ARCHIVED – National Energy Board – 2016–17 Departmental Results Report – Analysis of trends in spending and human resources

Actual expenditure

Departmental spending trend graph

Fiscal years 2014–15 to 2016–17 reflect the department’s actual expenditures as reported in the Public Accounts. Fiscal years 2017–18 to 2019–20 represent planned spending.

The overall trend in the graph above illustrates a decrease in spending from 2014–15 to 2019–20 with a slight increase for 2016–17. The spending in 2016–17 reflects our enhanced safety and oversight activity, including enhanced engagement, announced in Budget 2015.

From 2017–18 to 2018–19 and 2019–20, overall departmental spending is planned to decrease by $9.6M, which is attributed to sunsetting temporary funding for the anticipated costs of the PFP related to the Energy East and Eastern Mainline process, a reduction in temporary funding provided for the review of mega-hearings (Energy East and Eastern Mainline), and a reduction in temporary funding related to pipeline safety.

Budgetary performance summary for Programs and Internal Services (dollars)

Budgetary performance summary for Programs and Internal Services (dollars)

Programs and Internal ServicesTable Note a	2016–17 Main Estimates	2016–17 Planned spending	2017–18 Planned spending	2018–19 Planned spending	2016–17 Total authorities available for use	2016–17 Actual spending (authorities used)	2015–16 Actual spending (authorities used)	2014–15 Actual spending (authorities used)
Energy Regulation	58,584,596	61,322,894	48,368,248	44,081,267	61,255,420	40,961,325	43,185,092	45,310,493
Energy Information	7,307,066	7,648,605	7,632,498	5,015,468	7,542,996	6,125,216	9,018,344	6,567,390
Subtotal	65,891,662	68,971,499	56,000,746	49,096,735	68,798,416	47,086,541	52,203,436	51,877,883
Internal Services	23,533,785	24,633,776	23,839,240	21,094,497	24,358,500	37,530,277	30,193,132	35,443,200
Total	89,425,447	93,605,275	79,839,986	70,191,232	93,156,916	84,616,818	82,396,568	87,321,083

Variance between 2016–17 Planned Spending and 2016–17 Actual Spending

The NEB’s Actual Spending for fiscal year 2016–17 was $9.0M less than the Planned Spending. The decrease is primarily due to the following:

• a lapse of $3.5M in Participation Fund Program, due to delays in the Energy East hearing, that will be needed in future years to make payments;
• a frozen allotment of $0.5M in support of back-office Transformation and Professional Services, advertising and travel; and
• the remaining lapse of $5.0M relates to a shift in the planned spending profile of major project reviews (e.g., Energy East and Eastern Mainline), and a realignment of resources related to the adoption of the new Department Results Framework.

Variance between 2015–16 Actual Spending and 2014–15 Actual Spending

The NEB’s Actual Spending for fiscal year 2015–16 was $4.9M less than the prior fiscal year due, in large part, to the increased spending in 2014–15 related to the one-time costs of moving the NEB offices (which took place in June 2014).

Variance between 2016–17 Actual Spending and 2015–16 Actual Spending

The NEB’s Actual Spending for 2016–17 was $2.2M higher than the prior year primarily due to increased spending on activities supported by temporary funding announced for safety and enhanced public engagement activities.

Actual human resources

Human resources summary for Programs and Internal Services (full time equivalents)

Programs and Internal ServicesTable Note a	2014–15 Actual	2015–16 Actual	2016–17 Forecast	2016–17 Actual	2017–18 Planned	2018–19 Planned
Energy Regulation	292.3	251.6	294.2	276.7	268.93	264.1
Energy Information	46.2	48.1	42.4	37.3	38.78	38.1
Subtotal	338.5	299.7	336.6	314	307.71	302.2
Internal Services	102.1	157.9	158.8	160.5	145.14	142.4
Total	440.6	457.6	495.4	474.5	452.85	444.6

Analysis

Expenditures by vote

For information on the National Energy Board’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2017.

Alignment of spending with the whole-of-government framework

Alignment of 2016–17 actual spending with the whole-of-government framework (dollars)

Program	Spending area	Government of Canada activity	2016–17 Actual spending
Energy Regulation	Economic Affairs	Strong economic growth	40,961,325
Energy Information	Economic Affairs	Strong economic growth	6,125,216

Total spending by spending area (dollars)

Spending area	Total planned spending	Total actual spending
Economic affairs	68,971,499	47,086,541
Social affairs	–	–
International affairs	–	–
Government affairs	–	–

Financial statements and financial statements highlights

Financial statements

The National Energy Board’s financial statements for the year ended 31 March, 2017 are available on the National Energy Board’s website.

Financial statements highlights

The National Energy Board operates on a full accrual accounting basis according to Treasury Board’s policy for reporting based on generally accepted accounting principles (GAAP). The tables below provide highlights from the NEB’s Statement of Operations and Statement of Financial Position, as presented in its 2016–17 financial statements. As such, differences do exist between these tables and those presented in other sections of the Departmental Results Report, which are prepared on the modified cash basis of accounting.

Condensed Statement of Operations for the year ended March 31, 2017 (dollars)

Condensed Statement of Operations for the year ended March 31, 2017 (dollars)

Financial information	2016–17 Planned results	2016–17 Actual	2015–16 Actual	Difference (2016–17 actual minus 2016–17 planned)	Difference (2016–17 actual minus 2015–16 actual)
Total expenses	109,365,899	97,987,071	98,624,642	(11,378,828)	(637,571)
Total revenues	–	–	–	–	–
Net cost of operations before government funding and transfers	109,365,899	97,987,071	98,624,642	(11,378,828)	(637,571)

Difference between 2016–17 actual and 2016–17 planned

The department’s actual net cost of operations before government funding and transfer in 2016–17 was $11.4M less than the planned results for the same fiscal year. The decrease is primarily due to a lapse of $9.0M in expenditures (previously referenced), as well as a decrease of $2.4M in planned expenses due to a change in capitalization costs of planned software development and other differences between our planned and actual expenses.

Difference between 2016–17 actual and 2015–16 actual

The department’s actual net cost of operations before government funding and transfer in 2016–17 was $0.6M less than the previous year, with relatively minor differences in actual expenses in each program area between the two fiscal years.

Condensed Statement of Financial Position as at March 31, 2017 (dollars)

Financial Information	2016–17	2015–16	Difference (2016–17 minus 2015–16)
Total net liabilities	28,287,217	19,031,783	9,255,434
Total net financial assets	22,656,539	13,189,146	9,467,393
Departmental net debt	5,630,678	5,843,637	(212,959)
Total non-financial assets	22,793,552	22,873,096	(79,544)
Departmental net financial position	17,162,874	17,029,459	133,415

Total net liabilities and total net financial assets have an increase of $9.3M and $9.5M, respectively when compared to 2015–16. The increases are mainly due to overbilling adjustment reflected in liabilities in 2016–17, and an under-billing adjustment reflected in assets in 2015–16.