NRCan 2023-24 Consolidated Future-Oriented Statement of Operations
| Forecast results 2023 |
Planned results 2024 |
|
|---|---|---|
| (in thousands of dollars) | ||
| Expenses | ||
| Innovative and Sustainable Natural Resources Development | 1,474,946 | 2,129,564 |
| Globally Competitive Natural Resource Sectors | 834,610 | 1,842,192 |
| Natural Resource Science and Risk Mitigation | 419,868 | 572,478 |
| Internal Services | 194,216 | 204,017 |
| Total expenses | 2,923,640 | 4,748,251 |
| Revenues | ||
| Rights and privileges | 560,041 | 1,602,981 |
| Other, such as revenue pursuant to agreements | 39,811 | 7,401 |
| Revenue from services of a non-regulatory nature | 11,465 | 11,382 |
| Revenue from services of a regulatory nature | 6,543 | 6,552 |
| Proceeds from sales of goods and information products | 864 | 858 |
| Services to other government departments | 71 | 70 |
| Revenues earned on behalf of Government | (590,538) | (1,600,975) |
| Total net revenues | 28,257 | 28,269 |
| Net cost of operations before government funding and transfers | 2,895,383 | 4,719,982 |
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 2022-23 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 2023-24.
The main assumptions underlying the forecasts are as follows:
- The department’s activities are as reflected in the final 2022-23 authorities and in the 2023- 24 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, 2022.
2. Variations and changes to the forecast financial information
Although every attempt has been made to forecast final results for the remainder of 2022-23 and for 2023-24, 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 2022-23 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:
a) Consolidation
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.
b) Expenses
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.
c) Revenues
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:
| Forecast results 2022-23 |
Planned results 2023-24 |
||
|---|---|---|---|
| (in thousands of dollars) | |||
| Net cost of operations before government funding and transfers | 2,895,383 | 4,719,982 | |
| Adjustment for items affecting net cost of operations but not affecting authorities: | |||
| Amortization of tangible capitals assets | (28,402) | (31,009) | |
| Net gain on disposal of tangible capital assets | 202 | 14 | |
| Services provided without charge by other government departments | (54,372) | (54,327) | |
| Increase (decrease) in prepayments | 593 | (77) | |
| Increase (decrease) in inventory | 504 | (25) | |
| Decrease in accrued liabilities | 389 | - | |
| Decrease in vacation pay and compensatory leave | 4,698 | 372 | |
| Decrease in employee future benefits | 2,679 | 2,767 | |
| Increase in allowance for environmental liabilities | (37) | (74) | |
| Refunds of previous years' expenditures | 1,535 | 2,573 | |
| Revenues and expenses for restricted accounts | (836) | (153) | |
| Adjustments of prior year accounts payable | 15,286 | 27,916 | |
| Total items affecting net cost of operations but not affecting authorities | (57,761) | (52,023) | |
| Adjustment for items not affecting net cost of operations but affecting appropriations: | |||
| Acquisition of tangible capital assets | 39,831 | 20,540 | |
| Decrease in lease obligations for tangible capital assets | 3,519 | 3,578 | |
| Unconditionally repayable contributions | 163,747 | - | |
| Other adjustments | 2,134 | 2,134 | |
| Total items not affecting net cost of operations but affecting authorities | 209,231 | 26,252 | |
| Requested authorities forecasted to be used | 3,046,853 | 4,694,211 | |
| Forecast results 2022-23 |
Planned results 2023-24 |
|
|---|---|---|
| (in thousands of dollars) | ||
| Authorities provided/requested: | ||
| Vote 1 – Operating expenditures | 827,105 | 808,260 |
| Vote 5 – Capital expenditures | 52,321 | 31,018 |
| Vote 10 - Grants and contributions | 2,504,028 | 2,517,544 |
| Statutory amounts | 618,038 | 1,790,981 |
| Total Authorities provided/requested: | 4,001,492 | 5,147,803 |
| Less: | ||
| Authorities available for future years | 8,195 | 8,332 |
| Lapsed – Operating (incl. frozen allotments) | 47,357 | 36,668 |
| Lapsed – Capital | 12,490 | 10,477 |
| Lapsed – Grants and contributions (incl. frozen allotments) | 886,597 | 398,115 |
| Estimated unused authorities and other adjustments | 954,639 | 453,592 |
| Requested authorities forecasted to be used | 3,046,853 | 4,694,211 |
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