Unaudited Financial Statements for the period ending March 31, 2012
- Statement of Management Responsibility Including Internal Control Over Financial Reporting 2011-2012
- Statement of Financial Position (Unaudited)
- Statement of Operations and Departmental Net Financial Position (Unaudited)
- Statement of Change in Departmental Net Debt (Unaudited)
- Statement of Cash Flows (Unaudited)
- Notes to the Financial Statement (Unaudited)
- Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting 2011-2012
Notes to the Financial Statement (Unaudited)
- Authority and objectives
- Summary of significant accounting policies
- Parliamentary authorities
- Accounts payable and accrued liabilities
- Deferred revenue
- Lease obligation for tangible capital assets
- Employee future benefits
- Environmental and contingent liabilities
- Accounts receivable and advances
- Tangible capital assets
- Contractual obligations
- Related party transactions
- Transfer to other government departments
- Segmented information
- Accounting changes
- Comparative information
1. Authority and objectives
Environment Canada was established under legislation by the Department of the Environment Act. Under this Act , the powers, duties and functions of the Minister of the Environment extend to and include matters relating to:
- The preservation and enhancement of the quality of the natural environment (including water, air and soil quality);
- Renewable resources, including migratory birds and other non-domestic flora and fauna;
- Water;
- Meteorology;
- Enforcement of any rules or regulations made by the International Joint Commission relating to boundary waters; and
- Coordination of the policies and programs of the Government of Canada respecting the preservation and enhancement of the quality of the natural environment.
Environment Canada delivers its mandate through the following programs:
- Weather and Environmental Services for Canadians
- Biodiversity - Wildlife and Habitat
- Substances and Waste Management
- Weather and Environmental Services for Targeted Users
- Climate Change and Clean Air
- Water Resources
- Compliance Promotion and Enforcement - Pollution
- Compliance Promotion and Enforcement - Wildlife
- Sustainable Ecosystems
- Internal Services
In addition, Environment Canada has authority under numerous pieces of legislation which affect how the department operates. The most significant Acts are as follows:
- Antarctic Environmental Protection Act
- Canada Wildlife Act
- Canada Water Act
- Canadian Environmental Assessment Act
- Canadian Environmental Protection Act, 1999
- Department of the Environment Act
- Environmental Enforcement Act
- Fisheries Act (Sections 36-42)
- International River Improvements Act
- Migratory Birds Convention Act, 1994
- Weather Modification Information Act
- Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act
- Kyoto Protocol Implementation Act ( 2007, c. 30 )
- Species at Risk Act
- Federal Sustainable Development Act ( 2008, c. 33 )
2. Summary of significant accounting policies
These financial statements have been prepared in accordance with Treasury Board accounting policies which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
(a) Parliamentary authorities
Environment Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to Environment Canada 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 Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2011-12 Report on Plans and Priorities.
(b) Net Cash Provided by Government
Environment Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by Environment Canada is deposited to the CRF and all cash disbursements made by Environment Canada 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) Amount Due from the Consolidated Revenue Fund (CRF)
Amount Due from CRF is the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF and represents the net amount of cash that the Department is entitled to draw from the CRF without further appropriations to discharge its liabilities.
- Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
- Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in which the related expenses are incurred.
- Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenue.
- Other 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 Environment Canada's liabilities. While the DH is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, nonrespendable
revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross revenues.
(e) Expenses
Expenses are recorded on the accrual basis:
- Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an
existing program, transfer payments are recorded as expenses when the Government announces a decision to make a nonrecurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.ployment; - 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 accommodation, employer contributions to the health and dental insurance plans, legal services and worker's compensation are recorded as operating expenses at their estimated cost. The providers of these services determine the estimated costs to be recorded by the departments.
(f) Employee future benefits
- Pension benefits: sponsor. Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. Environment Canada's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Environment Canada's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
- Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
(g) Accounts and loans receivables
Accounts and loans receivables are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.
(h) 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 the 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.
(i) Environmental liabilities
Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management’s best estimates, a liability is accrued and an expense recorded when the contamination occurs or when Environment Canada becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of Environment Canada’s obligation to incur these costs is either not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.
(j) Inventory
Inventory consists of parts, material and supplies held for future program delivery. Inventory is valued at cost using the average cost method. If there is no longer any service potential, inventory is valued at the lower of cost or net realizable value.
(k) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Environment Canada does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.
Amortization of tangible capital assets is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Asset Class | Amourtization Period |
Buildings | 25 to 40 years |
Works and Infrastructure | 20 to 40 years |
Machinery and Equipment | 2 to 30 years |
Vehicles | 3 to 25 years |
Leasehold Improvements | Lesser of the remaining term of lease or useful life of the improvement |
Leased tangible capital assets | Over term of lease/useful life |
Betterments | Lesser of betterment useful life or useful life of related asset (if not fully amortized) |
Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
(l) 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 used are contingent liabilities, environmental liabilities, the liability for employee severance benefits 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.
3. Parliamentary authorities
Environment Canada receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, Environment Canada 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 operations to current year authorities used:
(in thousands of dollars) | 2012 | 2011 |
Restated (note 15) | ||
Net cost of operations | $1,109,673 | $1,166,261 |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Services provided without charge | (99,689) | (98,841) |
Amortization of tangible capital assets (note 10) | (36,932) | (46,016) |
Expenses not being charged to Appropriations (1) | 17,995 | 21,700 |
Expenses related to Environmental Liabilities | (7,681) | (11,091) |
Loss on disposal of capital assets | (5,933) | (3,843) |
Expenses related to cost sharing project deposits | (2,185) | (2,579) |
Adjustments for prior years Payables At Year End | 3,822 | 1,585 |
Refund of previous year's expenditures | 1,279 | 1,394 |
Increase (decrease) in inventory | 4 | (1,100) |
Expenses related to the Environmental Damage Fund | (442) | (671) |
Expenses related to the Employee Future Benefits | 12,597 | (480) |
Decrease (increase) in vacation pay and compensatory leave | 234 | (277) |
Expenses for claims pending litigation | (32,976) | (24) |
Other | (3,362) | 2,780 |
(153,269) | (137,463) | |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Acquisition of tangible capital assets (note 10) | 46,906 | 53,030 |
Capital lease payments | 5,166 | 7,063 |
52,072 | 60,093 | |
Current year authorities used | $1,008,476 | $1,088,891 |
1. This amount represents monies that are kept in trust by Environment Canada for Nature Conservancy of Canada and the obligation for termination benefits for an estimated amount of $15,700,000 that has been recorded at March 31, 2012 to reflect the estimated workforce adjustment costs.
(b) Authorities provided and used:
(in thousands of dollars) | 2012 | 2011 |
Authorities Provided | ||
Vote 1 - Operating expenditures | $821,643 | $831,970 |
Vote 5 - Capital expenditures | 56,550 | 57,176 |
Vote 10 - Grants & Contributions | 93,928 | 162,250 |
Statutory amounts | 126,849 | 120,292 |
1,098,970 | 1,171,688 | |
Less: | ||
Authorities available for future years | (639) | (1,373) |
Lapsed authorities | (89,855) | (81,424) |
(90,494) | (82,797) | |
Current year authorities used | $1,008,476 | $1,088,891 |
4 .Accounts payable and accrued liabilities
The following table presents details of Environment Canada's accounts payable and accrued liabilities
(in thousands od dollars) | 2012 | 2011 |
Accounts payable - Other government departments and agencies | $16,713 | $16,496 |
Accounts payable - External parties | 72,554 | 79,280 |
Total | 89,267 | 95,776 |
Accrued liabilities | 72,225 | 89,868 |
Total accounts payable and accrued liabilities | $161,492 | $185,644 |
In Canada's Economic Action Plan 2012 , .the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012-2013. As a result, the Department has recorded at March 31, 2012 an obligation for termination benefits for an estimated amount of $15,700,000 as part of accrued liabilities to reflect the estimated workforce adjustment costs. The actual cost may be different from the estimate.
5. Deferred revenue
(in thousands of dollars) | 2012 | 2011 |
Opening balance | $5,822 | $5,150 |
Donations | 1 | 1 |
Cost sharing project deposits | 2,319 | 2,824 |
Permits | 541 | - |
Revenue recognized | (2,296) | (2,153) |
Closing balance | $6,387 | $5,822 |
6. Lease obligation for tangible capital assets
Environment Canada has entered into agreements to lease certain equipment under capital leases with a cost of $18,198,560 and accumulated amortization of $7,278,920 as at March 31, 2012 ($18,198,560 of cost and $6,550,945 in accumulated amortization respectively as at March 31, 2011) as reflected in note 10. The obligations related to the upcoming years include Carleton University for which, on October 13, 2000, Environment Canada entered into an agreement to rent office laboratory space for the National Wildlife Research Centre (NWRC), at an annual cost of $1.3 million under a capital lease which expires in 2028.
(in thousands of dollars) | 2012 | 2011 |
Maturing year | ||
2012 | - | $8,051 |
2013 | 1,300 | 1,300 |
2014 | 1,300 | 1,300 |
2015 | 1,300 | 1,300 |
2016 | 1,300 | 1,300 |
2017 and thereafter | 14,300 | 14,300 |
Total future minimum lease payments | 19,500 | 27,551 |
Less: imputed interest ( 5.63% ) | 6,563 | 7,628 |
Balance of obligation under leased tangible capital assets | $12,937 | $19,923 |
1. As a result of new information, comparative information has been revised for 2011 in order to present adjusted imputed interest and future payment on capital lease.
7. Employee future benefits
(a) Pension benefits
Environment Canada’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.
Both the employees and Environment Canada contribute to the cost of the Plan. The 2011-2012 expense amounts to $65,303,601 ($67,606,370 in 2010-2011) which represents approximately 1.8 times (1.9 times in 2010-2011) the contributions by employees.
Environment Canada's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
(b) Severance benefits
Environment Canada provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:
As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.
(in thousands of dollars) | 2012 | 2011 |
Accrued benefit obligation, beginning of year | $114,431 | $113,951 |
Transferred from other government department, effective November 15 , 2011 (note 13) | (4,224) | - |
110,207 | 113,951 | |
Expense for the year | (3,423) | 9,910 |
Benefits paid during the year | (8,717) | (9,430) |
Accrued benefit obligation, end of year | $98,067 | $114,431 |
8. Environmental and contingent liabilities
Environmental and Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into two categories as follows:
(a) Contaminated sites
Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where Environment Canada is obligated or likely to be obligated to incur such costs. Environment Canada has identified approximately
18 projects (18 in 2010-2011) where such action is possible and for which a liability of $107,567,920 ($99,886,464 in 2010-2011) has been recorded in accrued liabilities. Environment Canada has estimated additional clean-up costs of $28,477,893 ($28,278,745 in 2010-2011) that are not accrued, as these are not considered likely to be incurred at this time. Environment Canada's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by Environment Canada in the year in which they become likely and are reasonably estimable.
(b) Claims and litigation
Claims have been made against Environment Canada in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes
are not determinable. Environment Canada has recorded an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. Claims and litigations for which the outcome is not
determinable and a reasonable estimate can be made by management to approximately $11,550,000 ($11,550,000 in 2010-11) at March 31, 2012. There was no liability booked in 2011-12 ($24,000 in 2010-11).
9. Accounts receivable and advances
The following table presents details of the Department's accounts receivable and advances balances:
(in thousands of dollars) | 2012 | 2011 |
Restated (note 15) | ||
Receivables from other government departments and agencies | $5,036 | $18,618 |
Receivables from external parties | 11,178 | 11,917 |
Employee advances | 96 | 141 |
Subtotal | 16,310 | 30,676 |
Allowance for doubtful accounts on receivables from external parties | (454) | (429) |
Gross accounts receivable | 15,856 | 30,247 |
Accounts receivable held on behalf of Government | (590) | (264) |
Net accounts receivable | $15,266 | $29,983 |
10. Tangible capital assets
Cost (in thousands of dollars) | 2011 | Acquisitions | Adjustments (3) | Disposals & write-offs | 2012 |
Land | $25,244 | - | - | - | $25,244 |
Buildings | 153,527 | 108 | 22,646 | 1,278 | 175,021 |
Works and infrastructure | 4,743 | 91 | 1,111 | - | 5,945 |
Machinery and equipment | 474,642 | 25,805 | (24,529) | 7,771 | 468,147 |
Vehicles(2) | 40,020 | 2,784 | 435 | 2,449 | 40,740 |
Leasehold improvements | 35,324 | - | - | - | 35,324 |
Assets under construction (1) | 154,873 | 18,118 | (28,584) | 4,475 | 139,932 |
Capital lease (note 8) | 34,858 | - | (16,659) | - | 18,199 |
$923,231 | $46,906 | ($45,562) | $16,023 | $908,552 | |
Accumulated amortization (in thousands of dollars) | 2011 | Acquisitions | Adjustments (3) | Disposals & write-offs | 2012 |
Buildings | $98,256 | $7,772 | $2,840 | $130 | $108,738 |
Works and infrastructure | 2,147 | 228 | - | - | 2,375 |
Machinery and equipment | 363,977 | 20,280 | (22,678) | 6,732 | 354,852 |
Vehicles(2) | 26,196 | 3,992 | 134 | 2,486 | 27,837 |
Leasehold improvements | 24,707 | 1,433 | - | - | 26,140 |
Capital lease | 18,768 | 3,227 | (14,716) | - | 7,279 |
$534,051 | $36,932 | ($34,420) | $9,343 | $527,220 | |
Net book value (in thousands of dollars) | 2011 | - | - | - | 2012 |
Land | $25,244 | - | - | - | $25,244 |
Buildings | 55,271 | - | - | - | 66,283 |
Works and infrastructure | 2,596 | - | - | - | 3,570 |
Machinery and equipment | 110,665 | - | - | - | 113,295 |
Vehicles(2) | 13,824 | - | - | - | 12,903 |
Leasehold improvements | 10,617 | - | - | - | 9,185 |
Assets under construction (1) | 154,873 | - | - | - | 139,932 |
Capital lease | 16,090 | - | - | - | 10,920 |
Net book value | $389,180 | - | - | - | $381,332 |
1. Assets under construction include: buildings, engineering works, software and other construction.
2. Vehicles include: road motor vehicles, off road vehicles, aircraft, mobile laboratories, ships and boats.
3. Adjustments include assets under construction of $29,266,400 that have been placed in service. Assets that are still under construction are not treated as depreciable assets as they are not yet available for use.
Effective November 15, 2011, Environment Canada transferred tangible capital assets with a net book value of $10,389,242 to Shared Services Canada. This transfer is included in the adjustment columns (refer to (note 13) for further detail on the transfer).
11. Contractual obligations
The nature of Environment Canada's activities can result in large multi-year contracts and obligations that have yet to be recorded as liabilities in the Accounts of Canada but for which Environment Canada is obligated to make future payments in order to be recorded as liabilities in the Accounts of Canada but for which Environment Canada is obligated to make future payments in order to meet its legal contractual requirements. The disclosure threshold in reporting the Contractual Obligations have been changed from $10M in 2009-10 to $1M in 2010-11 to better present Environment Canada long-term obligations. Significant contractual obligations that can be reasonably estimated are summarized as follows:
(in thousands of dollars) | Operating leases | Capital leases | Transfer payments | Other | Total |
2013 | $8,691 | $1,300 | $79,611 | $21,270 | $110,872 |
2014 | 7,915 | 1,300 | 31,166 | 3,981 | $44,362 |
2015 | 7,915 | 1,300 | 2,112 | 2,925 | $14,252 |
2016 | 7,915 | 1,300 | 1,472 | 2,705 | $13,392 |
2017 and thereafter | 206,094 | 14,300 | - | 21,313 | $241,707 |
Total | $238,530 | $19,500 | $114,361 | $52,194 | $424,585 |
12. Related party transactions
Environment Canada is related as a result of common ownership to all Government departments, agencies, and Crown corporations. The Department enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Department 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, Environment Canada received services without charge from certain common service organizations, related to accommodation, legal services, the employer’s contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded in Environment Canada’s Statement of Operations and Departmental Net Financial Position as follows:
(in thousands of dollars) | 2012 | 2011 |
Employer's contribution to the health and dental insurance plans | $46,666 | $46,097 |
Accommodation | 48,455 | 47,935 |
Legal services | 3,160 | 3,545 |
Workers’ compensation | 1,408 | 1,264 |
Total | $99,689 | $98,841 |
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 Environment Canada's of Operations.
(b) Other transactions with related parties :
(in thousands of dollars) | 2012 | 2011 |
Expenses - Other Government departments and agencies | $172,170 | $186,578 |
Revenue - OGD and Agencies | $22,835 | $25,124 |
13. Transfers to other government departments
Effective November 15, 2011, Environment Canada transferred responsibility for some IM/IT and related ínternal services to the Shared Services Canada in accordance with Order-in-Council 2011-1297, including the stewardship responsibility for the assets and liabilities related to the program. Accordingly, Environment Canada transferred the following assets and liabilities related to some IM/IT and related internal services to Shared Services Canada on November 15, 2011:
(in thousands of dollars) | |
Assets: | |
Tangible capital assets (net book value) (note 10) | 10,389 |
Total assets transferred | $10,389 |
Liabilities: | |
Vacation pay and compensatory leave | 831 |
Employee future benefits (note 7) | 4,224 |
Total liabilities transferred | $5,055 |
Adjustment to Environment Canada net financial position | $5,334 |
In addition, the 2011 comparative figures have been reclassified on the Statement of Operations and Departmental Net Financial Position to present the revenues and expenses of the transferred operations. During the transition period, Environment Canada continued to administer the transferred activities on behalf of Shared Services Canada. The administered revenues and expenses amounted to $761,043 and to $23,653,980 respectively, for the year. These revenues and expenses are not recorded in these financial statements.
During the transition period, November 15, 2011 to March 31, 2012, Environment Canada continued to administer the transferred activities on behalf of Shared Services Canada. The administered revenues and expenses amounted to $761,043 and to $23,653,980 respectively. These revenues and expenses are not recorded in these financial statements.
The planned results presented in these financial statements don't reflect the transfer to SSC since the financial information was not available during the preparation of Future Oriented Financial Statements.
14. Segmented information
Presentation by segment is based on the Department's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. 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:
(in thousands of dollars) | WESTU1 | BWH2 | WESC3 | SWM4 | CCCA5 |
Operations and administration | |||||
Salaries and employee benefits | $49,264 | $55,145 | $111,623 | $67,726 | $74,759 |
Professional and special services | 2,811 | 10,386 | 13,559 | 11,702 | 10,997 |
Accommodation | 3,656 | 4,029 | 9,246 | 4,821 | 6,144 |
Other contracted services | 2,828 | 3,304 | 3,355 | 1,477 | 2,378 |
Travel | 2,712 | 4,114 | 5,782 | 2,310 | 3,312 |
Machinery & equipment | 1,207 | 1,227 | 4,784 | 878 | 3,431 |
Amortization | (347) | 707 | 6,384 | 2,231 | 7,099 |
Rentals | 722 | 2,339 | 2,267 | 325 | 607 |
Materials and supplies | 1,801 | 2,072 | 9,858 | 1,723 | 2,661 |
Telecommunications | 861 | 686 | 2,651 | 574 | 619 |
Equipment repair and maintenance | 354 | 1,593 | 5,821 | 563 | 3,175 |
Postage | 168 | 392 | 1,627 | 102 | 266 |
Information services – communications | 17 | 385 | 369 | 353 | 177 |
Environmental liabilities | - | - | - | 40,681 | - |
Loss on disposal of capital assets | (74) | 59 | 21,296 | 450 | 1,339 |
Earmarked fees and levies | - | 2 | - | - | - |
Other | 1,371 | (1,723) | (4,573) | 673 | (2,013) |
Total Operations and administration | 67,351 | 84,717 | 174,049 | 136,589 | 114,951 |
Transfer payments | |||||
Non-profit organizations | - | 58,783 | 1,507 | 1,602 | 5,815 |
Other countries and international organizations | - | 887 | 2,947 | 857 | 7,820 |
Other levels of governments within Canada | - | 1,826 | - | - | - |
Other to individuals | - | - | 41 | - | 2 |
Industry | - | 67 | - | - | - |
Total transfer payments | - | 61,563 | 4,495 | 2,459 | 13,637 |
Total Expenses | 67,351 | 146,280 | 178,544 | 139,048 | 128,588 |
Revenues | |||||
Sales of goods and services | 35,377 | 3,997 | 2,549 | 2,195 | 962 |
Other revenues | 2,452 | 745 | 1,939 | 199 | 604 |
Revenues earned on behalf of Government | (3,345) | (3,413) | (1,566) | (242) | (576) |
Total Revenues | 34,484 | 1,329 | 2,922 | 2,152 | 990 |
Net cost of operations | $32,867 | $144,951 | $175,622 | $136,896 | $127,598 |
1(WESTU) Weather and Environmental Services for Targeted Users
2(BWH) Biodiversity - Wildlife and Habitat
3(WESC) Weather and Environmental Services for Canadians
4(SWM) Substances and Waste Management
5(CCCA) Climate Change and Clean Air
WR6 | CPE-P7 | CPE-W8 | SE9 | IS10 | 2012 | 2011 |
Restated (note 13& note 15) | ||||||
$75,370 | $36,444 | $14,037 | $33,153 | $158,675 | $676,196 | $684,614 |
9,862 | 2,364 | 881 | 4,658 | 23,112 | 90,332 | 118,301 |
7,918 | 2,519 | 975 | 2,439 | 12,314 | 54,061 | 51,846 |
3,822 | 273 | 192 | 929 | 19,898 | 38,456 | 28,571 |
4,401 | 2,292 | 1,416 | 1,442 | 3,478 | 31,259 | 37,809 |
5,292 | 659 | 1,085 | 1,199 | 4,140 | 23,902 | 24,002 |
5,293 | 599 | 617 | 524 | 8,707 | 31,814 | 37,093 |
12,645 | 356 | 221 | 1,418 | 1,762 | 22,662 | 21,891 |
5,547 | 1,311 | 513 | 1,049 | 2,243 | 28,778 | 30,016 |
1,348 | 435 | 226 | 245 | 1,739 | 9,384 | 9,420 |
2,769 | 668 | 149 | 1,119 | 1,081 | 17,292 | 11,940 |
501 | 77 | 20 | 94 | 878 | 4,125 | 4,548 |
196 | 96 | 21 | 778 | 295 | 2,687 | 3,107 |
- | - | - | - | - | 40,681 | 11,115 |
939 | 49 | 102 | 106 | 1,667 | 5,933 | 3,843 |
14 | - | - | 425 | - | 441 | 671 |
(5,840) | (158) | (129) | (1,154) | 1,663 | (11,883) | (23,653) |
130,077 | 47,985 | 20,325 | 48,424 | 241,652 | 1,066,120 | 1,055,134 |
914 | - | - | 12,973 | (33,770) | 47,824 | 85,749 |
355 | 35 | - | 42 | - | 12,943 | 17,954 |
- | - | - | 7,307 | - | 9,133 | 9,909 |
2 | - | - | 188 | 3,031 | 3,264 | 3,348 |
- | - | - | 55 | - | 122 | 1,114 |
1,271 | 35 | - | 20,565 | (30,739) | 73,286 | 118,074 |
131,348 | 48,019 | 20,326 | 68,989 | 210,913 | 1,139,406 | 1,173,208 |
16,456 | 56 | 48 | 602 | (60) | 62,182 | 70,170 |
3,082 | 50 | 7 | 1,306 | 869 | 11,253 | 7,254 |
(3,094) | (116) | (35) | (231) | (867) | (13,485) | (14,150) |
16,444 | (10) | 20 | 1,677 | (58) | 59,950 | 63,274 |
$114,904 | $48,029 | $20,306 | $67,312 | $210,971 | $1,079,456 | $1,109,934 |
6(WR) Water Resources
7(CPE-P) Compliance Promotion and Enforcement – Pollution
8(CPE-W) Compliance Promotion and Enforcement – Wildlife
9(SE) Sustainable Ecosystems
10(IS) Internal Services
15. Accounting changes
During 2011, amendments were made to Treasury Board Accounting Standard 1.2--Departmental and Agency Financial Statements to improve financial reporting by government departments and agencies. The amendments are effective for financial
reporting of fiscal years ending March 31, 2012, and later. The significant changes to Environment Canada's financial statements are described below. These changes have been applied retroactively, and comparative information for 2010-11 has been restated.
Net debt (calculated as liabilities less financial assets) is now presented in the Statement of Financial Position. Accompanying this change, Environment Canada now presents a Statement of Change in Net Debt and no longer presents a Statement of Equity.
Revenue and related accounts receivable are now presented net of non-respendable amounts in the Statement of Operations and Departmental Net Financial Position and Statement of Financial Position. The effect of this change was to increase the net cost of operations after government funding and transfers by $16,875,000 for 2012 ($17,948,000 for 2011) and decrease total financial assets by $584,000 for 2012 ($264,000 for 2011).
Government funding and transfers, as well as the credit related to services provided without charge by other government departments, are now recognized in the Statement of Operations and Departmental Net Financial Position below "Net cost of
operations before government funding and transfers." In previous years, Environment Canada recognized these transactions directly in the Statement of Equity of Canada. The effect of this change was to decrease the net cost of operations after government funding and transfers by $1,058,781,000 for 2012 ($1,186,410 000 for 2011).
(in thousands of dollars) | 2011 As previously stated | Effect of change | 2011 Restated |
Statement of Financial Position | |||
Assets held on behalf of Governement | - | ($264) | ($264) |
Departmental financial position | 148,201 | (264) | 147,937 |
Statement of Operations and Departmental Net Financial Position | |||
Revenues | 79,565 | (14,150) | 65,415 |
Net cost of operations before government funding and transfers | 1,152,111 | 14,150 | 1,166,261 |
Government funding and transfers | |||
Net cash provided by Government | - | 1,124,329 | 1,124,329 |
Change in due from Consolidated Revenue Fund | - | (40,558) | (40,558) |
Services provided without charge by other government departments | - | 98,841 | 98,841 |
Subtotal | - | 1,182,612 | 1,182,612 |
Net revenue of operations after government funding and transfers | - | (16,351) | (16,351) |
Departmental net financial position - Beginning of year | - | 131,586 | 131,586 |
Departmental net financial position - End of year | - | 147,937 | 147,937 |
Statement of Cash Flows | |||
Net cost of operations before government funding and transfers | 1,152,111 | 14,150 | 1,166,261 |
Increase in accounts receivable and advances | 17,472 | (264) | 17,208 |
Cash used in operating activities | 1,048,462 | 13,886 | 1,062,348 |
Net cash provided by Government of Canada | 1,110,443 | 13,886 | 1,124,329 |
Note 3a - Reconciliation of net cost of operations to current year authorities used | |||
Net cost of operations before government funding and transfers | 1,152,111 | 14,150 | 1,166,261 |
Revenues not available for spending | 17,948 | (17,948) | - |
Other | ($1,018) | $3,798 | $2,780 |
16. Comparative information
Comparative figures have been reclassified to conform to the current year's presentation. This includes amounts reported against program activities in the Statement of Operations and Departmental Net Financial Position which needed to be restated to comply with the Guidance for Shared Services Canada (SSC) disclosure in the departmental financial statements. This also includes the disclosure of planned results prepared for the Future Oriented Financial Statements part of the 2011-2012 Report on Plans and
Priorities (RPP).
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