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Fisheries and Oceans Canada - Quarterly financial report for the quarter ended December 31, 2022

Table of contents

  1. Introduction
  2. Highlights of fiscal quarter and the fiscal year-to-date (YTD) results
  3. Risks and uncertainties
  4. Significant changes in relation to operations, personnel and programs
  5. Approval by senior officials
  6. Appendix

1. Introduction

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act. The quarterly report should be read in conjunction with the current year’s Main Estimates, Supplementary Estimates (A), and Supplementary Estimates (B).

This quarterly report has not been subject to an external audit or review.

Further details on Fisheries and Oceans Canada’s authority, mandate and programs may be found in the Departmental Plan.

1.1 Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes Fisheries and Oceans Canada’s spending authorities granted by Parliament and those used by the Department consistent with the 2022-23 Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B), and the Operating and Capital Budget Carry Forwards.

The authority of Parliament is required before money can be spent by the Government. Approval is given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results

The following section highlights the financial results and provides explanations as at December 31, 2022, compared to the same period last year.

Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results (thousands of dollars)
  2021-22 Authorities as at December 31, 2021 2022-23 Authorities as at December 31, 2022 Variance in Authorities Expenditures during the quarter ended
December 31, 2021
Expenditures during the quarter ended
December 31, 2022
Variance in Expenditures
Vote 1 – Net Operating expenditures 2,069,553 2,141,265 71,712 491,301 556,005 64,704
Vote 5 – Capital expenditures 1,342,281 1,471,504 129,223 210,777 264,375 53,598
Vote 10 – Grants and Contributions 1,261,757 964,910 (296,847) 341,501 69,935 (271,566)
Statutory Authorities 178,136 189,724 11,588 42,088 45,092 3,004
Total 4,851,727 4,767,403 (84,324) 1,085,667 935,407 (150,260)

2.1 Significant changes in authorities

The total budgetary authorities available for use decreased by $84.3 million (1.7%) from the previous fiscal year:

Comparison of net budgetary authorities by vote as at December 31 of fiscal years 2021-22 and 2022-23 (in millions of dollars)

Comparison of net budgetary authorities

The following table provides a detailed explanation of these changes.

Explanation of Changes
(2022-23 compared to 2021-22)
Change (thousands of dollars)
Vote 1 – Net Operating
Funding for the Pacific Salmon Strategy Initiative 49,850
Funding to extend the lease of the emergency towing vessels on the West Coast and to complete the National Strategy on Emergency Towing 26,693
Funding for the Small Craft Harbours Program 26,384
Planned funding profile change for the Oceans Protection Plan 16,493
Funding for signed collective agreements and the reimbursement of paylist expenditures 14,629
Funding to implement Canada's new marine conservation targets 12,923
Funding for Federal Contaminated Sites 6,992
Incremental change in the Operating Budget Carry Forward 6,327
Sunsetting funding to support self-employed fish harvesters in Canada affected by COVID-19 (9,511)
Planned funding profile change for the Trans Mountain Expansion Project (11,218)
Planned funding profile change for Canadian Coast Guard's fleet recapitalization projects (26,708)
Planned funding profile change for the Big Bar landslide (35,618)
Other Departmental Adjustments (5,524)
Sub-total Net Operating 71,712
Vote 5 – Capital
Funding for the Small Craft Harbours Program 120,446
Incremental change in the Capital Budget Carry Forward 42,964
Funding for the Pacific Salmon Strategy Initiative 42,156
Planned funding profile change for the Trans Mountain Expansion Project 15,120
Planned funding profile change for the Oceans Protection Plan (15,310)
Planned funding profile change for the Big Bar landslide (37,900)
Planned funding profile change for Canadian Coast Guard's fleet recapitalization projects (43,068)
Other Departmental Adjustments 4,815
Sub-total Capital 129,223
Vote 10 – Grants and Contributions
Funding for the Pacific Salmon Strategy Initiative 76,098
Funding to implement Canada's new marine conservation targets 14,193
Funding for the Nature Legacy Initiative 4,384
Planned funding profile change for the Oceans Protection Plan (7,111)
Sunsetting funding to support self-employed fish harvesters in Canada affected by COVID-19 (121,300)
Planned funding profile change for Indigenous programs (264,384)
Other Departmental Adjustments 1,273
Sub-total Grants and Contributions (296,847)
Statutory
Sub-total Statutory 11,588
Total Authorities (84,324)

2.2 Significant changes in expenditures

In the third quarter of 2022-23, total budgetary expenditures have decreased by $150.3 million (13.8%) compared to the same period in the previous year:

Comparison of authorities used by vote during the third quarter of fiscal years 2021-22 and 2022-23 (in millions of dollars)

Comparison of authorities

In the third quarter of 2022-23, total budgetary expenditures amounted to $935.4 million compared to $1,085.7 million reported in the same quarter of 2021-22, which represents an decrease of $150.3 million or 13.8%.

The net increase by standard object is mainly attributed to:

3. Risks and uncertainties

Fisheries and Oceans Canada operates in a dynamic environment that is affected by a number of factors, including: increased northern development; expansion of navigable waters; climate change; demographics; technological advances; changing maritime safety and security demands; and global geopolitical and economic conditions. The Department continues to assess how it conducts its business, provides services and delivers its programs to meet client and stakeholders needs. The Department maintains a Departmental Risk Profile which assesses corporate strategic risks, which if not addressed, could impair DFO-CCG’s ability to deliver on its mandate and achieve results under the Department’s core responsibilities. Additional information regarding the Department’s key risk areas is presented in the 2022-23 Departmental Plan.

Certain risks would have financial impacts should they materialize such as affecting the timing of transfer payments which lies outside the control of the Department and could require funds to be shifted to future years to meet program requirements. To minimize these impacts, the Department continuously monitors its program funding and expenditures throughout the year.

4. Significant changes in relation to operations, personnel and programs

The following changes in personnel were made since the last published quarterly report:

5. Approval by senior officials

Approved by:

Original signed by
_________________________
Annette Gibbons,
Deputy Minister
Ottawa, Canada

Original signed by
_________________________
Richard Goodyear,
Chief Financial Officer
Ottawa, Canada

6. Appendix

Table 1: Statement of authorities (unaudited)

(in thousands of dollars)

  Fiscal year 2021-22 Fiscal year 2022-23
Total available for use for the year ending March 31, 2022* Year to date used at quarter-end Used during the quarter ended December 31, 2021 Total available for use for the year ending March 31, 2023* Year to date used at quarter-end Used during the quarter ended December 31, 2022
Vote 1 – Net Operating expenditures 2,069,553 1,354,849 491,301 2,141,265 1,468,177 556,005
Vote 5 – Capital expenditures 1,342,281 429,018 210,777 1,471,504 579,970 264,375
Vote 10 – Grants and Contributions 1,261,757 469,016 341,501 964,910 159,115 69,935
Statutory Authorities
Statutory - Contributions to employee benefit plans 178,045 126,218 42,073 189,631 134,847 44,949
Statutory - Minister of Fisheries and Oceans – Salary and motor car allowance 91 58 15 93 69 23
Statutory - Spending of proceeds from the disposal of surplus Crown assets 0 0 0 0 115 76
Statutory – Refunds of amounts credited to revenues in previous years 0 0 0 0 47 44
Statutory - Payments to support Canada's fish harvesters pursuant to the Public Health Events of National Concern Payments Act 0 0 0 0 0 0
Statutory - Payments to the Canadian Seafood Stabilization Fund pursuant to the Public Health Events of National Concern Payments Act 0 0 0 0 0 0
Total Statutory Authorities 178,136 126,276 42,088 189,724 135,078 45,092
Total Authorities 4,851,727 2,379,159 1,085,667 4,767,403 2,342,340 935,407

* Includes only Authorities available for use and granted by Parliament at quarter-end.

Table 2: Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

  Fiscal year 2021-22 Fiscal year 2022-23
Planned expenditures for the year ending March 31, 2022* Year to date used at quarter-end Expended during the quarter ended December 31, 2021 Planned expenditures for the year ending March 31, 2023* Year to date used at quarter-end Expended during the quarter ended December 31, 2022
Expenditures:
Personnel 1,401,929 1,041,484 355,759 1,478,708 1,089,993 376,113
Transportation and communications 107,913 39,060 17,954 106,230 69,975 28,060
Information 4,213 2,614 1,213 4,320 4,458 2,443
Professional and special services 733,312 399,933 189,858 785,086 480,871 224,041
Rentals 40,455 30,594 14,795 50,187 44,695 17,769
Repair and maintenance 217,386 173,972 92,635 208,732 186,601 75,160
Utilities, materials and supplies 145,102 71,455 38,393 151,682 111,034 40,404
Acquisition of land, buildings and works 412,232 35,350 21,377 373,025 100,845 51,986
Acquisition of machinery and equipment 528,390 86,151 34,771 642,774 92,885 44,622
Transfer payments 1,261,757 416,988 339,473 964,910 157,602 68,421
Other subsidies and payments 39,049 110,509 (41,990) 41,760 30,272 31,328
Public Debt Charges 0 0 0 0 0 0
Total gross budgetary expenditures 4,891,738 2,408,110 1,064,238 4,807,414 2,369,231 960,347
Less Revenues netted against expenditures:
Sales of goods and services 40,011 28,951 (21,429) 40,011 26,891 24,940
Total Revenues netted against expenditures 40,011 28,951 (21,429) 40,011 26,891 24,940
Total net budgetary expenditures 4,851,727 2,379,159 1,085,667 4,767,403 2,342,340 935,407

* Includes only Authorities available for use and granted by Parliament at quarter-end.

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