Quarterly Financial Report of Transport Canada (Unaudited) - For the quarter ended June 30, 2015
Table of contents
- Statement outlining results, risks and significant changes in operations, personnel and program
- 1. Introduction
- 2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results
- 3. Risks and Uncertainties
- 4. Significant Changes in Relation to Operations, Personnel and Programs
- Statement of Authorities (Unaudited)
- Departmental Budgetary Expenditures by Standard Object (Unaudited)
Statement outlining results, risks and significant changes in operations, personnel and program
This quarterly financial 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 Accounting Standard 1.3. The quarterly report should be read in conjunction with the Main Estimates and 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 Transport Canada's program activities is presented 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 Transport Canada's spending authorities granted by Parliament and those used by the Department consistent with the Main Estimates and Supplementary Estimates (A) for the 2015-16 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.
Transport Canada 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. 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
Transport Canada's total authorities available for use increased by approximately $2 million, from $1,656 million as of June 30, 2014 to $1,658 million as of June 30, 2015, as summarized below:
Changes in Authorities:
|Description||(in millions of dollars)|
|Vote 1 – Operating expenditures||37|
|Vote 5 – Capital expenditures||19|
|Vote 10 – Grants and contributions||(90)|
|Budgetary statutory authorities||36|
|Total change in authorities||2|
Note: Totals may not add or may not agree with details provided elsewhere due to rounding.
The Statement of Authorities attached at the end illustrates the total authorities available for use, the authorities used for the quarter and the year-to-date authorities used for the current fiscal year as well as the comparative figures for the previous year. The major year-to-year changes for the quarter ended June 30, 2015 are explained below.
2.1.1 Vote 1 – Operating expenditures (increase of $37M)
Planned operating authorities increased by $37 million from 2014-2015 to 2015-2016 mostly explained by the following factors:
Increase in planned spending in new funding from Budget 2014 and the fiscal framework of:
- $18 million for the Port Assets Management Program;
- $10 million for the Ferry Services Program; and
- $10 million as a result of the ratification of various collective agreements.
2.1.2 Vote 5 – Capital expenditures (increase of $19M)
Capital expenditures authorities increased by $19 million from 2014-15 to 2015-16, largely explained by the following factors:
Increase in planned spending of:
- $58 million to upgrade several federally-owned airports and to retrofit an ecoTECHNOLOGY vehicles facility; and
- $10 million in new funding from Budget 2014 for the Ferry Services Program.
Offset by decrease in planned spending of:
- $42 million for the Gordie Howe International Bridge project mostly as a result of a transfer of funds to the Windsor-Detroit Bridge Authority to deliver a new publicly-owned bridge at this crucial border crossing; and
- $7 million for various other projects.
2.1.3 Vote 10 – Grants and contributions (decrease of $90M)
Grants and contributions authorities decreased by $90 million from 2014-15 to 2015-16, largely explained by the following factors:
Decrease in planned spending of:
- $95 million for the Asia Pacific Gateways and Corridors Transportation Infrastructure Fund, as the program approaches its maturity date;
- $15 million for the transfer to Canada Border Services Agency for the renewal of border facilities and related infrastructure;
- $7 million for the Outaouais Road Development Agreement;
- $7 million for Contributions to Support the Clean Transportation Initiatives; and
- $6 million for the sun-setting of funding for the Oshawa Harbour Port Consolidation project.
Offset by increase in planned spending in new funding from Budget 2014 of:
- $18 million for the Ferry Services Contribution Program;
- $13 million for the Gateways and Border Crossings Fund;
- $7 million for the Oceans Networks Canada – Smart Oceans Contribution Program; and
- $4 million for the Contribution Program for the Centre of Excellence for Marine Transportation of Oil and Liquefied Natural Gas.
2.1.4 Budgetary statutory authorities (increase of $36M)
The budgetary statutory authorities increased by $36 million mainly as a result of an increase of $32 million in capital and operating requirements associated with the St. Lawrence Seaway and an increase of $3 million for the department's Employee Benefit Plan.
2.2 Statement of Departmental Budgetary Expenditures by Standard Object
The statement of Departmental Budgetary Expenditures by Standard Object attached at the end illustrates the annual planned expenditures, the expenditures for the quarter and the year-to-date expenditures for the current fiscal year as well as the comparative figures for the previous year. Overall, the year-to-date expenditures at the end of the first quarter of 2015-16 represent 15% of the annual planned expenditures, compared to 14% in 2014-15.
Historically, most spending on high-dollar value, major infrastructure grants and contribution programs occurs in the fourth quarter. This is due to the fact that the majority of recipients submit their claims for reimbursement in the last quarter following the summer and fall construction period.
The major year-to-year variances as at June 30, 2015 are as follows:
- Professional and special services
- Acquisitions of land, buildings and works
- Acquisitions of machinery and equipment
- Transfer payments
- Other subsidies and payments
3. Risks and Uncertainties
Transport Canada maintains a Corporate Risk Profile which identifies and assesses high-level risks that could affect the achievement of the Department's objectives and priorities. The identification of risks and the development of risk responses contribute to making decisions related to setting departmental priorities, planning, allocating resources, developing policies, managing programs and reporting on performance. Additional information regarding the Department's key risk areas is presented in the Report on Plans and Priorities.
Certain risks could have financial impacts should they materialize, for example many factors affecting the timing of transfer payments lie outside the control of the Department and could require funds to be re-profiled to future years. To minimize these impacts, the Department continuously monitors its program funding and expenditures, including a monthly senior management review of plans and forecasts.
4. Significant Changes in Relation to Operations, Personnel and Programs
On June 26, 2015, the Prime Minister announced the appointment of Jean-François Tremblay to the position of Deputy Minister of Transport, Infrastructure and Communities, effective July 20, 2015.
Original signed by
Acting as Deputy Minister
August 24, 2015
Original signed by
Chief Financial Officer
August 14, 2015
Statement of Authorities (Unaudited)
|Statement of Authorities (Unaudited) (in thousands of dollars)||Fiscal year 2015-2016||Fiscal year 2014-2015|
|Total available for use for the year ending March 31, 2016 (1)||Used during the quarter ended June 30, 2015||Year-to-date used at quarter-end||Total available for use for the year ending March 31, 2015 (1)||Used during the quarter ended June 30, 2014||Year-to-date used at quarter-end|
|Vote 1 – Operating expenditures||632,048||141,380||141,380||600,566||143,305||143,305|
|Vote 1 – Revenues credited to the vote||(80,923)||(13,752)||(13,752)||(86,667)||(17,333)||(17,333)|
|Vote 5 – Capital expenditures||165,177||3,583||3,583||145,753||1,556||1,556|
|Vote 10 – Grants and contributions||667,887||20,152||20,152||757,957||11,265||11,265|
|Budgetary statutory authorities|
|Contributions to employee benefit plans||71,192||-||-||68,507||-||-|
|Minister of Transport – Salary and motor car allowance||82||41||41||80||40||40|
|Refunds of amounts credited to revenues in previous years||-||7||7||-||-||-|
|Payments to the Canadian National Railway Company – Victoria Bridge, Montreal||3,300||165||165||3,300||116||116|
|Northumberland Strait Crossing Subsidy Payment||63,789||62,335||62,335||62,836||61,733||61,733|
|Payments in respect of St. Lawrence Seaway Agreements||135,300||36,600||36,600||103,350||28,600||28,600|
(1) Includes only Authorities available for use and granted by Parliament at quarter end.
Departmental Budgetary Expenditures by Standard Object (Unaudited)
Departmental Budgetary Expenditures by Standard Object
(Unaudited) (in thousands of dollars)
|Fiscal year 2015-2016||Fiscal year 2014-2015|
|Planned expenditures for the year ending March 31, 2016||Expended during the quarter ended June 30, 2015||Year-to-date expended at quarter-end||Planned expenditures for the year ending March 31, 2015||Expended during the quarter ended June 30, 2014||Year-to-date expended at quarter-end|
|Transportation and communications||27,543||7,765||7,765||26,885||5,901||5,901|
|Professional and special services||145,542||13,076||13,076||119,074||11,469||11,469|
|Repair and maintenance||13,123||489||489||15,259||1,483||1,483|
|Utilities, materials and supplies||16,893||3,628||3,628||15,091||3,388||3,388|
|Acquisition of land, buildings and works||119,903||152||152||91,883||418||418|
|Acquisition of machinery and equipment||30,041||5,321||5,321||53,871||1,953||1,953|
|Other subsidies and payments||143,737||36,253||36,253||103,350||43,204||43,204|
|Total gross budgetary expenditures||1,738,775||264,263||264,263||1,742,349||246,615||246,615|
|Less revenues netted against expenditures:|
|Total Revenues netted against expenditures:||(80,923)||(13,752)||(13,752)||(86,667)||(17,333)||(17,333)|
|Total net budgetary expenditures||1,657,852||250,511||250,511||1,655,682||229,282||229,282|
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