Quarterly Financial Report - For the quarter ended September 30, 2016

Quarterly Financial Report - For the quarter ended September 30, 2016 [PDF 127 KB]

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

The quarterly financial report for the National Energy Board (NEB or Board):

  • should be read in conjunction with the Main Estimates and Supplementary Estimates;
  • 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; and
  • has not been subject to an external audit or review.

A summary description of the NEB’s program activities can be found in Part II of the Main Estimates.

The Board’s strategic priorities are: Leading Regulatory Excellence, Taking Action on Safety and Engaging with Canadians.

The NEB receives its funding through annual Parliamentary authorities.  The majority of expenditures are subsequently recovered from the companies regulated by the NEB and the funds are deposited in the Consolidated Revenue Fund of the Government of Canada.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the National Energy Board’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for the 2016-17 fiscal years. 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.

The National Energy Board 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.

Highlights of Fiscal Quarter and Fiscal Year to Date Results

Planned expenditures analysis

As reflected in the Statement of Authorities, the department’s planned expenditures in the fiscal year as at March 31, 2017 is $92.70 million, as compared to $79.8 million as at March 31, 2016. The increase of $12.9 million is primarily due to the net impact of an increase of $17 million for Energy Transportation Infrastructure (Budget 2015) and a decrease of $5.5million for Regulatory reviews of Mega energy projects (Budget 2014).

Please note that both the previous two fiscal years have included operational budget carry forward of $3.3 million and $3.0 million in 2016-17 and 2015-16, respectively.

Actual Expenditures analysis

As reflected in the Departmental Budgetary Expenditures by Standard Object, the total budgetary authority used in the year to September 30, 2016 is $38.1 million, as compared to $36.2 million for the same period last year. The increase of $1.9 million in actual expenditures is primarily due to the following:

  • Personnel expenditures to date increased by $0.87 million as compared to the same period last year primarily due to an increase of statutory spending of $0.33 M as a result of funding received for Energy Transportation Infrastructure, $0.20 million for new hiring as well as a $0.35 million of salaries month end accrual.
  • Information to date increased by $0.13 million as compared to the same period last year primarily due to an increase of usage of audio services.
  • Professional and special services to date increased by $1.31 million as compared to the same period last year. This is mainly associated to an increase of IT services of $0.56 million for Government of Canada Initiatives, such as PeopleSoft, consulting services of $0.20 million for change management, $0.10 million for modifications for Provincial Modeling (Energy Future Report), $0.10 million for executive search services and assessment of candidates as well as translation costs of $0.11 million mainly related to Trans Mountain Pipeline Expansion Project (TMX) and Financial Regulatory Audit Reports.
  • Rentals to date decreased by $0.36 million as compared to the same period last year primarily related to a decrease of $0.09 million for Human Resource Information Systems (HRIS) and the Vancouver office lease and a decrease of hotel room of $0.26 million in 2015-16 related to the TMX hearing process.
  • Acquisition of machinery and equipment to date increased by $0.10 million as compared to the same period last year primarily due to purchasing related to IT equipment such as workstations and monitors for operational needs.
  • Transfer payments to date decreased by $0.15 million as compared to the same period last year related to fewer Participant Funding Program payments in 2016-17.

Risks and Uncertainties

Due to the nature of its mandate, the NEB’s expenditures are influenced by planned and unplanned events (internal and external) that create uncertainty in expenditure and resource pressures. The NEB’s responsibilities are not only shaped by emerging energy trends, but also by the proactive consideration of safety, environmental, societal and economic trends that may influence the NEB’s ability to carry out its responsibilities in the Canadian public interest.

Significant Changes in Relation to Operations, Personnel and Programs

The National Energy Board is developing a new results framework and is aligning resources and structure of the organization to priorities and results.   

Approval by Senior Officials

Approved by,

The original version was signed by
_________________________________
C. Peter Watson, P.Eng.
Chair and CEO

(Calgary, Canada)
(20 November 2016)

The original version was signed by
_________________________________
Paula Futoransky
Chief Financial Officer

STATEMENT OF AUTHORITIES
(unaudited)

Fiscal year 2016-2017 and Fiscal year 2015-2016
(in thousands
of dollars)
Fiscal year 2016-2017 Fiscal year 2015-2016
  Planned expenditures for the year ending March 31, 2017Table Note a Expended during the quarter ended September 30, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016Table Note a Expended during the quarter ended September 30, 2015 Year to date used at quarter-end
Vote 1 – Net Operating Expenditures 83,860 17,154 33,724 71,610 16,362 32,090
Contributions to employee benefit plans 8,844 2,211 4,422 8,184 2,046 4,092
Total Budgetary authorities 92,704 19,365 38,146 79,794 18,408 36,182
Non-budgetary authorities            
Total authorities 92,704 19,365 38,146 79,794 18,408 36,182

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2016-2017 and Fiscal year 2015-2016
  Fiscal year 2016-2017 Fiscal year 2015-2016
(in thousands of dollars) Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended September 30, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended September 30, 2015 Year to date used at quarter-end
Expenditures:
Personnel 60,265 15,630 31,468 56,901 15,394 30,596
Transportation and communications 5,228 686 1,382 3,617 826 1,335
Information 498 133 221 689 84 94
Professional and special services 18,963 2,024 3,540 12,963 1,227 2,226
Rentals 1,494 177 232 689 225 593
Repair and maintenance 996 224 554 689 120 509
Utilities, materials and supplies 498 75 124 344 86 171
Acquisition of land, buildings and works - - 28 - - 6
Acquisition of machinery and equipment 498 124 167 1,206 44 71
Transfer payments 4,264 294 424 3,214 400 570
Public debt charges - - - - - -
Other subsidies and payments - (2) 6 - 2 11
Total gross budgetary expenditures 92,704 19,365 38,146 80,312 18,408 36,182
Less            
Total Revenues netted against expenditures - - - 518 - -
Total net budgetary expenditures 92,704 19,365 38,146 79,794 18,408 36,182
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