Archived: Departmental Performance Report 2015 to 2016, Environment and Climate Change Canada, chapter 4


Actual Expenditures

Budgetary Financial Resources (dollars)*
2015-16
Main Estimates
2015-16
Planned Spending**
2015-16
Total Authorities Available for Use
2015-16
Actual Spending
(authorities used)
Difference (actual minus planned)
961,051,076 961,051,076 1,034,709,806 950,927,395 -10,123,681

*Totals may differ within and between tables due to the rounding of figures. All financial resources figures, throughout the document, are net of respendable revenues.

**Planned Spending comes from the 2015-16 RPP.

The Department’s planned spending reflects approved funding by Treasury Board to support departmental Programs. Throughout the year, new and renewed funding added $73.7 million to planned spending, increasing the total authorities to $1,034.7 million. The increase was mainly attributed to new funding received for the Federal Infrastructure Initiative, the renewal of the Species at Risk Act program, and funding provided via the Treasury Board central votes (e.g., operating and capital budget carry-forwards).

The actual spending of $950.9 million (91.9% of total authorities) reflects the departmental expenditures as reported in the Public Accounts, and is lower than planned spending mostly due to a reduction in  funding required for the Contaminated Sediment Remediation Projects, the Monitoring and Supercomputing Infrastructure, and the Revitalization of Canada's Weather Services, for which the unused funding will be available for spending in future years. These reductions are offset by expenditures related to funding received for the renewal of the Species at Risk Act program and the Federal Infrastructure Initiative.

Human Resources (Full-Time Equivalents-FTEs)*
2015-16
Planned**
2015-16
Actual
2015-16
Difference (actual minus planned)
6,167 6,322 155

*Totals may differ within and between tables due to the rounding of figures. The FTE numbers, throughout the document, include students.

**Planned FTE comes from the 2015-16 RPP.

One FTE equals one person working a 37.5-hour work week full-time for the entire year, or any number of part-time employees whose combined hours of work equal one FTE. An average salary was used to calculate 2015-16 planned FTEs based on planned salary spending for the 2015-16 fiscal year. The actual FTEs were determined using the departmental financial system. Environment and Climate Change Canada used 6,322 FTEs versus planned FTEs of 6,167 in 2015-16, resulting in an increase of 155 FTEs (2.5%). Planned and actual FTEs should be read in relation to planned and actual spending, respectively, in the 2015-16 Financial Resources table above.

Budgetary Performance Summary

Budgetary Performance Summary for Programs and Internal Services (dollars)
Programs and Internal Services 2015-16
Main Estimates
2015-16 Planned Spending 2016-17 Planned Spending 2017-18 Planned Spending 2015-16 Total Authorities Available for Use 2015-16
Actual Spending (authorities used)
2014-15 Actual Spending (authorities used) 2013-14 Actual Spending (authorities used)
Program 1.1 Biodiversity - Wildlife and Habitat 122,779,285 122,779,285 137,912,691 133,903,800 150,950,291 150,399,093 140,408,483 120,519,001
Program 1.2 Water Resources 95,770,859 95,770,859 80,035,023 82,145,076 95,168,261 81,784,289 92,453,058 100,322,337
Program 1.3 Sustainable Ecosystems 91,480,613 91,480,613 88,026,739 82,431,062 99,908,100 78,790,925 72,619,888 70,727,194
Program 1.4 Compliance Promotion and Enforcement - Wildlife 16,115,510 16,115,510 16,652,429 16,367,544 19,985,276 19,971,764 17,058,497 18,208,956
Program 2.1 Weather and Environmental Services for Canadians 192,103,008 192,103,008 174,382,678 169,118,896 205,045,977 181,347,768 174,493,294 182,818,981
Program 2.2 Weather and Environmental Services for Targeted Users 15,792,293 15,792,293 19,267,384 18,998,851 18,757,335 15,321,848 25,886,657 26,618,144
Program 3.1 Substances and Waste Management 85,149,099 85,149,099 74,912,985 68,461,079 85,506,174 83,529,612 86,779,805 84,616,666
Program 3.2 Climate Change and Clean Air 122,872,074 122,872,074 97,030,449 87,789,682 128,325,216 119,607,526 121,061,134 125,118,027
Program 3.3 Compliance Promotion and Enforcement - Pollution 37,560,222 37,560,222 34,672,528 34,487,231 40,718,054 40,634,373 42,309,866 44,661,876
Internal Services 181,428,113 181,428,113 179,196,292 178,252,358 190,345,122 179,540,197 203,115,955 205,338,366
Total 961,051,076 961,051,076 902,089,198* 871,955,579 1,034,709,806 950,927,395 976,186,637 978,949,548

* Planned figures in the Departmental Performance Report reflect those which had been published in the 2016-17 Report on Plans and Priorities (RPP). The 2016-17 RPP was tabled in Parliament prior to Budget 2016 and therefore, does not reflect new funding announced in the Budget. The department’s 2016-17 and future year planned spending will increase as program renewals and Budget 2016 items are included in future upcoming Estimates processes.

Program 1.1: Biodiversity - Wildlife and Habitat

The actual spending for 2015-16 is higher than planned spending. This is mainly attributed to funding received for the renewal of the Species at Risk Act program and an allocation of additional resources to the Canadian Wildlife Services. The actual spending increase in 2015-16 compared to 2014-15 is mainly due to grants and contributions for the National Conservation Plan offset by a statutory payment to Nature Conservancy Canada issued in 2014-15 and lower contribution payments in support of Biodiversity - Wildlife and Habitat. The 2016-17 planned spending is higher than 2015-16 mainly due to the renewal of the Species at Risk Act program and the Federal Infrastructure Initiative.

Program 1.2: Water Resources

Both the 2015-16 actual spending and the 2016-17 planned spending are lower than 2015-16 planned spending. This is mainly attributed to a realignment of activities between programs. Actual spending also decreased in 2015-16 compared to 2014-15 due to a reduction in payments in lieu of severance, and a one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears.

Program 1.3: Sustainable Ecosystems

The actual spending for 2015-16 is lower than planned spending. This is mainly attributed to the reduction in funding requirement for the Contaminated Sediment Remediation projects for which the unused funding will be available for spending in future years.

Program 2.1: Weather and Environmental Services for Canadians

Both the 2015-16 actual spending and the 2016-17 planned spending are lower than 2015-16 planned spending. This is mainly attributed to a reduction in funding for the Clean Air Regulatory Agenda and for the Monitoring and Supercomputing Infrastructure Initiative, offset by new funding received for the Revitalization of Canada's Weather Services, and for the Federal Infrastructure Initiative. The actual spending increase in 2015-16 compared to 2014-15 is mainly due to the Federal Infrastructure Initiative and the Revitalization of Canada's Weather Services, offset by a reduction for the one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears.

Program 2.2: Weather and Environmental Services for Targeted Users

The actual spending decrease in 2015-16 compared to 2014-15 is mainly due to a reduction in payments in lieu of severance and a one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears. The decrease is also due to a reduction in departmental operational expenditures and Employee Benefit Plans related to salaries.

Program 3.1: Substances and Waste Management

The decrease from 2016-17 to 2017-18 in planned spending is primarily due to the decrease in funding for the World Class Oil Spills Regime. The 2016-17 planned spending is lower than 2015-16, mainly due to the sunsetting of the Federal Contaminated Sites Action Plan funding.

Program 3.2: Climate Change and Clean Air

The decrease from 2016-17 to 2017-18 in planned spending is primarily due to a planned variation in year to year funding for Sustainable Development Technology CanadaFootnote 3 for the Sustainable Development Technology Fund, as well as to the completion of the Single Window Initiative. The 2016-17 planned spending is lower than in 2015-16 mainly due to the sunsetting of the Clean Air Regulatory Agenda.

Internal Services

The decrease in actual spending for 2015-16 compared to 2014-15 is primarily due to a one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears and a reduction in funding due to sunsetting of temporary initiatives, and a realignment to activities linked to Internal Services.

See the previous Departmental Performance Report (DPR) for additional details on year-over-year variances between 2014-15 and 2013-14 expenditures.

ECCC will seek ongoing funding for priority initiatives, including for those which currently have time-limited funding. Funding requests for such initiatives are subject to government decisions, and the outcomes will be reflected in future budget exercises and Estimates documents.

Departmental Spending Trend

The following chart depicts the departmental spending trend over a six-year period. For the period 2013-14 to 2015-16, actual spending represents the actual expenditures as reported in the Public Accounts. For the period 2016-17 to 2018-19, the planned spending represents the planned expenditures as reported in the 2016-17 Report on Plans and Priorities, and reflects approved funding by Treasury Board to support the departmental Strategic Outcomes and Programs.

Departmental Spending Trend (see details below)

* Planned figures in the Departmental Performance Report reflect those which had been published in the 2016-17 Report on Plans and Priorities (RPP). The 2016-17 RPP was tabled in Parliament prior to Budget 2016 and therefore, does not reflect new funding announced in the Budget. The department’s 2016-17 and future year planned spending will increase as program renewals and Budget 2016 items are included in future upcoming Estimates processes.

Text description of figure
Departmental Spending Trend Graph
  2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Sunset Programs - Anticipated $0 $0 $0 $110,800,511 $122,481,454 $135,114,497
Statutory $105,709,346 $100,888,122 $86,635,859 $81,932,846 $80,846,602 $79,230,381
Voted $873,240,202 $875,298,515 $864,291,536 $820,156,352 $791,108,975 $736,653,620
Total $978,949,548 $976,186,637 $950,927,395 $1,012,889,709 $994,437,031 $950,998,498

As indicated in the chart above, Environment and Climate Change Canada’s actual spending for 2015-16 was $950.9 million, a year-over-year decrease of $25.3 million (2.6%) from the 2014-15 actual spending. This decrease is mainly due to a one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears, and the payment for the immediate settlement of severance pay.

The decrease of $48.8 million (5.1%) between actual spending for 2015-16 and planned spending for 2016-17 is mainly due to the sunsetting of several core initiatives such as the Clean Air Regulatory Agenda and the Federal Contaminated Sites Action Plan. These decreases are offset by a planned increase in the annual contribution to Sustainable Development Technology Canada.

The decrease in planned spending from 2016-17 to 2018-19 is $86.2 million (9.6%) and is mainly due to the sunsetting of temporary initiatives such as the Species at Risk Act program, Lake Simcoe and Lake Winnipeg Basin, as well as a funding profile decrease for Sustainable Development Technology Canada, the Meteorological Service of Canada and for the Contaminated Sediment Remediation Projects.

The Department will seek renewals of funding to return anticipated spending to existing or increased levels. Funding requests are subject to government decisions; such decisions will be reflected in the Department’s future Estimates documents.

Responsibility for Sustainable Development Technology Canada has now been transferred to the Department of Innovation, Science and Economic Development Canada.

Expenditures by Vote

For information on Environment and Climate Change Canada’s organizational votes and statutory expenditures, please consult the Public Accounts of Canada 2016.

Alignment of Spending with the Whole-of-Government Framework

Alignment of 2015-16 Actual Spending with the Whole-of-Government Framework (dollars)
Programs Spending Area Government of Canada Outcome 2015-16 Actual Spending
1.1 Biodiversity - Wildlife and Habitat Economic Affairs A clean and healthy environment 150,399,093
1.2 Water Resources Economic Affairs A clean and healthy environment 81,784,289
1.3 Sustainable Ecosystems Economic Affairs A clean and healthy environment 78,790,925
1.4 Compliance Promotion and Enforcement - Wildlife Economic Affairs A clean and healthy environment 19,971,764
2.1 Weather and Environmental Services for Canadians Economic Affairs A clean and healthy environment 181,347,768
2.2 Weather and Environmental Services for Targeted Users Economic Affairs A clean and healthy environment 15,321,848
3.1 Substances and Waste Management Economic Affairs A clean and healthy environment 83,529,612
3.2 Climate Change and Clean Air Economic Affairs A clean and healthy environment 119,607,526
3.3 Compliance Promotion and Enforcement - Pollution Economic Affairs A clean and healthy environment 40,634,373
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Economic Affairs 779,622,963 771,387,198
Social Affairs 0 N/A
International Affairs 0 N/A
Government Affairs 0 N/A

* The total planned and actual spending figures in this table are net of the internal services planned spending ($181,428,113) and actual spending ($179,540,197), as they appeared in the Budgetary Performance Summary for Programs section

Financial Statements and Financial Statements Highlights

Financial Statements

The financial highlights offer an overview of Environment and Climate Change Canada’s Statement of Operations and Departmental Net and Statement of Financial Position.

The 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 the Actual Expenditure of Sections II and Section III of this report. Those sections 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 the Unaudited Financial Statements on the Department’s website.

Financial Statements Highlights

Condensed Statement of Operations (unaudited)
For the Year Ended March 31, 2016 (dollars)
Financial Information 2015-16 Planned Results 2015-16 Actual 2014-15
Actual
Difference
(2015-16 actual minus 2015-16 planned)
Difference (2015-16 actual minus 2014-15 actual)
Total expenses 1,133,164,162 1,132,391,254 1,154,524,465 -772,908 -22,133,211
Total revenues 88,595,684 84,807,419 90,287,423 -3,788,265 -5,480,004
Net cost of operations before government funding and transfers 1,044,568,478 1,047,583,835 1,064,237,042 3,015,357 -16,653,207

Expenses by Strategic Outcomes

Total departmental expenses by Strategic Outcomes amounted to $1,132.4 million for 2015-16 ($1,154.5 million for 2014-15). The decrease of $22.1 million (2%) is mostly due to lower salary expenditure ($28 million) due to the one-time transition payment made in 2014-15 as a result of the government’s transition to pay in arrears, to amortization ($10.1 million) due to a retirement of a large portion of assets following the asset count occurred in 2014-15 and to loss and adjustments to tangible capital assets ($13.7 million) since a major various cleanup efforts occurred in 2014-15 thus increasing the expenditures during that fiscal year, offset by an increase of $15.6 million in transfer payments mainly for  Sustainable Development Technology Canada, and to the National Conservation Plan, an increase of the environmental liabilities expenditure $7.1 million due to the estimate of the liability of unassessed sites based on historical costs incurred for contaminated sites with similar functions that was recorded in 2015-16.

Expenses by strategic outcome (see details below)

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

Text description of figure
Expenses by Strategic Outcomes
Strategic Outcome Percentage Expenses
SO 1: Canada’s Natural environment is conserved and restored for present and future generations 34.4% $389.8 million
SO 2: Canadians are equipped to make informed decisions on changing weather, water and climate conditions 21.2% $240.6 million
SO 3: Threats to Canadians and their environment from pollution are minimized 25.6% $289.3 million
Internal Services 18.8% $212.7 million
Total 100.0% $1,132.4 million

Revenues by Type

Total revenues amounted to $84.8 million for 2015-16 ($90.3 million for 2014-15). This amount excludes $10.7 million earned on behalf of Government. The majority of the revenue in 2015-16 is derived from Environment and Climate Change 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, Hydrometric Services, ocean disposal monitoring fees and Weather and Environmental Services.

Revenues by Type (see details below)

Text description of figure
Revenues by Type
Revenue Percentage Amount
Sales of goods and information products 36.2% $30.7 million
Lease and use of public property 2.4% $2.0 million
Services of a regulatory nature 4.3% $3.7 million
Services of a non-regulatory nature 44.0% $37.3 million
Services to other government departments 1.1% $0.9 million
Other revenues 12.0% $10.2 million
Total 100% $84.8 million
Condensed Statement of Financial Position (unaudited)
As at March 31, 2016 (dollars)
Financial Information 2015-16 2014-15 Difference
(2015-16
minus 2014-15)
Total net liabilities 366,506,525 348,371,623 18,134,902
Total net financial assets 148,456,701 147,106,520 1,350,181
Departmental net debt 218,049,824 201,265,103 16,784,721
Total non-financial assets 392,107,606 372,283,687 19,823,919
Departmental net financial position 174,057,782 171,018,584 3,039,198

Liabilities by Type

Total liabilities were $366.5 million at the end of 2015-16. This represents an increase of $18.1 million (5.2%) from the previous year’s total liabilities of $348.4 million. The accounts payable and accrued liabilities and environmental liabilities represent the largest component of liabilities at $281.7 million (76.9% of total liabilities) in 2015-16. 

The increase in Environment and Climate Change Canada’s total net liabilities valuation is mainly attributable to the Environmental Liabilities. In 2016, a statistical model was developed to estimate the liability for unassessed sites based on historical costs incurred for contaminated sites with similar functions. As a result, there are 43 unassessed sites ‎where a liability estimate of $15.4 million has been recorded prospectively in 2016.

Liabilities by Type (see details below)

See Notes 4 to 8 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; Environmental liabilities; Contractual obligations; Contingent liabilities.

Text description of figure
Liabilities by Type
Liability Percentage Amount
Accounts payable and accrued liabilities 38.3% $140.3 million
Vacation pay and compensatory leave 8.2% $29.9 million
Deferred revenue 1.9% $7.1 million
Lease obligation for tangible capital assets 2.9% $10.5 million
Employee future benefits 9.9% $36.4 million
Environmental liabilities 38.6% $141.1 million
Other liabilities 0.2% $0.9 million
Total 100.0% $366.5 million

Assets by Type

Total net financial assets ($148.5 million) and non-financial assets ($392.1 million), together valued at $540.6 million, have increased by $21.2 million (4.1%) in 2015-16. The tangible capital assets continue to represent the largest component of assets at $375.7 million (69.5% of total assets) in 2015-16.

The increase in Environment and Climate Change Canada’s total net assets valuation is mainly attributable to the tangible capital assets that have increased by $13.8 million due to acquisition made during the year for a total of $58.3 million mainly under assets under construction ($40 million) offsets by amortization ($43.3 million).

Assets by Type (see details below)

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

Text description of figure
Assets by Type
Asset Percentage Amount
Due from Consolidated Revenue Fund 24.3% $131.5 million
Accounts receivable and advances  3.1% $17.0 million
Non-financial assets 72.5% $392.1 million
Total 100.0% $540.6 million

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