ARCHIVED – Quarterly Financial Report - For the quarter ended 31 December 2015

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Quarterly Financial Report - For the quarter ended 31 December 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 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

Actual Expenditures

  • Year to date personnel spending at the end of the third quarter is $2.2M less than the same period in the previous year. Most of this variance is attributable to a $4.2M severance payout that occurred in 2014-15 (resulting from the elimination of the 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 the first three quarters of 2014-15 were $5.2M higher than in the first three quarters of 2015-16 as a result of the move. The most notable change in the first three quarters of 2015-16 is in Rentals which decreased by $2.4M due to the move. Acquisition of machinery and equipment also decreased by $1.2M in the first three quarters of 2015-16 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 $0.9M higher in the first three quarters 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:

  • A $5.7M increase due to an increase in funding for the Energy East and Imperial Beaufort hearings.
  • A permanent frozen allotment for Participant Funding in quarter 3 of 2014-15 for $2.3M. This had decreased our authorities in 2014-15.
  • A decrease of $2.0M in compensation adjustments from 2014-15 to 2015-16.
  • A decrease of $8.3M in move expenditures as additional funding was received in 2014-15 for the move and expansion space.

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 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)
(29 February 2016)

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

STATEMENT OF AUTHORITIES (unaudited)

Fiscal year 2015-2016 and Fiscal year 2014-2015
(in thousands
of dollars)
Fiscal year 2015-2016 Fiscal year 2014-2015
  Planned expenditures for the year ending March 31, 2016Note a Expended during the quarter ended December 31, 2015 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2015Note a Expended during the quarter ended December 31, 2014 Year to date used at quarter-end
Operating expenditures 71,679 17,673 49,763 74,219 17,762 58,187
Contributions to employee benefit plans 8,184 2,046 6,138 7,578 1,690 5,071
Total Budgetary authorities 79,863 19,719 55,901 81,797 19,452 63,258
Non-budgetary authorities            
Total authorities 79,863 19,719 55,901 81,797 19,452 63,258

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2015-2016 and Fiscal year 2014-15
  Fiscal year 2015-2016 Fiscal year 2014-15
(in thousands of dollars) Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended December 31, 2015 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended December 31, 2014 Year to date used at quarter-end
Expenditures:
Personnel 56,970 15,584 46,181 56,064 15,149 48,381
Transportation and communications 3,617 877 2,212 4,463 948 2,054
Information 689 65 159 994 96 239
Professional and special services 12,963 2,180 4,406 13,633 1,902 4,451
Rentals 689 317 910 862 211 2,839
Repair and maintenance 689 104 613 1,299 187 876
Utilities, materials and supplies 344 101 271 399 139 307
Acquisition of land, buildings and works - 0 6 - 412 841
Acquisition of machinery and equipment 1,206 41 112 2,719 303 1,553
Transfer payments 3,214 490 1,060 1,364 55 111
Public debt charges -   - - - -
Other subsidies and payments - (1) 10 - 50 1,606
Total gross budgetary expenditures 80,381 19,758 55,940 81,797 19,452 63,258
Less            
Total Revenues netted against expenditures 518 39 39 - - -
Total net budgetary expenditures 79,863 19,719 55,901 81,797 19,452 63,258
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