Archived - Variance Analysis Summary: Aboriginal Affairs and Northern Development Canada - Financial Statements for the Year Ended March 31, 2012 *
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Prepared as at August 9, 2012
*Information presented in this document does not reflect subsequent events discovered after August 9, 2012; amounts presented may differ from AANDC's Financial Statements for the Year Ended March 31, 2012.
2011-2012 Financial Statements Variance Analysis
Table of Contents
- PART I Statement of Financial Position
- Variance Summary – Statements of Financial Position
- SFP Tab 1 Accounts Payable and Accrued Liabilities
- SFP Tab 2 Vacation Pay and Compensatory Leave
- SFP Tab 3 Other Liabilities
- SFP Tab 4 Trust Accounts
- SFP Tab 5 Settled Claims
- SFP Tab 6 Provision for Claims and Litigation
- SFP Tab 7 Environmental Liabilities
- SFP Tab 7a Contingent Liability : Environmental Liabilities
- SFP Tab 8 Employee Future Benefits
- SFP Tab 9 Due from the Consolidated Revenue Fund
- SFP Tab 10 Accounts Receivable and Advances
- SFP Tab 11 Interest Receivable
- SFP Tab 12 Loans receivable
- PART II Statement of Operations
- PART III Expenses – Note 19 Segmented Information
- Variance Summary – Expenses – Note 19 Segmented Information
- EXP Tab 1 Transfer Payments – First Nations
- EXP Tab 2 Transfer Payments – Industry
- EXP Tab 3 Transfer Payments – Other
- EXP Tab 4 Transfer Payments – Contaminated Sites
- EXP Tab 5 Transfer Payments – Refunds/Adjustments to Prior Years' Expenditures
- EXP Tab 6 Transfer Payments – Claims and Litigation
- EXP Tab 7 Salary and Employee Future Benefits
- EXP Tab 8 Operating Expenses – Contaminated Sites
- EXP Tab 9 Professional and Special Services
- EXP Tab 10 Legal Services
- EXP Tab 11 Travel and Relocation
- EXP Tab 12 Information Services
- EXP Tab 13 Other
- EXP Tab 14 Bad Debt
- EXP Tab 15 Expenses Incurred on behalf of Government
- EXP Tab 16 Operating Expenses – Claims and Litigation
- PART IV Revenue – Note 19 Segmented Information
- PART V Other
- Variance Summary – Note 17 – Related Party Transactions
- 17a Related Party Transactions – Employer's Contribution to the Health and Dental Insurance Plans
- 17b Related Party Transactions – Accommodation
- 17c Related Party Transactions – Legal Services
- 17d Related Party Transactions – Expenses – Other Government Departments and Agencies
- Note 3 b) Parliamentary Authorities – Authorities Provided and Used
Part 1
Statement of Financial Position
FY 2011-2012
FY 2011-12 VARIANCE ANALYSIS
Statement of Financial Position (Unaudited)
As at March 31
(In thousands of dollars)
2012 | 2011 | Yr-over – Yr Variance | Explained | Unexplained | Reference | ||
---|---|---|---|---|---|---|---|
Restated (Notes 20,21) | $ | % | % | % | |||
Liabilities | |||||||
Accounts Payable and Accrued Liabilities (Note 4) | 727,689 | 875,694 | (148,005) | -17% | -17% | 0% | SFP Tab 1 |
Vacation pay and compensatory leave | 17,488 | 18,103 | (615) | -3% | -3% | 0% | SFP Tab 2 |
Other liabilities (Note 5) | 76,058 | 68,949 | 7,109 | 10% | 12% | -2% | SFP Tab 3 |
Trust accounts (Note 6) | 939,080 | 1,148,048 | (208,968) | -18% | -18% | 0% | SFP Tab 4 |
Settled claims (Note 7) | 519,626 | 594,489 | (74,863) | -13% | -13% | 0% | SFP Tab 5 |
Provision for claims and litigation (Note 6) | 10,786,626 | 11,988,760 | (1,202,134) | -10% | -10% | 0% | SFP Tab 6 |
Environmental liabilities (Note 8) | 2,370,969 | 2,015,473 | 355,496 | 18% | 17% | 1% | SFP Tab 7 |
Provision for loan guarantees (Note 8) | 1,465 | 1,655 | (190) | -11% | n/a | n/a | |
Employee future benefits (Note 9) | 44,001 | 80,567 | (36,566) | -45% | -45% | 0% | SFP Tab 8 |
Total liabilities | 15,483,002 | 16,791,738 | (1,308,736) | -8% | |||
Financial Assets | |||||||
Due from the Consolidated Revenue Fund | 1,706,281 | 2,053,931 | (347,650) | -17% | -17% | 0% | SFP Tab 9 |
Accounts receivable and advances (Note 10) | 59,503 | 92,889 | (33,386) | -36% | -37% | 1% | SFP Tab 10 |
Interest receivable (Note 11) | 2,008 | 1,458 | 550 | 38% | 41% | -3% | SFP Tab 11 |
Loans Receivable (Note 12) | 790,044 | 773,586 | 16,458 | 2% | 3% | -1% | SFP Tab 12 |
Total gross financial assets | 2,557,836 | 2,921,864 | (364,028) | -12% | |||
Financial assets held on behalf of government | |||||||
Interest receivable (Note 11) | (2,008) | (1,458) | (550) | 38% | n/a | n/a | |
Loans receivable (Note 12) | (790,044) | (773,586) | (16,458) | 2% | n/a | n/a | |
Total financial assets held on behalf of government | (792,052) | (775,044) | (17,008) | 2.19% | |||
Total net financial assets | 1,765,784 | 2,146,820 | (381,036) | -18% | |||
Departmental Net Debt | 13,717,218 | 14,644,918 | (927,700) | -6% | |||
Non Financial Assets | |||||||
Land held for future claims settlements (Note 13) | 26,270 | 26,167 | 103 | 0% | n/a | n/a | |
Tangible Capital Assets (Note 14) | 52,580 | 54,320 | (1,740) | -3% | n/a | n/a | |
Total Non Financial Assets | 78,850 | 80,487 | (1,637) | -2% | |||
Departmental Net Financial Position (Note 15) | (13,638,368) | (14,564,431) | 926,063 | -6% |
SFP Tab 1
Variance Summary – Accounts Payable and Accrued Liabilities
(FRA 211XX, 216XX)
(2011-2012 AANDC Financial Statements Note 4)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 727,689 |
Fiscal Year 2010-11 | 875,694 |
Variance (+Increase/-Decrease) | -148,005 |
Percentage (+Increase/-Decrease) | -17% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Regular A/P External: This represents decrease in regular accounts payable, including $3.3M transferred to Shared Services Canada. |
-122,606 | -14 % |
PAYE - G&C External: $20M out of the total reduction occurred in Ontario region. $19M of the $20M related to a PAYE set up in 2008-09 to Minister of Finance for social services and released in 2011-12. |
-50,393 | -6 % |
PAYE - O&M External:
|
10,074 | 1 % |
An obligation for termination benefits in the amount of $20.9M to reflect estimated workforce adjustment costs. | 20,971 | 2 % |
Total Explained | -141,954 | -17 % |
Total Unexplained | -6,051 | 0 % |
SFP Tab 2
Variance Summary – Vacation Pay and Compensatory Leave
(FRA 21411, 21414)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 17,488 |
Fiscal Year 2010-11 | 18,103 |
Variance (+Increase/-Decrease) | -615 |
Percentage (+Increase/-Decrease) | -3% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
This represents an adjustment of removing the CanNor liabilities from AANDC trial balance. The 2010-11 amount was not re-stated due to low materiality. | -388 | -2 % |
The vacation and compensatory leave accrual is a system generated amount which takes an employee's total outstanding vacation and overtime hours and multiplies them by the employee's hourly wage. In 2011-12, there were less total vacation and overtime hours outstanding compared to 2010-11. | -227 | -1 % |
Total Explained | -615 | -3 % |
Total Unexplained | 0 | 0 % |
SFP Tab 3
Variance Summary – Other Liabilities
(FRA 23211, 23213, 23214, 23441, 23442)
(2011-12 AANDC Financial Statements Note 5)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 76,058 |
Fiscal Year 2010-11 | 68,949 |
Variance (+Increase/-Decrease) | 7,109 |
Percentage (+Increase/-Decrease) | 10% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The majority of the variance can be attributed to the increase in the Indian Moneys Suspense Account. During 2011-12, total receipts credited to the Indian Moneys Suspense Account exceeded total releases by $8.2M. This explains the increase in the liability. The major source of this increase was receipts received for the Frog Lake Band due to a dispute between the band and Twin Butte Energy. All receipts related to the agreements in dispute, approximately $10M in 2011-12, have been placed in the suspense account. |
8,195 | 12 % |
Total Explained | 8,195 | 12 % |
Total Unexplained | -1,086 | -2 % |
SFP Tab 4
Variance Summary – Trust Accounts
(FRA 23221, 23222, 23223, 23225)
(2011-12 AANDC Financial Statements Note 6)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 939,080 |
Fiscal Year 2010-11 | 1,148,048 |
Variance (+Increase/-Decrease) | -208,968 |
Percentage (+Increase/-Decrease) | -18% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The balances of the Indian Band Funds, Indian Savings Accounts and Indian Estates Accounts comprise the Indian Moneys Trust Accounts. Changes in balances result from total revenue credited to the accounts minus total disbursements made during the year. In 2011-12, Indian Band Funds disbursements exceeded revenue by $209.8M. The decrease in the balance of the Indian Band Funds is primarily due to a court-mandated transfer of the Ermineskin Indian Band's capital trust fund balance on August 1, 2011. This transfer was performed under Section 64 of the Indian Act in the amount of $240.4M. There were no significant change in the other Indian Moneys Trust Accounts. |
-209,825 | -18 % |
A new trust account was set up in 2011-12 to deposit Manitoba Hydro installments, as per Article 1.4 of the Claim 138 Settlement Agreement (2005), for the portion applicable to the Cross Lake First Nation | 1,099 | 0 % |
Total Explained | -208,726 | -18 % |
Total Unexplained | -242 | 0% |
SFP Tab 5
Variance Summary – Settled Claims
(FRA 24114)
(2011-12 AANDC Financial Statements)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 519,626 |
Fiscal Year 2010-11 | 594,489 |
Variance (+Increase/-Decrease) | -74,863 |
Percentage (+Increase/-Decrease) | -13% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Decrease in the liability is mainly attributed to the payments of $158M made during 2011-12, which was offset by an addition of a comprehensive land claim in the amount of $69M for Eeyou Marine region and increase in present value due to decrease in interest rate by average 0.83% per year. | -74,863 | -13% |
Total Explained | -74,863 | -13% |
Total Unexplained | 0 | 0% |
SFP Tab 6
Variance Summary – Provision for Claims and Litigation
(FRA 21433)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 10,786,626 |
Fiscal Year 2010-11 | 11,988,760 |
Variance (+Increase/-Decrease) | -1,202,134 |
Percentage (+Increase/-Decrease) | -10% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Indian Residential Schools: The Contingent liability decreased from $2,100M (2010-11) to $1,571M (2011-12). The decrease is explained by the settlement of more than 4,200 claims during the year. |
-529,515 | -4% |
Specific Claims:
The remaining decrease can be attributed to the change in valuation when more precise estimates become available as claims progressed through the specific claims process. |
-351,464 | -3% |
Comprehensive Native Land Claims:
To a lesser extent, removal of the Eeyou Marine settlement ($69M) to Settled Claims also contributes to the decrease. The total decrease has been offset by a $37M increase of the Mandated amount for the Labrador Innu claim and by an increase of approx. $55M due to the variation in the value of the Final Domestic Demand Implicit Price Index (FDDIPI). |
-370,121 | -3% |
Litigation: No significant change during the year. The increase in the liability is attributable to change of valuation during the litigation process with more precise estimates becomes available. | 44,261 | 0% |
Total Explained | -1,206,839 | -10% |
Total Unexplained | 4,705 | 0% |
SFP Tab 7
Variance Summary – Environmental Liabilities
(FRA 24141)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 2,370,969 |
Fiscal Year 2010-11 | 2,015,473 |
Variance (+Increase/-Decrease) | 355,496 |
Percentage (+Increase/-Decrease) | 18% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Increase in the liability for Giant Mine (in the Northern Region) as a result of the following:
|
84,911 | 4% |
Increase in the liability for Faro Mine (in the Northern Region) is the result of inflation and increase in NPV due to lower discount rates. | 58,617 | 3% |
Increase in the liability for Clinton Creek Mine (In the Northern Region) is mainly due to Class D estimates received in July 2011 contained in the Clinton Creek Technical Options Assessment Report. The liability estimate is based on AANDC's preliminary analysis of the most likely remediation options to be selected. | 19,703 | 1% |
The liability reported for Silver Bear Mine (in the Northern Region) at March 31, 2012 is approximately $45 million compared to approximately $25 million reported in 2010-11. A review of the draft contract specifications conducted by the Sahtu Project Management Team in 2011-12 identified significant gaps, which resulted in increases to the scope of work and associated project costs estimated to be incurred over the lifespan of the project. | 20,036 | 1% |
In 2011-12, the Nunavut region (Northern region) completed 65 Phase I/II environmental site assessments, which resulted in the identification of 19 new Class 1 and 2 sites and 3 Class 3 sites. Together, these sites, which meet the 5 recognition criteria for reporting a liability, account for $154 million of this year's liability increase. | 154,000 | 8% |
This represents a $7.5M decrease of liability in the Southern Region, resulting from a combination of the following:
|
-7,480 | 0% |
Total Explained | 329,787 | 17% |
Total Unexplained | 25,709 | 1% |
SFP Tab 7a
Variance Summary – Contingent Liability: Environmental Liabilities
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 21,838 |
Fiscal Year 2010-11 | 61,673 |
Variance (+Increase/-Decrease) | -39,835 |
Percentage (+Increase/-Decrease) | -65% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Reduction of contingency for United Keno Hill Mines due to better defined options. | -26,251 | -43% |
There has been a decrease of $12.4M resulting from a change of responsibility for 10 sites. In 2010-11, it was unknown whether the responsibility lay with AANDC or a third party. The above decrease was offset by an increase of $4.8 M for the sites where responsibility remains unknown. The increase of liability for these sites is due to the increase of the cost model estimate with more historical data being available, as well as an adjustment due to inflation. |
-7,565 | -12% |
The decrease is due to the removal of the Ketza River mine from the contingent liability. Further review was conducted and it was concluded that currently Canada has no responsibility for the remediation of the site. | -6,019 | -10% |
Total Explained | -39,835 | -65% |
Total Unexplained | 0 | 0% |
SFP Tab 8
Variance Summary – Employee Future Benefits
(FRA 21415)
(2011-12 AANDC Financial Statements Note 9)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 44,001 |
Fiscal Year 2010-11 | 80,567 |
Variance (+Increase/-Decrease) | -36,566 |
Percentage (+Increase/-Decrease) | -45% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Employee Severance Benefit Liability is based on a calculation promulgated by the Office of the Comptroller General of Canada. The 2011-12 decrease was mainly due to a one-time payment of $42M for the severance pay cash out related to severance elimination for certain employee groups (including CR, AS, PM etc.). The decrease was offset by an increase in liability calculated with a higher discount rate of 25.3% (increased from 23.79% in 2010-11). |
-35,503 | -44% |
This represents the balance transferred to Shared Services Canada on November 15, 2011. | -1,063 | -1% |
Total Explained | -36,566 | -45% |
Total Unexplained | 0 | 0% |
SFP Tab 9
Variance Summary – Due from the Consolidated Revenue Fund
(FRA 11242, 13314, 13315, 13392, 21111, 21112, 21113, 21119, 21128, 21132, 21134, 21151, 21613, 23211, 23213, 23214, 23221, 23222, 23223, 23225, 23441, 23442)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 1,706,281 |
Fiscal Year 2010-11 | 2,053,931 |
Variance (+Increase/-Decrease) | -347,650 |
Percentage (+Increase/-Decrease) | -17% |
Explanation of Major Variances |
---|
The decrease in Due from the Consolidated Revenue Fund can be attributed to the following:
|
SFP Tab 10
Variance Summary – Accounts Receivable and Advances
(FRA 111XX, 11221,11229,11233,11242,11244,13314,13315,13391,13392)
(2011-12 AANDC Financial Statements Note 10)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 59,503 |
Fiscal Year 2010-11 | 92,889 |
Variance (+Increase/-Decrease) | -33,386 |
Percentage (+Increase/-Decrease) | -36% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The decrease in the GST/HST Refundable Advance account is primarily the result of timing differences for the processing of refund claims with the Canada Revenue Agency. Processing of the 2010-11 refund claims was completed after March 31, 2011, while $15M of the 2011-12 refund was processed before the year end. | -25,985 | -28% |
The negative variance of $8M represents an decrease of amounts recoverable from Department of Finance for the interest credited to Indian Band Funds Accounts. Out of the total decrease of $8M, approximately $4.3M was due to the Ermineskin payout (See SFP Tab 4 Variance Summary - Trust Accounts) . The remaining decrease was due to an decrease in interest rate of 0.5074% for Q3 and Q4 between 2011-12 and 2010-11. | -7,978 | -9% |
Total Explained | -33,963 | -37% |
Total Unexplained | 577 | 1% |
SFP Tab 11
Variance Summary – Interest Receivable
(FRA 11234)
(2011-12 AANDC Financial Statements Note 11)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 2,008 |
Fiscal Year 2010-11 | 1,458 |
Variance (+Increase/-Decrease) | 550 |
Percentage (+Increase/-Decrease) | 38% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
This increase of interest receivable on direct loans was largely due to a 2011-12 interest accrual on a loan of $13M issued for the comprehensive claim with Maa Nulth First Nations which was settled at the beginning of 2011-12. | 592 | 41% |
Total Explained | 592 | 41% |
Total Unexplained | -42 | -3% |
SFP Tab 12
Variance Summary – Loans Receivable
(FRA 11234, 11239, 1333X, 1337X, 1338X, 13399, 13439)
(2011-12 AANDC Financial Statements Note 12)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 790,044 |
Fiscal Year 2010-11 | 773,586 |
Variance (+Increase/-Decrease) | 16,458 |
Percentage (+Increase/-Decrease) | 2% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
BCTC Loans: The number of loans to First Nations in British Columbia increased from 5,302 in 2010-11 to 5,481 in 2011-12 with issuance of new loans of $25M, offset by loan repayments of $2.8M, resulting in a $22.2 M increase in outstanding loans balances. |
22,252 | 3% |
Direct Loans: The number of loans to Native Claimants increased from 2,577 in 2010-11 to 2,669 in 2011-12 with issuance of new loans of $17M, offset by loan repayments of $11M. This resulted in a $6M net increase in outstanding loans balances. |
5,999 | 1% |
During 2011-12, there was a significant increase of $9.1M to the allowance for doubtful loans. This was due to the increase in the total number of the outstanding loans for specific claims (141 in 2011-12 vs. 135 in 2010-11). The loans for specific claims are fully recorded as an allowance at the same time the receivable is created. | -9,190 | -1% |
Total Explained | 19,061 | 3% |
Total Unexplained | -2 603 | -1% |
Part II
Statement of Operations
FY 2011-2012
FY 2011-12 VARIANCE ANALYSIS
Statement of Operations – 2011-12 vs. 2010-2011
For the Year ended March 31
(in thousands of dollars)
2012 | 2011 | Yr-Over-Yr Variance | ||
---|---|---|---|---|
$ | % | |||
Expenses | ||||
People | 3,465,466 | 4,429,203 | (963,737) | -22% |
Land and Economy | 1,523,260 | 1,596,772 | (73,512) | -5% |
Government | 872,344 | 879,037 | (6,693) | -1% |
North | 688,438 | 588,258 | 100,180 | 17% |
Internal Services | 391,713 | 418,276 | (26 563) | -6% |
Office of the Federal Interlocutor | 38,767 | 38,737 | 30 | 0% |
Expenses incurred on behalf of Government | (11,333) | 2,306 | (13,639) | -591% |
Total Expenses | 6,968,655 | 7,952,589 | (983,934) | -12% |
Revenues | ||||
Resources royalties | 143,738 | 124,211 | 19,527 | 16% |
Norman Wells project profits | 97,176 | 102,181 | (5,005) | -5% |
Miscellaneous | 28,310 | 9,039 | 19,271 | 213% |
Interest on loans | 7,000 | 6,913 | 87 | 1% |
Leases and rentals | 4,862 | 5,111 | (249) | -5% |
Finance and administrative services | 644 | 0 | 644 | 100% |
Revenues earned on behalf of Government | (281,086) | (247,455) | (33,631) | 14% |
Total Revenues | 644 | 0 | (644) | 100% |
Net cost from continuing operations | 6,968,011 | 7,952,589 | (984,578) | -12% |
Highlights of major Variances – Statement of Operations 2011-12 vs. 2010-11
EXPENSES
- There were no significant changes to the Department's strategic outcomes from 2010-11 to 2011-12. Additionally, no material adjustments were made to the strategic outcomes during the year. The explanation of individual variances grouped by strategic outcomes can be found in the expense variance summaries.
- People
The decrease can be explained by the change in the provision for claims and litigation for litigation claims, non-litigation claims and Indian Residential Schools claims (See EXP Tab 16). - Land and Economy
The decrease is mainly attributed to the sunset of targeted funding provided through Canada's Economic Action Plan for First Nation Housing and Infrastructure, resulting in a reduction of expenses. This is offset by increased expenses due to incremental funding in 2011-12 for on-reserve costs as required under the Emergency Management Assistance Program and a lower reduction in expenses than prior year related to the accrued environmental liabilities for the southern regions (See EXP Tab 4). - North
The majority of the variance is explained by an increase in the environmental liability balance in the northern regions (see EXP Tab 8), which is offset by a reduction in expenses for the "Arctic Research Infrastructure Fund" project (ended in March 2011) and a decrease in professional service expenses related to the assessment and remediation of contaminated sites and environmental consultants in the northern regions. - Internal Services
The decrease is caused by the fact that the payments issued for out-of-court settlements in 2011-12 were much lower than the out-of-court settlements which occurred in 2010-11.
REVENUE
Variance analysis for revenue is provided in Part IV "Revenue - Note 19 Segmented Information".
FY 2011-12 VARIANCE ANALYSIS
Statement of Operations – Actual vs. Planned
For the Year Ended March 31
(in thousands of dollars)
2012 | 2012 | Yr-Over-Yr Variance | ||
---|---|---|---|---|
Planned Results | $ | % | ||
Expenses | ||||
People | 3,465,466 | 3,696,684 | (231,218) | -6% |
Land and Economy | 1,523,260 | 1,511,835 | 11,425 | 1% |
Government | 872,344 | 1,627,693 | (755,349) | -46% |
North | 688,438 | 106,312 | 582,126 | 548% |
Internal Services | 391,713 | 370,740 | 2, 973 | 6% |
Office of the Federal Interlocutor | 38,767 | 42,232 | (3,465) | -8% |
Expenses incurred on behalf of the Government | (11,333) | (17,780) | 6,447 | -36% |
Total Expenses | 6,968 655 | 7,337,716 | (369,061) | -5% |
Revenues | ||||
Resources royalties | 143,738 | 116,354 | 27,384 | 24% |
Norman Wells project profits | 97,176 | 87,782 | 9,394 | 11% |
Miscellaneous | 28,310 | 1,213 | 27,097 | 2 234% |
Interest on Loans | 7,000 | 9,229 | (2,229) | -24% |
Leases and Rentals | 4,862 | 5,279 | (417) | -8% |
Finance and administrative services | 644 | 0 | 644 | 100% |
Revenues earned on behalf of Government | (281,086) | (219,857) | (61,229) | 28% |
Total Revenues | 644 | 0 | (644) | 100% |
Net cost from continuing operations | 6,968,011 | 7,337,716 | (369,705) | -5% |
Highlights of Major Variances – Statement of Operations
Actual vs. Planned
2012 Planned Results
The forecasted financial information for 2011-12 only included amounts presented in the 2011-12 RPP. 2011-12 Supplementary Estimates were not included in the 2011-12 forecasts.
Accruals for new contingent liabilities for claims and litigations and new environmental liabilities were excluded from the forecast as they could not be reasonably foreseen or quantified.
EXPENSES
- People
The majority of the variance between actual and planned is due to a decrease in the actual Provision for Claims and Litigation for litigation claims, non-litigation claims and Indian Residential Schools claims (See EXP Tab 16) while no change was forecasted. - Government
Government presents the highest variance between actual and planned. This can be explained by a decrease in the actual Provision for Claims and Litigation for specific claims and comprehensive claims (see EXP Tab 6) while no change was forecasted. - North
The variance is largely attributed to an increase in accrued environmental liabilities recorded for the northern regions (see EXP Tab 8) while a decrease was forecasted. - Internal Services
The forecast was based on the 2011-12 RPP, which allocated 40% of the total refunds of previous years' expenditures to internal services. During the preparation of 2011-12 financial statements, the majority of the amounts were allocated to appropriate strategic outcomes based on the nature of the expenditures. This accounts for the variance in internal services.
REVENUE
- Resource Royalties
The variance can be explained by an increase in mining royalty revenue due to higher diamond prices and lower amortization of capital expenditures by operators. - Norman Wells Project Profits
The variance is due to higher oil prices in 2011-12 compared to forecast. - Miscellaneous Revenue
The 2011-12 actual includes $21M in forfeiture revenue. Forfeiture revenue was not forecasted as it was considered an extraordinary item, therefore it was not included in the planned amount.
Part III
Expenses – Note 19 Segmented Information
FY 2011-2012
FY 2011-12 VARIANCE ANALYSIS
Expenses – Note 19 Segmented Information
As at March 31
(in thousands of dollars)
2012 | 2011 | Yr-Over-Yr Variance | Explained | Unexplained | Reference | ||
---|---|---|---|---|---|---|---|
$ | % | ||||||
Transfer Payments | |||||||
First Nations | 5,455,703 | 5,886,246 | (430,543) | -7% | -8% | 1% | EXP Tab 1 |
Provincial/Territorial governments and institutions | 787,830 | 781,174 | 6,656 | 1% | n/a | n/a | |
Industry | 91,110 | 19,811 | 71,299 | 360% | 358% | 2% | EXP Tab 2 |
Non-Profit Organizations | 41,966 | 40,794 | 1,172 | 3% | n/a | n/a | |
Others | 2,423 | 6,939 | (4,516) | -65% | -66% | 1% | EXP Tab 3 |
Contaminated Sites (Note 8) | (7,480) | (52,131) | 44,651 | 86% | 86% | 0% | EXP Tab 4 |
Refunds/adjustments to prior years' expenditures | (52,173) | (67,072) | 14,899 | -22% | -20% | -2% | EXP Tab 5 |
Claims and Litigation (Note 8) | (721,584) | (1,043,251) | 321,667 | 31% | 31% | 0% | EXP Tab 6 |
Total Transfer Payments | 5,597,795 | 5,572,510 | 25,285 | 0% | |||
Operating Expenses | |||||||
Salaries and employee future benefits | 561,451 | 521,904 | 39,547 | 8% | 8% | 0% | EXP Tab 7 |
Court awards and other settlements \ | 458,540 | 459,134 | (594) | 0% | n/a | n/a | |
Contaminated Sites (Note 8) | 362,976 | 165,606 | 197,370 | 119% | 119% | 0% | EXP Tab 8 |
Professional and special services | 203,073 | 256,915 | (53,842) | -21% | -18% | -3% | EXP Tab 9 |
Legal Services | 123,344 | 129,984 | (6,640) | -5% | -5% | 0% | EXP Tab 10 |
Accommodation | 40,752 | 37,004 | 3,748 | 10% | n/a | n/a | |
Travel and Relocation | 31,704 | 36,486 | (4,782) | -13% | -13% | 0% | EXP Tab 11 |
Information Services | 17,583 | 11,888 | 5,695 | 48% | 38% | 10% | EXP Tab 12 |
Other | 16,313 | 7,078 | 9,235 | 130% | 134% | -4% | EXP Tab 13 |
Bad debt | 12,399 | (2,208) | 14,607 | 662% | 660% | 2% | EXP Tab 14 |
Machinery and equipment | 11,108 | 6,234 | 4,874 | 78% | n/a | n/a | |
Rentals of buildings and machinery | 10,446 | 11,310 | (864) | -8% | n/a | n/a | |
Utilities, materials and supplies | 7,243 | 7,947 | (704) | -9% | n/a | n/a | |
Amortization Expense | 5,540 | 4,717 | 823 | 17% | n/a | n/a | |
Transportation and Telecommunication | 4,051 | 8,376 | (4,325) | -52% | n/a | n/a | |
Repairs and Maintenance | 2,715 | 3,853 | (1,138) | -30% | n/a | n/a | |
Northern Parcel Service | 0 | 59,000 | (59,000) | -100% | -100% | 0% | EXP Tab 2 |
Refunds/Adjustments to prior years' expenditures | (6,495) | (3,895) | (2,600) | 67% | n/a | n/a | |
Expenses incurred on behalf of Government | (11,333) | 2,306 | (13,639) | -591% | -590% | -1% | EXP Tab 15 |
Claims and Litigation (note) | (480,550) | 656,440 | (1,136,990) | -173% | -173% | 0% | EXP Tab 16 |
Total Operating Expenses | 1,370,860 | 2,380,079 | (1,009,219) | -42% | |||
Total Expenses | 6,968,655 | 7,952,589 | (983,934) | -12% |
EXP Tab 1
Variance Summary - Transfer Payments - First Nations
(FRA 51171, 51118)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 5 455 703 |
Fiscal Year 2010-11 | 5 886 246 |
Variance (+Increase/-Decrease) | -430 543 |
Percentage (+Increase/-Decrease) | -7% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Variance represents the change in the expense related to the Settled Claims liability from 2010-11 to 2011-12. During 2011-12, the Settled Claims liability and corresponding expense decreased by $75M, resulting from $158M payments for the year which was offset by an addition of a comprehensive land claim for Eeyou Marine region and increase in NPV due to lower interest rate. Please see SFP Tab 5 "Variance Summary - Settled Claims" for details. During 2010-11, there was an increase of $56M in the Settled Claims liability and corresponding expenses mainly due to accrual of liabilities for future comprehensive land claim settlements for Maa-Nulth First Nations. |
-130,942 | -2% |
The decrease in expenses related to the settlement of Specific Claims or orders of the Specific Claims Tribunal. The total decrease is largely due to the fact that TAG HQ processed (One time or partial) payments of $302M for 10 claims in 2011-12, as compared to $615M in 2010-11 for the settlement of 23 claims. | -307,864 | -5% |
Decrease in expenses reflects the sunset of targeted funding provided through Canada's Economic Action Plan for First Nation housing and infrastructure. This funding reduction affected most regions. | -192,870 | -3% |
The increase in expenses is the result of incremental funding in 2011-12 for on-reserve costs as required under the Emergency Management Assistance Program. The majority of the funding increase was in the Manitoba region due to significant spring flooding in 2011-12. | 95,909 | 2% |
The increase is mainly due to increased funding received through TB submission to transition First Nations Child and Family Services (FNCFS) to the enhanced prevention focused approach in Manitoba region. | 22,034 | 0% |
This represents the 2011-12 payments made under the comprehensive land claim agreements with 5 First Nations due to the settlement of the Maa-nulth treaty, which came into effect in 2011-12. | 16,828 | 0% |
One time payments in 2011-12, including $5.9M for Cree Implementation funding, $4M fisheries license purchase from Maa-Nulth First Nations and $1.1M crab license purchase from Tsawwassen First Nation. | 10,995 | 0% |
Total Explained | -485,909 | -8% |
Total Unexplained | 55,366 | 1% |
EXP Tab 2
Variance Summary - Transfer Payments - Industry
(FRA 51159)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 91 110 |
Fiscal Year 2010-11 | 19 811 |
Variance (+Increase/-Decrease) | 71 299 |
Percentage (+Increase/-Decrease) | 360% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The Nutrition North Canada program (NNC) was implemented on April 1, 2011. NNC has replaced the Canada Food Mail program which was managed by Canada Post Corporation in our care. These funds were transferred from Vote 15. In 2010-11, the expenses incurred by Canada Post Corporation for the Canada Food Mail program was $59M, reported as Operating Expenses (Northern parcel service) in 2010-11 Financial Statements. |
57,468 | 290% |
The variance resulted from an increase in the budget in the Alberta region from $6.3M to $10.8M due to default by a First Nation to deliver the income assistance program to their members. The increased funding was used to put in place the Alternate Service Provider to deliver the income assistance program from November to the end of the 2011-12 fiscal year. | 4,475 | 23% |
The variance is mainly due to additional funding of approx. $5.7M for fuel tanks for various First Nations and increased funding of $3.4M to Manitoba Hydro for diesel generation capital works. | 8,977 | 45% |
Total Explained | 70,920 | 358% |
Total Unexplained | 379 | 2% |
EXP Tab 3
Variance Summary - Transfer Payments - Other
(FRA 51119)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 2,423 |
Fiscal Year 2010-11 | 6,939 |
Variance (+Increase / -Decrease) | -4,516 |
Percentage (+Increase / -Decrease) | -65% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The decrease reflects the reduction in expenditures of the "International Polar Year" program. The initiative ended on March 31, 2012. There were less activities in 2011-12 than 2010-11. | -2,081 | -30% |
The decrease in the expense resulted from the ending of the "Arctic Research Infrastructure Fund (ARIF)" project in March 2011. The project was funded through Canada's Economic Action Plan (CEAP). | -2,502 | -36% |
Total Explained | -4,583 | -66% |
Total Unexplained | 67 | 1% |
EXP Tab 4
Variance Summary - Contaminated Sites (Transfer Payments)
(FRA 51171)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | -7,480 |
Fiscal Year 2010-11 | -52,131 |
Variance (+Increase / -Decrease) | 44,651 |
Percentage (+Increase / -Decrease) | 86% |
Explanation of Major Variances |
---|
This expense represents the change in the Environmental Liability balance (in the Southern Region) during the fiscal year. 2011-12 decrease of $7.5M in the liability and corresponding expenses resulting from a combination of the following:
2010-11 decrease of $52.1M in the liability and corresponding expenses was a net result of a $164.7M decrease in liability for 427 sites and a $112.5M increase in liability for 239 sites. |
EXP Tab 5
Variance Summary - Refunds/Adjustments to Prior Years' Expenditures
(FRA 51118, 51119, 51139, 51159, 51171, 51179)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | -52,173 |
Fiscal Year 2010-11 | -67,072 |
Variance | 14,899 |
Percentage | -22% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The total variance can be explained by a $13.8M decrease of adjustments to payables at year end (PAYE). Since 2009-10, a departmental effort has been undertaken to evaluate existing balances of PAYE in conjunction with the implementation of the policy on PAYE. Regions were asked to remove any outstanding balances that did not meet the requirements outlined in the policy and to provide justification for any remaining balances. This effort continues, but required adjustments have diminished in size. |
13,771 | -20% |
Total Explained | 13,771 | -20% |
Total Unexplained | 1,128 | -2% |
EXP Tab 6
Variance Summary - Claims and Litigation (Transfer Payments)
(FRA 51171)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | -721,584 |
Fiscal Year 2010-11 | -1,043,251 |
Variance (+Increase / -Decrease) | 321,667 |
Percentage (+Increase / -Decrease) | 31% |
Explanation of Major Variances |
---|
This expense represents the change in the Provision for Claims and Litigation for specific claims and comprehensive claims. Decrease of $722M in the 2011-12 liability: This decrease was mainly due to settlement and change in valuation of specific claims $351M, reduction of mandated amounts for AIP mandates in the BC region $398M. (See SFP Tab 6 "Variance Summary - Provision for Claims and Litigation" for details) Decrease of $1,043M in the 2010-11 liability: The majority of the decrease can be explained by the settlement of 19 specific claims totalling $666M and a decrease of the valuation in the liability as more precise estimates became available in the specific claims process. |
EXP Tab 7
Variance Summary - Salaries and Employee Future Benefits
(FRA 51311, 51312, 51846)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 561,451 |
Fiscal Year 2010-11 | 521,904 |
Variance (+Increase / -Decrease) | 39,547 |
Percentage (+Increase / -Decrease) | 8% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
A $21M obligation for termination benefits was accrued to reflect estimated workforce adjustment costs. | 20,971 | 4% |
The increase can be attributed to the collective agreement increases of 1.5%, the natural progression of the incentive levels and the related increase in EBP, and health and dental insurance. | 18,576 | 4% |
Total Explained | 39,547 | 8% |
Total Unexplained | 0 | 0% |
EXP Tab 8
Variance Summary - Contaminated Sites (Operating Expenses)
(FRA 51321)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 362,976 |
Fiscal Year 2010-11 | 165,606 |
Variance (+Increase / -Decrease) | 197,370 |
Percentage (+Increase / -Decrease) | 119% |
Explanation of Major Variances |
---|
This expense represents the change in the Environmental Liability balance (Northern Region) during the fiscal year. 2011-12 increase of $363M in liability and corresponding expenses represents the increased environmental liabilities for several sites (primarily Giant Mine and Faro Mine) and additional liabilities resulting from the identification of new sites. See SFP Tab 7 "Variance Summary - Environmental Liabilities" for more details. 2010-11 increase of $166M in liability and corresponding expenses was due to an increase in environmental liabilities in the Faro Mine and Giant Mine. |
EXP Tab 9
Variance Summary - Professional and Special Services
(FRA 51321)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 203,073 |
Fiscal Year 2010-11 | 256,915 |
Variance (+Increase / -Decrease) | -53,842 |
Percentage (+Increase / -Decrease) | -21% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Overall decrease in expense for services related to the assessment and remediation of contaminated sites and environmental consultants in the Northern Regions, partially offset by an increase in environmental site assessments in Nunavut. | -32,960 | -13% |
In 2010-11, a payment of $10M was made to reimburse the province of British Columbia for Canada's share of costs associated with the settlement of the Maa-nulth treaty, which came into effect on April 1, 2012. This comprises of holding costs for lands and properties purchased for treaty settlement. | -10,000 | -4% |
This represents an overall decrease in management consulting services and reflects the continuing efforts of the department to reduce its management consulting expenditures. The majority of the decrease occurred in the CFO and RO sectors. | -5,218 | -2% |
2010-11 payments to Crawford & Company Inc. were incorrectly coded as legal services. Correction was made in 2011-12 to code the payments to professional services. This amount represents payment made to Crawford & Company Inc in 2011-12. | 3,244 | 1% |
Total Explained | -44,934 | -18% |
Total Unexplained | -8,908 | -3% |
EXP Tab 10
Variance Summary - Legal Services
(FRA 51321)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 123,344 |
Fiscal Year 2010-11 | 129,984 |
Variance (+Increase / -Decrease) | -6,640 |
Percentage (+Increase / -Decrease) | -5% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The decrease of expenditures in legal services provided by the Department of Justice is attributed to:
|
-3,815 | -3% |
2010-11 payments to Crawford & Company Inc. were incorrectly coded as legal services. Correction was made in 2011-12 to code the payments to professional services. This amount represents payments made to Crawford & Company Inc. in 2010-11. | -3,391 | -2% |
Total Explained | -7,206 | -5% |
Total Unexplained | 566 | 0% |
EXP Tab 11
Variance Summary - Travel and Relocation
(FRA 51321)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 31,704 |
Fiscal Year 2010-11 | 36,486 |
Variance (+Increase / -Decrease) | -4,782 |
Percentage (+Increase / -Decrease) | -13% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The 2011-12 annual budget cap-related expenses (including travel, hospitality, conference and seminars) was $36.3M, which was based on the 2010-11 actual spending on those activities. The Department also committed internally to reduce the actual expenditures at the 2010-11 level minus 5% with the exception of the Indian Residential Schools Adjudication Secretariat (IRSAS). 2011-12 cap-related expenses were $31M, well below the cap of $36.3M. The $4.8M reduction in total travel and relocation actual expenditures represents a decrease of 13%, well above the target of 5%. Travel costs for public servants and non-public servants represent the most significant portion of expenses which fall under the targeted reductions. These costs decreased by $4.6M in 2011-12. |
-4,782 | -13% |
Total Explained | -4,782 | -13% |
Total Unexplained | 0 | 0% |
EXP Tab 12
Variance Summary - Information Services
(FRA 51321)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 17,583 |
Fiscal Year 2010-11 | 11,888 |
Variance (+Increase / -Decrease) | 5,695 |
Percentage (+Increase / -Decrease) | 48% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Under a court ordered notice plan, a supplementary notice was launched in 2012 to provide information about the IAP application deadline of September 12, 2012. The associated expenses were $1.3M. | 1,318 | 11% |
This represents 2011-12 expenses incurred by DIR - Research and Analysis for communication research services. The 2010-11 expenses were coded to a different line object. Correction was made in 2011-12. | 3,193 | 27% |
Total Explained | 4,511 | 38% |
Total Unexplained | 1,184 | 10% |
EXP Tab 13
Variance Summary - Other
(FRA 51321, 51192, 51511, 51631, 51711, 51726, 51729)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 16,313 |
Fiscal Year 2010-11 | 7,078 |
Variance (+Increase / -Decrease) | 9,235 |
Percentage (+Increase / -Decrease) | 130% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
This represents payments made to the Province of British Columbia according to the Maa-Nulth Treaty which came into effect in 2011-12, including:
|
5,463 | 77% |
Costs of internally developed projects are charged to expense accounts and reallocated to WIP (Work in Progress) and capital assets accounts at year end. In 2011-12, $4M less in expenditures were reallocated. | 4,062 | 57% |
Total Explained | 9,525 | 134% |
Total Unexplained | -290 | -4% |
EXP Tab 14
Variance Summary - Bad Debt
(FRA 51732)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 12,399 |
Fiscal Year 2010-11 | -2,208 |
Variance (+Increase / -Decrease) | 14,607 |
Percentage (+Increase / -Decrease) | 662% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Direct Loans: During 2010-11 the allowance and corresponding bad debt expense decreased by ($1.0 M) due to several large value Specific Claims settlements which resulted in a net decrease to the allowance. |
10,147 | 460% |
Guaranteed Loans: The adjustment made after the asset valuation exercise in 2010-11 resulted in a slight decrease to the allowance and a credit to bad debt expense ($1.4 M). |
3,465 | 157% |
The amount represents the bad debt expense recorded for accounts receivable in the Yukon region following review of collectability of the accounts receivable by the regional accounting office. | 958 | 43% |
Total Explained | 14,570 | 660% |
Total Unexplained | 37 | 2% |
EXP Tab 15
Variance Summary - Expenses Incurred on Behalf of Government
(FRA 51732)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | -11,333 |
Fiscal Year 2010-11 | 2,306 |
Variance (+Increase / -Decrease) | -13,639 |
Percentage (+Increase / -Decrease) | -591% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Expenses incurred on behalf of government include bad debt expenses recorded on loans receivable. Please see EXP Tab14 "Variance Summary - Bad Debt" for details on the following variances:
|
-13,612 | -590% |
Total Explained | -13,612 | -590% |
Total Unexplained | -27 | -1% |
EXP Tab 16
Variance Summary - Claims and Litigation (Operating Expenses)
(FRA 51722)
(2011-12 AANDC Financial Statements Note 8)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | -480,550 |
Fiscal Year 2010-11 | 656,440 |
Variance (+Increase / -Decrease) | -1,136,990 |
Percentage (+Increase / -Decrease) | -173% |
Explanation of Major Variances |
---|
This expense represents the change in the Provision for Claims and Litigation for litigation claims, non-litigation claims and Indian Residential Schools claims. Decrease of $480M in the 2011-12 liability: This is mainly due to the reduction of liability for Indian Residential School claims, which is primarily attributed to the settlement of more than 4,200 claims during the year. (See SFP Tab 6 "Variance Summary - Provision for Claims and Litigation" for details) Increase of $656M in the 2010-11 liability: This can be explained the addition of 10,000 Indian Residential School claims to the department's estimate. |
Part IV
Revenue – Note 19 Segmented Information
FY 2011-2012
FY 2011-12 VARIANCE ANALYSIS Revenue - Note 19 Segmented Information
As at March 31
(in thousands of dollars)
2012 | 2011 | Yr-Over-Yr Variance | Explained | Unexplained | Reference | ||
---|---|---|---|---|---|---|---|
$ | % | % | % | ||||
Revenues | |||||||
Resource royalties | 143,738 | 124,211 | 19,527 | 16% | 15% | 1% | REV Tab 1 |
Norman Wells project profits | 97,176 | 102,181 | (5,005) | -5% | -5% | 0% | REV Tab 2 |
Miscellaneous | 28,310 | 9,039 | 19,271 | 213% | 197% | 16% | REV Tab 3 |
Interest on loans | 7,000 | 6,913 | 87 | 1% | 1% | 0% | REV Tab 4 |
Leases and rentals | 4,862 | 5,111 | (249) | -5% | n/a | n/a | |
Finance and administrative services | 644 | 0 | 644 | 100% | 100% | 0% | REV Tab 5 |
Revenues earned on behalf of Government | (281,086) | (247,455) | (33,631) | 14% | NOTE | ||
Total Revenues | 644 | 0 | 644 |
NOTE: Revenue Earned on Behalf of Government.
All the revenues except "Finance and administrative services" are included in Revenues earned on behalf of Government.
REV Tab 1
Variance Summary- Resource Royalties
(FRA 42311)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 143,738 |
Fiscal Year 2010-11 | 124,211 |
Variance (+Increase / -Decrease) | 19,527 |
Percentage (+Increase / -Decrease) | 16% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Increase of $20.8M in Canadian mining royalties is primarily due to higher diamond prices and lower amortization of capital expenditures by operators. | 20,801 | 17% |
The decrease in oil and gas royalties was largely due to decreased oil production. The decline in oil production in the Norman Wells field resulted from the temporary shutdown of the Rainbow pipeline and operation of the Enbridge pipeline at reduced capacity from April to August 2011. The oil production decline in the Cameron Hills field resulted from the natural depletion of the oil field and limited production from three wells due to mechanical problems with pumping equipment. |
-2,701 | -2% |
Total Explained | 18,100 | 15% |
Total Unexplained | 1,427 | 1% |
REV Tab 2
Variance Summary - Norman Wells Project Profits
(FRA 42129)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 97,176 |
Fiscal Year 2010-11 | 102,181 |
Variance (+Increase / -Decrease) | -5,005 |
Percentage (+Increase / -Decrease) | -5% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The decrease in revenue was largely due to decreased oil production resulting from the temporary shutdown of the Rainbow pipeline and the operation of the Enbridge pipeline at reduced capacity from April to August 2011. | -5,005 | -5% |
Total Explained | -5,005 | -5% |
Total Unexplained | 0 | 0% |
REV Tab 3
Variance Summary - Miscellaneous
(FRA 42314, 42315, 42319, 42411, 42412, 42541, 42631, 42635, 42719, 42733)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 28,310 |
Fiscal Year 2010-11 | 9,039 |
Variance (+Increase / -Decrease) | 19,271 |
Percentage (+Increase / -Decrease) | 213% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Two factors contributed a significant increase in forfeiture revenue: Failure to drill a well on the lands by the end of Period 1; and the surrender and expiry of a number of exploration licences. In addition, some exploration licences terminated in 2010-11 but the accounting of eligible expenditures was concluded in 2011-12. |
15,247 | 168% |
The Bowater Environmental Remediation Fund was established in 2011-12 pursuant to a decision of the Commercial Division of the Superior Court in the Province of Quebec. | 2,597 | 29% |
Total Explained | 17,844 | 197% |
Total Unexplained | 1,427 | 16% |
REV Tab 4
Variance Summary - Interest on Loans
(FRA 42129)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 7,000 |
Fiscal Year 2010-11 | 6,913 |
Variance (+Increase / -Decrease) | 87 |
Percentage (+Increase / -Decrease) | 1% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
BCTC Loans: This represents the 2011-12 interest charged on a loan of $13M issued for a comprehensive claim with Maa-Nulth First Nations which was settled at the beginning of 2011-12. |
614 | 9% |
CYFN / Elder loans: The decrease was due to repayment of loans totalling $11M in 2011-12, resulting in a decrease in outstanding principal balance and lower interest revenue. |
-737 | -11% |
Housing Loan Guarantee Program: The amount upon which interest revenue being calculated increased due to capitalized interest on outstanding loans. This accounts for the growth in interest revenue. |
201 | 3% |
Total Explained | 78 | 1% |
Total Unexplained | 9 | 0% |
REV Tab 5
Variance Summary - Finance and Administrative Services
(FRA 42319)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 644 |
Fiscal Year 2010-11 | 0 |
Variance (+Increase / -Decrease) | 644 |
Percentage (+Increase / -Decrease) | 100% |
Explanation of Major Variances |
---|
A Memorandum of Understanding (MOU) was signed in 2011-12 between AANDC and CanNor, which states that AANDC provides corporate services to CanNor, including financial, administrative, contractual, transfer payment management, human resources, audit and evaluation, IM/IT, financial systems, communications, executive services and material management support where needed between April 1, 2011 and March 31, 2012. AANDC has charged CanNor $644K (excluding EBP portion) according to the 2011-12 MOU. |
Part V
Other
FY 2011-2012
17. Related party transactions
a) Common services provided without charge by other government departments
2012 | 2011 | Yr-Over-Yr Variance | Explained | Unexplained | Reference | ||
---|---|---|---|---|---|---|---|
(in thousands of dollars) | $ | % | % | % | |||
Employer's contribution to the health and dental insurance plans | 41,450 | 34,770 | 6,680 | 19% | 19% | 0% | 17a |
Accommodation | 40,752 | 37,004 | 3,748 | 10% | 10% | 0% | 17b |
Legal services | 13,269 | 17,084 | (3,815) | -22% | -22% | 0% | 17c |
Workers' compensation | 474 | 483 | (9) | -2% | n/a | n/a | |
Total | 95,945 | 89,341 | 6,604 | 7% |
b) Other transactions with related parties
2012 | 2011 | Variance | Explained | Unexplained | Reference | ||
---|---|---|---|---|---|---|---|
(in thousands of dollars) | $ | % | % | % | |||
Expenses – Other Government departments and agencies | 272,375 | 300,571 | (28,196) | -9% | -10% | 1% | 17d |
Revenues – Other Government departments and agencies | 2,852 | 1,776 | 1,076 | 61% | n/a | n/a |
17a
Variance Summary - Related Party Transactions
Employer's Contribution to the Health and Dental Insurance Plans
(2011-12 AANDC Financial Statements Note 17)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 41,450 |
Fiscal Year 2010-11 | 34,770 |
Variance (+Increase / -Decrease) | 6,680 |
Percentage (+Increase / -Decrease) | 19% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The variance is due to the increase in salary and employee benefits, and increase in the percentage used to calculate the employer's contribution from 8.5% to 8.9% as per TBS guidance. | 6,680 | 19% |
Total Explained | 6,680 | 19% |
Total Unexplained | 0 | 0% |
17b
Variance Summary - Related Party Transactions
Accommodation
(2011-12 AANDC Financial Statements Note 17)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 40,752 |
Fiscal Year 2010-11 | 37,004 |
Variance (+Increase / -Decrease) | 3,748 |
Percentage (+Increase / -Decrease) | 10% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Increase in accommodation costs is attributed to new space taken over from Canadian Heritage at Les Terrasses de la Chaudiere (National Capital Region) and agreements with PWGSC where occupancy was funded by AANDC in 2010-11 were converted to non-reimbursing in 2011-12 in Manitoba and British Columbia. | 3,748 | 10% |
Total Explained | 3,748 | 10% |
Total Unexplained | 0 | 0% |
17c
Variance Summary - Related Party Transactions
Legal Services
(2011-12 AANDC Financial Statements Note 17)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 13,269 |
Fiscal Year 2010-11 | 17,084 |
Variance (+Increase / -Decrease) | -3,815 |
Percentage (+Increase / -Decrease) | -22% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
The decrease of expenditures in legal services provided by the Department of Justice is attributed to:
|
-3,815 | -22% |
Total Explained | -3,815 | -22% |
Total Unexplained | 0 | 0% |
17d
Variance Summary - Related Party Transactions
Expenses – Other Government Departments and Agencies
(2011-12 AANDC Financial Statements Note 17)
Financial Statement Data (in thousands of dollars) | |
---|---|
Fiscal Year 2011-12 | 272,375 |
Fiscal Year 2010-11 | 300,571 |
Variance (+Increase / -Decrease) | -28,196 |
Percentage (+Increase / -Decrease) | -9% |
Explanation of Major Variances | Variance $ | Variance % |
---|---|---|
Overall decrease in services received from PWGSC related to the assessment and remediation of contaminated sites in the Nunavut and NWT regions. | -31,683 | -10% |
Total Explained | -31,683 | -10% |
Total Unexplained | 3,487 | 1% |
Note 3b) Parliamentary Authorities- Authorities Provided and Used Explanation of Lapsed Amount
(2011-12 AANDC Financial Statements Note 3b)
Financial Statement Data (in thousands of dollars) | |
---|---|
Current Year Authorities Provided | 7,994,629 |
Current Year Authorities Used | 7,880,883 |
Authorities Available for Future Years | 32,862 |
Lapsed Amount | 80,884 |
Percentage Lapsed | 1% |
Explanation of Lapsed Amount | Lapsed $ | Lapsed % |
---|---|---|
Budget carryforward for which AANDC is seeking TBS approval:
|
41,603 | 1% |
Late reprofiling requests from 2011-12 to 2012-13 for which the Department is seeking TBS/DOF approval. Major items include:
|
31,384 | 0% |
Frozen - Conversion factor from O&M to Salary | 1,958 | 0% |
Total Explained | 74,945 | 1% |
Total Unexplained | 5,939 | 0% |