Quarterly Financial Report for the quarter ended June 30, 2016 (revised)

Erratum

Date: October 19, 2016

Location: Statement of Authorities (unaudited), fiscal year 2015-2016.

Revision: This table replaces the previously posted table identified below.

Fiscal year 2015-2016
  Total available for use for the year ended March 31, 2016 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 1 – 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 2015-2016
  Total available for use for the year ended March 31, 2016 Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Total authorities 28,905,042 6,360,141 19,757,471
Vote 1 – Program expenditures 25,553,790 5,522,328 17,244,032
Budgetary statutory authorities − Employee Benefit Plans 3,351,252 837,813 2,513,439

Rationale for the revision: Original amounts reported were not correct.

Location: Departmental Budgetary Expenditures by Standard Object (unaudited), fiscal year 2016-2017.

Revision: This table replaces the previously posted table identified below.

Fiscal year 2016-2017
  Planned expenditures for the year ending
March 31, 2017
Expended during the quarter ended
June 30, 2016
Year to date used at quarter-end
 Total net budgetary expenditures 27,792,087 6,059,124 6,059,124
Expenditures:      
 Personnel 23,860,812 5,690,563 5,690,563
 Transportation and communications 548,784 84,979 84,979
 Information 410,582 32,144 32,144
 Professional and special services 1,808,804 168,927 168,927
 Rentals 577,315 56,186 56,186
 Repair and maintenance 56,087 1,205 1,205
 Utilities, materials and supplies 189,231 15,553 15,553
 Acquisition of machinery and equipment 340,472 9,567 9,567
 Other subsidies and payments - - -
 
Fiscal year 2015-2016
  Planned expenditures for the year ending
March 31, 2016
Expended during the quarter ended
December 31, 2015
Year to date used at quarter-end
 Total net budgetary expenditures 28,898,984 6,997,870 20,334,455
Expenditures:      
 Personnel 23,779,093 6,112,457 17,745,883
 Transportation and communications 552,235 126,823 324,994
 Information 413,163 39,998 122,036
 Professional and special services 2,984,074 470,478 1,569,021
 Rentals 580,945 159,085 329,463
 Repair and maintenance 56,440 9,720 29,934
 Utilities, materials and supplies 190,421 45,717 104,178
 Acquisition of machinery and equipment 342,613 28,318 99,600
 Other subsidies and payments - 5,274 9,346

Rationale for the revision: Original amounts reported were not correct.

Location: Departmental Budgetary Expenditures by Standard Object (unaudited), fiscal year 2015-2016.

Revision: This table replaces the previously posted table identified below.

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
December 31, 2014
Year to date used at quarter-end
 Total net budgetary expenditures 28,905,042 6,360,141 19,757,471
Expenditures:      
 Personnel 23,708,623 5,752,616 17,140,294
 Transportation and communications 495,067 123,818 337,100
 Information 487,221 59,271 315,874
 Professional and special services 3,334,987 225,036 844,037
 Rentals 501,708 120,432 274,768
 Repair and maintenance 80,295 2,399 16,624
 Utilities, materials and supplies 147,296 59,045 101,835
 Acquisition of machinery and equipment 139,802 7,933 14,519
 Other subsidies and payments 10,043 9,591 712,420

Rationale for the revision: Original amounts reported were 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 the 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 Agency is an independent, quasi-judicial tribunal and regulator with the powers of a superior court.

We operate within the context of the large and complex Canadian transportation system.

The Agency exercises its powers through its Members, who are appointed by the Governor-in-Council.

What we do: our three mandates

  • We help ensure that the national transportation system runs efficiently and smoothly in the interests of all Canadians, including those who work and invest in it; the producers, shippers, travellers and businesses who rely on it; and the communities where it operates.
  • We protect the human right of persons with disabilities to an accessible transportation network.
  • We provide consumer protection for air passengers.

How we do it: our tools

To help advance these mandates, we have three tools at our disposal:

  • Rule-making: We develop and apply 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: We resolve 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: We provide information on the transportation system, the rights and responsibilities of transportation providers and users, and the Agency's legislation and services.

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 the 2016-2017 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 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 using the full accrual method of accounting in accordance with the 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 – 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 2015-2016 and 2016-2017 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: 2015-2016
    Net budgetary authorities: 27.73 million dollars
    Expenditures for the quarter ending December 31: 6.51 million dollars 

    Time period: 2016-2017
    Net budgetary authorities: 27.79 million dollars
    Expenditures for the quarter ending December 31: 6.06 million dollars

2.1 Statement of Authorities

The Agency’s total authorities available for use in 2016-2017, totalling $27,792,087, have remained 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 first quarter decreased by $449,353, from $6,508,477 to $6,059,124, as illustrated in the Departmental Budgetary Expenditures by Standard Object below.  The decrease is primarily in the Professional and Special Services expenditures category.  In 2015-2016, the Agency launched an internal initiative to review its organizational structure with the objective of reinforcing capacity in key areas, maximizing synergies and internal efficiencies, focusing resources on delivery, and facilitating collaborative and agile responses to evolving demands.  Due to the resulting reorganization, which was implemented on April 1, 2016, the operating expenditures budget was approved later in the quarter in comparison to the previous year, which caused some delays in the initiation of certain expenditures.

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

The Agency's budget has remained static for the past decade, during which time the Agency has been given new and enhanced mandates by Parliament, including:

  • enhanced powers regarding railway line transfers and discontinuance, and net salvage value determinations
  • formalized authority to mediate and arbitrate various types of disputes, including new arbitration services for shippers and railway companies on rail level of service, including developing new regulations
  • authority to resolve rail noise and vibration complaints
  • implementing and administering regulations to enable the travelling public to easily determine the total advertised air price and to promote fair competition between advertisers in the air travel industry
  • expanded authority regarding air carriers' communication and application of their terms and conditions of carriage
  • authority to resolve disputes related to the provision of public passenger services using federal railway companies' lines or other assets
  • carrying out responsibilities related to the Fair Rail for Grain Farmers Act, including providing advice on the amount of grain to be moved in Western Canada and developing new regulations
  • carrying out responsibilities related to the Safe and Accountable Rail Act, including applying more stringent rail insurance requirements and handling applications by provinces and municipalities seeking reimbursement of expenses reasonably incurred in responding to fires resulting from rail operations.

Budgetary challenges have been compounded by externally-driven demands, including an increasing number of air travel complaints.  Much of the Agency's workload is a function of the number of applications brought by clients and stakeholders, whether they are seeking dispute-resolution assistance or regulatory determinations.  These clients rightly give high priority to timely service from the Agency.

An independent external review of the Agency's financial situation has found that the organization's resources are stretched and consequently, it has extremely limited flexibility to undertake new mandates or transformation initiatives.

The April 1st reorganization, a project to review and modernize the regulations administered by the Agency, and continuing efforts to streamline business processes should help achieve some internal efficiencies, control back-office costs, enhance service delivery, and mitigate budgetary risks.  However, rising demand for Agency services, along with centrally-mandated and sometimes costly initiatives such as the Government of Canada's new shared case management system, will create ongoing resource pressures.

The Agency will continue to monitor and report on corporate risks, and to integrate risk information into planning, priority-setting, and financial decision-making.

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:

Original signed by:


Scott Streiner
Chair and Chief Executive Officer
Gatineau, Canada
August 29, 2016

Original signed by:


Jacqueline Bannister
Chief Financial Officer
Gatineau, Canadar
August 29, 2016

 

Statement of Authorities (unaudited)

Fiscal year 2016-2017
  Total available for use for the year ending March 31, 2017Footnote 1 Used during the quarter ended June 30, 2016 Year to date used at quarter-end
Total authorities 27,792,087 6,059,124 6,059,124
Vote 1 – Program expenditures 24,290,330 5,183,685 5,183,685
Budgetary statutory authorities − Employee Benefit Plans 3,501,757 875,439 875,439
Fiscal year 2015-2016
  Total available for use for the year ended 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 1 – Program expenditures 24,313,366 5,653,467 5,653,467
Budgetary statutory authorities − Employee Benefit Plans 3,420,038 855,010 855,010

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2016-2017
  Planned expenditures for the year ending
March 31, 2017
Expended during the quarter ended
June 30, 2016
Year to date used at quarter-end
 Total net budgetary expenditures 27,792,087 6,059,124 6,059,124
Expenditures:      
 Personnel 23,860,812 5,690,563 5,690,563
 Transportation and communications 548,784 84,979 84,979
 Information 410,582 32,144 32,144
 Professional and special services 1,808,804 168,927 168,927
 Rentals 577,315 56,186 56,186
 Repair and maintenance 56,087 1,205 1,205
 Utilities, materials and supplies 189,231 15,553 15,553
 Acquisition of machinery and equipment 340,472 9,567 9,567
 Other subsidies and payments - - -
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
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