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Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph 16

Departmental Spending Trend Graph

Departmental Spending Trend Graph

Departmental Spending Trend Graph

 

Text version
The table below illustrates the departmental spending trend, in dollars, for the period 2011-12 to 2016-17.
  2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Sunset Programs - Anticipated 0 0 0 36,082 349,973 351,859
Statutory 893,906 401,521 526,862 462,484 570,672 661,636
Voted 1,155,512 933,657 831,137 877,462 557,015 503,947
Total 2,049,419 1,335,179 1,357,999 1,376,029 1,477,660 1,517,442
 

16The Sunset Programs – Anticipated for 2017-18 to 2018-19 mainly reflect announcements in Budget 2017 that are not yet reflected in the Voted level for those years and are subject to Parliamentary approval, and programs that are set to expire for which no Government decision on the program’s future has been made. These are provided to give a more reasonable picture of the future of the Department.

Budgetary performance summary for Programs and Internal Services (dollars)
Programs and Internal Services 2016–17
Main Estimates
2016–17
Planned spending
2017–18
Planned spending
2018–19
Planned spending
2016–17           Total authorities available for use 2016–17
Actual   spending (authorities used)
2015–16          Actual   spending (authorities used) 2014–15
Actual   spending (authorities used)
1.1 Market Access and Diversification 43,993,476 43,993,476 60,190,597 35,202,474 74,012,256 70,738,385 75,927,073 61,566,240
1.2 Innovation for New Products and Processes 96,074,981 96,074,981 109,154,844 39,171,754 111,219,760 97,761,228 93,375,233 71,707,214
1.3 Investments in Natural Resource Sectors 62,900,219 62,900,219 73,163,653 67,873,990 74,761,684 74,593,181 68,270,162 60,589,504
1.4 Statutory Programs – Atlantic Offshorea 743,336,158 743,336,158 408,998,253 521,471,910 473,430,813 473,430,813 347,989,273 837,746,067
2.1 Energy-Efficient Practices and Low-Carbon Energy Sources 183,336,817 183,336,817 183,461,546 137,174,523 213,996,763 177,431,795 211,012,423 291,745,439
2.2 Technology Innovation 115,838,434 115,838,434 219,965,182 81,401,428 148,253,404 148,143,884 143,620,407 151,832,220
2.3 Responsible Natural Resource Management 29,619,508 29,619,508 27,437,623 27,055,064 37,951,209 35,319,980 121,598,627 267,570,932
3.1 Protection for Canadians and Natural Resources 57,808,743 57,808,743 70,418,079 59,079,852 79,900,579 79,879,094 73,709,947 65,692,439
3.2 Landmass Information 75,092,662 75,092,662 49,150,177 45,914,237 93,523,442 74,793,210 74,110,670 78,469,116
Subtotal 1,408,000,998 1,408,000,998 1,201,939,954 1,014,345,232 1,307,049,910 1,232,091,570 1,209,613,815 1,886,919,171
Internal Services 184,517,755 184,517,755 138,006,496 113,341,893 167,923,770 125,907,344 125,564,854 162,499,616
Total 1,592,518,753 1,592,518,753 1,339,946,450 1,127,687,125 1,474,973,680 1,357,998,914 1,335,178,669 2,049,418,787

*a Statutory Programs – Atlantic Offshore: As per the various Atlantic Offshore Accords, the Government of Canada receives royalties for offshore oil and gas production and subsequently pays an equal amount to the provinces of Nova Scotia and Newfoundland and Labrador.

The overall $235 million difference between the 2016-17 Planned spending of $1,593 million and Actual spending of $1,358 million is attributed to a $118 million reduction in authorities and $117 million in unspent funding.
The $118 million reduction in authorities is explained by the following:
Decreases due to:

  • Reduced authority for statutory payments under the Atlantic Offshore Accord Acts due to reduced oil prices from the time of forecasts which were done in the fall of 2015; and
  • A transfer to Innovation, Science and Economic Development Canada related to the Sustainable Development Technology Fund.

Increases due to:

  • Funding received through Supplementary Estimates mainly for Clean Growth and Climate Change, Federal Infrastructure Initiative (FII), Green Infrastructure, Soldier Settlement Board mineral rights, modernization of the National Energy Board, and marine protection program; and
  • The receipt of the operating budget carry forward.

The $117 million in unspent funding is explained by the following:

  • Funds frozen and not available for spending, as per Budget 2016, related to Professional Services, Advertising and Travel;
  • Funding being moved into future years for Investments in Forest Industry Transformation, Oil Spill Response Science Program, UNCLOS, Gunnar Mine Remediation and Soldier Settlement Board;
  • Unspent funds being carried forward to next year, mainly to cover unfunded collective bargaining increases and to support FII projects; and
  • Unspent funds pertaining to the ecoENERGY for Biofuels program (due to lower than anticipated production by biofuel companies) and the ecoENERGY Renewable Power program (due to lower incentive payouts based on lower production levels).

Although there are differences, both the preceding graph and table show that 2017-18 Planned spending is similar to 2016-17 Actual expenditures.

For 2017-18 to 2019-20, both the graph and table show lower planned spending than 2016-17 actual expenditures. This is the result of fluctuations in the economic modeling for the Atlantic Offshore Accounts and the scheduled ending, or sunsetting, of existing programs (i.e. Clean Growth and Climate Change, FII, Green Infrastructure, Investments in Forest Industry Transformation, Forest Innovation Program and Expanding Market Opportunities). However, as reflected in the graph, the Department anticipates that some of these programs will be renewed or replaced and spending levels will be more comparable to past years.

For 2014-15, 2015-16 and 2016-17 the figures represent actual expenditures as reported in the Public Accounts. NRCan’s spending profile shows a significant drop in 2015-16 and 2016-17 compared to 2014-15, mainly as a result of the Statutory Atlantic Offshore Accounts, the transfer of responsibility over the Nuclear Legacy Liabilities Program and the Port Hope Area Initiative to Atomic Energy of Canada Limited, and reduced spending pertaining to the ecoENERGY for Biofuels and the ecoENERGY for Renewable Power programs. These reductions were slightly offset by the implementation of the FII.

Actual human resources

Human resources summary for Programs and Internal Services
(full time equivalents)
Programs and Internal Services 2014–15 Actual 2015–16 Actual 2016–17
Forecast
2016–17 Actual 2017–18 Planned 2018–19 Planned
1.1 Market Access and Diversification 250 254 243 277 267 242
1.2 Innovation for New Products and Processes 296 313 296 328 289 255
1.3 Investments in Natural Resource Sectors 398 399 378 422 395 394
1.4 Statutory Programs – Atlantic Offshore* 0 0 0 0 0 0
2.1 Energy-Efficient Practices and Low-Carbon Energy Sources 278 264 101 265 252 162
2.2 Technology Innovation 635 665 516 653 646 539
2.3 Responsible Natural Resource Management 247 244 242 223 186 184
3.1 Protection for Canadians and Natural Resources 478 474 427 435 414 404
3.2 Landmass Information 385 383 408 387 386 378
Subtotal 2,967 2,996 2,611 2,990 2,835 2,558
Internal Services 946 940 936 906 922 882
Total 3,913 3,936 3,547 3,896 3,757 3,440

For 2014-15 and 2015-16, the figures represent actual FTEs as reported in their respective Departmental Results Reports. For 2016-17, the planned FTEs are as per the 2016-17 Departmental Plan and the 2016-17 actual FTEs reflect the actual FTEs for 2016-17.

For 2017-18 and 2018-19, the figures represent total planned FTEs to support NRCan program activities, approved by Treasury Board to support the Departmental strategic outcomes.

The decrease between 2016-17 and 2018-19 is mainly explained by the sunsetting of a number of major initiatives, which were explained in the Budgetary Performance Summary section.

As new initiatives are undertaken, plans for future FTE requirements will be adjusted accordingly.

Expenditures by vote

For information on the Department of Natural Resources Canada’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2017xxxviii.

Alignment of spending with the whole-of-government framework

Alignment of 2016-17 actual spending with the whole-of-government frameworkxxxix (dollars)

Program Spending area Government of Canada activity 2016–17 Actual spending
1.1 Market Access and Diversification Economic Affairs Strong Economic Growth 70,738,385
1.2 Innovation for New Products and Processes Economic Affairs Strong Economic Growth 97,761,228
1.3 Investment in Natural Resource Sectors Economic Affairs Strong Economic Growth 74,593,181
1.4 Statutory Programs – Atlantic Offshore Economic Affairs Strong Economic Growth 473,430,813
2.1 Energy-Efficient Practices and Low-Carbon Energy Sources Economic Affairs A Clean and Healthy Environment 177,431,795
2.2 Technology Innovation Economic Affairs A Clean and Healthy Environment 148,143,884
2.3 Responsible Natural Resource Management Economic Affairs A Clean and Healthy Environment 35,319,980
3.1 Protection for Canadians and Natural Resources Social Affairs A Safe and Secure Canada 79,879,094
3.2 Landmass Information Social Affairs A Safe and Secure Canada 74,793,210

 

Total spending by spending area (dollars)a
Spending area Total planned spending Total actual spending
Economic affairs 1,275,099,593 1,077,419,266
Social affairs 132,901,405 154,672,304
International affairs -- --
Government affairs -- --

Spending (Planned and Actual) related to the Internal Services are not included in this table.

Financial statements and financial statements highlights

Financial statements

NRCan’s consolidated financial statements (unaudited) for the year ended March 31, 2017, are available on the Departmental websitexl.

Financial statements — highlights

The consolidated financial statements are intended to provide a general overview of the Department’s financial position and operations and should be read in conjunction with NRCan’s consolidated financial statements. 

The consolidated financial statements were prepared using the Government’s accounting policies which are based on Canadian public sector accounting standards and are therefore different from reporting on the use of authorities in other sections. Reconciliation between authorities used and the net cost of operations is set out in Note 3 of the Department’s consolidated financial statements.

Condensed Consolidated Statement of Operations (unaudited) for the year ending March 31, 2017 (dollars)
Financial information 2016–17
Planned
resultsa
2016–17
Actual
2015–16
Actual
Difference (2016–17 actual minus 2016–17 planned) Difference (2016–17 actual minus 2015–16 actual)
Total expensesb 1,637,636,823 1,349,957,088  1,368,087,269 (287,679,735) (18,130,181)
Total revenues 38,870,446  29,410,248  30,836,347 (9,460,198) (1,426,099)
Net cost of operations before Government funding and transfers 1,598,766,377 1,320,546,840  1,337,250,922 (278,219,537) (16,704,082)

a The 2016-17 Planned Results are derived from the amounts presented in the 2016-17 Consolidated Future-Oriented Statement of Operationsxli and included in NRCan’s 2016-17 Departmental Planxxxvii.
b Transferred operations are included in the 2015-16 total actual expenses, which comprise of $1,243,617,036 in total expense and $124,470,233 in net cost of transferred operations, as it relates to the transferred responsibilities of the Nuclear Legacy Liabilities Program and the Historic Waste Program to Atomic Energy of Canada Limited (AECL), which became effective on September 13, 2015.

Difference between 2016-17 Actual and Planned

For 2016-17, the difference in total actual expenses ($1,350 million) and planned results ($1,638 million) is $288 million, or 18% of overestimated expenses. This is mostly attributable to a $270 million decrease in Atlantic Offshore Statutory programs mainly due to lower offshore royalties than forecasted for the Newfoundland Offshore Petroleum Resource Revenue Fund (largely due to decreased oil prices), which resulted in lower transfer payments to other levels of government.

Difference between 2016-17 and 2015-16 Actuals

Total actual expenses were $1,350 million in 2016-17 compared to $1,368 million in 2015-16 for a net decrease of $18 million, or 1%. This net decrease is mainly explained by:

 

  • A $141 million increase in Atlantic Offshore Statutory programs mainly due to an increase in oil production levels compared to 2015-16 actual spending therefore increasing transfer payments to other levels of government; offset by
  • A $124 million decrease in total expenses for transferred operations from $124 million in 2015-16 to nil in 2016-17 due to the transfer of responsibilities from the Nuclear Legacy Liabilities Program and the Historic Waste Program to the AECL as of September 2015.

The chart presenting NRCan’s actual expenses by type for 2016-17 is available on the Departmental website.

Condensed Consolidated Statement of Financial Position (unaudited) as at March 31, 2017 (dollars)
Financial Information 2016–17 2015–16 Difference
(2016–17 minus
2015–16)
Total net liabilities 405,786,013  432,291,969 (26,505,956)
Total net financial assets 244,655,407  257,773,468 (13,118,061)
Departmental net debt 161,130,606  174,518,501 (13,387,895)
Total non-financial assets 334,766,837  272,387,642 62,379,195
Departmental net financial position 173,636,231  97,869,141 75,767,090

Total net liabilities were $406 million in 2016-17, compared to $432 million in 2015-16, for a net decrease of $26 million or 6%. This variance is mainly attributable to a decrease of $29 million in accounts payable and accrued liabilities due to a $13.1 million decrease related to a payment to settle the Soldier Settlement Board mineral rights and a $12 million decrease in holdbacks under various contribution programs. 

Total net financial assets were $245 million in 2016-17, compared to $258 million in 2015-16, for a net decrease of $13 million or 5%. This variance is attributable to the decrease in the Due from Consolidated Revenue Fund (CRF) of $14 million, which is related to the decrease in accounts payable at year-end.

The overall difference between the Total net liabilities and Total net financial assets are then reflected in the Departmental net debt.

Total non-financial assets, which include prepayments, inventory and tangible capital assets were $334 million in 2016-17, compared to $272 million in 2015-16 for a net increase of $62 million.  This variance is mainly due to the increase in tangible capital assets due to betterments to buildings across Canada under the Federal Infrastructure Initiative.

The Total non-financial assets are then subtracted from the Departmental net debt to reflect the Departmental net financial position.

 

 

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