Skip booklet index and go to page content

National Round Table Financial Statements

1. Authority and objectives

The National Round Table on the Environment and the Economy (NRTEE) was established in 1994 under the National Round Table on the Environment and the Economy Act and is a departmental corporation named in Schedule II of the Financial Administration Act. The NRTEE fulfils its objective of promoting sustainable development, and the integration of the environment and economy in decision making in all sectors, by conducting studies, organizing stakeholder “dialogues” on specific issues and economic sectors, providing advice, carrying out educational and communication activities, and by acting as a catalyst for change. Its operating expenses are funded mainly by a budgetary lapsing authority and, to a lesser extent, from cost recovery and cost sharing for specific activities. The NRTEE is not subject to the provisions of the Income Tax Act.

The NRTEE has two program activities:

Advisory Program on Environment and Economy Issues (referred to as Program Advisory) - Raising awareness and understanding among Canadians and their governments about the challenges of sustainable development and promoting viable solutions are vital to Canada's environmental and economic future.
Internal Services - All services that support the operation of the NRTEE and act as enablers for the NRTEE's other program activity.

2. Basis of Presentation - Going Concern

On March 29, 2012, the Government of Canada announced its intention to liquidate and close the NRTEE by April 1, 2013. This intention was approved through adoption (Royal Assent) of Bill C-38 on June 29, 2012. The going concern basis of presentation assumes that the NRTEE will continue in operation for the foreseeable future and that it will be able to realize its assets and discharge its responsibilities in the normal course of business. With the discontinuance of all of the NRTEE operations in 2012-13, the going concern basis of presentation is no longer appropriate. As a result, the 2012-13 financial statements have been prepared on a liquidation basis of accounting.  Any liabilities that remain unsatisfied upon liquidation of the NRTEE will become the liabilities of Her Majesty in right of Canada.

3. Summary of significant accounting policies

These financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Under the liquidation basis of accounting, the assets and liabilities have be measured based on their net realizable value and settlement amounts respectively.

Significant accounting policies are as follows:

(a) Parliamentary authorities - the NRTEE is financed by the Government of Canada through Parliamentary appropriations.  Financial reporting of authorities provided to the NRTEE do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.

(b) Net cash provided by Government - the NRTEE operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the NRTEE is deposited to the CRF and all cash disbursements made by the NRTEE are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.

(c) Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the NRTEE is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues:

Contributions from external parties for specified purposes are recorded upon receipt as deferred revenues. Contributions are recognized in the period in which the related expenses are incurred.
Miscellaneous revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
Revenues that are non-respendable are not available to discharge the NRTEE's liabilities. While the President and CEO is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the NRTEE's gross revenue.

(e) Expenses - Expenses are recorded on the accrual basis:

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
Services provided without charge by other government departments for such items as accommodation are recorded as operating expenses at their estimated cost.
A termination benefit is payable when employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. A termination benefits liability based on the employee's years of continuous service in the public service is recorded by NRTEE when it is demonstrably committed to terminate the employment of current employees.

(f) Contingent liabilities - Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(g) Measurement uncertainty - The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are the liability for termination benefits, the liability for severance benefits, the liability for vacation pay and compensatory leave, and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

4. Parliamentary authorities

The NRTEE receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the NRTEE has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current years authorities used

 
2013
2012
Net cost of operations before government funding and transfers
$5,115,354
$6,928,635
Adjustments for items affecting net cost of operations but not affecting authorities: 
Amortization of tangible capital assets
(87,092)
(80,393)
Services provided without charge
(380,746)
(380,746)
Decrease (Increase) in vacation pay and compensatory leave
180,824
(44,262)
Decrease in employee future benefits
299,130
245,828
Adjustment to previous years' payables at year-end
585
11,655
Increase in accrued liabilities not charged to authorities
-
(1,326,928)
Refund of prior years' expenditures
-
1,145
 
12,701
(1,573,701)
Adjustments for items not affecting net cost of operations but affecting authorities: 
Acquisition of tangible capital assets
-
6,525
Increase (decrease) in prepaid expenses  
(6,615)
2,338
Current year authorities used
$5,121,440
$5,363,797

 

(b) Authorities provided and used

 
2013
2012
Authorities Provided 
Vote 20 - Program expenditures
$5,367,599
$5,218,383
Statutory amounts
439,195
449,334
 
5,806,794
5,667,717
Less: 
Lapsed appropriations - operations
(685,354)
(303,920)
Current year authorities used
$5,121,440
$5,363,797

5. Accounts payable and accrued liabilities

The following table presents details of the NRTEE's accounts payable and accrued liabilities:

 
2013
2012
Accounts payable - Other government departments and agencies
$100,121
$38,654
Accounts payable - External parties
805,427
469,029
Accrued liabilities
-
1,326,928
Total accounts payable and accrued liabilities
$905,548
$1,834,611

 

6. Tangible Capital Assets

Cost

Opening Balance
Acquisitions
Dispositions
Closing Balance
Leasehold improvements
$198,343
-
$198,343
-
Informatics equipment and
purchased software
165,622
-
165,622
-
Furniture and equipment
147,619
-
147,619
-
 
$511,584
-
$511,584
-
 
 Accumulated amortization 
 
Opening Balance
Amortization
Dispositions
Closing Balance
Leasehold improvements
$154,035
$44,308
$198,343
-
Informatics equipment and
purchased software
137,384
28,238
165,622
-
Furniture and equipment
133,073
14,546
147,619
-
 
$424,492
$87,092
$511,584
-
 
 Net Book Value 
 
2013
2012
 
Leasehold improvements
-
$44,308
 
Informatics equipment and
purchased software
-
28,238  
Furniture and equipment
-
14,546
 
 
-
$87,092
 

All NRTEE assets were written down to a zero book value as part of the wind-up process. Asset disposition was done in a variety of ways. The major assets were disposed of in accordance with Treasury Board Policy on Disposal. Small assets were sold with the proceeds going to the Receiver General. Others were transferred at a zero book value across a number of small departments and agencies. Residual assets with no value and in which there was no interest from other Departments were disposed.

7. Related party transactions

The NRTEE is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. The NRTEE enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the NRTEE received common services which were obtained without charge from other government departments as disclosed below.

(a) Common Services provided without charge by other government departments

During the year, the NRTEE received services without charge from certain common service organizations. These services provided without charge have been recorded in the NRTEE's Statement of Operations and Net Financial Position as follows:

 
2013
2012
Accommodations
$378,746
$378,746
Miscellaneous
2,000
2,000
Total
$380,746
$380,746

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the NRTEE's Statement of Operations and Net Financial Position.

(b) Other transactions with related parties

 
2013
2012
Accounts receivable - Other government departments
-
$900
Accounts payable - Other government departments
100,121
38,654
Revenues - Other government departments
85,991
290,024
Expenses - Other government departments
$817,225
$722,788

Revenues and expenses disclosed in (b) exclude commons services provided without charge, which are already disclosed in (a).

8. Segmented information

Presentation by segment is based on the NRTEE's Program Activity Architecture. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

 
Programs
Advisory
Internal
Services
2013
2012
Operations expenses
$
$
$
$
Salaries and employee benefits
2,085,098
1,970,601
4,055,699
4,717,799
Professional and special services
263,726
103,984
367,710
1,043,859
Rentals
3,905
399,749
403,654
409,520
Transportation and telecommunications
14,346
78,839
93,185
322,903
Information and printing
85,200
10,309
95,509
210,405
Amortization of tangible capital assets
-
87,092
87,092
80,392
Repairs and maintenance
-
1,013
1,013
59,747
Utilities, materials and supplies
28
4,832
4,860
29,031
Acquisition of office equipment, furniture,informatics
4,029
2,603
6,632
59,301
Total operating expenses
2,456,332
2,659,022
5,115,354
6,932,957
Revenues 
Contributions
-
-
-
4,322
Miscellaneous revenues
-
-
6,833
2,825
Revenues earned on behalf of Government
-
-
(6,833)
(2,825)
Total revenues
-
-
-
4,322
Net cost of operations before
government funding and transfers
2,456,332
2,659,022
5,115,354
6,928,635
Page 6
Date modified: