Impact Assessment Agency of Canada's Quarterly Financial Report for Quarter ended December 31, 2019

From: Impact Assessment Agency of Canada

Statement outlining results, risks and significant changes in operations, personnel and programs

Introduction

The Impact Assessment Agency of Canada’s (the Agency) third quarterly financial statement report for the period ended December 31, 2019 has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board under the Directive on Accounting Standards. It should be read in conjunction with the Main Estimates and Supplementary Estimates for the current year.

This report has not been subject to an external audit or review.

Impact assessments for designated projects are led by the Agency. Federal departments and agencies with specific expertise provide information and advice that support the conduct of impact assessments. Where projects are associated with lifecycle regulators such as the Canada Energy Regulator, the Canadian Nuclear Safety Commission and the Offshore Petroleum Boards, the Agency works collaboratively with these partners to draw upon their expert knowledge and ensure that safety, licensing requirements, international obligations, and other key regulatory factors are considered as part of a single, integrated assessment. In accordance with the transitional provisions of Impact Assessment Act (IAA 2019), the Agency is also responsible to continue managing the environmental assessment (EA) of most projects required under the former Canadian Environmental Assessment Act (CEAA 2012).

In addition, the Agency advises and assists the Minister of Environment and Climate Change in establishing review panels and supports panels in their work. It also supports the Minister in fulfilling responsibilities under IAAC 2019, including the development and issuance of enforceable impact assessment (IA) decision statements.

The Agency administers a Grant and Contribution Participant Funding Program that supports individuals, not-for-profit organizations, and Indigenous groups participating in federal IAs.

The Agency also has responsibilities for reviewing projects of a federal nature under the environmental and social protection regimes set out in sections 22 and 23 of the 1975 James Bay and Northern Quebec Agreement. The President of the Agency is designated by Order-in-Council as the federal administrator of these processes.

The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals establishes a self-assessment process for conducting a strategic IA of a policy, plan or program proposal. The Agency supports the Minister of Environment and Climate Change in promoting the application of the Cabinet Directive and provides training and guidance for federal authorities.

The Agency was established in 1994 and is led by a President, who reports directly to the Minister of Environment and Climate Change. It has its headquarters in Ottawa and regional offices in St. John’s, Halifax, Quebec City, Toronto, Edmonton, and Vancouver. The Agency's activities are carried out under two core responsibilities:

  1. Impact Assessments

    The Agency delivers high-quality impact assessments that contribute to the informed decision making on major projects, in support of sustainable development. Through its delivery of IA, the Agency serves Canadians by looking at both positive and negative environmental, economic, social and health impacts of potential projects. The Agency:

    • Leads and manages the impact assessment process for all federally designated major projects;
    • Leads Crown engagement and serves as the single point of contact for consultation and engagement with Indigenous peoples during impact assessments for designated projects;
    • Provides opportunities and funding to support public participation in impact assessments;
    • Works to ensure that mitigation measures are applied and are working as intended;
    • Promotes uniformity and coordination of impact assessment practices across Canada through research, guidance and ongoing discussion with stakeholders and partners; and
    • Works with a range of international jurisdictions and organizations to exchange best practices in impact assessment.
  2. Intarternal Services

    Internal Services are resources that are required to enable Program delivery and are activities provided to meet corporate obligations of the Agency. Internal Services include:

    • Management and oversight services
    • Communications services
    • Legal services
    • Human Resource management services
    • Financial management services
    • Information Management and Technology services
    • Accommodation management services
    • Material management services; and
    • Procurement management services.

Basis of Presentation

This quarterly report has been prepared by management using the expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency's spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2019-2020 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 funds 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The Agency uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results 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

Figure 1 outlines the net budgetary authorities ($76.35M in 2019-2020 and $55.92M  in 2018-2019), which represent the resources available for the year as at December 31, 2019 net of the revenue that is forecasted to be collected. Within these levels, a separate budgetary vote for Grants and Contributions has been established in 2019-2020 to include new Grants and Contributions funding to support the implementation of the Impact Assessment Act. The Agency's available authorities, net of revenues, increased by $20.42M from the previous year for the implementation of the Impact Assessment Agency of Canada.

Figure 1: Third Quarter Year-to-Date Expenditures Compared to Annual Authorities
Figure 1: Third Quarter Year-to-Date Expenditures Compared to Annual Authorities

Figure 1 also outlines the Agency's third quarter year-to-date budgetary expenditures net of revenues that have increased by $11.81M from the previous year ($41.47M in 2019-2020 and $29.66M in 2018-2019).

The increase in expenditures from the previous year was due to the establishment of the new Impact Assessment Agency of Canada and the implementation of its expanded mandate.

Risks and Uncertainties

The Agency's expenditures and revenues are influenced by the number of assessments underway during any given fiscal year and are affected by the economic conditions that are outside the control of the Agency. To off-set a portion of its expenditures, the Agency has vote-netted revenue authority to recover certain incurred costs from proponents in the conduct of assessments by review panels. The timing of revenue collection is uncertain and may impact the Agency's overall financial results.

In addition, the timing of requests for grants or contributions participant funding for consultation varies and is unpredictable. A contribution commitment to participant funding may be planned in one year but could be realized across multiple fiscal years depending on the progression of the environmental assessment. Unused contribution commitments are carried forward from one year to another and are honoured by the Agency as they materialize.

The Agency is also subject to litigation, the extent and costs are uncertain and are normally covered by the Agency's annual appropriations.

Significant Changes in Relation to Operations, Personnel and Programs

As the Government of Canada passed the Impact Assessment Act in June 2019, which came into force on August 28, 2019, to establish the Impact Assessment Agency of Canada, the Agency's operations expanded from conducting environmental assessments to impact assessments.

Approval by Senior Officials

Approved by

David McGovern
President

Simon Brault
Vice-President, Corporate Services and Chief Financial Officer

Ottawa, Canada
February 28, 2020

Statement of Authorities (unaudited)

Fiscal Year 2018-2019 (in dollars)
Total available for use for the year ending March 31, 2020 Used during the quarter ended December 31, 2019 Year to date used at quarter-end

VOTE 1 - Net Operating Expenditures

$ 55,683,125

$ 13,361,471

$ 33,541,468

VOTE 5 - Grants and Contributions

$ 14,525,184

$ 1,633,535

$ 3,320,532

Statutory Authorities - Employee Benefits

$ 6,138,709

$ 1,534,677

$ 4,604,032

Total Authorities

$ 76,347,018

$ 16,529,683

$ 41,466,032

Fiscal Year 2018-2019 (in dollars)
Total available for use for the year ending March 31, 2019 Used during the quarter ended December 31, 2018 Year to date used at quarter-end

VOTE 1 - Net Operating Expenditures

$ 50,697,196

$ 11,342,934

$ 27,111,136

Statutory Authorities - Employee Benefits

$ 5,225,173

$ 863,102

$ 2,548,091

Total Authorities

$ 355,922,369

$ 12,206,036

$ 29,659,227

Agency Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2019-2020 (in dollars)
Planned Expenditures for the year ending March 31, 2020 Expended during the quarter ended December 31, 2019 Year to date used at quarter-end

Expenditures

Personnel

$ 48,430,208

$ 12,387,336

$ 31,729,261

Transportation and Telecommunications

$ 1,968,122

$ 463,987

$ 1,316,484

Information

$ 391,485

$ 141,633

$ 515,935

Professional Services

$ 6,865,993

$ 2,239,149

$ 5,539,849

Rentals

$ 4,963,089

$ 83,579

$ 228,518

Purchased Repair and Maintenance

$ 8,557

$ 2,561

$ 2,951

Utilities, materials and supplies

$ 213,926

$ 34,681

$ 131,536

Acquisition of Machinery & Equipment

$ 1,307,089

$ 207,446

$ 673,013

Transfer Payments

$ 14,525,184

$ 1,633,535

$ 3,320,532

Other expenses

$ 973,364

-$ 1,760

-$ 4,478

Total Gross Budgetary Expenditures

$ 79,647,018

$ 17,192,145

$ 43,453,600

Less Revenues netted against Expenditures

Planned Revenues (Note 1)

Environmental assessment and training services

$ 3,300,000

$ 662,462

$ 1,987,569

Total Revenue netted against expenditures

$ 3,300,000

$ 662,462

$ 1,987,569

Total net budgetary expenditures

$ 76,347,018

$ 16,529,683

$ 41,466,032

Fiscal Year 2018-2019 (in dollars)
Planned Expenditures for the year ending March 31, 2019 Expended during the quarter ended December 31, 2018 Year to date used at quarter-end

Expenditures

Personnel

$ 36,932,017

$ 8,116,166

$ 22,628,586

Transportation and Telecommunications

$ 1,896,403

$ 348,548

$ 800,768

Information

$ 377,219

$ 87,120

$ 192,486

Professional Services

$ 7,144,491

$ 2,377,274

$ 3,321,304

Rentals

$ 4,782,234

$ 99,923

$ 255,613

Purchased Repair and Maintenance

$ 8,245

$ 16,152

$ 94,219

Utilities, materials and supplies

$ 206,131

$ 32,349

$ 82,583

Acquisition of Machinery & Equipment

$ 1,259,459

$ 494,630

$ 685,435

Transfer Payments

$ 6,378,275

$ 913,497

$ 2,504,164

Other expenses

$ 937,895

$ 1,638

$ 4,956

Total Gross Budgetary Expenditures

$ 59,922,369

$ 12,484,021

$ 30,570,114

Less Revenues netted against Expenditures

Planned Revenues

Panel Reviews

$ 4,000,000

$ 277,985

$ 910,887

Total Revenue netted against expenditures

$ 4,000,000

$ 277,985

$ 910,887

Total net budgetary expenditures

$ 55,922,369

$ 12,206,036

$ 29,659,228

Note 1: The Agency has authority to collect up to $8,001,000 in vote-netted revenue.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: