ARCHIVED – Quarterly Financial Report - For the quarter ended 30 June 2015

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Quarterly Financial Report - For the quarter ended 30 June 2015 [PDF 134 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;
  • 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 top priorities are: Take Action on Safety, Engaging with Canadians, and Leading Regulatory Excellence.

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 2015-16 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

Actual Expenditures

  • Year to date personnel spending at the end of the first quarter is $2.8M less than the same period in the previous year. Most of this variance is attributable to a $3.7M severance payout that occurred in the first quarter of 2014-15 (resulting from the elimination of the employee severance pay program for represented employees). The remaining variance is the result of a $0.9M increase in 2015-16 personnel costs related to increased funding for the Energy East and Imperial Beaufort hearings.
  • The NEB office relocated in 2014-15 and affected various expenditures. Expenditures in Quarter 1 of 2014-15 were $2.0M higher than in the first quarter of 2015-16 as a result of the move. The most notable change in Quarter 1 of 2015-16 is in professional and special services expenditures which decreased by $1.8M due to the move.
  • The decrease of $1.6M in other subsidies and payments is due to a one-time transition payment in Quarter 1 of 2014-15 for implementing salary payment in arrears by the Government of Canada.

Planned Expenditures

The variances in planned expenditures for 2015-2016 over the previous year are as follows:

  • The $5.4M increase in planned spending in comparison to the 2014-15 Main Estimates is primarily due to an increase in funding for the Energy East and Imperial Beaufort hearings.

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 office relocation that occurred in the first quarter of 2014-15 resulted in an increase to NEB authorities.

Approval by Senior Officials

Approved by,

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

(Calgary, Canada)
(28 August 2015)

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

STATEMENT OF AUTHORITIES (unaudited)

Fiscal year 2015-2016
(in thousands of dollars) Planned expenditures
for the year ending
March 31, 2016Note a
Expended during
the quarter ended
June 30, 2015
Year to date used
at quarter-end
Operating expenditures 68,581 15,728 15,728
Contributions to employee benefit plans 8,184 2,046 2,046
Total Budgetary authorities 76,765 17,774 17,774
Non-budgetary authorities      
Total authorities 76,765 17,774 17,774

More information is available in the attached table.

Fiscal year 2014-2015
(in thousands of dollars) Planned expenditures
for the year ending
March 31, 2015Note b
Expended during
the quarter ended
June 30, 2014
Year to date used
at quarter-end
Operating expenditures 64,555 21,748 21,748
Contributions to employee benefit plans 6,761 1,690 1,690
Total Budgetary authorities 71,316 23,438 23,438
Non-budgetary authorities - - -
Total authorities 71,316 23,438 23,438

More information is available in the attached table.

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2015-2016
(in thousands of dollars) Planned expenditures
for the year ending
March 31, 2016
Expended during
the quarter ended
June 30, 2015
Year to date used
at quarter-end
Expenditures:      
Personnel 56,901 15,203 15,203
Transportation and communications 3,617 508 508
Information 689 10 10
Professional and special services 9,934 999 999
Rentals 689 368 368
Repair and maintenance 689 389 389
Utilities, materials and supplies 344 85 85
Acquisition of land, buildings and works - 5 5
Acquisition of machinery and equipment 1,206 27 27
Transfer payments 3,214 170 170
Public debt charges - - -
Other subsidies and payments - 10 10
Total budgetary expenditures 77,283 17,774 17,774
Less:      
Total revenues netted against expenditures 518 - -
Total Net Budgetary Expenditures 76,765 17,774 17,774
Fiscal year 2014-2015
(in thousands of dollars) Planned expenditures
for the year ending
March 31, 2015
Expended during
the quarter ended
June 30, 2014
Year to date used
at quarter-end
Expenditures:      
Personnel 47,735 17,974 17,974
Transportation and communications 4,193 472 472
Information 799 39 39
Professional and special services 11,580 2,322 2,322
Rentals 799 74 74
Repair and maintenance 799 508 508
Utilities, materials and supplies 399 64 64
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 1,398 434 434
Transfer payments 3,614 - -
Public debt charges - - -
Other subsidies and payments - 1,551 1,551
Total budgetary expenditures 71,316 23,438 23,438
Less:      
Total revenues netted against expenditures - - -
Total Net Budgetary Expenditures 71,316 23,438 23,438
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