Quarterly Financial Report for the quarter ended December 31, 2017

Management Statement for the Quarter Ending December 31, 2017

1. Introduction

This quarterly financial report 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 under the Treasury Board Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. It should be read in conjunction with the Main Estimates and Supplementary Estimates for the current year.

The quarterly report has not been subject to an external audit or review.

1.1 Canadian Transportation Agency Mandate

The Canadian Transportation Agency is an independent, quasi-judicial tribunal and regulator which has, with respect to all matters necessary for the exercise of its jurisdiction, all the powers of a superior court.  

We operate within the context of the large and complex Canadian transportation system.

The Agency exercises its powers through its Members, who are appointed by the Governor-in-Council.

What we do: our three mandates

  • We help ensure that the national transportation system runs efficiently and smoothly in the interests of all Canadians, including those who work and invest in it; the producers, shippers, travellers and businesses who rely on it; and the communities where it operates.
  • We protect the human right of persons with disabilities to an accessible transportation network.
  • We provide consumer protection for air passengers.

How we do it: our tools

To help advance these mandates, we have three tools at our disposal:

  • Rule-making: We develop and apply ground rules that establish the rights and responsibilities of transportation service providers and users, and that level the playing field among competitors. These rules can take the form of binding regulations or less formal guidelines, codes of practice or interpretation notes.
  • Dispute resolution: We resolve disputes that arise between transportation providers on the one hand, and their clients and neighbours on the other, using a range of tools from facilitation and mediation to arbitration and adjudication.
  • Information provision: We provide information on the transportation system, the rights and responsibilities of transportation providers and users, and the Agency's legislation and services.

Further information on the Agency’s mandate, roles, responsibilities and programs can be found in Part III of the Estimates – Departmental Plan.

1.2 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency's spending authorities granted by Parliament, and those used by the Agency consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2017-2018 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 money 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 Agency 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.

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

Graph 1 – Third quarter net budgetary authorities and expenditures per fiscal year
Graph 1 – Third quarter net budgetary authorities and expenditures per fiscal year
  • Details: Graph 1

    The figure illustrates the Agency's net budgetary authorities and expenditures for the quarter ending December 31, for fiscal years 2016-2017 and 2017-2018 where budgetary authorities and expenditures, in millions of dollars, is shown on the vertical axis and time period, in fiscal years, is shown on the horizontal axis.

    Time period: 2016-2017
    Net budgetary authorities: 28.57 million dollars
    Expenditures for the quarter ending December 31: 6.59 million dollars 

    Time period: 2017-2018
    Net budgetary authorities: 29.64 million dollars
    Expenditures for the quarter ending December 31: 7.34 million dollars

2.1 Statement of Authorities

The Agency’s total authorities available for use in 2017-2018, totalling $29,640,434, have increased by $1,071,280 when compared to the same period in the previous fiscal year as illustrated in the Statement of Authorities and in the Departmental Budgetary Expenditures by Standard Object below. This increase is primarily attributable to amounts received from Treasury Board Secretariat to fund new collective agreements.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous year, total budgetary expenditures recorded in the third quarter increased by $752,253 from $6,585,430 to $7,337,683, as illustrated in the Departmental Budgetary Expenditures by Standard Object below. The majority of this increase can be seen in the Personnel category and is primarily due to the financial impact of the signing of several collective agreements. A decrease can be seen in the Professional and Special Services category as the Agency has concluded an initiative to streamline its internal and external business processes, which involved external professional service providers. This reduction in spending has been reallocated in order to address pressures in personnel expenditures.

With respect to all other budgetary expenditures by Standard Object, overall expenditures are similar to those of the previous fiscal year.  Any difference is primarily attributable to the period in which the purchases were settled.

3. Risks and Uncertainties

The 2017-18 fiscal year has had three consecutive quarters where budgetary challenges continued to be compounded by externally-driven demands. Similar to the two previous quarters, the Agency again experienced higher demand for services especially those related to air travel complaints. In response to the increased demand, temporary resource decisions have been taken during the annual planning process to address the operational pressure while maintaining core business functions and absorbing new mandates resulting from legislative amendments and government-wide transformation initiatives. The Agency will continue to monitor and decide on resource allocations to address operational pressures and ongoing priorities on a quarterly basis.

4. Significant Changes in Relation to Operations, Personnel and Programs

Although there have been no significant changes in the nature of the Agency's operations or programs over the last quarter, the Agency continues to face a significant volume of air travel complaints, which is five to seven times higher than historical levels. 

Approval by Senior Officials

Original signed by:


Scott Streiner
Chair and Chief Executive Officer
Gatineau, Canada
February 28, 2018

Original signed by:


Carole Girard CPA, CA
Chief Financial Officer
Gatineau, Canada
February 28, 2018

Statement of Authorities (unaudited)

Fiscal year 2017-2018
  Total available for use for the year ending March 31, 2018* Used during the quarter ended December 31, 2017 Year to date used at quarter-end
Vote 1 – Program expenditures 26,441,033 6,537,833 18,452,751
Budgetary statutory authorities − Employee Benefit Plans 3,199,401 799,850 2,399,551
Total authorities 29,640,434 7,337,683 20,852,302
Fiscal year 2016-2017
  Total available for use for the year ending March 31, 2017* Used during the quarter ended December 31, 2016 Year to date used at quarter-end
Vote 1 – Program expenditures 25,067,397 5,709,991 16,444,844
Budgetary statutory authorities − Employee Benefit Plans 3,501,757 875,439 2,626,317
Total authorities 28,569,154 6,585,430 19,071,161

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2017-2018
Expenditures: Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended December 31 , 2017 Year to date used at quarter-end
Personnel 24,647,642 6,517,581 19,113,920
Transportation and communications 416,690 133,235 301,115
Information 338,462 106,025 215,176
Professional and special services 3,212,654 231,396 496,359
Rentals 448,517 193,452 392,302
Repair and maintenance 68,674 14,812 40,926
Utilities, materials and supplies 126,009 47,014 86,929
Acquisition of land, buildings, and works - - -
Acquisition of machinery and equipment 381,786 94,168 205,575
Other subsidies and payments - - -
Total net budgetary expenditures 29,640,434 7,337,683 20,852,302
Fiscal year 2016-2017
Expenditures: Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended December 31, 2016 Year to date used at quarter-end
Personnel 23,880,110 5,686,450 17,090,576
Transportation and communications 537,900 190,517 414,024
Information 410,582 82,546 152,101
Professional and special services 2,577,457 402,298 950,642
Rentals 577,315 170,986 310,084
Repair and maintenance 56,087 4,334 10,165
Utilities, materials and supplies 189,231 39,307 76,150
Acquisition of machinery and equipment 340,472 8,992 67,419
Other subsidies and payments - - -
Total net budgetary expenditures 28,569,154 6,585,430 19,071,161
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