Quarterly financial report for the quarter ended June 30, 2017

ISSN 2369-7938

Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates.

The Transportation Safety Board's (TSB) sole objective is to advance transportation safety. This mandate is fulfilled by conducting independent investigations into selected transportation occurrences. The purpose of these investigations is to identify the causes and contributing factors and the safety deficiencies evidenced by an occurrence. The TSB then reports publicly and makes recommendations to improve safety and reduce or eliminate risks to people, property and the environment.

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

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Transportation Safety Board's spending authorities granted by Parliament and those used by the department. Authorities include amounts granted through the Main Estimates for the 2017-18 fiscal year and any respendable revenue earned and available for use to quarter end. 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.

As part of the departmental performance reporting process, the TSB prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date results

Statement of authorities

TSB's total authorities available for use decreased by $381,000 between fiscal years 2017-18 and 2016-17. This is primarily explained by a $307,000 decrease as a result of a lower Employee Benefit Plan (EBP) percentage, which is a rate set annually by the Treasury Board Secretariat. The TSB's authorities are further reduced by a $65,000 government-wide budget reduction for professional services, advertising and travel. This reduction was imposed last year as well, but was not removed from the TSB's authorities until the third quarter. The remaining difference of $9,000 is due to slightly lower respendable revenues earned this year compared to previous year.

Statement of departmental budgetary expenditures

The department's quarterly and year-to-date spending are lower by $254,000 or 4% in the current year compared to 2016-17. This difference is mainly due to less expenditures in the personnel category as a result of the lower EBP rate set by Treasury Board Secretariat for 2017-18 as well as fewer severance payments for retired employees in the first quarter of 2017-18 compared to previous year. In addition, delayed billing for compensation services agreements and laboratory maintenance agreements has caused a timing delay in other expenditure categories.

As illustrated in Figure 1, the TSB has spent approximately 23% of its authorities at the end of the first quarter. This is consistent with expectations given that the department's most significant expense is salaries. The TSB's spending is generally distributed equally throughout the year.

Figure 1. First quarter expenditures compared to annual authorities

Risks and uncertainties

The TSB is experiencing a number of resource pressures in 2017-18, most notably the retroactive payouts for newly signed and ratified collective agreements, the majority of which the TSB is expected to cover using its existing appropriations. Although these payouts were anticipated and specific funds were earmarked in the form of carry forward funding from previous years, the settlements were ultimately higher than expected. The TSB is currently working with Treasury Board Secretariat analysts in order to seek a solution to this funding shortfall.

A continuous risk to TSB's financial situation is that expenditures are greatly influenced by the number and complexity of transportation occurrences. A significant transportation accident or a flurry of smaller size occurrences could significantly increase expenditures and result in additional resource pressures that could require the department to seek further funding from Parliament.

As a departmental corporation, the TSB has authority to spend revenues received during the year although such revenues are minimal; on average less than 1% of the department's funding requirements.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs in the current year.

Approval by senior officials

Approved by,

Original signed by
Kathleen Fox
Chair

August 31, 2017
Date
Gatineau, Canada

Original signed by
Luc Casault, CPA, CGA
Chief Financial Officer

August 31, 2017
Date
Gatineau, Canada

Statement of authorities (unaudited)

Fiscal year 2017-18 (in thousands of dollars)Footnote 1
  Total available
for use for the
year ending March 31, 2018
Expended during the quarter ended June 30, 2017 Year to date used at quarter-end
Main Estimates: Vote 1 - Net operating expenditures 26,202 5,963 5,963
Main Estimates: Statutory authorities - Employee Benefit Plans 3,214 804 804
Statutory authorities - Spending of proceeds from the disposal of surplus Crown assets 11 - -
Statutory authorities - Expenditures Paragraph 29.1(1) of the Financial Administration Act 6 - -
Total authorities available for use 29,433 6,767 6,767
Fiscal year 2016-17 (in thousands of dollars)Footnote 1
  Total available
for use for the
year ending March 31, 2017
Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Main Estimates: Vote 1 - Net operating expenditures 26,267 6,141 6,141
Main Estimates: Statutory authorities - Employee Benefit Plans 3,521 880 880
Statutory authorities - Spending of proceeds from the disposal of surplus Crown assets 10 - -
Statutory authorities - Expenditures Paragraph 29.1(1) of the Financial Administration Act 16 - -
Total authorities available for use 29,814 7,021 7,021

Statement of expenditures by standard object (unaudited)

Fiscal year 2017-18 (in thousands of dollars)Footnote 1
Expenditures Planned expenditures
for the year ending
March 31, 2018
Expended during the
quarter ended June 30, 2017
Year to date used at
at quarter-end
Personnel 23,688 6,067 6,067
Transportation and communications 1,630 234 234
Information 148 45 45
Professional and special services 2,519 195 195
Rentals 453 129 129
Repair and maintenance 413 6 6
Utilities, materials and supplies 209 65 65
Acquisition of land, building and works 63 - -
Acquisition of machinery and equipment 310 26 26
Total net budgetary expenditures 29,433 6,767 6,767
Fiscal year 2016-17 (in thousands of dollars)Footnote 1
Expenditures Planned expenditures
for the year ending
March 31, 2017
Expended during the
quarter ended June 30, 2016
Year to date used at
at quarter-end
Personnel 23,995 6,257 6,257
Transportation and communications 1,521 277 277
Information 138 20 20
Professional and special services 2,362 249 249
Rentals 394 111 111
Repair and maintenance 412 55 55
Utilities, materials and supplies 230 33 33
Acquisition of land, building and works 120 4 4
Acquisition of machinery and equipment 642 15 15
Total net budgetary expenditures 29,814 7,021 7,021

Footnotes

Footnote 1

Includes only authorities granted by Parliament at quarter end.

Return to footnote 1 referrer