Quarterly Financial Report – For the quarter ended September 30, 2022

Quarterly Financial Report – For the quarter ended 30 September 2022 [PDF 192 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. Nearly all 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, 2023. 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.

Budgetary authorities 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 ending March 31, 2023 is $102.14 million, as compared to $110.39 million in the fiscal year ending March 31, 2022. The decrease of $8.25 million is due to:

  • a decrease of $3.01 million mainly related to a Budget 2020 initiative to improve the CER’s ability to interpret and make data available digitally to Canadians;
  • a decrease of $1.76 million related to Budget 2017 Indigenous Advisory and Monitoring Committees;
  • a decrease of $1.04 million related to a Budget 2018 initiative to transition to new impact assessment and regulatory processes;
  • a decrease of $1.01 million related to Operating Budget Carry Forward;
  • an increase of $0.66 million related to the employee benefit plan; and
  • a net decrease of $2.09 million related to compensation allocations as a result of adjustments made to terms and conditions of service or employment in the federal public administration.

Expenditures analysis

As reflected in the Departmental Budgetary Expenditures by Standard Object, the department’s authority used in the quarter ended September 30, 2022, is $51.10 million, as compared to $51.78 million as at the quarter ended September 30, 2021. The decrease of $0.68 million is due to:

  • a decrease of $0.49 million related to Budget 2017 Indigenous Advisory and Monitoring Committees;
  • a decrease of $0.39 million mainly related to a Budget 2020 initiative to improve the CER’s ability to interpret and make data available digitally to Canadians;
  • a decrease of $0.33 million related to employee benefit plan costs;
  • an increase of $0.13 million related to compensation adjustments to reflect changes to terms and conditions of service or employment in the federal public administration; and
  • an increase of $0.40 million related to a Budget 2018 initiative to transition to new impact assessment and regulatory processes.

Risks and Uncertainties

The CER’s work is shaped by emerging energy trends and by the proactive consideration of safety, environmental, societal, and economic trends that may influence both the volume of adjudicative matters that come before the CER in any given year, and 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.

In 2021, the CER implemented an Enterprise Risk Management (ERM) Framework as the next step in maturing the organization’s processes for managing risks in the context of the current governance model and new Strategic Plan. ERM is a holistic approach to identify, assess, prepare for, and manage organization-wide strategic risks. Through providing a framework to identify enterprise level risk events, ERM enables the CER’s Board of Directors and senior management to strategically manage events that might stand in the way of organizational success and to identify mitigations to these risks.

Significant Changes in Relation to Operations, Personnel and Programs

Effective August 28, 2022, the Governor-in-Council (GIC), on the recommendation of the Minister of Natural Resources, has:

  • designated Mark Watton as Lead Commissioner of the Canada Energy Regulator for a term of six years;
  • reappointed Trena Grimoldby as a full-time Commissioner of the Canada Energy Regulator for a term of two years; and,
  • reappointed Stephania Luciuk as a full-time Commissioner of the Canada Energy Regulator for a term of four years.

Approval by Senior Officials

The original version was approved by,

_________________________________
Gitane De Silva
Chief Executive Officer

Calgary, Canada
28 November 2022

The original version was approved by,

_________________________________
Ed Janson
Acting Chief Financial Officer

STATEMENT OF AUTHORITIES
(unaudited)

Fiscal year 2022–2023 and Fiscal year 2021–2022
(in thousands of dollars) Fiscal year 2022–2023 Fiscal year 2021–2022
  Total available for use for the year ending March 31, 2023Table Note a Used during the quarter ended September 30, 2022 Year to date used at quarter-end Total available for use for the year ending March 31, 2022Table Note a Used during the quarter ended September  30, 2021 Year to date used at quarter-end
Vote 1 – Program Expenditures 92,036 24,441 46,045 99,623 24,550 46,392
Statutory Authority 10,107 2,527 5,054 10,771 2,693 5,386
Total Budgetary authorities 102,143 26,968 51,099 110,394 27,243 51,778
Non-budgetary authorities            
Total authorities 102,143 26,968 51,099 110,394 27,243 51,778

DEPARTMENTAL BUDGETARY EXPENDITURES BY STANDARD OBJECT
(unaudited)

Fiscal year 2022–2023 and Fiscal year 2021–2022
  Fiscal year 2022–2023 Fiscal year 2021–2022
(in thousands of dollars) Planned expenditures for the year ending March 31, 2023Table Note b Expended during the quarter ended September 30, 2022 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2022Table Note b Expended during the quarter ended September 30, 2021 Year to date used at quarter-end
Expenditures:
Personnel 79,363 21,648 42,483 85,549 21,910 42,875
Transportation and communications 2,580 505 871 3,326 279 524
Information 286 11 38 428 101 131
Professional and special services 14,160 3,752 6,161 15,342 4,052 6,646
Rentals 582 350 396 572 204 412
Repair and maintenance 1,081 441 553 1,138 168 472
Utilities, materials, and supplies 445 96 136 604 73 89
Acquisition of land, building and works 264 132 303 303
Acquisition of machinery and equipment 1,018 38 51 939 59 89
Transfer payments 2,364 117 395 2,364 50 118
Public debt charges
Other subsidies and payments 10 15 44 119
Total gross budgetary expenditures 102,143 26,968 51,099 110,394 27,243 51,778
Less            
Total Revenues netted against expenditures
Total net budgetary expenditures 102,143 26,968 51,099 110,394 27,243 51,778
Date modified: