Quarterly Financial Report for the quarter ended June 30, 2020

Management Statement for the Quarter Ending June 30, 2020

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 (CTA) is an independent, quasi-judicial tribunal and regulator that has, with respect to all matters necessary for the exercise of its jurisdiction, all the powers of a superior court. The CTA has three mandates:

  • It helps ensure that the national transportation system runs efficiently and smoothly in the interests of all Canadians: those who work and invest in it; the producers, shippers, travelers and businesses who rely on it; and the communities where it operates.
  • It protects the human right of persons with disabilities to an accessible transportation network.
  • It provides consumer protection for air passengers.

To help advance these mandates, the CTA has three tools at its disposal:

  • Rule-making: It develops and enforces 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: It resolves 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: It provides information on the transportation system, the rights and responsibilities of transportation providers and users, and its legislation and services.

Further information on the CTA’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 CTA's spending authorities granted by Parliament, and those used by the CTA consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2020-2021 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 CTA 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 the Fiscal Quarter and the Fiscal Year-to-Date (YTD) Results

Graph 1 – First quarter net budgetary authorities and expenditures per fiscal year
Graph 1 – First 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 June 30, for fiscal year 2019-2020 and 2021-2021 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: 2019-2020
Net budgetary authorities: 35.42 million dollars
First quarter expenditures: 7.63 million dollars

Time period: 2020-2021
Net budgetary authorities: 24.93 million dollars
First quarter expenditures: 7.88 million dollars

2.1 Statement of Authorities

The CTA’s total authorities available for use in 2020-2021, totalling $24,925,283, have decreased by $10,490,717 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 decrease in the authorities available for use is due to the reduced supply of the Main Estimates. Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the Fall. The CTA is expected to receive full supply for the 2020-2021 Main Estimates in December 2020.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous year, total budgetary expenditures recorded in the first quarter have increased by $247,151, from $7,628,454 to $7,875,605, as illustrated in the Departmental Budgetary Expenditures by Standard Object below. This increase is mainly attributable to an increase in the Personnel and Acquisition of machinery and equipment expenses categories. These increases are offset by a reduction in the Transportation and communications and Professional and special services expense categories as explained below:

  • The expenditures in the Personnel category have increased by $160,450 and is primarily due to the additional resources required to address the continued influx of air travel complaints from 2019-2020.
  • The expenditures in the Acquisition of machinery and equipment have increased by $329,925 due to the purchase of informatics equipment in order to replace outdated equipment and support flexible work arrangement for CTA's workforce, including telework.
  • The expenditures in the Transportation and communications category have decreased by $87,634 and is primarily due to the COVID-19 travel restrictions.
  • The expenditures in the Professional and special services category have decreased by $211,939 and is primarily attributable to the period in which the purchases were settled as well as the development of new online products, such as an air passenger protection microsite and online complaint forms in 2019-2020.

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 coming into force of the second phase of rights and protections under the Air Passenger Protection Regulations (APPR) on December 15th, 2019 has resulted in significant increases in the number of complaints received. At the close of 2019-20, a total of 13,467 complaints were carried forward for processing into 2020-21. There is a risk that the CTA will not be able to process accumulated backlog without additional resources and staff.

In light of the COVID-19 pandemic, the air industry has limited its operations, and cancelled many flights to align with government-issued travel limitations worldwide and a steep decrease in passengers wishing to fly. With the imminent gradual return in flights, it is imperative that the CTA has sufficient capacity, as the lack thereof would undermine the intent of the APPR.

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

During these difficult times, the CTA continues to maintain its normal operations while its employees practice social distancing. The CTA's dedicated employees are working remotely and are available through electronic means to provide service. However, it should be noted that the CTA temporarily paused all dispute resolution activities involving air carriers between March 13 and June 30, 2020, to permit them to focus on immediate and urgent operational demands such as the repatriation of Canadians stranded abroad, issued temporary exemptions to certain APPR provisions to give carriers additional flexibility to adjust flight schedules as global air travel was thrown into chaos by the COVID-19 pandemic and related travel restrictions and delayed the coming-into-force of a number of targeted provisions of the Air Transportation for Persons with Disabilities Regulations (ATPDR) until January 1, 2021.

Approval by Senior Officials

Approved by:


Scott Streiner
Chair and Chief Executive Officer
Gatineau, Canada
August 25, 2020


Mireille Drouin
Chief Financial Officer
Gatineau, Canada
August 26, 2020


Statement of Authorities (unaudited)

Fiscal year 2020-2021
  Total available for use for the year ending March 31, 2021 * Used during the quarter ended June 30, 2020 Year to date used at quarter-end
Vote 1 – Program expenditures 21,392,838 6,992,494 6,992,494
Budgetary statutory authorities − Employee Benefit Plans 3,532,445 883,111 883,111
Total authorities 24,925,283 7,875,605 7,875,605
Fiscal year 2019-2020
  Total available for use for the year ended March 31, 2020 * Used during the quarter ended June 30, 2019 Year to date used at quarter-end
Vote 1 – Program expenditures 31,886,261 6,835,082 6,835,082
Budgetary statutory authorities − Employee Benefit Plans 3,529,739 793,372 793,372
Total authorities 35,416,000 7,628,454 7,628,454

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2020-2021
Expenditures: Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended June 30, 2020 Year to date used at quarter-end
Personnel 21,329,276 7,177,142 7,177,142
Transportation and communications 525,791 9,374 9,374
Information 532,571 64,305 64,305
Professional and special services 574,799 96,523 96,523
Rentals 607,589 155,004 155,004
Repair and maintenance 64,086 138 138
Utilities, materials and supplies 100,850 41,279 41,279
Acquisition of land, buildings, and works - - -
Acquisition of machinery and equipment 1,190,321 331,715 331,715
Other subsidies and payments - 125 125
Total net budgetary expenditures 24,925,283 7,875,605 7,875,605
Fiscal year 2019-2020
Expenditures: Planned expenditures for the year ending March 31, 2020 Expended during the quarter ended June 30, 2019 Year to date used at quarter-end
Personnel 26,508,685 7,016,692 7,016,692
Transportation and communications 653,046 97,008 97,008
Information 193,843 79,160 79,160
Professional and special services 3,110,533 308,462 308,462
Rentals 902,147 109,618 109,618
Repair and maintenance 141,193 383 383
Utilities, materials and supplies 160,466 15,328 15,328
Acquisition of land, building and works 3,522,137 - -
Acquisition of machinery and equipment 223,950 1,790 1,790
Other subsidies and payments - 13 13
Total net budgetary expenditures 35,416,000 7,628,454 7,628,454
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