Quarterly Financial Report - For the quarter ended 30 June 2017
Statement outlining results, risks and significant changes in operations, personnel and program
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
The original version was signed by
C. Peter Watson, P. Eng. FCAE
Chair and CEO
(29 August 2017)
The original version was signed by Sandy Leveque, Acting Chief Financial Officer for
Chief Financial Officer
STATEMENT OF AUTHORITIES
|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|
|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|
DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)
|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|
|Transportation and communications||4,442||248||248||5,228||696||696|
|Professional and special services||12,337||885||885||15,684||1,514||1,514|
|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|
|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|
|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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