Quarterly Financial Report for the quarter ended December 31st, 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 and Supplementary Estimates (A) and (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 (A) and (B) 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 third quarter of 2013-2014 increased by $72,340 when compared to the same quarter of the previous fiscal year. This is explained mainly by an increase of the operating budget carry-forward when compared to previous fiscal year.

The authorities used during the third quarter of 2013-2014 for program expenditures and statutory items increased by $51,495 when compared with the same quarter of 2012-2013.

The authorities used in the third quarter of 2013-2014, expressed as a percentage of authorities available for the whole year, were slightly greater than the third quarter of 2012-2013. Approximately 27% of authorities available for use were expended during the third quarter of 2013-2014, whereas 25% were expended in the third quarter of 2012-2013.  Year to date authorities used remained fairly consistent.  Approximately 74% of authorities available for use were utilized at the end of the third quarter of 2013-2014 compared to 75% in 2012-2013.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As at December 31, 2013, total year-to-date expenditures of TATC increased by $35,172 when compared with the same period of 2012-2013. This is primarily the result of:

  • Increased Personnel expenditures of $52,727:

This variance is mainly a result of staffing vacant positions, and payment of severance benefits.

Offset by:

  • A decrease in Professional and special services expenditures of $11,433, largely due to a reduction in the use of temporary help; and
  • A decrease in Transportation and telecommunications expenditures of $5,856, attributed mainly to a reduction in travel expenses for hearings.

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 third 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 ended on November 22, 2013. A staffing process is currently taking place in order to fill this position.

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:

John Badowski,
Vice-Chairperson, TATC

André Morency,
Chief Financial Officer, Transport Canada                

Ottawa, Canada
February 28, 2014

Statement of Authorities (unaudited)

  Fiscal year 2013-2014  (in dollars) Fiscal year 2012-2013  (in dollars)
Total available for use for the year ending March 31, 2014Note 1 Used during the quarter ended  December 31, 2013 Year to date (YTD) used at quarter-end Total available for use for the year ending March 31, 2013Note 2, Note 3 Used during the quarter ended December 31, 2012 Year to date (YTD) used at quarter-end
Vote 55 - Program expenditures 1,357,266 369,222 996,520 1,284,898 317,720 961,326
Budgetary statutory authorities  
Contributions to employee benefit plans 126,850 31,713 95,138 126,878 31,720 95,160
Total authorities 1,484,116 400,935 1,091,658 1,411,776 349,440 1,056,486

Departmental Budgetary Expenditures by Standard Object (unaudited)

Expenditures Fiscal year 2013-2014  (in dollars) Fiscal year 2012-2013  (in dollars)
Planned expenditures for the year ending March 31, 2014 Expended during the quarter        ended December 31, 2013 Year to date used  at quarter-end Planned expenditures for the year ending March 31, 2013Note 4 Expended during the quarter ended December 31, 2013Note 5 Year to date used  at quarter-endNote 6
Personnel 855,871 221,757 676,740 847,776 204,397 624,013
Transportation and communications 200,000 24,328 73,730 200,000 27,999 79,586
Information 25,000 - - 25,000 - 238
Professional and special services 373,245 135,487 306,430 309,000 100,346 317,863
Rentals 25,000 4,921 15,234 25,000 9,217 16,459
Repair and maintenance 5,000 - - 5,000 2,793 2,793
Utilities, materials and supplies - (67) 4,755 - 1,778 4,221
Acquisition of machinery and equipment - 14,509 14,769 - 2,910 11,313
Total budgetary expenditures 1,484,116 400,935 1,091,658  1,411,776 349,440 1,056,486

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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