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 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%      

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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:
Decrease of $50M due to overall reduction of balances for most regions as a result of the continuous effort to implement the Policy on Payables at Year End (PAYE) and quarterly PAYE review by Corporate Accounting & Reporting.

$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:

  • Decrease of $17M due to Out of Court settlement set up in 2010-11 (one time item).
  • Increase of $27M mainly due to Settlements for the Indian Residential Schools claims. PAYEs were set up for 481 claims in 2011-12, increased from 316 in 2010-11.
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 %

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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 %

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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 %

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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%

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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%

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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:
$258M of the net decrease in balance can be explained by the settlement of 8 claims. The major settlements are shown below:

  • $80.6M Roseau River Anishinable First Nation
  • $149M Fort William

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:
The net decrease in balance is largely attributable to a $398M reduction in liability for the Agreements-in-Principle (AIP) Mandates in the BC region due to the change of probability from likely to unlikely:

  • Nuu-chah-nulth($228M)
  • Lax'Kw'alaams ($157M).
  • Hupacasath First Nation($13M)

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%

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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:

  • The pre-remediation period covered by the Site Stabilization Plan has been extended by four years. This has resulted in increased costs required for a longer period.
  • Increase in NPV due to a decrease in applied discount rate based on Treasury Board guidance.
  • 2011-12 liability now includes an estimate for employee benefits (EBP).
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:

  • Expenditures reducing liability (minus $9.7 million);
  • Reassessments of cost estimates and adjustments made to the Contaminated Sites Management Program's (CSMP) cost model (minus $30.6 million);
  • New liabilities related to 72 sites that were assessed (plus $32.7 million).
-7,480 0%
Total Explained 329,787 17%
Total Unexplained 25,709 1%

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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%

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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%

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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:


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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%

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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%

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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%

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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
REVENUE

Variance analysis for revenue is provided in Part IV "Revenue - Note 19 Segmented Information".


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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
REVENUE

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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%      

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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%

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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%

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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%

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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:

  • Expenditures reducing liability (minus $9.7 million);
  • Reassessments of cost estimates and adjustments made to the Contaminated Sites Management Program's (CSMP) cost model (minus $30.6 million);
  • New liabilities related to 72 sites that were assessed (plus $32.7 million).

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.


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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%

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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.


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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%

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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.


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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%

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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:

  • Implementation of Law Practice Model (LPM) $2.1M: LPM was a department-wide exercise in Justice to reduce the cost of legal services by changing the mix of employees, increasing the proportion of junior counsel and decreasing the proportion of senior counsel.
  • Reduction in Justice corporate overhead costs $1.7M
-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%

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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%

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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%

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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:

  • Adjustment Fund payment $4.1M
  • Cost-Sharing of Third Party Costs $1.4M
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%

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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 2011-12, there was a significant increase of $9.1M to the allowance and corresponding bad debt expense due to the increase in the total number of Specific Claims outstanding (141 in 2011-12 vs. 135 in 2010-11). Specific Claims are fully recorded as an allowance at the same time the receivable is created. (Also see SFP Tab 12 "Variance Summary - Loans Receivable")

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:
In 2011-12, interest in the amount of $2M was accrued on outstanding doubtful loans. Interest on doubtful loans is recorded as bad debt expense.

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%

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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:

  • Direct loans $10.1M
  • Guaranteed loans $3.5M
-13,612 -590%
Total Explained -13,612 -590%
Total Unexplained -27 -1%

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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.


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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.


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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%

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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%

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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%

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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%

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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.

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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  

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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%

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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%

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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:

  • Implementation of Law Practice Model (LPM) $2.1M: LPM was a department-wide exercise in Justice to reduce the cost of legal services by changing the mix of employees, increasing the proportion of junior counsel and decreasing the proportion of senior counsel.
  • Reduction in Justice corporate overhead costs $1.7M
-3,815 -22%
Total Explained -3,815 -22%
Total Unexplained 0 0%

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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%

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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:

  • Operating budget carryforward $39M
  • Capital budget carryforward $1M
  • Carryforward of liabilities for Outstanding Collective Agreements $2M
41,603 1%

Late reprofiling requests from 2011-12 to 2012-13 for which the Department is seeking TBS/DOF approval. Major items include:

  • Specific Claims - Justice At Last $17.4M
  • Indian Residential Schools Settlement Agreement- Commemoration Funding $7.4M
31,384 0%
Frozen - Conversion factor from O&M to Salary 1,958 0%
Total Explained 74,945 1%
Total Unexplained 5,939 0%
Date modified: