Archived: Departmental Results Report 2018 to 2019: Department of Environment, chapter 4

Actual expenditures

Departmental spending trend graph

The following chart depicts the departmental spending trend over a six-year period. For fiscal years 2016–17, 2017–18 and 2018–19, the amounts shown represent the actual expenditures as reported in the Public Accounts. For fiscal year 2019–20, 2020–21 and 2021–22, the planned spending represents the planned budgetary and statutory expenditures as presented in the 2019–20 Departmental Plan.

Environment and Climate Change Canada’s actual spending for 2018–19 was $1,393.4 million, a year-over-year increase of $228.6 million (20%) from the 2017–18 actual spending. This increase is mainly due to activities related to temporary initiatives such as: the Low Carbon Economy Fund, Protecting Canada’s Nature, Parks & Wilds Spaces, the revitalization of meteorological services, the Federal Contaminated Sites Action Plan and Canadian Centre Climate Services.

See the 2017–18 Departmental Results Report (DRR) for additional details on year-over-year actual spending variances between 2016–17 and 2017–18.

For 2019–20 to 2021–22, the figures represent total planned spending for the fiscal year, which reflects approved funding by Treasury Board, at the time of the 2019–20 Departmental Plan, to support the departmental core responsibilities. Planned spending in Voted authorities from 2019–20 to 2021–22 is declining, mainly as a result of a reduced funding profile for major initiatives such as Low Carbon Economy Fund and sunsetting programs, including the following:

Major initiatives sunsetting in 2020–21:

• Chemicals Management Plan;
• International Climate Finance Commitments; and
• Implementing a Federal Carbon Offset System.

Major initiatives sunsetting in 2021–22:

• Great Lakes and Lake Winnipeg Basin Program;
• Low Carbon Economy Fund; and
• Carbon Pricing.

Funding requests for sunsetting initiatives are subject to government decisions and will be reflected in future Budget exercises and Estimates documents.

Statutory authorities from 2019–20 to 2021–22 are fairly stable from one year to the other.

See the 2019–20 Departmental Plan (DP) for additional details on year-over-year planned spending variances between 2019–20 and 2021–22.

The 2018–19 planned spending figures in the Departmental Results Report reflect those that had been published in the 2018–19 DP. It was tabled in Parliament prior to Budget 2018 and therefore, does not reflect new funding announced in the Budget.

The 2018–19 Total authorities available for use includes all items approved through the Estimates processes for fiscal year 2018–19. The overall variance of $145.1 million between the 2018–19 Total authorities available for use ($1,661.0 million) and the 2018–19 planned spending ($1,515.9 million) is mainly attributed to the Operating and Capital Budget Carry Forwards as well as an increase in authorities due to Budget 2017 and 2018 announcements related to the following initiatives:

• Protecting Canada’s Nature, Parks & Wild Spaces;
• Adapting Canada Weather & Water to Climate Change;
• Funding to transition to new impact assessment and regulatory processes;
• Indigenous Guardians Program; and
• Protecting Marine Life.

The overall $267.6 million variance between the 2018–19 Total authorities available for use ($1661.0 million) and 2018–19 actual spending ($1,393.4 million) is mostly explained by the following:

• The Low Carbon Economy Fund, as the Provinces and Territories have been delayed in submitting proposals to access the funding notionally allocated to them. Therefore, less spending than anticipated occurred in 2018–19;
• Funding being moved into future years for the Federal Contaminated Sites Action Plan, Adapting to the Impacts of Climate Change and Canadian Weather Radar Replacement Project;
• Unspent funds in the Operating vote being carried forward to 2018–19 to provide the Department with additional flexibility it requires to fund pressures and address strategic investments; and
• Unspent funds in the Capital vote being carried forward to 2018–19 to continue implementing activities mainly related to the Revitalization of Canada’s Weather Services and Addressing Air Pollution.

The overall $228.6 million increase between the 2017–18 actual spending of $1,164.8 million and the 2018–19 actual spending of $1,393.4 million is mainly due to the following variances in funding:

• Taking action on Clean Growth and Climate Change: The actual spending for 2018–19 is higher than the actual spending for 2017–18 mainly due to increased spending for the Low Carbon Economy Fund, as well as an internal reallocation of resources to support commitments related to G7 Ocean Plastics Charter and the Global Commission on Adaptation; and due to increased spending related to the Canadian Centre Climate Services. This is offset by a decrease related to salary expenditures, mostly due to the disbursements of salary retroactive payments to indeterminate employees in 2017–18, following the ratification and signing of multiple collective agreements;
• Preventing and Managing Pollution: The actual spending for 2018–19 is lower than the actual spending for 2017–18 mainly due contributions provided in 2017–18 to the Federation of Canadian Municipalities for the Green Municipal Fund as well as for the Great Lake Ecosystem Initiatives. These decreases are offset by an increase for engineering consultants related to the Clean Water Action Plan as well as for the Federal Contaminated Sites Action Plan.
• Conserving Nature: The actual spending for 2018–19 is higher than the actual spending for 2017–18 mainly due to an increase related to Protecting Canada’s Nature, Parks & Wilds Spaces and Contributions related to Biodiversity-Wildlife and Habitat.
• Predicting Weather and Environmental Conditions: The actual spending for 2018–19 is higher than the actual spending for 2017–18 mainly due to increased spending for the revitalization of meteorological services, mostly due to investments in the Canadian Weather Radar Replacement project as well as Adapting Canada’s Weather and Water Services to Climate Change. The increase is also due to an increase in engineering consulting costs for the recapitalization of the Eureka weather station runway.

Internal Services: The actual spending for 2018–19 is lower than the actual spending for 2017–18 mainly due to the Pacific Environment Center, mostly due to a one-time arbitration award paid in 2017–18. This is offset by an increase in salaries related to new funding received in 2018–19 for various Initiatives.

Actual human resources

The variance between actual and planned full-time equivalents (FTE) for 2018–19 is mainly due to an increase in salary authorities during the fiscal year related to major Initiatives announced in Budget 2018 such as Protecting Canada’s Nature, Parks & Wild Spaces, Adapting Canada Weather & Water to Climate Change, funding to transition to new impact assessment and regulatory processes and Protecting Marine Life. The planned spending presented in the DP 2018–19 did not include the planned FTEs for these initiatives.

Expenditures by vote

For information on Environment and Climate Change Canada’s organizational votes and statutory expenditures, please consult the Public Accounts of Canada 2018–19.

Government of Canada spending and activities

Information on the alignment of Environment Can Climate Change Canada’s spending with the Government of Canada’s spending and activities is available in the GC InfoBase.

Financial statements and financial statements highlights

Financial statements

The Environment and Climate Change Canada’s financial Statements (unaudited) for the year ended March 31, 2019, are available on Environment and Climate Change Canada’s transparency page.

Financial statements highlights

Expenses by Core Responsibilities

• Total departmental expenses by Core Responsibilities amounted to $1,569.0 million for 2018–19 ($1,352.5 million for 2017–18). The increase of $216.5 million or 16.0 percent in Environment and Climate Change Canada’s expenses is mainly attributable to:
• an increase in spending for temporary initiatives such as the Low Carbon Economy Fund, Protecting Canada’s Nature, Parks & Wild Spaces and Adapting Canada’s Weather and Water services to Climate Change;
• an increase in environmental liabilities mainly explained by project cost adjustments in two sites;

Offset by:

• a decrease in spending for temporary initiatives such as the Federation of Canadian Municipalities for the Green Municipal Fund;
• a decrease in rental expenditures due to the arbitration award and arrears in 2017–18 for the Pacific Environmental Centre; and
• a decrease in amortization of capital assets which is a return to normal state compare to previous years.

Revenues by Type

Total revenues amounted to $95.5 million for 2018–19 ($92.4 million for 2017–18). This amount excludes $9.6 million earned on behalf of Government. The majority of the revenue in 2018–19 is derived from Environment and Climate Change Canada’s sales of goods and information products and services of a non-regulatory nature. Major revenue items include for example: Oil Sands monitoring activities, Ocean disposal permit applications, Hydrometric services, Ocean disposal monitoring fees and Weather and environmental services.

The increase in Environment and Climate Change Canada’s revenues is mainly attributable to:

• an increase from Joint Projects such as the Randle Reef Remediation Project;

Offset by:

• a decrease in funds received under the Environmental Damages Fund.

Liabilities by Type

Total liabilities were $756.6 million at the end of 2018–19. This represents an increase of $242.8 million or 47.3 percent from the previous year’s total liabilities of $513.8 million. The accounts payable and accrued liabilities ($438.7 million) and the environmental liabilities ($213.6 million) are the largest components of liabilities in 2018–19 and represent 86.2 percent of the total liabilities.

The increase in Environment and Climate Change Canada’s total net liabilities valuation is mainly attributable to:

• an increase in accounts payable and accrued liabilities mostly explained by the payables at year-end for the Low Carbon Economy Fund, offset by one account payable at March 31, 2018, for the Federation of Canadian Municipalities for the Green Municipal Fund;
• an increase in vacation pay and compensatory leave due to the increase in the number of ECCC employees; and
• an increase in deferred revenues attributable to Randle Reef Remediation Project.

Assets by Type

Total net financial assets ($446.1 million) and non-financial assets ($453.0 million), together valued at $899.1 million, have increased by $233.6 million or 35.1 percent in 2018–19. The tangible capital assets continue to represent the largest component of assets at $426.6 million (47.5 percent of total assets) in 2018–19.

The increase in Environment and Climate Change Canada’s total net assets valuation is mainly attributable to:

• an increase in financial assets due from the Consolidated Revenue Fund which include the payables at year-end for Low Carbon Economy Fund, offset by one account payable at March 31, 2018, for the Federation of Canadian Municipalities for the Green Municipal Fund; and
• an increase in tangible capital assets.