Quarterly Financial Report for the Quarter ended September 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 second 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 second quarter of 2013-2014 for program expenditures and statutory items increased by $25,712 when compared with the same quarter of 2012-2013.

The authorities used in the second quarter of 2013-2014, expressed as a percentage of authorities available for the whole year, were slightly greater than the second quarter of 2012-2013. Approximately 27% of authorities available for use were expended during the second quarter of 2013-2014, whereas 26% were expended in the second quarter of 2012-2013.  On a year to date basis authorities used remained fairly consistent.  Approximately 49% of authorities available for use were used at the end of the second quarter of 2013-2014 compared to 50% in 2012-2013.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As at September 30, 2013, total year-to-date expenditures of TATC decreased by $16,323 when compared with the same period of 2012-2013. This is primarily the result of:

  • Decrease in Professional and special services expenditures by $46,574:
    The variance is mainly explained by a reduction in the use of temporary help;
  • Decrease in Acquisition of machinery and equipment expenditures by $8,143:
    This variance is mainly explained by the acquisition and installation of a new server in the previous fiscal year;

Offset by:

  • Increase in Personnel expenditures by $35,367:
    This variance is mainly explained by the hiring of an editor and legal counsel in the current fiscal year;
  • Other immaterial increases in various expenditure categories.

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, significant risks relative to the second quarter include the following: 

The pressure on resources from an unpredictable workload.

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, TATC's activities remained substantially the same as in the previous year.  The number of Review and Appeal Hearings from the Marine sector has stabilized.

The term of TATC's Chairperson will end on November 22, 2013. Plans for his succession have not yet been finalized.

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
November 7, 2013

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

Statement of Authorities (unaudited) (in dollars)

  Fiscal year 2013-2014 Fiscal year 2012-2013
Total available for use for the year ending March 31, 2014 Note 1 Used during the quarter ended September 30, 2013 Year to date (YTD) used at quarter-end Total available for use for the year ending March 31, 2013 Note 2, Note 3 Used during the quarter ended September 30, 2012 Year to date (YTD) used at quarter-end
Vote 55 - Program expenditures 1,293,021 356,628 627,298 1,284,898 330,909 643,606
Budgetary statutory authorities            
Contributions to employee benefit plans 126,850 31,713 63,425 126,878 31,720 63,440
Total authorities 1,419,871 388,341 690,723 1,411,776 362,629 707,046

Departmental Budgetary Expenditures by Standard Object (unaudited) (in dollars)

Expenditures Fiscal year 2013-2014 Fiscal year 2012-2013
Planned expenditures for the year ending March 31, 2014 Expended during the quarter   ended September 30, 2013 Year to date used  at quarter-end Planned expenditures for the year ending March 31, 2013 Note 4 Expended during the quarter ended September 30, 2012 Note 5 Year to date used  at quarter-end Note 6
Personnel 855,871 257,868 454,983 847,776 202,129 419,616
Transportation and communications 200,000 24,287 49,402 200,000 29,282 51,587
Information 25,000 - - 25,000 - 238
Professional and special services 309,000 97,120 170,943 309,000 119,838 217,517
Rentals 25,000 5,726 10,313 25,000 3,641 7,242
Repair and maintenance 5,000 - - 5,000 - -
Utilities, materials and supplies - 3,340 4,822 - 611 2,443
Acquisition of machinery and equipment - - 260 - 7,128 8,403
Total budgetary expenditures 1,419,871 388,341 690,723  1,411,776 362,629 707,046

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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Note 5

Comparative figures have been reclassified to conform to the current year's presentation.

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Note 6

Comparative figures have been reclassified to conform to the current year's presentation.

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