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NRCan 2022-23 Consolidated Future-Oriented Statement of Operations

Natural Resources Canada
Consolidated Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31
  Forecast results 2022 Planned results 2023
(in thousands of dollars)
Innovative and Sustainable Natural Resources Development  1,045,794 1,683,539
Globally Competitive Natural Resource Sectors  510,750  775,697
Natural Resource Science and Risk Mitigation  376,465  503,568
Internal Services  168,716  192,313
Total expenses  2,101,725  3,155,117
Rights and privileges  244,328  431,284
Other, such as revenue pursuant to agreements  24,707  24,381
Revenue from services of a non-regulatory nature  16,679  15,148
Revenue from services of a regulatory nature  6,362  6,387
Proceeds from sales of goods and information products  1,163  1,056
Services to other government departments  85  78
Revenues earned on behalf of Government  (255,929)  (443,043)
Total net revenues  37,395  35,291
Net cost of operations before government funding and transfers 2,064,330 3,119,826

The accompanying notes form an integral part of the Consolidated Future-Oriented Statement of Operations.

Natural Resources Canada
Notes to the Consolidated Future-Oriented Statements of Operations (Unaudited)
For the Year Ending March 31

1. Methodology and significant assumptions

The Consolidated Future-Oriented Statement of Operations has been prepared based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2021-22 is based on actual results and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the fiscal year 2022-23.

The main assumptions underlying the forecasts are as follows:

  • The department’s activities are as reflected in the final 2021-22 authorities and in the 2022- 23 Main Estimates; and
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.

These assumptions are made as at September 30, 2021.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Consolidated Future-Oriented Statement of Operations, Natural Resources Canada has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Consolidated Future-Oriented Statement of Operations and the historical consolidated statement of operations include the following:

  • The timing and the amount of acquisitions and disposals of capital assets, such as buildings, machinery and equipment, and vehicles, which may affect gains, losses and amortization expense;
  • The implementation of new collective agreements;
  • Economic conditions such as fluctuations in oil and gas prices and exchange rates, which may affect both the amount of revenue earned and the collectability of accounts receivable;
  • Interest rates and Consumer Price Index (CPI), which will affect the net present value of environmental liabilities; and
  • Further changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, Natural Resources Canada will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Consolidated Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2021-22, and is based on Canadian public sector accounting standards.  The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:


This Consolidated Future-Oriented Statement of Operations includes the accounts of the sub-entities for which the Deputy Head is accountable. The accounts of the Geomatics Canada Revolving Fund have been consolidated with those of the Department, and all inter-organizational balances and transactions have been eliminated. 


Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Utilization of inventories and prepaid expenses and provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, advances and inventory obsolescence are also included in other expenses.


Revenues from regulatory fees are recognized based on the services provided in the fiscal year.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

Other revenues are recognized in the period that the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the Department's liabilities. Although the Deputy Head is expected to maintain accounting control, he has no authority over the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the Department's gross revenues.

4. Parliamentary Authorities

The Department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Consolidated Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the Department has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to requested authorities
Forecast results 2022 Planned results 2023
(in thousands of dollars)
Net cost of operations before government funding and transfers 2,064,330 3,119,826
Adjustment for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capitals assets (27,386) (27,919)
Net gain (loss) on disposal of tangible capital assets 219 65
Services provided without charge by other government departments (52,479) (51,568)
Increase in prepayments 42 398
Increase in inventory 493 158
Decrease in accrued liabilities 419 -
(Increase) decrease in vacation pay and compensatory leave (570) 12,906
(Increase) decrease in employee future benefits (201) 583
Increase in allowance for environmental liabilities (87) (46)
Refunds of previous years' expenditures 1,026 1,703
Revenues and expenses for restricted accounts (2,553) (250)
Adjustments of prior year accounts payable 5,399 15,450
Total items affecting net cost of operations but not affecting authorities (75,678) (48,520)
Adjustment for items not affecting net cost of operations but affecting appropriations:    
Acquisition of tangible capital assets 31,426 36,641
Decrease in lease obligations for tangible capital assets 3,462 3,519
Unconditionally repayable contributions 124,252 294,125
Other adjustments 1,311 1,311
Total items not affecting net cost of operations but affecting authorities 160,451 335,596
Requested authorities forecasted to be used 2,149,103 3,406,902
b) Authorities requested
  Forecast results 2022 Planned results 2023
(in thousands of dollars)
Authorities provided/requested:    
Vote 1 – Operating expenditures 808,473 757,119
Vote 5 – Capital expenditures 34,379 39,593
Vote 10 - Grants and contributions 1,722,176 2,245,355
Statutory amounts 290,156 612,859
Total Authorities provided/requested: 2,855,184 3,654,926
Authorities available for future years 7,743 7,914
Lapsed – Operating (incl. frozen allotments) 102,562 19,326
Lapsed – Capital 2,952 2,952
Lapsed – Grants and contributions (incl. frozen allotments) 592,824 217,832
Estimated unused authorities and other adjustments 706,081 248,024
Requested authorities forecasted to be used 2,149,103 3,406,902

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