Report on Resources

Introduction

The ministry's performance and accomplishments were achieved with gross operating expenditures of $133.3 million. Recoveries were $26.7 million (14 per cent higher than in 2003/04) so that net operating expenditures were $106.6 million, 20 per cent greater than in 2003/04. This increase in operating expenditures was due to supplementary allocations for five specific items. Excluding these items, actual expenditures were 23 per cent lower than in 2003/04.

Capital expenditures were 12 per cent less than budgeted but 9 per cent larger than in 2003/04. Staff levels were 3 per cent less than budgeted and 19 per cent lower than in 2003/04.

There has been a change this year in the way variance figures are calculated and displayed, so as to be consistent with the changes introduced to Public Accounts. For more details, see footnote number 4 on page 48.

Ministry Expense Breakdown by Goal

Overall the proportion of net operating expenditures represented by Goal 1 has been reduced from 29 per cent to 16 per cent this year, Goal 2 has been reduced from 66 per cent to 47 per cent, Goal 3 increased from 3 per cent to 35 per cent and Goal 4 has remained unchanged. These 2004/05 proportions and changes are very similar to the movements in the Core Business budgets and actual expenditures shown in the Resource Summary table.

Resource Summary by Core Business Areas

Core Business Areas	Estimated1	Other Authori- zations	Total Estimated	Actual	Variance (Actual minus Total Estimated)4
Operating Expenses ($000)
Sustainable Economic Development	11,545	3,718	15,263	16,124	861
Integrated Land and Resource Information	45,929		45,929	44,481	(1,448)
Sound Governance	2,759	34,468	37,227	37,227	0
Assessment Services	1		1	1	0
Executive and Support Services1	8,181		8,181	8,768	587
Ministry Sub-Total	68,415	38,186	106,601	106,601	0
Agricultural Land Commission2	1,957		1,957	1,957	0
Crown Land Special Account	210,620		210,620	82,064	(128,556)
Total	280,992	38,186	319,178	190,622	(128,556)
Full-time Equivalents (FTEs)
Sustainable Economic Development	110		110	104	(6)
Integrated Land and Resource Information	420		420	414	(6)
Sound Governance	22		22	22	0
Assessment Services	11		11	10	(1)
Executive and Support Services1	171		171	163	(8)
Ministry Sub-Total	734		734	713	(21)
Agricultural Land Commission2	20		20	19	(1)
Total	754		754	732	(22)
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Sustainable Economic Development	600		600	6	(594)
Integrated Land and Resource Information	7,400		7,400	6,789	(611)
Sound Governance	5		5	27	22
Assessment Services	96		96	4	(92)
Executive and Support Services1	50		50	353	303
Ministry Sub-Total	8,151		8,151	7,179	(972)
Agricultural Land Commission2	50		50	5	(45)
Total	8,201		8,201	7,184	(1,017)
Other Financing Transactions ($000)
Crown Land Special Account3
Receipts	900		900	0	(900)
Disbursements
Total Net Cash Source (Requirements)	900		900	0	(900)

Explanations and Comments

Other Authorizations

The ministry received additional budget allocations during the year for a number of items, principal among them being: $25 million for remediation of three contaminated sites (Britannia Mine, Pacific Place and Yankee Girl Mine); $8 million for the BC Trust for Public Lands; $3.6 million for water remissions to BC Hydro¹¹; and $1 million for implementation of specific land and resource management plans.

Operating Expenditure Variances

Net operating expenditure variances were small. The 5.3 per cent over expenditure in Sustainable Economic Development was due to extensions in LRMP target dates. The 3.3 per cent under-expenditure in Integrated Land and Resource Information resulted from the formation of the new Land Title and Survey Authority (LTSA) which commenced operation in January 2005, leaving 2.5 months of unspent budget in the ministry. The 6.7 per cent over-expenditure in Executive and Support Services resulted from, firstly, additional provisions required by the Public Service Agency for staff leave liabilities and, secondly, increased systems charges from Corporate Information Technology Services. A 19.6 per cent increase in ministry net operating expenditures from 2003/04 to 2004/05 occurred, largely due to increased funding for contaminated sites remediation and the BC Trust for Public Lands.

Staffing

The 19 per cent reduction in the ministry's workforce compared to 2003/04 resulted largely from planned workforce adjustment completed at the end of 2003/04. Budget pressures and consequent decisions to leave vacant positions unfilled was the principal reason for under-staffing, compared to budget, in two core businesses: 6 per cent in Sustainable Economic Development and 5 per cent in Executive and Support Services.

Recoveries and Revenues

Through partnerships and other arrangements with various organizations, the ministry provides services and then recovers some or all of the costs. These recoveries are shown by core business on page 14 and amounted to $26.7 million, 14% higher than in 2003/04, mainly due to the approval to fund the transition costs of the LTSA through this means. Principal items include funding from the Ministry of Water, Land and Air Protection for administrative support services, and from the Forest Investment Account for resource planning and information services.

The ministry collected revenues of about $478 million in 2004/05, 17 per cent more than in 2003/04. Of these, $279 million were from water revenues, $146 million from real estate earnings of the Crown Land Special Account (including revenue for free Crown grants and nominal rent tenures), $53 million in land registry fees received directly prior to January 2005 or paid to the government from the new Land Title and Survey Authority, and about $330,000 from a number of other sources, including map and air-photo sales.

Capital Expenditures and Financing Transactions

All of the nine per cent increase in capital expenditures over 2003/04 was due to increased spending on systems development. It was 12 per cent lower than budgeted because of the transition of two systems development projects to the new Land Title and Survey Authority.