Archived: Departmental Performance Report 2014–15, Environment Canada, chapter 4

Section III: Supplementary Information

• Financial Statements Highlights
• Financial Statements
• Supplementary Information Tables
• Tax Expenditures and Evaluations

Financial Statements Highlights

The financial highlights presented on the following pages offer an overview of Environment Canada’s Statement of Operations and, Departmental Net Financial Position, and Statement of Financial Position.

The detailed Unaudited Departmental Financial Statements can be found on Environment Canada’s website.

Expenses by Strategic Outcomes

Total departmental expenses by Strategic Outcomes amounted to $1,594.5 million for 2014-15 ($1,136.5 million for 2013-14). The increase of $18 million or 1.6 percent is mostly due to additional transfer payments of $10 million related to National Conservation Plan and a contribution of $11.2 million in support of Sustainable Ecosystems. The increase is also explained by a $9.9 million write-down/write-off and $5.4 million in amortization of Asset Under Construction (AUC) from the clean-up effort resulting from the asset count. A total of $21.6 million is attributable to environmental liability expenses due to a different method for calculating discounted liabilities as per a new directive from Treasury Board and the Department of Finance. These increases are offset by the withdrawal of a provision for contingent liabilities and a reduction in professional and special services expenses.

See Note 17 of the Departmental Financial Statements for further breakdown of expenditures - Segmented information by Standard Objects and Strategic Outcomes.

Revenues by Type

Total revenues amounted to $90.3 million for 2014-15 ($90.3 million for 2013-14). This amount excludes $26.1 million earned on behalf of Government. The majority of the revenue in 2014-15 is derived from Environment Canada’s sales of goods and information products and services of a non-regulatory nature. Major revenue items include for example: Oil sands monitoring activities, ocean disposal permit applications, the hydraulics laboratory, ocean disposal monitoring fees and weather and environmental services.

See Note 17 of the Departmental Financial Statements for further breakdown of revenues - Segmented information by type and Strategic Outcomes.

Liabilities by Type

Total liabilities were $348.4 million at the end of 2014-15. This represents an increase of $8 million or 2.3 percent from the previous year’s total liabilities of $340.4 million. Accounts payable and accrued liabilities and environmental liabilities represent the largest component of liabilities at $262.8 million (75.4 percent of total liabilities) in 2014-15.

The increase in Environment Canada’s total net liabilities valuation is mainly attributable to three factors: increase in accrued liabilities related to the pay in arrears, increase of the Environmental liabilities due to the method for calculation discounted liabilities and the withdrawal of the contingent liabilities.

*Figures may not add up due to rounding

See Notes 4 to 7 and Notes 12 and 13 of the Departmental Financial Statements for more details - Accounts payable and accrued liabilities; Deferred revenue; Lease obligation for tangible capital assets; Employee future benefits; Contractual obligations; Contingent liabilities.

Assets by Type

Total net financial assets ($147.1 million) and non-financial assets ($372.3 million), together valued at $519.4 million, increased by $3.5 million or 0.7 percent in 2014-15. Tangible capital assets continue to represent the largest component of assets at $361.9 million (69.7 percent of total assets) in 2014-15.

The increase in Environment Canada’s total net assets valuation is mainly attributable to the net of an increase in due to Consolidated Revenue Fund of $21.5 million related to the pay in arrears and a reduction of $13.9 million in tangible capital assets due to many write-offs resulting from the asset count and the AUC clean-up.

See Notes 9 to 11 of the Departmental Financial Statements for more details - Accounts receivable and advances; Inventory; Tangible Capital Assets.

Financial Statements

Environment Canada’s Unaudited Financial Statements are prepared in accordance with Treasury Board Secretariat policies that 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. 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 on Environment Canada’s website.

Supplementary Information Tables

The supplementary information tables listed in the 2014-15 Departmental Performance Report are available on Environment Canada’s website.

• Departmental Sustainable Development Strategy;
• Details on Transfer Payment Programs;
• Horizontal Initiatives;
• Internal Audits and Evaluations;
• Response to Parliamentary Committees and External Audits;
• Status Report on Transformational and Major Crown Projects;
• Up-front Multi-year Funding; and
• User Fees, Regulatory Charges and External Fees.

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.