Quarterly Financial Report for the quarter ended September 30, 2017

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 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 is an independent, quasi-judicial tribunal and regulator which has, with respect to all matters necessary for the exercise of its jurisdiction, all 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 economic and social 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 Agency’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 Agency's spending authorities granted by Parliament, and those used by the Agency consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2017-2018 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 Agency 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 fiscal quarter and fiscal year to date (YTD) results

Graph 1 – Second quarter net budgetary authorities and expenditures per fiscal year
Graph 1 – Third quarter net budgetary authorities and expenditures per fiscal year
  • Details: Graph 1

    The figure illustrates the Agency's net budgetary authorities and expenditures for the quarter ending September 30, for fiscal years 2016-2017 and 2017-2018 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: 2016-2017
    Net budgetary authorities: 28.67 million dollars
    Expenditures for the quarter ending September 30: 6.43 million dollars

    Time period: 2017-2018
    Net budgetary authorities: 32.09 million dollars
    Expenditures for the quarter ending September 30: 7.54 million dollars

2.1 Statement of Authorities

The Agency’s total authorities available for use in 2017-2018, totalling $32,092,683, have increased by $3,425,827 when 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. This increase is primarily due to the approval of a reverse re-profile for Workplace Modernization of $3,522,137 offset by a decrease in Employee Benefit Plans (EBP) and a budget reduction in professional services, advertising and travel.

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 $1,114,161 from $6,426,607 to $7,540,768, as illustrated in the Departmental Budgetary Expenditures by Standard Object below. The majority of this increase can be seen in the Personnel category and is primarily due to the financial impact of the signing of several collective agreements. A decrease can be seen in the Professional and Special Services category as the Agency has concluded its systematic review and rationalization of internal and external business processes, which involved external professional service providers. This reduction in spending has been reallocated in order to address pressures in personnel 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

Budgetary challenges continued to be compounded by externally-driven demands. As in the quarter ended June 30, 2017, the Agency again experienced higher demand for services especially air travel complaints. In response to the increased demand, temporary resource decisions have been taken during the annual planning process to address the operational pressure while maintaining core business functions and absorbing new mandates resulting from legislative amendments and government-wide transformation initiatives.

During the second quarter of 2017-18 the Agency completed an assessment of its financial situation. The Agency will continue to monitor and decide on resource allocations to address operational pressures and ongoing priorities on a quarterly basis.

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

Although there have been no significant changes in the nature of the Agency's operations or programs over the last quarter, the Agency continues to face a significant volume of air travel complaints, which is five to seven times higher than historical levels.

Approval by Senior Officials

Approved by:

Original signed by:


Scott Streiner
Chair and Chief Executive Officer
Gatineau, Canada
November 28, 2017

Original signed by:


Carole Girard CPA, CA
Chief Financial Officer
Gatineau, Canada
November 28, 2017

 

Statement of Authorities (unaudited)

 

Fiscal year 2017-2018
  Total available for use for the year ending March 31, 2018Return to reference * Used during the quarter ended September 30, 2017 Year to date used at quarter-end
Total authorities 32,092,683 7,540,768 13,512,419
Vote 1 – Program expenditures 28,893,282 6,740,918 11,912,719
Budgetary statutory authorities − Employee Benefit Plans 3,199,401 799,850 1,599,700
Fiscal year 2016-2017
  Total available for use for the year ending March 31, 2017Return to reference * Used during the quarter ended September 30, 2016 Year to date used at quarter-end
Total authorities 28,666,856 6,426,607 12,485,731
Vote 1 – Program expenditures 25,165,099 5,551,168 10,734,853
Budgetary statutory authorities − Employee Benefit Plans 3,501,757 875,439 1,750,878

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2017-2018
  Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended September 30, 2017 Year to date used at quarter-end
Total net budgetary expenditures 32,092,683 7,540,768 13,512,419
Expenditures:
Personnel 23,577,754 6,963,895 12,594,139
Transportation and communications 416,690 86,489 167,891
Information 338,462 55,466 109,151
Professional and special services 3,212,654 152,471 264,963
Rentals 448,517 154,111 198,749
Repair and maintenance 68,674 102 26,114
Utilities, materials and supplies 126,009 19,281 39,915
Acquisition of land, buildings, and works 3,522,137    
Acquisition of machinery and equipment 381,786 108,954 111,407
Other subsidies and payments - - -
Fiscal year 2016-2017
  Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended September 30, 2016 Year to date used at quarter-end
Total net budgetary expenditures 28,666,856 6,426,607 12,485,731
Expenditures:
Personnel 23,860,812 5,713,563 11,404,126
Transportation and communications 548,784 138,528 223,507
Information 410,582 37,411 69,555
Professional and special services 2,683,573 379,417 548,344
Rentals 577,315 82,912 139,098
Repair and maintenance 56,087 4,626 5,831
Utilities, materials and supplies 189,231 21,290 36,843
Acquisition of machinery and equipment 340,472 48,860 58,427
Other subsidies and payments - - -
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