ARCHIVED - Quarterly Financial Report - For the quarter ended 31 December 2011
This page has been archived on the Web
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.
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 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.
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 2011-12 fiscal year. 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
The significant variances in the third quarter and year-to-date expenditures between 2010-11 and 2011-12 are as follows:
- The year-to-date expenditures for personnel in 2011 is 2.7M greater than the same 9 month period in 2010. This increase is attributable to incremental Full Time Equivalents (FTEs) required due to forecasted increases in regulatory responsibility. Funding was approved for these additional FTEs in 2009-10 and the Board was able to augment the net staff complement over time.
- Transportation and communications year to date spending is up by approximately $300K over the same period last year and about $200K over the second quarter of 2011. Much of this increase is attributable to costs associated with the Arctic Offshore Drilling Review which was conducted throughout the North.
- Year to date spending in the rentals category is $200K higher in 2011 over the same period last year. This is a result of helicopter rentals associated with pipeline inspections and increased audio equipment rentals for the Arctic Offshore Drilling Review and other hearings.
- The $500K increase in professional and special services expenditures in the third quarter, $1.2M year to date, is a result of increased contract spending related to the Arctic Offshore Drilling Review that is being conducted by the NEB. This increased spending was anticipated and is reflected in the planned expenditure numbers.
During the third quarter $2.0M in temporary funding was received from Natural Resources Canada in support of the Arctic Offshore Drilling Review. These funds have been allocated and the combined appropriations have resulted in the following variances between 2010-11 and 2011-12
- Total planned spending for personnel has decreased slightly in 2011-12. The additional funding for FTE’s related to forecasted increases in regulatory responsibility has been offset in 2011-12 by the cessation of special allowances contained in the current collective agreement which expired 31 October 2011. It is expected that funding will be renewed for these allowances prior to 31 March 2012.
- Planned spending for professional and special services has increased by $3.6M or 81% in 2011-12. This reflects anticipated increased spending related to the Arctic Offshore Drilling Review that was conducted by the NEB. The other significant planned expenditure is in the area of upgraded software applications.
- The final item of note is the planned spending of $1.4M for Transfer Payments which was included in the 2011-12 Main Estimates. At the end of 2009-10 participant funding provisions were added to the National Energy Board Act and funding for this provision was made available to the NEB in the third quarter of 2010-11 through Supplementary Estimates B. The NEB’s Participant Funding Program (PFP) will be used to provide financial assistance to support the engagement of Aboriginal groups, landowners, not-for-profit organizations and other eligible persons in the regulatory assessment processes for major facility projects.
Risks and Uncertainties
The final item of note is the planned spending of $1.4M for Transfer Payments which was included in the 2011-12 Main Estimates. At the end of 2009-10 participant funding provisions were added to the National Energy Board Act and funding for this provision was made available to the NEB in the third quarter of 2010-11 through Supplementary Estimates B. The NEB’s Participant Funding Program (PFP) will be used to provide financial assistance to support the engagement of Aboriginal groups, landowners, not-for-profit organizations and other eligible persons in the regulatory assessment processes for major facility projects.
Due to the nature of its mandate the NEB’s expenditures can also be influenced by unplanned external events which create uncertainty in expenditures and resource pressures.
Significant Changes in Relation to Operations, Personnel and Programs
The addition of participant funding provisions to the National Energy Board Act has resulted in a permanent increase to NEB authorities.
As a result of increased interest in offshore drilling in Canada’s North, the Board decided to conduct an Arctic Offshore Drilling Review. The NEB received additional funding for the review this year. This work has now been completed.
Approval by Senior Officials
The original version was signed by
Gaétan Caron, Chair and CEO
(29 February 2012)
Ed Jansen CA, Chief Financial Officer
STATEMENT OF AUTHORITIES (unaudited)
|(in thousands of dollars)||Total available for use for the year ending March 31, 2012||Used during the quarter ended December 31, 2011||Year to date used at quarter-end|
|Vote 25 - Net Operating expenditures||57,024||13,757||40,169|
|Budgetary statutory authorities||7,099||1,775||5,324|
|Total Budgetary authorities||64,123||15,532||45,493|
|(in thousands of dollars)||Total available for use for the year ending March 31, 2011||Used during the quarter ended December 31, 2010||Year to date used at quarter-end|
|Vote 25 - Net Operating expenditures||53,325||12,177||36,126|
|Budgetary statutory authorities||6,344||1,586||4,758|
|Total Budgetary authorities||59,669||13,763||40,884|
DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2012||Expended during the quarter ended December 31, 2011||Year to date used at quarter-end|
|Transportation and communications||5,067||993||2,407|
|Professional and special services||8,047||1,577||4,499|
|Repair and maintenance||826||60||412|
|Utilities, materials and supplies||790||97||271|
|Acquisition of land, buildings and works||49||16||16|
|Acquisition of machinery and equipment||331||210||314|
|Public debt charges||-||-||-|
|Other subsidies and payments||55||0||41|
|Total gross budgetary expenditures||64,123||15,532||45,493|
|Less Revenues netted against expenditures:|
|Total Revenues netted against expenditures:||-||(14,847)||(44,597)|
|Total net budgetary expenditures||64,123||685||896|
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2011||Expended during the quarter ended December 31, 2010||Year to date used at quarter-end|
|Transportation and communications||3,210||695||2,150|
|Professional and special services||4,433||1,093||3,331|
|Repair and maintenance||1,067||86||389|
|Utilities, materials and supplies||506||126||328|
|Acquisition of land, buildings and works||715||4||24|
|Acquisition of machinery and equipment||1,291||33||115|
|Public debt charges||-||-||-|
|Other subsidies and payments||82||(13)||38|
|Total gross budgetary expenditures||59,669||13,763||40,884|
|Less Revenues netted against expenditures:|
|Total Revenues netted against expenditures:||-||(14,730)||(44,430)|
|Total net budgetary expenditures||59,669||(967)||(3,546)|
- Date modified: