National Energy Board - 2014-2015 Departmental Performance Report - Section III: Supplementary Information

Section III: Supplementary Information

Financial Statements Highlights

The National Energy Board operates on a full accrual accounting basis according to Treasury Board’s policy for reporting based on generally accepted accounting principles (GAAP). The tables below provide highlights from the NEB’s Statement of Operations and Statement of Financial Position, as presented in its 2014-15 financial statements. As such, differences do exist between these tables and those presented in other sections of the Departmental Performance Report, which are prepared on the modified cash basis of accounting.



Condensed Statement of Operations (unaudited)
For the Year Ended March 31, 2015
(dollars)
Financial Information 2014-15
Planned Results
2014-15
Actual
2014-15
Actual
Difference
(2014-15
actual
minus
2013-14
planned)
Difference
(2014-15
actual
minus
2013-14
actual)
Total expenses 87,156,971 90,281,795 82,149,942 3,124,824 8,131,853
Total revenues - - - - -
Net cost of operations before government funding and transfers 87,156,971 90,281,795 82,149,942 3,124,824 8,131,853

The variance between 2014-15 actual and planned expenditures relates to additional funding received in 2014-15 to cover expenses related to mega-hearings. The significant increase in actual expenditures from the previous year is the result of increased funding related to the mega-hearings ($2.0 million) as well as a one-time salary expense due to the elimination of the employee severance pay program in 2014-15 ($4.2 million). The NEB office relocation in 2014-15 affected various O&M expenditures, and accounts for the remaining difference.

Condensed Statement of Financial Position (unaudited)
As at March 31, 2015
(dollars)
Financial Information 2014-15 2013-14 Difference
(2014-15
minus
2013-14)
Total net liabilities 28,439,130 19,896,326 8,542,804
Total net financial assets 11,847,875 9,346,755 2,501,120
Departmental net debt 16,591,255 10,549,571 6,041,684
Total non-financial assets 24,928,416 15,837,020 9,091,396
Departmental net financial position 8,337,161 5,287,449 3,049,712

The NEB's net liabilities include short-term accounts payable and accrued liabilities as well as employee leave and severance allowances. In 2014-15, there was an additional payable of $11 million, representing levies collected from newly regulated parties under Section 5.2(1) of the National Energy Board Cost Recovery Regulations. These amounts reduce the cost recovery levies of other regulated parties and are recorded as payables to these parties until this adjustment is made in the year after the Section 5.2(1) of the National Energy Board Cost Recovery Regulations levy has been invoiced. The $8.5 million variance in 2014-15 net liabilities over the previous year is primarily the combination of this payable and the decrease in severance allowance related to the elimination of the severance pay program in 2014-15.

The difference in net financial assets is the result of an increase in receivables due from the consolidated revenue fund to cover year-end salary accruals resulting from the implementation of salary payment in arrears by the Government of Canada in 2014-15.

The increase in non-financial assets over the previous year is the result of the NEB office relocation that occurred in 2014-15.

Financial Statements

The NEB’s Financial Statements can be found on the NEB’s website.

Supplementary Information Tables

The supplementary information tables listed in the 2014-15 Departmental Performance Report are available on the National Energy Board’s website:

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the responsibility of the Minister of Finance.

 

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