Archived: Departmental Results Report 2017 to 2018: Department of Environment, chapter 6

Analysis of trends in spending and human resources

Actual expenditures   

Departmental spending trend graph

The following chart depicts the departmental spending trend over a six-year period. For fiscal years

2015–16, 2016–17 and 2017–18, the amounts shown represent the actual expenditures as reported in the Public Accounts. For fiscal year 2018–19, 2019–20 and 2020–21, the planned spending represents the planned budgetary and statutory expenditures as presented in the 2018–19 Departmental Plan.

Environment and Climate Change Canada's actual spending for 2017–18 was $1,164.8 million, a year-over-year increase of $158.9 million (15.8%) from the 2016–17 actual spending. This increase is mainly due to the increase of salary payments to employees following the ratification and signing of some collective agreements in 2017–18 and temporary initiatives such as: the Green Municipal Fund, activities related to Clean Growth and Climate Change, the Revitalization of Canada’s Weather Radar Network, the Low Carbon Economy Fund, the Great Lakes and Lake Winnipeg Basin program and the Contaminated Sediment Remediation Projects.

See the 2016–17 Departmental Results Report (DRR) for additional details on year-over-year actual spending variances between 2015–16 and 2016–17.

For 2018–19 to 2020–21, the figures represent total planned spending for the fiscal year, which reflects approved funding by Treasury Board, at the time of the 2018–19 Departmental Plan, to support the departmental strategic outcomes. Planned spending in Voted authorities from 2018–19 to 2020–21 is declining, mainly as a result of reduced funding profile for major initiatives and sunsetting program, including the following:

Major initiatives sunsetting in 2018–19:

• National Conservation Plan;
• Youth Employment Strategy (incremental funding); and
• Contaminated Sediment Remediation Projects.

Major initiatives sunsetting in 2019–20:

• Federal Contaminated Sites Action Plan; and
• Major Projects Management Office

Statutory authorities from 2018–19 to 2020–21 are fairly stable from one year to the other.

The Sunset Programs – Anticipated for 2018–19 to 2020–21 mostly reflect announcements in Budget 2017 and Budget 2018 that are not yet reflected in voted reference levels for those years, such as Nature Legacy for Canada, but are provided to give a more complete picture of the planned spending of the department.

See the 2018–19 Departmental Plan (DP) for additional details on year-over-year planned spending variances between 2018–19 and 2020–21.

Budgetary performance summary for Programs and Internal Services (dollars)

⁴ As of 2018–19, ECCC will no longer report using the Program Alignment Architecture (PAA) due to its conversion to the Departmental Results Framework (DRF). Therefore a breakdown of planned spending amounts by PAA is not available.

The 2017–18 planned spending figures in the Departmental Results Report (DRR) reflect those that had been published in the 2017–18 DP. It was tabled in Parliament prior to Budget 2017 and therefore, does not reflect new funding announced in the Budget. The 2018–19 and 2019–20 planned spending figures could not be provided in the DRR by program due to the conversion to the Departmental Results Framework in 2018–19.

The 2017–18 Total authorities available for use includes all items approved through the Estimates processes for fiscal year 2017–18. The overall variance of $329.6 million between the 2017–18 Total authorities available for use ($1,316.9 million) and the 2017–18 planned spending ($987.3 million) is mainly attributed to an increase in authorities due to compensation allocations for the signature of the collective agreements, the Operating and Capital Budget Carry Forwards, as well as the Budget 2016 and 2017 announcements related to the following initiatives:

• Low Carbon Economy Fund;
• Green Municipal Fund;
• Oceans Protection Plan;
• Youth Employment Strategy; and
• Great Lakes and Lake Winnipeg Basin program.

The overall $152.1 million variance between the 2017–18 Total authorities available for use ($1,316.9 million) and 2017–18 Actual spending ($1,164.8 million) is mostly explained by the following:

• The Low Carbon Economy Fund, as the Provinces and Territories have been delayed in submitting proposals to access the funding notionally allocated to them. Therefore, less spending than anticipated occurred in 2017–18;
• Funding being moved into future years for the Contaminated Sediment Remediation Projects and the Revitalization of Canada’s Weather Services;
• Unspent funds in the Operating vote being carried forward to 2018–19 to provide the department with additional flexibility it requires to fund pressures and address strategic investments; and
• Unspent funds in the Capital vote being carried forward to 2018–19 to continue implementing activities mainly related to the Revitalization of Canada’s Weather Services, World Class Oil Spill Regime and Addressing Air Pollution.

The overall $158.9 million increase between the 2016–17 Actual spending of $1,005.9 million and
the 2017–18 Actual spending of $1,164.8 million is mainly due to the following variances in funding:

• Strategic Outcome 1: The actual spending for 2017–18 is higher than the actual spending
  for 2016–17 mainly due to the increase of salary payments to employees following the ratification and signing of some collective agreements in 2017–18, as well as additional spending related to the Great Lakes and Lake Winnipeg Basin program, the Contaminated Sediment Remediation projects and Youth Employment Strategy. These increases have been offset by the completion of the Lake Simcoe initiative.
• Strategic Outcome 2: The actual spending for 2017–18 is higher than the actual spending
  for 2016–17 mainly due to the increase of salary payments to employees following the ratification and signing of some collective agreements in 2017–18, as well as additional spending related to the Revitalization of Canada’s Weather Radar Network and activities related to Clean Growth and Climate Change. These increases have been offset by a decrease for the Federal Infrastructure initiative.
• Strategic Outcome 3: The actual spending for 2017–18 is higher than the actual spending
  for 2016–17 mainly due to an increase in permanent salary expenditures due to the signing of collective agreements, as well as additional spending related to the Green Municipal Fund, activities related to Clean Growth and Climate Change, the Low Carbon Economy Fund and Oceans Protection Plan. These increases are offset by a decrease due to the transfer of responsibilities of the Canada Foundation for Sustainable Development Technology to Innovation, Science and Economic Development Canada.
• Internal Services: The actual spending for 2017–18 is higher than the actual spending for 2016–17 mainly due to the increase of salary payments to employees following the ratification and signing of some collective agreements, as well as an increase in rent payments made for the Pacific Environmental Centre in West Vancouver.

Actual human resources

Human resources summary for Programs and Internal Services (full-time equivalents)

⁵ As of 2018–19, ECCC will no longer report using the Program Alignment Architecture (PAA) due to its conversion to the Departmental Results Framework (DRF). Therefore a breakdown of planned human resources by PAA is not available.

The variance between actual and planned full-time equivalents (FTE) for 2017–18 is mainly due to an increase in salary authorities during the fiscal year related to Oceans Protection Plan, Great Lakes and Lake Winnipeg Basin program and Low Carbon Economy Fund.

Expenditures by vote

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

Government of Canada spending and activities

Information on the alignment of Environment Can Climate Change Canada’s spending with the Government of Canada’s spending and activities is available in the GC InfoBase.

Financial statements and financial statements highlights

Financial statements

The Environment and Climate Change Canada’s financial Statements unaudited for the year ended March 31, 2018, are available on the departmental website.

Financial statements highlights

Expenses by Strategic Outcomes

Total departmental expenses by Strategic Outcomes amounted to $1,352.5 million for 2017–18
($1,189.5 million for 2016–17). The increase of $163.0 million or 13.7 percent in Environment and Climate Change Canada’s expenses is mainly attributable to:

• an increase in salary expenditures mostly due to the signing of collective agreements in 2017-18;
• an increase in expenditures related to the adjustment to the liabilities for vacation pay and compensatory leave. This is due to the numerous collective agreements being signed in 2017-18 and the increase in number of Environment and Climate Change Canada (ECCC) employees;
• an increase in spending for temporary initiatives such as the Green Municipal Fund, the Clean Growth and Climate Change, the Low Carbon Economy Fund, the Great Lakes and Lake Winnipeg basin program, the Contaminated Sediment Remediation projects, the Oceans Protection Plan and the Youth Employment Strategy;
• an increase in rental expenses at the Pacific Environmental Centre.
• The increase is offset by a decrease in spending for temporary initiatives such as the Canada Foundation for Sustainable Development Technology, the Federal Infrastructure Initiative and the Lake Simcoe.

Revenues by Type

Total revenues amounted to $92.4 million for 2017–18 ($85.4 million for 2016–17). This amount excludes $10.3 million earned on behalf of Government. The majority of the revenue in 2017–18 is derived from ECCC’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.

The increase in ECCC’s revenues is mainly attributable to:

• an increase in the amount invoiced to the Government of Alberta for the oil sands monitoring activities;
• an increase in projects for the Environmental Damages Fund.

Liabilities by Type

Total liabilities were $513.8 million at the end of 2017–18. This represents an increase of $111.7 million
or 27.8 percent from the previous year’s total liabilities of $402.1 million. The accounts payable and accrued liabilities ($226.5 million) and the environmental liabilities ($193.5 million) are the largest components of liabilities in 2017–18 and represent 81.8 percent of the total liabilities. 

The increase in ECCC’s total net liabilities valuation is mainly attributable to:

• the increase in accounts payable and accrued liabilities following the payment of $62.5M in April to the Federation of Canadian Municipalities for the Green Municipal Fund as well as a Payable at year-end of $7.3M to the Government of British Columbia for the Low Carbon Economy Fund,
• the increase in vacation pay and compensatory leave due to the numerous collective agreements signed in 2017–18 and the increase in the number of ECCC employees; and
• the increase in deferred revenues attributable to more financial activities for Randle Reef Remediation Project.

Assets by Type

Total net financial assets ($246.7 million) and non-financial assets ($418.8 million), together valued at $665.5 million, have increased by $94.2 million or 16.5 percent in 2017–18. The tangible capital assets continue to represent the largest component of assets at $391.8 million (58.9 percent of total assets) in 2017–18.

The increase in ECCC’s total net assets valuation is mainly attributable to:

• the increase in financial assets due from the Consolidated Revenue Fund which include the payment to the Federation of Canadian Municipalities of $62.5M for the Green Municipal Fund and a payable at year-end of $7.3M to the Government of British Columbia for the Low Carbon Economy Fund;
• the increase in accounts receivable resulting from the salary overpayment in Phoenix; and
• the increase in tangible capital assets for the Revitalization of Canada’s Weather Radar Network.