Archived: Quarterly Financial Report for the quarter ended June 30, 2015, Environment Canada
Introduction
This first 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 (TB). This quarterly report should be read in conjunction with the Main Estimates.
A summary description of the Environment Canada Raison d’être and program activities can be found in Part II of the Main Estimates.
This 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 (modified cash accounting). The accompanying Statement of Authorities includes Environment Canada’s spending authorities granted by Parliament and those used by the Department, consistent with the Main Estimates for the 2015-2016 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.
The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of fiscal quarter and fiscal year to date (YTD) results
Statement of Authorities (Table 1)
This quarterly report, ending June 30, 2015, reflects the authorities that were approved for this period. The funding available for use includes the 2015-2016 Main Estimates as well as the Supplementary Estimates A. Authorities for Supplementary Estimates ¨B¨ and ¨C¨ will follow through later this year. Environment Canada’s authorities “Total available for use for the year ending March 31, 2016” is higher by approximately $41.9M ($982.9M - $941.0M)Footnote 1 when compared to the same quarter of the previous year. This difference is explained by increases in Vote 1 - Operating of $18.1M ($705.3M - $687.2M)Footnote 1, in Vote 5 - Capital of $18.1M ($70.9M - $52.8M)Footnote 1 and in Vote 10 - Grants and Contributions of $11.0M ($118.3M - $107.3M)Footnote 1, offset by decreases in Budgetary statutory authorities for the Employee Benefit Plan, Minister’s Car Allowance and the Nature Conservancy of Canada of $5.3M ($88.4M - $93.7M)Footnote 1.
The $18.1M net increase compared to last fiscal year in the Operating authorities is due to the following:
- $13.2M increase related to Meteorological Services of Canada Renewal;
- $4.4M increase under the Clean Air Regulatory Agenda;
- $3.9M increase related to the assessment and remediation of federal contaminated sites;
- $3.1M increase under the National Conservation Plan;
- $2.6M increase for the World Class Oil Spills Regime;
- $1.6M increase for the Federal Infrastructure Initiative; and,
- $0.8M increase under the Genomics Research and Development Initiative.
offset by:
- $4.4M decrease under the Meteorological and Navigational Warning Services for the Arctic Ocean Initiative;
- $2.0M decrease under the Major Projects Management Office Initiative;
- $1.6M decrease due to transfer to Canadian Space Agency for the RADARSAT Constellation Mission Major Crown Project;
- $1.4M decrease related to the Departmental Financial Management System Implementation;
- $1.4M decrease under the Great Lake Nutrient Initiative; and,
- $0.7M net decrease from various other smaller adjustments.
The $18.1M net increase compared to last fiscal year in the Capital authorities is due to the following:
- $7.6M increase for the Federal Infrastructure Initiative;
- $7.1M increase related to Meteorological Services of Canada Renewal;
- $3.1M increase for the World Class Oil Spills Regime; and,
- $0.3M increase under the National Conservation Plan.
The $11.0M net increase compared to last fiscal year in the Grants and Contributions authorities is due to the following:
- $42.3M increase for the National Conservation Plan; and,
- $1.6M increase for facilitating Aboriginal participation in West Coast Energy Development.
offset by:
- $25.0M decrease to the Sustainable Development Technology Canada (SDTC) for the Next Generation Biofuels Fund;
- $6.5M decrease to the SDTC for Sustainable Development Technology Fund;
- $1.2M decrease for Inuit Impact and Benefit Agreement; and,
- $0.2M net decrease from various other smaller adjustments.
The $5.3M net decrease compared to last fiscal year in the Budgetary statutory authorities is mainly due to the following:
- $8.8M decrease payment made to the Nature Conservancy of Canada.
offset by:
- $3.5M net increase under the Employee Benefit Plan (EBP).
Expenditure Analysis
In the first quarter of 2015-2016, total net budgetary expenditures were $177.0M compared to $219.6M reported for the same period in 2014-2015, resulting in a decrease of $42.6M (19.4%).
Vote 1 - Operating authorities used during the first quarter of 2015-2016 totaled $142.2M, which represents a decrease of $32.4M (18.6%) compared to the same quarter in 2014-2015. The decrease is mainly due to a one-time transition payment for implementing salary payments in arrears by the Government of Canada paid in the first quarter of 2014-2015, a reduction of payments for severance pay following the signature of collective bargaining and, a decrease in professional and special services
Vote 5 - Capital authorities used during the first quarter of 2015-2016 totaled $4.0M, which represents an increase of $1.4M (56.3%) compared to the same quarter in 2014-2015. This increase is mainly attributable to the timing of expenditures being recorded when the goods and services are delivered to the department.
Vote 10 - Grants and Contributions authorities used during the first quarter of 2015-2016 totaled $8.9M, which represents a decrease of $3.6M (28.6%) compared to the same quarter in 2014-2015. The decrease is mainly due to timing in the payment of the contribution to the United Nations Environment Program (UNEP) for Canada’s contribution. This variance is also attributable to a contribution payment related to the Implementation of the Inuit Impact and Benefit Agreement made in the first quarter of 2014-2015.
Statutory authorities used during the first quarter of 2015-2016 totaled $21.9M, which represents a decrease of $8.1M (27.0%) compared to the same quarter in 2014-2015. This is mainly due to a payment of $8.8M to the Nature Conservancy of Canada (NCC) issued in first quarter of 2014-2015. No payment to NCC has been made this quarter.
Statement of Departmental Expenditures by Standard Object (Table 2)
Personnel expenditures have decreased by $10.0M (6.1%) in the first quarter and is mainly explained by reduction of payments in lieu of severance pay.
Professional and special services expenditures have decreased by $2.1M (17.3%) compared to the same quarter last year. This is mainly explained by a reduction in use of management consultant and changes in the management of the visiting fellowships program which created delays in signing new contracts.
Transfer Payments expenditures have decreased by $12.4M (58.2%) in the first quarter. This is mainly due to a payment of $8.8M to the Nature Conservancy of Canada and to a contribution payment related to the Implementation of the Inuit Impact and Benefit Agreement both issued in the first quarter of 2014-2015. The decrease is also due to timing in the payment of the contribution to the United Nations Environment Program (UNEP) for Canada’s annual core contribution.
Other subsidies and payments have decreased by $19.6M compared to the same quarter last year. This is due to a one-time transition payment for implementing salary payments in arrears by the Government of Canada in fiscal year 2014-2015.
Revenues have decreased by $2.4M (20.7%) compared to the first quarter last year which is mainly attributable to the timing of the collection of revenues for various programs.
Risks and Uncertainties
Environment Canada is primarily funded through voted parliamentary spending authorities for operating expenditures, capital expenditures and transfer payments as well as statutory authorities. The Department is also partially funded through vote-netted revenue. Environment Canada's planned spending reflects approved funding by Treasury Board to support the departmental Strategic Outcomes and Programs.
Environment Canada’s objectives and strategic outcomes are influenced by various internal and external factors. Environment Canada’s 2014-2017 Corporate Risk Profile includes the following Corporate Risks: Delivering Environment Canada Services, Working with Partners/Stakeholders, Workforce Readiness, Managing Information and Regulatory/Legislation.
Environment Canada’s proactively manages risks through monitoring, with adjustments made to strategies, resources or programs to ensure appropriate management actions are taken and mitigation measures are applied as required. Environment Canada’s Blueprint 2020 engagement strategies have also been considered in the development of the following key mitigating activities and management actions:
- Maintaining channels, protocols and agreements to ensure effective delivery Environment Canada services through concerted actions. The viability and readiness of the Business Continuity Plan is tested and training on emergency response is provided.
- Building and strengthening relations with stakeholders and partners, domestically and internationally, through collaborative planning networks/processes to facilitate better sharing of information, understanding of strategic priorities and regulatory/legislative expectations, clarity of roles and responsibilities and more timely mitigating actions as required.
- Building and retaining a capable workforce through training and the promotion of a culture of performance management.
- Continuing to advance the implementation of protocols and procedures, linked to the management of information, its security and related quality assurance.
Risk management continues to be a key activity for the Department. Environment Canada will continue to integrate risk information into priority setting, business and resource planning, performance management and decision making.
Approved by:
Finance Branch and
Chief Financial Officer
Fiscal year 2015-2016 | Fiscal year 2014-2015 | |||||
---|---|---|---|---|---|---|
(In thousands of dollars) |
Total available for use for the year ending March 31, 2016
Table note*
|
Used during the quarter ended June 30, 2015
|
Year to date used at quarter end
|
Total available for use for the year ending March 31, 2015
|
Used during the quarter ended
June 30, 2014 |
Year to date used at quarter end
|
Vote 1 - Net Operating expenditures |
705,282
|
142,197
|
142,197
|
687,165
|
174,593
|
174,593
|
Vote 5 - Capital expenditures |
70,847
|
4,005
|
4,005
|
52,789
|
2,563
|
2,563
|
Vote 10 - Grants and contributions |
118,341
|
8,874
|
8,874
|
107,286
|
12,434
|
12,434
|
Statutory - Employee Benefits Plan |
88,322
|
21,900
|
21,900
|
84,848
|
21,212
|
21,212
|
Statutory - Minister’s Salary and Car Allowance |
82
|
21
|
21
|
80
|
20
|
20
|
Statutory - Refund of previous years revenue |
0
|
0
|
0
|
0
|
0
|
0
|
Statutory - Spending of proceeds from the disposal of surplus Crown assets |
0
|
0
|
0
|
0
|
0
|
0
|
Statutory - Nature Conservancy of Canada |
0
|
0
|
0
|
8,792
|
8,792
|
8,792
|
Total Budgetary authorities |
982,874
|
176,997
|
176,997
|
940,960
|
219,614
|
219,614
|
Non-budgetary authorities |
-
|
-
|
-
|
-
|
-
|
-
|
Total authorities |
982,874
|
176,997
|
176,997
|
940,960
|
219,614
|
219,614
|
Fiscal year 2015-2016 | Fiscal year 2014-2015 | |||||
---|---|---|---|---|---|---|
(In thousands of dollars) |
Planned expenditures for the year ending March 31, 2016
Table note*
|
Expended during the quarter ended June 30, 2015 |
Year to date used at quarter end
|
Planned expenditures for the year ending March 31, 2015
|
Expended during the quarter ended June 30, 2014
|
Year to date used at quarter end
|
Expenditures: |
||||||
Personnel |
613,442
|
153,184
|
153,184
|
599,150
|
163,170
|
163,170
|
Transportation and communications |
36,043
|
4,355
|
4,355
|
37,577
|
4,173
|
4,173
|
Information |
3,515
|
234
|
234
|
3,992
|
209
|
209
|
Professional and special services |
150,022
|
10,022
|
10,022
|
126,095
|
12,123
|
12,123
|
Rentals |
27,003
|
1,772
|
1,772
|
24,957
|
1,881
|
1,881
|
Repair and maintenance |
22,769
|
920
|
920
|
19,920
|
1,210
|
1,210
|
Utilities, materials and supplies |
40,722
|
5,408
|
5,408
|
39,287
|
6,150
|
6,150
|
Acquisition of land, buildings and works |
1,265
|
5
|
5
|
1,650
|
1
|
1
|
Acquisition of machinery and equipment |
54,104
|
1,174
|
1,174
|
52,193
|
1,182
|
1,182
|
Transfer payments |
118,341
|
8,874
|
8,874
|
116,079
|
21,226
|
21,226
|
Other subsidies and payments |
4,244
|
267
|
267
|
8,656
|
19,907
|
19,907
|
Total gross budgetary expenditures |
1,071,470
|
186,215
|
186,215
|
1,029,556
|
231,232
|
231,232
|
Less Revenues netted against expenditures Revenues |
88,596
|
9,218
|
9,218
|
88,596
|
11,618
|
11,618
|
Total revenues netted against expenditures |
88,596
|
9,218
|
9,218
|
88,596
|
11,618
|
11,618
|
Total net budgetary expenditures |
982,874
|
176,997
|
176,997
|
940,960
|
219,614
|
219,614
|
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