Quarterly Financial Report for the Quarter ended September 30, 2014

1. Introduction

This quarterly financial report has been prepared by the management of the Transportation Appeal Tribunal of Canada (the Tribunal) 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 the Supplementary Estimates A.

This quarterly report has not been subject to an external audit or review.

1.1 Authority, Mandate and Program Activities

A summary description of the Tribunal'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 the Tribunal's spending authorities granted by Parliament and those used by the Tribunal consistent with the Main Estimates and Supplementary Estimates (A) for the 2014-2015 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.

The Tribunal 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.

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.  The Tribunal's authorities available for use at the end of the second quarter of 2014-2015 decreased by $3,797 when compared to the same quarter of the previous fiscal year.  This is mainly explained by a decrease in the funding of contributions to employee benefit plans as a result of a decrease in the contribution rate compared to previous fiscal year.

The authorities used in the second quarter of 2014-2015, expressed as a percentage of authorities available for the whole year, were unchanged as compared to the second quarter of 2013-2014;  approximately 27% of authorities available for use were expended during the second quarter of both 2014-2015 and 2013-2014.  On a year to date basis authorities used were slightly greater in 2014-2015.  Approximately 55% of authorities available for use were expended at the end of the second quarter of 2014-2015 compared to 49% in 2013-2014.

In addition to its current available authorities, the Tribunal anticipates a transfer of $300,000 from Transport Canada in the current fiscal year through Supplementary Estimates B.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As at September 30, 2014, total year-to-date expenditures of the Tribunal increased by $83,333 when compared with the same period of 2013-2014.  This is primarily the result of:

  • Increase in Personnel expenditures by $23,283 due to the staffing of vacant positions;
  • Increase in Transportation and communications expenditures by $38,940 due to the expenditures incurred for the relocation of the newly appointed Vice-Chairperson;
  • Increase in Other subsidies and payments expenditures by $28,011 due to a one-time transition payment of $27,992 for implementing salary payment in arrears by the Government of Canada;

Offset by:

  • Other immaterial decreases in various expenditure categories.

3. Risks and Uncertainties

The Tribunal's Report on Plans and Priorities identifies the current risk environment and key risk areas to the achievement of its strategic outcomes.  Within this context, significant risks relative to the first quarter include the following: 

  • The pressure on resources from an unpredictable workload; and
  • 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 Canada's Economic Action Plan 2014, the Government announced its intention to create the Administrative Tribunals Support Service of Canada (ATSSC).  This new organization, which consolidates operations of several administrative tribunals, will provide support services to the Tribunal. 

The Economic Action Plan 2014 Act, No. 1 received Royal Assent on June 19, 2014 and ATSSC came into force on November 1, 2014. 

Effective November 1 2014, the Tribunal has retained its adjudication powers but has transferred all human and financial resources to the ATSSC. The net financial position that has been transferred is not known at this time.  The Tribunal's appropriation is now deemed to be ATSSC's appropriation.  

5. Budget 2012 Implementation

The Tribunal was not affected by any savings measures announced in Budget 2012.  However, in line with the Government's agenda to generate savings, the Tribunal has implemented efficiency measures to reduce operating costs.

Approved by:

John Badowski,
Acting Chairperson,
Transportation Appeal Tribunal of Canada
Ottawa, Canada
November 28, 2014

André Lapointe,
Chief Financial Officer,
Transport Canada
Ottawa, Canada
November 28, 2014

Statement of Authorities (unaudited)

Fiscal year 2014-2015 (in dollars)
  Total available for use for the year ending March 31, 2015 Note 1 Used during the quarter ended September 30, 2014 Year to date used at quarter-end
Vote 1 - Program expenditures 1,295,394 357,138 713,716
Budgetary statutory authorities      
Contributions to employee benefit plans 120,680 30,170 60,340
Total authorities 1,416,074 387,308 774,056
Fiscal year 2013-2014 (in dollars)
  Total available for use for the year ending March 31, 2014 Note 2 Used during the quarter ended September 30, 2013 Year to date used at quarter-end
Vote 1 - Program expenditures 1,293,021 356,628 627,298
Budgetary statutory authorities      
Contributions to employee benefit plans 126,850 31,713 63,425
Total authorities 1,419,871 388,341 690,723

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2014-2015 (in dollars)
Expenditures: Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended September 30, 2014 Year to date used  at quarter-end
Personnel 852,074 265,605 478,266
Transportation and communications 200,000 36,085 88,342
Information 25,000 - -
Professional and special services 309,000 79,398 167,727
RentalsNote 3 25,000 4,888 9,666
Repair and maintenance 5,000 - 126
Utilities, materials and supplies - 1,332 1,786
Acquisition of machinery and equipment - - 132
Other subsidies and payments - - 28,011
Total budgetary expenditures 1,416,074 387,308 774,056
Fiscal year 2013-2014 (in dollars)
Expenditures: Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended September 30, 2013 Year to date used  at quarter-end
Personnel 855,871 257,868 454,983
Transportation and communications 200,000 24,287 49,402
Information 25,000 - -
Professional and special services 309,000 97,120 170,943
RentalsNote 4 25,000 5,726 10,313
Repair and maintenance 5,000 - -
Utilities, materials and supplies - 3,340 4,822
Acquisition of machinery and equipment - - 260
Other subsidies and payments - - -
Total budgetary expenditures  1,419,871 388,341 690,723

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

A portion of the year to date expenditures for Rentals ($7,243) has been reclassified to Professional and Special Services to better reflect the nature of the expenditures.

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Note 4

A portion of the year to date expenditures for Rentals ($7,243) has been reclassified to Professional and Special Services to better reflect the nature of the expenditures.

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