Quarterly Financial Report for the Quarter Ended September 30, 2025

Introduction

This quarterly 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. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.

The Transportation Safety Board of Canada’s (TSB’s) sole objective is to advance air, marine, pipeline and rail transportation safety. This mandate is fulfilled by conducting independent investigations into selected transportation occurrences to identify the causes and contributing factors, and the safety deficiencies evidenced by these occurrences. The TSB makes recommendations to reduce or eliminate any such safety deficiencies and reports publicly on its investigations. The TSB then follows up with stakeholders to ensure that safety actions are taken to reduce risks and improve safety.

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

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the TSB’s spending authorities granted by Parliament and those used by the department. Authorities include amounts granted through the Main Estimates and Supplementary Estimates (as applicable) for the 2025–26 fiscal year and any respendable revenue earned and available for use to quarter end. 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.

TSB uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis. 

Highlights of fiscal quarter and fiscal year to date results

Statement of authorities

The TSB’s total authorities available for use increased by $0.7 million between fiscal years 2024–25 and 2025–26. This net change is primarily attributable to three factors: $531,000 in additional funding to support recently signed collective agreements; a $461,000 increase driven by fluctuations in the Employee Benefit Plan (EBP) rate, which is established annually by the Treasury Board Secretariat; and a reduction of $482,000 resulting from measures introduced under the Government of Canada’s Budget 2023 Refocusing Government Spending initiative. In addition, the TSB’s Operating Budget Carry Forward (OBCF) for 2025–26 was $171,000 higher than the amount received in 2024–25.

Statement of departmental budgetary expenditures

The department’s quarterly and year-to-date spending is $0.5 million lower in the current year compared to 2024–25. This variance consists mainly of a combination of decreases in professional services and rentals of $0.9 million, offset by increases in personnel expenditures of $0.4 million. The decrease in professional services and rentals relates to delays in hiring IT project consultants to support the TSB’s transition to SharePoint Online as well as delays in invoicing of some licenses. The increase in personnel expenditures is as a result of retroactive payments due to the signing of collective agreements as well as EBP changes.

As illustrated in Figure 1, the TSB has spent approximately 46% of its available authorities by the end of the second quarter. The lower spending percentage is primarily attributable to the delays in spending mentioned above as well as the TSB taking measures to slow down expenditures in anticipation of continued and upcoming budget reduction exercises.

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Risks and uncertainties

A continuous risk to the TSB’s financial situation is that expenditures are greatly influenced by the number and complexity of transportation occurrences. A significant transportation accident or a flurry of smaller-size occurrences could significantly increase expenditures and result in additional resource pressures that could require the department to seek further funding from Parliament.

As a departmental corporation, the TSB has authority to spend revenues received during the year although such revenues are minimal; on average less than 1% of the department’s funding requirements. 

Significant changes in relation to operations, personnel and programs

With respect to operations, TSB employees continue to work in a hybrid work environment, in alignment with the Direction on Prescribed Presence in the Workplace.

There has been no change to the TSB’s programs. 

Approval by senior officials

Approved by,    

Statement of Authorities (unaudited)

Fiscal year 2025–26 (in thousands of dollars) Includes only authorities granted by Parliament at quarter end.

Statement of Expenditures by Standard Object (unaudited)