Environment Canada Quarterly Financial Report
Statement outlining results, risks and significant changes in operations, personnel and programs
For the quarter ended June 30, 2015

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.

Footnotes

Footnote 1

See Statement of Authorities.

Return to first footnote 1 referrer


Approved by:

(the original version was signed by)
August 14, 2015
Gatineau



Michael Martin, Deputy Minister
Date
City

 

(the original version was signed by)
August 12, 2015
Gatineau



Carol Najm, ADM
Finance Branch and
Chief Financial Officer
Date
City

Environment Canada
For the quarter ended June 30, 2015
Statement of Authorities (unaudited) - Table 1
 Fiscal year 2015-2016Fiscal year 2014-2015
(In thousands of dollars)
Total available for use for the year ending March 31, 2016Table 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

Environment Canada
For the quarter ended June 30, 2015
Departmental budgetary expenditures by Standard Object (unaudited) - Table 2
 Fiscal year 2015-2016Fiscal year 2014-2015
(In thousands of dollars)
Planned expenditures for the year ending March 31, 2016Table 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

Table notes

Table note *

The Total funding available for use includes the 2015-2016 Main Estimates and Supplementary Estimates A only and will follow through with Supplementary Estimates ¨B¨and¨C¨ later this year.

Return to table note *

Table notes

Table note *

The Planned expenditures includes the 2015-2016 Main Estimates and Supplementary Estimates A only and will follow through with Supplementary Estimates ¨B¨and ¨C¨ later this year.

Return to table note *

Date modified: