Quarterly Financial Report for the Quarter ended December 31, 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 and B.

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) and (B) 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 third quarter of 2014-2015 decreased by $30,180 when compared to the same quarter of the previous fiscal year.  This is mainly explained by a decrease of the operating budget carry-forward when compared to the previous fiscal year.

The authorities used in the third quarter of 2014-2015, expressed as a percentage of authorities available for the whole year, decreased slightly as compared to the third quarter of 2013-2014. Approximately 26% of authorities available for use were expended during the third quarter of 2014-2015, whereas 27% were expended in the third quarter of 2013-2014.  On a year to date basis, authorities used were greater in 2014-2015 as approximately 80% of authorities available for use were expended at the end of the third quarter of 2014-2015 compared to 74% in 2013-2014.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As at December 31, 2014, total year-to-date expenditures of the Tribunal increased by $64,579 when compared with the same period of 2013-2014.  This is primarily the result of:

  • Increase in Transportation and communications expenditures by $45,696 due to the expenditures incurred for the relocation of the recently 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:

  • Decrease in Acquisition of machinery and equipment expenditures by $14,138 due to a reduction in purchase of informatics equipment and parts.

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 third 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. As shown in the notes to the Statement of Authorities and Expenditures by Standard Object tables below, the portion of expenditures from November 1st to December 31st is presented on behalf of ATSSC.

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
February 27, 2015

André Lapointe,
Chief Financial Officer
Transport Canada
Ottawa, Canada
February 27, 2015

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 December 31, 2014Note 2 Year to date used at quarter-end
Vote 1 - Program expenditures 1,333,256 352,011 1,065,727
Budgetary statutory authorities      
Contributions to employee benefit plans 120,680 30,170 90,510
Total authorities 1,453,936 382,181 1,156,237
Fiscal year 2013-2014 (in dollars)
  Total available for use for the year ending March 31, 2014Note 3 Used during the quarter ended
December 31, 2013
Year to date used at quarter-end
Vote 1 - Program expenditures 1,357,266 369,222 996,520
Budgetary statutory authorities      
Contributions to employee benefit plans 126,850 31,713 95,138
Total authorities 1,484,116 400,935 1,091,658

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 December 31, 2014Note 4 Year to date used  at quarter-end
Personnel 853,892 187,133 665,399
Transportation and communications 200,000 31,083 119,426
Information 25,000 5,157 5,157
Professional and special services 345,044 148,462 316,188
Rentals 25,000 6,428 16,094
Repair and maintenance 5,000 - 126
Utilities, materials and supplies - 3,419 5,205
Acquisition of machinery and equipment - 499 631
Other subsidies and payments - - 28,011
Total budgetary expenditures 1,453,936 382,181 1,156,237
Fiscal year 2013-2014 (in dollars)
Expenditures Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended December 31, 2013 Year to date used  at quarter-end
Personnel 855,871 221,757 676,740
Transportation and communications 200,000 24,328 73,730
Information 25,000 - -
Professional and special services 373,245 135,487 306,430
Rentals 25,000 4,921 15,234
Repair and maintenance 5,000 - -
Utilities, materials and supplies - (67) 4,755
Acquisition of machinery and equipment - 14,509 14,769
Other subsidies and payments - - -
Total budgetary expenditures  1,484,116 400,935 1,091,658

Notes

Note 1

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

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Note 2

Includes amounts used on behalf of ATSSC of $242,551 for program expenditures and $20,113 for employee benefit plans, for the period of November 1st to December 31st, 2014.

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Note 3

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

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Note 4

Includes amounts used on behalf of ATSSC  of $262,664 distributed as follows:

  • Personnel : 105 278$
  • Transportation and communications : 22 887$
  • Information : 5 157$
  • Professional and special services : 123 925$
  • Rentals : 4 579$
  • Utilities, materials and supplies: 339$
  • Acquisition of machinery and equipment : 499$

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