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

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Quarterly Financial Report - For the quarter ended 30 September 2015 [PDF 140 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 second quarter is $2.6M less than the same period in the previous year. Most of this variance is attributable to a $4.5M severance payout that occurred in the first and second quarters of 2014-15 (resulting from the elimination of employee severance pay program for represented employees). The remaining variance is the result of a $2.0M 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 and Quarter 2 of 2014-15 were $4.2M higher than in the first two quarters of 2015-16 as a result of the move. The most notable change in the first half of 2015-16 is in Rentals which decreased by $2.4M due to the move. Acquisition of machinery and equipment also decreased by $1.1M 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.
  • Transfer payments were $0.5M higher in Quarter 1 and Quarter 2 of 2015-16 than the same period last year.

Planned Expenditures

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

  • The $5.7M 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.
  • The Operating Budget Carry Forward for $3.0M was approved in the second quarter of 2015-16. Most of the carry-forward went to Professional and special services.

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 expenditures 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 received additional funding in 2015-16 for Energy East and Imperial Beaufort hearings which resulted in an increase to NEB authorities.

Approval by Senior Officials

Approved by,

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

(Calgary, Canada)
(30 November 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
September 30, 2015
Year to date used
at quarter-end
Operating expenditures 71,610 16,362 32,090
Contributions to employee benefit plans 8,184 2,046 4,092
Total Budgetary authorities 79,794 18,408 36,182
Non-budgetary authorities      
Total authorities 79,794 18,408 36,182

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
September 30, 2014
Year to date used
at quarter-end
Operating expenditures 67,194 18,676 40,425
Contributions to employee benefit plans 6,878 1,690 3,380
Total Budgetary authorities 74,072 20,366 43,805
Non-budgetary authorities - - -
Total authorities 74,072 20,366 43,805

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
September  30, 2015
Year to date used
at quarter-end
Expenditures:      
Personnel 56,901 15,394 30,596
Transportation and communications 3,617 826 1,335
Information 689 84 94
Professional and special services 12,963 1,227 2,226
Rentals 689 225 593
Repair and maintenance 689 120 509
Utilities, materials and supplies 344 86 171
Acquisition of land, buildings and works - 0 6
Acquisition of machinery and equipment 1,206 44 71
Transfer payments 3,214 100 570
Public debt charges - - -
Other subsidies and payments - 2 11
Total gross budgetary expenditures 80,312 18,408 36,182
Less      
Total Revenues netted against expenditures 518 - -
Total net budgetary expenditures 79,794 18,408 36,182
Fiscal year 2014-2015
(in thousands of dollars) Planned expenditures
for the year ending
March 31, 2015
Expended during
the quarter ended
September 30, 2014
Year to date used
at quarter-end
Expenditures:      
Personnel 47,852 15,257 33,230
Transportation and communications 4,193 633 1,106
Information 799 105 144
Professional and special services 13,319 227 2,550
Rentals 799 2,555 2,629
Repair and maintenance 799 181 689
Utilities, materials and supplies 399 103 168
Acquisition of land, buildings and works - 429 429
Acquisition of machinery and equipment 2,298 816 1,249
Transfer payments 3,614 56 56
Public debt charges - - -
Other subsidies and payments - 4 1,555
Total gross budgetary expenditures 74,072 20,366 43,805
Less      
Total Revenues netted against expenditures - - -
Total net budgetary expenditures 74,072 20,366 43,805
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