This quarterly financial report has been prepared by the management of the Transportation Appeal Tribunal of Canada "TATC" and Transport Canada as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board Accounting Standard 1.3. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates (B) as well as Canada's Economic Action Plan 2012 (Budget 2012).
1.1 Authority, Mandate and Program Activities
A summary description of TATC's program activities can be found in Part II 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 TATC's spending authorities granted by Parliament and those used by TATC consistent with the Main Estimates and Supplementary Estimates (B) for the 2012-2013 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.
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.
TATC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process and published in the Departmental Performance Report. However, the spending authorities voted by Parliament remain on an expenditure basis.
This quarterly report has not been subject to an external audit or review.
2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results
2.1 Statement of Authorities
The statement attached at the end illustrates authorities used for the quarter as well as authorities used to date for both the current and previous fiscal year. TATC's authorities available for use at the end of the third quarter of 2012-2013 decreased by $360,774 when compared to the same quarter of the previous fiscal year. This is explained by a decrease in statutory authorities available for use for employee pay benefits by $2,884 and a decrease in operating expenditures of $ 357,890.
The authorities used during the third quarter of 2012-2013 for program expenditures and statutory items were $102,397 less than in the same quarter of 2011-2012.
This statement also illustrates that the authorities used in the third quarter of 2012-2013, expressed as a percentage of authorities available for the whole year, were similar to the third quarter of 2011-2012. Approximately 25% of authorities available for use were expended during the third quarter of 2012-2013, whereas 26% were expended in the third quarter of 2011-2012.
2.2 Statement of Departmental Budgetary Expenditures by Standard Object
As at December 31, 2012, total year-to-date expenditures of TATC decreased by $ 209,267 when compared with the same period of 2011-2012. This is primarily the result of:
- Decrease in Personnel expenditures by $28,372:
- This variance is mainly explained by the temporary vacancy created by the departure of an employee, which has remained unfilled;
- Decrease of Transportation and communications expenditures by $ 66,944:
- This variance is mainly explained by efficiencies attained in revising the Hearing scheduling process;
- Decrease of Professional and special services expenditures by $105,231:
- The variance is mainly explained by the decreased use of temporary help and translation services.
3. Risks and Uncertainties
Transportation Appeal Tribunal of Canada's Report on Plans and Priorities (RPP) identifies the current risk environment and TATC's key risk areas to the achievement of its strategic outcomes. Within this context, specific financial risks relative to the third quarter include the following:
Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-2011 levels for fiscal years 2011-2012 and 2012-2013. Combined with the increased demand for its services from the public, there is a risk that Transportation Appeal Tribunal of Canada will not be able to schedule Hearings on a timely basis.
4. Significant Changes in Relation to Operations, Personnel and Programs
In 2012-2013, TATC's activities remained substantially the same as in the previous year. However, there is an increase in the number of requests for Review and Appeal Hearings, which can be attributed to the Marine sector.
5. Budget 2012 Implementation
TATC was not affected by any savings measures announced in Budget 2012.
However, in line with the Government's agenda to generate savings, TATC has implemented efficiency measures to reduce operating costs, while, at the same time, being challenged with a significant increase in the number of Marine Review and Appeal Hearings.
March 1, 2013
Chief Financial Officer, Transport Canada
March 1, 2013
Statement of Authorities (unaudited) (in dollars)
|Fiscal year 2012-2013||Fiscal year 2011-2012|
|Total available for use for the year ending March 31, 2013 * , **||Used during the quarter ended December 31, 2012||Year to date (YTD) used at quarter-end||Total available for use for the year ending March 31, 2012 *||Used during the quarter ended December 31, 2011||Year to date (YTD) used at quarter-end|
|Vote 55 - Operating expenditures||1,284,898||317,720||961,326||1,642,788||419,397||1,168,432|
|Budgetary statutory authorities: Employee Benefit Plan||126,878||31,720||95,160||129,762||32,440||97,321|
|*Includes only Authorities available for use and granted by Parliament at quarter end.
**Total available for use does not reflect measures announced in Budget 2012
Departmental Budgetary Expenditures by Standard Object (unaudited)
|*Planned expenditures do not reflect measures announced in Budget 2012
** Comparative figures have been reclassified to conform to the current year's presentation.
|Expenditures (in dollars):||Fiscal year 2012-2013||Fiscal year 2011-2012|
|Planned expenditures for the year ending March 31, 2013*||Expended during the quarter ended December 31, 2012**||Year to date used at quarter-end**||Planned expenditures for the year ending March 31, 2012||Expended during the quarter ended December 31, 2011**||Year to date used at quarter-end**|
|Transportation and communications||200,000||27,999||79,586||152,864||59,333||146,530|
|Professional and special services||309,000||100,346||317,863||447,316||144,922||423,094|
|Repair and maintenance||5,000||2,793||2,793||7,518||1,091||1,196|
|Utilities, materials and supplies||-||1,778||4,221||35,084||1,261||6,178|
|Acquisition of machinery and equipment||-||2,910||11,313||-||956||1,476|
|Total gross budgetary expenditures||1,411,776||349,440||1,056,486||1,772,550||451,837||1,265,753|
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