Quarterly Financial Report - For the quarter ended December 31, 2016

Quarterly Financial Report - For the quarter ended December 31, 2016 [PDF 126 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 $93.06 million, as compared to $79.86 million as at March 31, 2016. The increase of $13.67 million is primarily due to the net impact of an increase of $18.29 million for Energy Transportation Infrastructure (Budget 2015), an increase of $0.83 million for the Review of Federal Environment Assessments (Budget 2016) and a decrease of $5.50 million 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 $3.28 million and $3.03 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 December 31, 2016 is $58.05 million, as compared to $55.90 million for the same period last year. The increase of $2.15 million in actual expenditures is primarily due to the following:

  • Personnel expenditures to date increased by $1.71 million as compared to the same period last year primarily due to an increase of statutory spending of $0.39 M as a result of funding received for Energy Transportation Infrastructure, an increase of $1.24 million related to new hiring and increment as well as an increase of $0.11 million of severance payout.
  • Professional and special services to date increased by $0.99 million as compared to the same period last year. This is mainly associated to an increase of IT services of $0.51 million for Government of Canada Initiatives, such as data visualization, website renewal and PeopleSoft, $0.19 for Strategic IT security planning, security training and awareness, translation costs of $0.10 million mainly related to Trans Mountain Pipeline Expansion Project (TMX) and Financial Regulatory Audit Reports as well as $0.13 million for executive search services and assessment of candidates
  • Rentals to date decreased by $0.59 million as compared to the same period last year primarily related to a decrease of $0.11 million for program fees for Human Resource Information Systems (HRIS), a decrease of $0.26 million for Vancouver office lease and a decrease of $0.22 million for hotel room rental in 2015-16 related to the TMX hearing process.

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,

Original signed by
_________________________________
C. Peter Watson, P.Eng. FCAE
Chair and CEO

(Calgary, Canada)
(15 February 2017)

Original 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 December 31, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016Table Note a Expended during the quarter ended December 31, 2015 Year to date used at quarter-end
Vote 1 – Net Operating Expenditures 84,550 17,692 51,417 71,679 17,673 49,763
Contributions to employee benefit plans 8,982 2,211 6,633 8,184 2,046 6,138
Total Budgetary authorities 93,532 19,903 58,050 79,863 19,719 55,901
Non-budgetary authorities            
Total authorities 93,532 19,903 58,050 79,863 19,719 55,901

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 December 31, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended December 31, 2015 Year to date used at quarter-end
Expenditures:
Personnel 61,091 16,420 47,888 56,970 15,584 46,181
Transportation and communications 5,228 879 2,262 3,617 877 2,212
Information 498 51 272 689 65 159
Professional and special services 18,965 1,859 5,399 12,963 2,180 4,406
Rentals 1,494 89 321 689 317 910
Repair and maintenance 996 153 707 689 104 613
Utilities, materials and supplies 498 109 233 344 101 271
Acquisition of land, buildings and works 28 0 6
Acquisition of machinery and equipment 498 105 271 1,206 41 112
Transfer payments 4,264 240 665 3,214 490 1,060
Public debt charges
Other subsidies and payments (2) 4 (1) 10
Total gross budgetary expenditures 93,532 19,903 58,050 80,381 19,758 55,940
Less            
Total Revenues netted against expenditures 518 39 39
Total net budgetary expenditures 93,532 19,903 58,050 79,863 19,719 55,901
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