Quarterly Financial Report – For the quarter ended 30 September 2017

Quarterly Financial Report – For the quarter ended 30 September 2017 [PDF 114 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):

National Energy Board has four Core Responsibilities, Energy Adjudication, Safety and Environment Oversight, Energy Information, Engagement plus Internal Services program. A summary description of the NEB’s core responsibilities can be found in the Main Estimates (Part II)

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 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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 results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

This section highlights any significant items that affected the year-to-date results and/or contributed to the net change in resources available for the year and actual expenditures. It should be read in conjunction with the Statement of Authorities and the Departmental Budgetary Expenditures by Standard Object, which can be found at the end of this report.

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 $89.47 million, as compared to $92.70 million as at March 31, 2017. A net decrease of $3.23 million is primarily due to

Decreases:

  • $4.78 million related to Budget 2014 for Imperial Oil funding sun setting;
  • $2.25 million related to Budget 2014 for Participant Funding Program (Energy East);
  • $4.01 million related to Budget 2015 for Energy Transportation Infrastructure; and
  • $0.84 million primarily related to Employee Benefit Plans (EBP) due to a decrease in the rate applied by Treasury Board Secretariat to allocate EBP costs.

Increases:

  • $4.67 million related to Budget 2016 for interim Strategy for pipeline & Other NEB Reviews;
  • $0.69 million related to Budget 2014 for Imperial Oil; and
  • $3.29 million related to Energy East reprofiled from Budget 2014.   

Please note that both planned expenditures for both fiscal years have included operating budget carry forward of $3.80 million and $3.28 million in 2017-18 and 2016-17, respectively.

Actual Expenditures analysis

As reflected in the Departmental Budgetary Expenditures by Standard Object, the department’s total authority used in the fiscal year to September 30, 2017 is $43.22 million, as compared to $38.15 million for the same period last year. The increase of $5.07 million in total authority used is primarily due to:

Decreases:

  • $0.19 million mainly due to a reduction in spending on relocation and travel expenses;
  • $0.14 million in information technology mainly due to a reduction in audio installation and support for the hearing room; and
  • $0.20 million in transfer payment attributable to a forecasted decrease in contributions for the Participant Funding Program.

Increases:

  • $4.42 million in personnel expenditures mainly due to increased sunset funding;
  • $0.76 million in professional services mainly due to the costs associated with data visualization and consulting services for business process and project management; and
  • $0.42 million in acquisition of land, building and works and other items mainly due to timing differences for payments related to for a server.

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

For 2017-18 the NEB was an early adopter of the Departmental Results Framework under the Treasury Board Secretariat Directive on Results, which will change the way we assess our performance. The NEB has developed more clearly defined programs, activities and initiatives which will facilitate improved performance measurement.

Approval by Senior Officials

Approved by,

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

(Calgary, Canada)
(23 November 2017)

The original version was signed by
_________________________________
Tracy Sletto
Acting Chief Financial Officer

STATEMENT OF AUTHORITIES
(unaudited)

Fiscal year 2017-2018 and Fiscal year 2016-2017
(in thousands
of dollars)
Fiscal year 2017-2018 Fiscal year 2016-2017
  Planned expenditures for the year ending March 31, 2018Table Note a Expended during the quarter ended September 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 September 30, 2016 Year to date used at quarter-end
Operating expenditures 81,203 36,024 39,542 83,860 17,154 33,724
Contributions to employee benefit plans 8,268 1,840 3,680 8,844 2,211 4,422
Total Budgetary authorities 89,471 37,864 43,222 92,704 19,365 38,146
Non-budgetary authorities            
Total authorities 89,471 37,864 43,222 92,704 19,365 38,146

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2017-2018 and Fiscal year 2016-2017
  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 September 30, 2017 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended September 30, 2016 Year to date used at quarter-end
Expenditures:
Personnel 59,685 32,506 35,890 60,265 15,630 31,468
Transportation and communications 4,442 940 1,188 5,228 686 1,382
Information 506 62 81 498 133 221
Professional and special services 16,136 3,417 4,302 18,963 2,024 3,540
Rentals 809 100 105 1,494 177 232
Repair and maintenance 607 460 538 996 224 554
Utilities, materials and supplies 506 90 145 498 75 124
Acquisition of land, buildings and works - 50 50 - - 28
Acquisition of machinery and equipment 1,416 165 685 498 124 167
Transfer payments 5,364 67 227 4,264 294 424
Public debt charges - - - - - -
Other subsidies and payments - 7 11 - (2) 6
Total gross budgetary expenditures 89,471 37,864 43,222 92,704 19,365 38,146
Less            
Total Revenues netted against expenditures - - - - - -
Total net budgetary expenditures 89,471 37,864 43,222 92,704 19,365 38,146
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