Quarterly Financial Report for the quarter ended September 30, 2013
Management Statement for the Quarter Ending September 30, 2013
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 2013-2014. 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
2.1 Statement of Authorities
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).
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.
2.2 Statement of Departmental Budgetary Expenditures by Standard Object
Compared to the previous year, total budgetary expenditures recorded in the second quarter increased by $0.46 million as illustrated in the Budgetary expenditures by Standard Object. Furthermore, the year to date used at quarter-end has increased by $1.14 million compared to the same quarter of 2012-13.
This increase in both the expenditures for the quarter and the year-to-date used at quarter-end is attributed to an increase in personnel expenditures. This increase in personnel expenditures is mainly due to severance and termination benefits paid out ($0.25 million in the second quarter and $0.66 million in the year to date) in accordance with the changes to the terms and conditions of the collective agreements. In addition, the increase in personnel expenditures includes transitional support measures for employees affected by budget reductions paid out in the second quarter combined with increases in compensation related to the ratification of collective agreements, which includes the compensation increase to the collective agreement for the LA group of the Canadian Transportation Agency.
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 2013-2014, the Agency faces two principal challenges that will put pressure on its budget resources: implementing an expanded mandate for rail service agreement disputes and implementation of regulations for air services price advertising. Through effective budget management and achievement of operational efficiencies, the Agency will absorb these new responsibilities within its budget allocation.
At the corporate level, the Agency faces many significant challenges, along with risks related to reengineering business processes to integrate information systems and transitioning to new shared services arrangements. During this time of change, the Agency must 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
The Agency has been and is re-engineering its business processes and has streamlined its internal services by reducing its staff by 20%, with the view to maximizing efficiency and effectiveness. These changes will enable the Agency to align with shared services initiatives and to fund the requirements of its expanded mandate.
Approval by Senior Officials
Geoffrey C. Hare
Chair and Chief Executive Officer
November 19, 2013
Chief Financial Officer
November 19, 2013
Statement of Authorities (unaudited)
|Total available for use for the year ending March 31, 2014Note 1||Used during the quarter ended September 30, 2013||Year to date used at quarter-end|
|Vote 25 – Program expenditures||26,124||6,116||12,345|
|Budgetary statutory authorities − Employee Benefit Plans||3,507||877||1,754|
|Total available for use for the year ended March 31, 2013Note 2||Used during the quarter ended September 30, 2012||Year to date used at quarter-end|
|Vote 25 – Program expenditures||25,199||5,654||11,220|
|Budgetary statutory authorities − Employee Benefit Plans||3,484||871||1,742|
Departmental budgetary expenditures by Standard Object (unaudited)
|Expenditures||Planned expenditures for the year ending March 31, 2014||Expended during the quarter ended September 30, 2013||Year to date used at quarter-end|
|Total net budgetary expenditures||29,631||6,993||14,099|
|Transportation and communications||542||140||224|
|Professional and special services||2,826||231||656|
|Repair and maintenance||344||6||7|
|Utilities, materials and supplies||236||28||38|
|Acquisition of machinery and equipment||541||5||15|
|Other subsidies and payments||75||0||0|
|Expenditures||lanned expenditures for the year ending March 31, 2013||Expended during the quarter ended September 30, 2012||Year to date used at quarter-end|
|Total net budgetary expenditures||28,683||6,525||12,962|
|Transportation and communications||631||142||235|
|Professional and special services||3,334||335||514|
|Repair and maintenance||353||5||7|
|Utilities, materials and supplies||246||42||85|
|Acquisition of machinery and equipment||101||46||152|
|Other subsidies and payments||7||0||0|
Graph 1 – Second quarter net budgetary authorities and expenditures per fiscal year
The figure illustrates the Agency’s net budgetary authorities and expenditures for the quarter ending September 30, for fiscal years 2012-2013 and 2013-2014 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 : 2012-2013
Net budgetary authorities : 28.68 million dollars
Expenditures for the quarter ending September 30 : 6.53 million dollars
Time period : 2013-2014
Net budgetary authorities : 29.63 million dollars
Expenditures for the quarter ending September 30 : 6.99 million dollars