Departmental Performance Report 2011-2012
Section III: Supplementary Information
Financial Highlights
The financial highlights presented on the following pages offer an overview of Environment Canada's financial position and the net cost of operations before government funding and transfers. The detailed unaudited departmental financial statements can be found on Environment Canada's website.
| Change (%) | 2011-2012 | 2010-2011 | |
|---|---|---|---|
| Total net liabilities | -1.8% | 449,991 | 458,008 |
| Total net financial assets | -25.8% | 156,453 | 210,958 |
| Departmental net debt | 18.8% | 293,538 | 247,050 |
| Total non-financial assets | 2.0% | 387,185 | 394,987 |
| Departmental net financial position | -36.7% | 93,647 | 147,937 |
| Change (%) | 2011-2012 | 2010-2011 | |
|---|---|---|---|
| Total expenses | -2.9% | 1,139,406 | 1,173,208 |
| Total revenues | -4.9% | 59,950 | 63,274 |
| Net cost of operations before government funding and transfers* | -4.9% | 1,109,673 | 1,166,261 |
| Departmental net financial position | -36.7% | 93,647 | 147,937 |
| * In 2011-2012, the Net cost of operations before government funding and transfer includes $31.5 million in expenses and $1.3 million in revenues deemed to have been recorded by Shared Services Canada (SSC). In 2010-2011, these amounts represent $58.5 million in expenses and $2.1 million in revenues. | |||
Financial Statements
Environment Canada's unaudited financial statements are prepared in accordance with Treasury Board policies which are based on Canadian public sector accounting standards and, therefore, are different from appropriation-based reporting, which is reflected in Sections I and II of this report. Sections I and II are prepared on a modified cash basis, and not an accrual basis. A reconciliation between Parliamentary Appropriations used (modified cash basis) and the Net Cost of Operations (accrual basis) is set out in Note 2 and 3 of Environment Canada's Unaudited Financial Statements at this website.
Liabilities by Type
Total liabilities were $450 million at the end of 2011-2012. This represents a decrease of $8 million or 1.8 percent from the previous year's total liabilities of $458 million. The accounts payable and accrued liabilities continue to represent the largest component of liabilities at $161.5 million (35.9 percent of total liabilities) in 2011-2012.
The decrease in Environment Canada's total net liabilities valuation is mainly attributable to:
An overall reduction of accrued liabilities of $17.6 million which includes a $33.6 million reduction related to a payment to Nature Conservancy of Canada (NCC) offset by a $15.7 million increase related to the disclosure of the obligation for termination benefits associated with the estimated workforce adjustment costs included in Budget 2012;
A reduction of the accounts payable to external parties by $8 million which includes a $5.6 million reduction related to the transfer of ongoing accounts payable settled on behalf of Shared Services Canada (SSC);
A decrease of $7 million in lease obligation for tangible capital assets due to the transfer of informatics hardware to SSC;
A decrease of $16.8 million in liabilities related to employee future benefits explains by the abolition of severance pay in some classification in 2011-2012;
A increase of $33 million in other liabilities related to contingent liabilities; and
A net increase of $7.7 million in environmental liabilities.
See Notes 4 to 8 and Note 11 of the Departmental Financial Statements for more details - Accounts payable and accrued liabilities; Deferred revenue; Lease obligation for tangible capital assets; Employee future benefits; Environmental and contingent liabilities; Contractual obligations.
Assets by Type
Total assets, valued at $543.6 million, have decreased by $62.3 million or 10.3 percent in 2011-2012. The tangible capital assets continue to represent the largest component of assets at $381.3 million (70 percent of total assets) in 2011-2012.
The decrease in Environment Canada's total net assets valuation is mainly attributable to:
Financial Assets
- A decrease of $39.8 million in the due from the Consolidated Revenue Fund; and
- A decrease of $14.7 million in accounts receivable and advances.
Non-Financial Assets
- A decrease of $7.8 million explained by the transfer of tangible capital assets with a net book value of $10.4 million to Shared Service Canada (SSC). Environment Canada's tangible capital assets have net increased by $2.6 million. The major acquisitions were for machinery and equipment and assets under construction.
See Notes 9 and 10 of the Departmental Financial Statements for more details - Accounts receivable and advances; Tangible Capital Assets.
Expenses by Program Activity
Total departmental expenses by Program Activity amounted to $1,139.4 million for 2011-2012. The decrease of $33.8 million or 2.9 percent, from $1,173.2 million in 2010-2011 to $1,139.4 million in the current fiscal year is mostly due to:
The government's ongoing commitment, in Budget 2011, to identify ways to reduce operating and program costs in order to meet the Canada's Economic Action Plan objectives;
The abolition of severance pay in some classifications in 2011-2012 that resulted in a diminution of the departmental provision; and
The termination of the National Vehicle Scrappage Program, which reduced the transfer payments by $41.3 million.
The decrease of expenses has been offset by the record of an expense of $33 million in environmental liabilities.
See Note 14 of the Departmental Financial Statements for further breakdown of expenditures - Segmented information by Standard Objects and Program Activity Architecture.
Revenues by Type
Total revenues amounted to $60 million for 2011-2012. This amount excludes $13.5M of revenues earned on behalf of Government. The majority of the revenue in 2011-2012 is derived from Environment Canada's meteorological services under the "Weather and Environmental Services for Targeted Users". Major revenue items include disposal at sea permit applications, meteorological services, hydraulics laboratory, and disposal at sea monitoring fees.
The decrease of $3.3 million or 5.3 percent in Environment Canada's net revenues in 2011-2012 is due to a diminution of sales of goods and information products related to weather forecasts and hydrometric data.
See Note 14 of the Departmental Financial Statements for further breakdown of revenues - Segmented information by type and Program Activity Architecture.
Organizational Contact Information
For questions or comments on Environment Canada's Departmental Performance Report, please contact:
Karen Turcotte
Director General
Corporate Management Directorate, Finance Branch
Environment Canada
Tel.: 819-953-5842
Fax: 819-953-3388
Email: Karen.Turcotte@ec.gc.ca
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