Quarterly Financial Report for the Quarter Ended December 31, 2025

ISSN 2369-7938

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 $0.8 million between fiscal years 2024–25 and 2025–26. This net increase is primarily attributable to funding received to support employee salary adjustments stemming from newly signed and ratified collective bargaining agreements. In addition, the operating budget carryforward (OBCF) for 2025–26 was slightly higher than in the previous fiscal year. These increases were partially offset by reductions associated with the Government of Canada’s Budget 2023 Refocusing Government Spending initiative.

Compared with the second quarter, authorities for 2025–26 increased by $0.5 million. This rise is mainly due to the receipt in the third quarter of incremental funding to address employee salary adjustments related to the newly ratified collective agreements.

Statement of Departmental Budgetary Expenditures

The department’s quarterly and year-to-date spending is $0.2 million higher in the current fiscal year compared with 2024–25. The two main variances include a decrease in professional services and an increase in personnel expenditures.

The decrease in professional services is primarily attributable to pausing and reassessing an IT project to support the TSB’s transition to SharePoint Online, while the increase in personnel expenditure is mainly due to retroactive payments following the signing of collective agreements, as well as changes to Employee Benefit Plan (EBP) rates.

As illustrated in Figure 1, the TSB has spent approximately 69% of its available authorities as of the end of the third quarter. The lower in-year spending rate is primarily attributable to the delays noted above, as well as measures taken by the TSB to slow expenditures in anticipation of ongoing 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

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

Approval by senior officials

Approved by,    

Statement of Authorities (unaudited) 

Statement of Expenditures by Standard Object (unaudited)