Quarterly Financial Report - For the quarter ended 30 June 2017

Quarterly Financial Report - For the quarter ended 30 June 2017 [PDF 136 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 Main Estimates;
  • has been prepared by management as required by Section 65.1 of the Financial Administration Act (FAA) and in the form and manner prescribed by the Treasury Board (TB); and
  • has not been subject to an external audit or review.

A summary description of the NEB’s core responsibilities 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

The quarterly financial 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 2017-18 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, 2018 is $85.67 million (M), as compared to $89.43 M as at March 31, 2017. The decrease of $3.76 M is primarily: a decrease of $5.09 M related to Budget 2012 Pipeline Safety Program funding sun setting; a decrease of $3.60 M related to Budget 2014 Regulatory Review of Mega Projects funding sun setting; a decrease of $4.01 M related to Budget 2015 for Energy Transportation Infrastructure; a decrease of $0.71 M related to the rate reduction for Employee Benefit Plan; an increase of $3.84 M related to Budget 2016 for  Interim Strategy on Pipelines Program; and an increase of $5.81 M increase related to Budget 2017 which renewed sunset funding for Budget 2012 Pipeline Safety Program and the Public Awareness portion of the Budget 2014 Regulatory Review of Mega Projects funding.

Actual Expenditures analysis

As reflected in the Departmental Budgetary Expenditures by Standard Object, the department’s actual expenditures in the first quarter of this fiscal year are $5.36 M, as compared to $18.78 M same period last year. The decrease of $13.42 M in actual expenditures is primarily due to a decrease of $12.46 M in personnel, compared to the same period last fiscal year. This is salaries from period one to three that have not been entered into the system as a result of Departmental Results Framework implementation to the financial system. Access to enter expenditures into the financial system was unavailable until the last week of June 2017.

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 NEB is an early adopter of the Departmental Results Framework under the TB Policy on Results in 2017-18, which will change the way we assess our performance. The NEB has developed more clearly defined programs, activities and initiatives to establish a baseline for performance measurement.

Approval by Senior Officials

Approved by,

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

(Calgary, Canada)
(29 August 2017)

The original version was signed by Sandy Leveque, Acting Chief Financial Officer for
_________________________________
Paula Futoransky
Chief Financial Officer

STATEMENT OF AUTHORITIES
(unaudited)

Fiscal year 2017-2018 and Fiscal year 2016-2017
(in thousands
of dollars)
Fiscal year 2017-2018 Fiscal year 2016-2017
  Planned expenditures for the year ending March 31, 2018Table Note a Expended during the quarter ended June 30, 2017 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2017Table Note a Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Operating expenditures 77,404 3,518 3,518 80,581 16,570 16,570
Contributions to employee benefit plans 8,268 1,840 1,840 8,844 2,211 2,211
Total Budgetary authorities 85,672 5,358 5,358 89,425 18,781 18,781
Non-budgetary authorities            
Total authorities 85,672 5,358 5,358 89,425 18,781 18,781

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2017-2018 and Fiscal year 2016-2017
  Fiscal year 2017-2018 Fiscal year 2016-2017
(in thousands of dollars) Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended June 30, 2017 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Expenditures:
Personnel 59,685 3,384 3,384 60,265 15,839 15,839
Transportation and communications 4,442 248 248 5,228 696 696
Information 506 19 19 498 88 88
Professional and special services 12,337 885 885 15,684 1,514 1,514
Rentals 809 5 5 1,494 55 55
Repair and maintenance 607 78 78 996 331 331
Utilities, materials and supplies 506 55 55 498 49 49
Acquisition of land, buildings and works 27 27
Acquisition of machinery and equipment 1,416 520 520 498 43 43
Transfer payments 5,364 160 160 4,264 130 130
Public debt charges
Other subsidies and payments 4 4 9 9
Total gross budgetary expenditures 85,672 5,358 5,358 89,425 18,781 18,781
Less            
Total Revenues netted against expenditures
Total net budgetary expenditures 85,672 5,358 5,358 89,425 18,781 18,781
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