Section III: Supplementary Information

Financial Highlights

The financial highlights are intended to provide a general overview of the Department’s financial position and the net cost of operations before government funding and transfers. The financial highlights presented in this section are drawn from Natural Resources Canada’s financial statements and have been prepared in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

During 2011, amendments were made to Treasury Board Accounting Standard 1.2 – Departmental and Agency Financial Statements^{Footnote 111} to improve reporting by government departments. This resulted in significant changes to the Department’s financial statements and required restatement of 2010-11 comparative information.

Condensed Statement of Financial Position
As at March 31, 2011
($ millions)

	% Change	2011-12	2010-11 (Restated)
Total net liabilities	10%	2,361	2,145
Total net financial assetsLiabilities	15%	928	806
Total net debt	7%	1,433	1,339
Total non-financial assets	-5%	314	330
Departmental net financial position	11%	(1,119)	(1,009)

Total net liabilities have varied from $2.145 billion in 2010-11 to $2.361 billion in 2011-12 resulting in a net increase of $217 million (10%). $205 million of that $ 217 million is attributable to: an increase in transfer payment holdbacks ($119 million), a liability to the Province of Nova Scotia in relation to the Crown Share Adjustment payments under the Canada-Nova Scotia Offshore Petroleum Resources Act ($66 million), and an accrued liability for the estimated workforce adjustment costs related to a departmental restructuring and to Canada’s Economic Plan 2012 ($20 million). This increase is offset by a decrease of $11 million in employee future benefits mainly due to the elimination of severance pay for certain groups of government employees in 2011-12.

Total net financial assets have increased by $122 million or 15% (from $806 million in 2010-11 to $928 million in 2011-12). The increase is mainly attributable to the increase in the account Due from Consolidated Revenue Fund (CRF) of $121 million, which represents cash the Department is entitled to draw from without further appropriations. The increase in the transfer payment holdbacks is the main contributor to the increase in the account Due from CRF.

The overall change in 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, varied from $330 million in 2010-11 to $314 million in 2011-12, resulting in a net decrease of $16 million. A decrease of $24 million in prepayments in transfer payments offset by a net increase of $8 million in tangible capital assets explains that variance. This $8 million net increase is the result of a $16 million increase in the assets under construction reduced by the $8 million transfer of tangible capital assets to Shared Service Canada on November 15, 2011, whereby the Department transferred to SSC the responsibility for providing email, data centre and network services.

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

Condensed Statement of Operations and Departmental Net Financial Position
(Unaudited)
For the year ended March 31, 2012
$ millions)

	% Change	2011-12	2010-11 (Restated)
Total Expenses	-32%	3,460	5,070
- Total Revenues	-29%	25	36
+ Transferred operations	-43%	15	26
Net cost of operations before government funding and transfers	-32%	3,450	5,060
Departmental net financial position	11%	(1,119)	(1,009)

Total expenses were $5.070 billion in 2010-11 compared to $3.460 billion in 2011-12 for a net decrease of $1.61 billion or 32%. This decrease is attributable to transfer payment programs for $813 million and to operating expenses for $796 million. The most significant decreases in transfer payments from 2010-11 to 2011-12 are attributable to the Newfoundland Fiscal Equalization Offset Payments ($642 million, which terminated in 2010-11), to the Newfoundland Offshore Petroleum Resource Revenue Fund $168 million) and to ecoENERGY Retrofit – Homes ($159 million). Those decreases were offset by increases in Pulp and Paper Green Transformation Program ($116 million) and ecoENERGY for Renewable Power program ($37 million). The decrease in operating expenses is mostly due to the reduction of $778 million in environmental expenses from 2010-11 to 2011-12.

Total revenues have slightly decreased by $11 million from $36 million in 2010-11 to $25 million in 2011-12.

Transferred operations represent the transfer by the Department to SSC on November 15, 2011, of the responsibility for providing email, data centre and network services. For 2010-11, the $25.9 million is the estimated expenses for email, data centre and network services incurred by the Department. For 2011-12, the $14.8 million represents the expenses incurred by the Department for SSC’s activities for the period from April 1, 2011, to November 14, 2011, when the transfer of activities to SSC became effective.

Financial Highlights Charts/Graphs

The following chart presents a distribution of NRCan’s total expenses in 2010-12 by program activity. Total expenses amounted to $3.46 billion.

The complete NRCan financial statements and that of the Geomatics Canada Revolving Fund can be found on Natural Resources Canada's^{Footnote 112} website.

Financial Statements

Natural Resource Canada’s financial statements are available on-line at: http://www.nrcan.gc.ca/reports-plans-priorities/2011-2012/financial-statements.

List of Supplementary Information Tables

• Details of Transfer Payment Programs
   
• Greening Government Operations
   
• Horizontal Initiatives – Improving the Performance of the Federal Regulatory System for Major Natural Resource Projects
   
• Internal Audits and Evaluations
   
• Response to Parliamentary Committees and External Audits
   
• Sources of Respendable and Non-Respendable Revenue
   
• Up-Front Multi-Year Funding
   
• User Fees Reporting

These tables can be found on NRCan's website^{Footnote 113}.

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