Quarterly Financial Report – For the quarter ended December 31, 2021

Quarterly Financial Report – For the quarter ended 31 December 2021 [PDF 289 KB]

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

This quarterly financial report has been prepared by management as required by Section 65.1 of the Financial Administration Act (FAA) and in the form and manner prescribed by the Treasury Board in accordance with the special purpose financial reporting framework described in the Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Reports. It should be read in conjunction with the Main Estimates and Supplementary Estimates. This quarterly report has not been subject to an external audit or review.

A summary description of the Canada Energy Regulator (CER)’s core responsibilities can be found in Part II of the Main Estimates.

The CER receives its funding through annual Parliamentary authorities. The majority of expenditures are subsequently recovered from the companies regulated by the CER and the funds are deposited to 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 CER’s spending authorities granted by Parliament, and those used by the CER, consistent with the Main Estimates and Supplementary Estimates for the fiscal year ending March 31, 2022. 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 CER 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 the Fiscal Quarter and the Fiscal Year to Date 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 Budgetary 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 Budgetary Authorities and the Departmental Budgetary Expenditures by Standard Object, the department’s total authority available for use in the fiscal year as at March 31, 2022 is $110.86 million, as compared to $108.71 million as at March 31, 2021. The increase of $2.15 million is due to:

  • an increase of $5.22 million mainly related to Budget 2020 funding to stabilize CER’s operations, and improve its ability to interpret and make data available digitally to Canadians;
  • an increase of $0.13 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration;
  • a decrease of $1.51 million related to employee benefit plan;
  • a decrease of $0.86 million related to operational budget carryforward;
  • a decrease of $0.60 million related to travel deduction; and
  • a decrease of $0.23 million related to Budget 2018 transition to new impact assessment and regulatory processes.

Used expenditures analysis

As reflected in the Departmental Budgetary Expenditures by Standard Object, the department’s authority used in the quarter ended December 31, 2021, is $77.76 million, as compared to $66.91 million as at the quarter ended December 31, 2020. The increase of $10.85 million is due to:

  • an increase of $5.31 million in personnel expenditures mainly related to Budget 2020 funding to improve the CER’s ability to interpret and make data available digitally to Canadians;
  • an increase of $2.0 million related to employee benefit plan;
  • an increase of $3.14 million in professional services mainly related to Budget 2020 funding to improve its ability to interpret and make data available digitally to Canadians and SAP Implementation Project;
  • an increase of $0.25 million in transportation and communications due to increased travel activities related to inspections and emergency preparedness and response to B.C. Flooding; and
  • a net increase of $0.15 million mainly in acquisition of land, buildings and works related to leasehold improvement.

Risks and Uncertainties

The The CER’s responsibilities are shaped by emerging energy trends and by the proactive consideration of safety, environmental, societal, and economic trends that may influence our ability to carry out responsibilities that represent the ever–changing interests and concerns of Canadians. Due to the nature of its mandate, the CER’s expenditures are influenced by planned and unplanned events (internal and external) that create uncertainty in expenditure and resource pressures.

The COVID-19 pandemic continued to have an impact throughout the world for the entire 2020–21 fiscal year. For the CER, this meant that its staff would serve the public every day from about 500 locations across Canada, working from kitchen tables, makeshift home offices and in the field with additional safety protocols and gear. Thanks to an enormous team effort and solid business continuity planning, CER business operations continued uninterrupted throughout the entire year.

Every single day, CER staff got the job done: applications were reviewed, engagement with Indigenous peoples and stakeholders continued, and energy trends were compiled, analyzed, and released to the public while always keeping safety at the core of everything we do.

The strong oversight of CER–regulated energy infrastructure continued in 2021–22, as the CER adapted how it conducted its compliance verification activities – including inspections – to protect the health and safety of CER staff, regulated companies, and all those it works closely with. As the CER considered COVID–19 a hazard that companies needed to identify and manage, the organization worked to verify that companies were taking all steps required to protect their workers from the impacts caused by the pandemic.

Most importantly, all this work and these modified processes are carried out without compromising safety, oversight, or environmental monitoring.

The Commission of the Canada Energy Regulator also adjusted a number of its adjudicative processes to replace in–person meetings with alternative formats, such as written or virtual proceedings. This allowed the Commission to continue to conduct processes that are fair, timely, transparent and accessible, while also respecting public health measures.

Significant Changes in Relation to Operations, Personnel and Programs

In response to COVID-19 pandemic situation, the CER announced implementation of operational changes. As of July 19, 2021, the CER began a flexible and volunteer return to the office in Calgary for the rest of the summer. The CER paused the Return–to–Work activities and all staff resumed working at home effective September 7, 2021, due to the new restrictions to address the concerning rise in COVID–19 cases.

On October 6, 2021, the Government of Canada announced the requirement for all federal public service employees to be vaccinated for COVID–19. The CER is subject to the same vaccine mandates as all federal workplaces. The CER is compliant with federal vaccine mandate, the CER’s COVID–19 Vaccination Policy has been completed. Our personnel policies comply with the new government guidelines. For example, all the contractors who require access to federal government worksites and new hires are subject to vaccination attestation policies.

On December 20, 2021, Ramona Sladic became the Secretary of the Commission at the Canada Energy Regulator (CER) on an indeterminate basis.

Approval by Senior Officials

 

The original version was approved by,


_________________________________
Gitane De Silva
Chief Executive Officer

(Calgary, Canada)
(15 February 2022)

The original version was approved by,


_________________________________
Mark Power, CPA, CGA, CIA, MBA
Chief Financial Officer

STATEMENT OF AUTHORITIES
(unaudited)

Fiscal year 2021-2022 and Fiscal year 2020-2021

(in thousands of dollars)

Fiscal year 2021-2022

Fiscal year 2020-2021

 

Planned expenditures for the year ending March 31, 2022Table Note a

Expended during the quarter ended December 31, 2021

Year to date used at quarter-end

Planned expenditures for the year ending March 31, 2021Table Note a

Expended during the quarter ended December 31, 2020

Year to date used at quarter-end

Vote 1- Net Operating expenditures

100,088

23,288

69,680

96,671

21,676

60,827

Statutory Authority

10,771

2,693

8,079

12,035

1,989

6,082

Total Budgetary authorities

110,859

25,981

77,759

108,706

23,665

66,909

Non-budgetary authorities

 

 

 

 

 

 

Total authorities

110,859

25,981

77,759

108,706

23,665

66,909

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT (unaudited)

Fiscal year 2020-2021 and Fiscal year 2019-2020

(in thousands of dollars)

Fiscal year 2021-2022

Fiscal year 2020-2021

 

Planned expenditures for the year ending March 31, 2022Table Note a

Expended during the quarter ended December 31, 2021

Year to date used at quarter-end

Planned expenditures for the year ending March 31, 2021Table Note a

Expended during the quarter ended December 31, 2020

Year to date used at quarter-end

Expenditures:

Personnel

86,014

20,877

63,752

82,930

19,445

56,443

Transportation and communication

3,326

306

830

3,590

273

581

Information

428

11

142

448

6

10

Professional and special services

15,342

4,199

10,845

16,594

3,370

7,704

Rentals

572

50

462

556

83

411

Repair and maintenance

1,138

227

699

1,129

127

871

Utilities, material and supplies

604

61

150

511

69

137

Acquisition and land, building and works

132

5

308

70

58

84

Acquisition of machinery and equipment

939

97

186

514

151

261

Transfer payments

2,364

124

242

2,364

73

276

Public debt charges

Other subsidies and payments

24

143

10

131

Total gross budgetary expenditures

110,859

25,981

77,759

108,706

23,665

66,909

Less

 

 

 

 

 

 

Total Revenues netted against expenditures

Total net budgetary expenditures

110,859

25,981

77,759

108,706

23,665

66,909

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