Department of National Defence - Departmental Performance Report 2012-13

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SECTION III: SUPPLEMENTARY INFORMATION

Financial Statement Highlights

The financial information presented within this report is intended to serve as a general overview of Defence’s financial position and operations.

National Defence
Condensed Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31, 2013
($ thousands)
 2012-13
Planned
Results
(Restated)
2012-13
Actual
2011-12
Actual
(Restated)
$ Change
(2012-13
Planned vs.
Actual)
$ Change
(2012-13
Actual vs.
2011-12
Actual)
Total expenses 19,602,982 20,831,775 20,815,462 (1,228,793) 16,313
Total revenues 478,834 470,674 403,537 8,160 67,137
Net cost of operations before government funding and transfers 19,124,148 20,361,101 20,782,644 (1,236,953) (421,543)
Departmental net financial position n/a 35,767,727 35,397,047 n/a 370,680

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

National Defence
Condensed Statement of Financial Position (Unaudited)

As at March 31, 2013
($ thousands)
 2012-132011-12
(Restated)
$ Change
Total net liabilities 52,973,643 53,195,903 (222,260)
Total net financial assets 49,806,383 49,498,423 307,960
Departmental net debt 3,167,260 3,697,480 (530,220)
Total non-financial assets 38,934,987 39,094,527 (159,540)
Departmental net financial position 35,767,727 35,397,047 370,680

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Financial Statements

The Department’s financial statements can be found on the National Defence website 111.

Financial Highlights Charts

A further breakdown and explanation of the values disclosed in the Condensed Statement of Financial Position and Condensed Statement of Operations and Departmental Net Financial Position are presented in the following charts:

Liabilities

The liabilities of National Defence consist mainly of the Canadian Forces Pension and Insurance Accounts (89.0 per cent), accounts payable and accrued liabilities (5.5 per cent) and employee future benefits related to severance (3.3 per cent).

Liabilities by Type

"See the text description of this pie chart that is available on a separate page."

Assets

Due from the Consolidated Revenue Fund, which primarily represents funds available to discharge pension and severance related liabilities, comprises the largest portion of National Defence assets (55.9 per cent). The balance of assets is mostly comprised of Tangible Capital Assets (35.9 per cent) and Inventory (7.3 per cent).

Assets by Type

"See the text description of this pie chart that is available on a separate page."

Expenses

The largest portion of expenses (49 per cent) in National Defence is related to the Strategic Outcome: National Defence is ready to meet Government Defence Expectations. This outcome represents the resources that are utilized to bring the CAF to an appropriate state of readiness to defend Canada and its interests domestically and internationally.

Programs associated with the Strategic Outcome: Resources are delivered to meet Government Defence Expectations comprise the next largest portion of expenses (22.3 per cent). This outcome represents costs for the acquisition of equipment, infrastructure and technology; and for the recruitment and training of personnel.

A further 11.6 per cent of expenses are related to the Strategic Outcome: Defence Operations Improve Peace, Stability and Security Wherever Deployed. Expenses for this strategic outcome represent costs to defend Canada and North America, and to contribute to international peace, stability and security.

The balance of expenses are related to the Strategic Outcome: Care and Support to the Canadian Armed Forces and Contributions to Canadian Society (10.9 per cent) representing costs associated with care and support of Defence personnel as well as environmental protection and contributions to Canadian identity, and Internal Services (6.3 per cent) representing costs associated with legal, financial, human resources, communication and other corporate obligations of the Department.

Distribution of Expenses by Strategic Outcome

"See the text description of this pie chart that is available on a separate page."

Revenues

The majority of revenues are generated by the sale of goods and services (82.9 per cent) such as facility and accommodation rentals, and fees for services provided to foreign governments. The remainder of revenues is primarily generated by gains on disposal of assets (7.2 per cent) and interest and gains on foreign exchange (2.3 per cent).

Distribution of Revenues by Type

"See the text description of this pie chart that is available on a separate page."

Supplementary Information Tables

Tax Expenditures and Evaluations Report

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication 112. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.