Quarterly financial report for the quarter ended June 30, 2024

Introduction

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

The Transportation Safety Board of Canada’s (TSB’s) sole objective is to advance air, marine, pipeline and rail transportation safety. This mandate is fulfilled by conducting independent investigations into selected transportation occurrences to identify the causes and contributing factors, and the safety deficiencies evidenced by these occurrences. The TSB makes recommendations to reduce or eliminate any such safety deficiencies and reports publicly on its investigations. The TSB then follows up with stakeholders to ensure that safety actions are taken to reduce risks and improve safety.

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 TSB’s spending authorities granted by Parliament and those used by the department. Authorities include amounts granted through the Main Estimates and Supplementary Estimates (as applicable) for the 2024-25 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.

TSB uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. 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

The TSB’s total authorities available for use increased by 5.2M dollars between fiscal years 2023-24 and 2024-25. This significant increase is mainly due to newly acquired funding obtained through Budget 2023, which provided funding for critical TSB operations, most notably the hiring of new investigators as well as funds for crucial IT investments. The TSB also received funding for employee salary increases resulting from newly signed and ratified collective bargaining agreements.  These increases are slightly offset by government-wide savings as part of the Government of Canada’s Refocusing Government Spending initiative.

Statement of Departmental Budgetary Expenditures

The department’s quarterly and year-to-date spending are higher by 1.2M dollars or 15% in the current year compared to 2023-24. The variance in expenditures is almost completely explained by an increase in salaries, which is driven by two factors described above: the hiring of new employees in accordance with the new funding obtained in Budget 2023, as well as salary increases as per newly signed and ratified collective bargaining agreements.   

As illustrated in Figure 1, the TSB has spent approximately 23% of its available authorities at the end of the first quarter. This is slightly lower than expected, given that the department's most significant expense is salaries. As the year progresses, this percentage is expected to increase more rapidly as the TSB completes its staffing of new positions funded by Budget 2023.

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Risks and uncertainties

A continuous risk to the 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

Budget 2023 introduced new funding for critical TSB operations.  This included funding for the hiring of 22 new full-time equivalents and for crucial IT investments.  In addition, the TSB is also implementing savings measures in line with the Government of Canada’s Refocusing Government Spending initiative.

In relation to operations, TSB employees are currently working in a hybrid work environment in line with the Direction on Prescribed Presence in the Workplace.

There has been no change to the TSB’s programs.

Approval by senior officials

Approved by                                              

Yoan Marier
Chair
Gatineau (Quebec)                                                   

Jennifer Chau, CPA, CMA
A/Chief Financial Officer
Gatineau (Quebec)

Statement of Authorities (unaudited)

¹ Includes only authorities granted by Parliament at quarter end.

Statement of Expenditures by Standard Object (unaudited)

¹ Refer to footnote 1 on previous page.