Quarterly Financial Report for the Quarter ended June 30, 2013

1. Introduction

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 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 for the 2013-2014 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 moneys 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 first quarter of 2013-2014 increased by $8,095 when compared to the same quarter of the previous fiscal year. This is explained by additional funding received from the Treasury Board Secretariat for collective bargaining.

The authorities used during the first quarter of 2013-2014 for program expenditures and statutory items decreased by $42,035 when compared with the same quarter of 2012-2013.

This statement also illustrates that the authorities used in the first quarter of 2013-2014, expressed as a percentage of authorities available for the whole year, were slightly lower than the first quarter of 2012-2013. Approximately 21% of authorities available for use were expended during the first quarter of 2013-2014, whereas 24% were expended in the first quarter of 2012-2013.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

In the quarter ended June 30, 2013 total expenditures of the TATC decreased by $42,035 when compared with the same period of 2012-2013. This is primarily the result of:

  • Decrease in Personnel expenditures by $20,372:
    This variance is mainly explained by the temporary vacancies created by the departure of employees, which have remained unfilled;
  • Increase in Transportation and communication expenditures by $2,810:
    This variance is mainly explained by an increase in travel expenses incurred by Tribunal Members to attend Hearings;
  • Decrease in Professional and special services expenditures by $23,856:
    The variance is mainly explained by a reduction in the use of temporary help.

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 risks relative to the first quarter include the following: 

The Tribunal's main risk is the added pressure on its resources from an increased and unpredictable workload, mainly from more enforcement proceedings from the marine sector.

Another significant risk is the number of Members available to conduct Hearings and their skill sets. In order to deliver on its mandate and program, the Tribunal needs to have Members with the right mix of skills and talents in the various modes of the transportation sector, as well as legal and medical expertise.

4. Significant Changes in Relation to Operations, Personnel and Programs

In 2013-2014 the TATC's activities remained substantially the same as in the previous year.  However, the number of Review and Appeal Hearings continues to increase, 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.

Approved by:

Richard Hall,
Chairperson, TATC
Ottawa, Canada
August 29, 2013

André Morency,
Chief Financial Officer, Transport Canada
Ottawa, Canada
August 29, 2013

Statement of Authorities (unaudited)

Fiscal year 2013-2014 (in dollars)
  Total available for use for the year ending March 31, 2014 Note 1 Used during the quarter ended June 30, 2013 Year to date (YTD) used at quarter-end
Vote 55 - Program expenditures 1,293,021 270,670 270,670
Budgetary statutory authorities      
Contributions to employee benefit plans 126,850 31,712 31,712
Total authorities 1,419,871 302,382 302,382
Fiscal year 2012-2013 (in dollars)
  Total available for use for the year ending March 31, 2013 Note 2, Note 3 Used during the quarter ended June 30, 2012 Year to date (YTD) used at quarter-end
Vote 55 - Program expenditures 1,284,898 312,697 312,697
Budgetary statutory authorities      
Contributions to employee benefit plans 126,878 31,720 31,720
Total authorities 1,411,776 344,417 344,417

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2013-2014 (in dollars)
Expenditures: Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended June 30, 2013 Year to date used at quarter-end
Personnel 855,871 197,115 197,115
Transportation and communications 200,000 25,115 25,115
Information 25,000 - -
Professional and special services 309,000 73,823 73,823
Rentals 25,000 4,587 4,587
Repair and maintenance 5,000 - -
Utilities, materials and supplies - 1,482 1,482
Acquisition of machinery and equipment - 260 260
Total budgetary expenditures 1,419,871 302,382 302,382
Fiscal year 2012-2013 (in dollars)
Expenditures: Planned expenditures for the year ending March 31, 2013 Note 4 Expended during the quarter ended June 30, 2012 Year to date used  at quarter-end
Personnel 847,776 217,487 217,487
Transportation and communications 200,000 22,305 22,305
Information 25,000 238 238
Professional and special services 309,000 97,679 97,679
Rentals 25,000 3,601 3,601
Repair and maintenance 5,000 - -
Utilities, materials and supplies - 1,832 1,832
Acquisition of machinery and equipment - 1,275 1,275
Total budgetary expenditures  1,411,776 344,417 344,417

Notes

Note 1

Includes only Authorities available for use and granted by Parliament at quarter end.

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Note 2

Includes only Authorities available for use and granted by Parliament at quarter end.

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Note 3

Total available for use does not reflect measures announced in Budget 2012.

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Note 4

Planned expenditures do not reflect measures announced in Budget 2012.

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