Section III: Supplementary Information

Future-Oriented Statement of Operations

The future-oriented condensed statement of operations provides a general overview of NRCan’s operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the future-oriented condensed statement of operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Report on Plans and Priorities are prepared on an expenditure basis, amounts differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, can be found on NRCan’s website.

Future-Oriented Condensed Statement of Operations
For the Year Ended March 31
(dollars)

Financial Information	2015–16 Estimated Results	2016-17 Planned Results	Difference
Total expenses	1,626,522,447	1,637,636,487	11,114,040
Total revenues	32,339,648	38,870,110	6,530,462
Net cost of operations	1,594,182,799	1,598,766,377	4,583,578

The increase of $11 million in expenses between years is mainly explained by:

• a $172 million increase in Statutory Programs – Atlantic Offshore due to fluctuations in oil and gas prices, production levels, exchange rates and operators’ costs; offset by
• a $122 million decrease in Responsible Natural Resource Management related in most part to a reduction in expenses under the Nuclear Legacy Liabilities Program and under the Historic Waste Program. Effective September 13, 2015, NRCan’s delivery of these Programs has been transferred to AECL. This is part of the AECL restructuring and consolidation in the delivery of existing federal radioactive waste management programs; and
• a $36 million decrease due in most part to the sunsetting of various programs in Energy-Efficient Practices and Lower-Carbon Energy Sources and in Market Access and Diversification.

The increase of $7 million in revenues between years is mainly explained by:

• an increase of $3 million in Revenue from services of a non-regulatory nature for vote netted revenue and $3 million in Revenue from services of a regulatory nature for the Geomatics Canada Revolving Fund.

The charts presenting the distribution by program of NRCan’s total forecast expenses for 2015-16 and planned expenses for 2016-17 on an accrual basis are available on NRCan’s website.

Supplementary Information Tables

The supplementary information tables listed in the 2016–17 Report on Plans and Priorities can be found on NRCan’s website.

• Departmental Sustainable Development Strategy;
• Details on Transfer Payment Programs of $5 Million or More;
• Disclosure of Transfer Payment Programs Under $5 Million;
• Horizontal Initiatives;
• Status Report on Transformational and Major Crown Projects;
• Upcoming Internal Audits and Evaluations Over the Next Three Fiscal Years;
• Up-Front Multi-Year Funding; and
• User Fees and Regulatory Charges.

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 Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations^{Footnote [xii]} publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the responsibility of the Minister of Finance.