payments - 4,072 4,072
Fiscal year 2014-2015
  Planned expenditures for the year ending
March 31, 2015
Expended during the quarter ended
June 30, 2014
Year to date used at quarter-end
 Total net budgetary expenditures 27,650,622 6,953,508 6,953,508
Expenditures:      
 Personnel 23,661,869 5,638,594 5,638,594
 Transportation and communications 495,067 69,426 69,426
 Information 487,221 142,852 142,852
 Professional and special services 2,127,321 271,849 271,849
 Rentals 501,708 116,684 116,684
 Repair and maintenance 80,295 2,138 2,138
 Utilities, materials and supplies 147,296 16,651 16,651
 Acquisition of machinery and equipment 139,802 3,297 3,297
 Other subsidies and payments 10,043 692,017 692,017
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