Ministry of Environment — Continued
Report on Resources
Introduction
A results-based and accountable government requires ministries to disclose the impact of budgetary decisions on performance. Linking performance and financial information is both a key feature of sound management — reinforcing the connection between resources consumed and results achieved — and an effective way to present an informative perspective on ministry spending to the public.
The September 2005/06 – 2007/08 Service Plan Update presents the ministry's performance plans — goals, objectives and strategies — and the resources that will be required to achieve the planned outcomes over three years. The following sections detail the fiscal performance of the ministry, providing an overview of ministry funding, reporting the resources consumed over the 2005/06 fiscal year and comparing actual expenditures against estimated expenditures.
Overview
The ministry's resources are dedicated to activities associated with protecting the environment, managing the province's natural resources, promoting and supporting sustainability practices and promoting the understanding of, and compliance with, environmental regulatory requirements.
The ministry's business model has been evolving and now places less emphasis on the administrative functions of service delivery and more on setting standards and encouraging and enabling others. Enabling partners to accept a greater role in environmental stewardship allows the ministry to focus its resources on key programs and activities, monitor for results and ensure government outcomes are realized.
Efficiencies
The ministry supports government's commitment to balanced budgets and continuous improvement. Programs and systems are evaluated regularly to determine where efficiencies can be made, while maintaining and enhancing program effectiveness and improving client service.
As a result of an internal business review, the ministry revised its administrative policy and process relating to permitting and authorizations for park, fish and wildlife activities. At the time of the review, 22 staff processed approximately 15,000 permits and commercial licences annually. The results of the review demonstrated that the system in place at the time — processing permits and commercial licences manually from regional offices — was inefficient, took staff time away from priority activities, was time consuming for the client, resulted in application inconsistencies, and produced inaccuracies in data collection.
The ministry centralized and streamlined the process through a one-stop web-based service, which currently employs 13 staff who process approximately 12,000 permits and licences annually. Most permits and licences are sent directly to clients' homes. Assistance, through government agent offices and FrontCounter BC, is also available to clients who are uncomfortable with computers. This streamlined system allows the ministry to track licences by region and identify outstanding fees owed. For example, in its first year of operation, the ministry was able to recover over $50,000 in outstanding fees. Clients have reported that they are very satisfied with the new model.
Over the coming year, the ministry is planning to expand this service to enable clients to apply for, pay for, and receive their permits online.
Ministry Funding
The total net funding available for ministry operations in fiscal year 2005/06 was $180.62 million. This funding was derived from the following sources:
- Voted appropriation17 — this is the largest source of ministry funding, which provided $134.38 million.
- Statutory appropriation — the Sustainable Environment Fund authorizes the collection of waste permit fees under the Environmental Management Act and revenue collection under the Social Services Tax Act(i.e., surcharges collected on products that cause a problem to the environment, such as children's disposable diapers, and are used for environmental protection programs). This funding source provided $35.71 million.
- Other authorizations — Contingency Funding (all ministries) and the New Programs Vote provided $10.53 million.
Other funding sources available to the ministry for operational expenses not summarized above include:
- Internal recoveries — Recoveries within the government reporting entity, excluding the Sustainable Environment Fund, are estimated at $3.49 million. Internal recoveries include recoveries from other provincial government ministries, such as programs funded under the Ministry of Health's ActNow BC program and the Forest Investment Account. Actual internal recoveries for the year were $5.46 million.
- External recoveries — Recoveries from outside the Consolidated Revenue fund were estimated at $10.30 million. External recoveries include recoveries from within the government reporting entity, such as government corporations, and funds outside the government reporting entity, such as other levels of government and private corporations. Actual external recoveries were $9.06 million.
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| 17 | Voted appropriation - the Supply Act as represented in the estimates. |
Ministry Expense by Goal
Resources, strategies and results are linked to goals and objectives in the ministry's service plan. Each core business area has responsibility for undertaking specific strategies and achieving specific results under each goal and objective. As a result, core business area responsibilities and resources are integrated across ministry goals and objectives. This cross ministry approach is an effective business model and has enhanced cross ministry communication, planning and decision-making. Appendix G presents an example of the linkages between goal, objectives, strategies, performance results and core business areas. A portion of each core business area funding is linked to specific strategies.
Ministry Expense (see Figure 5)
Salaries and benefits — $75.64 million — the largest expense for the ministry, accounted for 39% of annual spending.
Operating costs — $71.41 million — includes professional services, parks operating and other contracts, building occupancy and materials and supplies costs, accounted for 37% of gross expenditures.
Government transfers — $32.78 million — includes grants and transfers under agreement, accounted for 17% of gross expenditures.
Other expenses — $14.20 million total — includes costs not attributable to other categories, such as charges for water rental remissions, accounted for 7% of gross expenditures.
Figure 5. Gross expense for fiscal 2005/06 (Source: B.C. Draft Public Accounts, 2005 – 2006)
2005/06 Resource Summary
The 2005/06 Resource Summary on the next page reports on the resources used during the year, by core business area, and compares actual expenditures to the amounts estimated. All significant variances are explained in the section that follows.
Resource Summary Table 2005/06
| Core Business Areas | Estimated1 | Other Authorizations2 | Total Estimated | Actual | Variance |
|---|---|---|---|---|---|
| Operating Expenses ($000) | |||||
| Environmental Stewardship | 66,107 | 9,000 | 75,107 | 81,699 | 6,592 |
| Water Stewardship | 21,256 | 21,256 | 15,435 | (5,821) | |
| Oceans and Marine Fisheries | 2,131 | 2,131 | 2,353 | 222 | |
| Environmental Protection | 39,807 | 1,160 | 40,967 | 40,855 | (112) |
| Compliance | 16,308 | 16,308 | 16,376 | 68 | |
| Executive and Support Services3 | 24,476 | 370 | 24,846 | 22,782 | (2,064) |
| Adjustments of Prior Year's Accrual | (155) | (155) | |||
| Total | 170,085 | 10,530 | 180,615 | 179,346 | (1,269) |
| Full-time Equivalents (FTEs) | |||||
| Environmental Stewardship | 433 | 433 | 474 | 41 | |
| Water Stewardship | 85 | 85 | 87 | 2 | |
| Oceans and Marine Fisheries | 10 | 10 | 8 | (2) | |
| Environmental Protection | 247 | 247 | 251 | 4 | |
| Compliance | 145 | 145 | 137 | (8) | |
| Executive and Support Services | 130 | 130 | 107 | (23) | |
| Total | 1,050 | 1,050 | 1,064 | 14 | |
| Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)4 | |||||
| Environmental Stewardship | 24,678 | 2,844 | 27,522 | 26,403 | (1,119) |
| Water Stewardship | 214 | 25 | 239 | 223 | (16) |
| Oceans and Marine Fisheries | 0 | 0 | 2 | 2 | |
| Environmental Protection | 272 | 1,518 | 1,790 | 2,225 | 435 |
| Compliance | 150 | 2,894 | 3,044 | 3,496 | 452 |
| Executive and Support Services | 4,543 | 4,543 | 1,785 | (2,758) | |
| Total | 29,857 | 7,281 | 37,138 | 34,134 | (3,004) |
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| 1 | The "Estimated" amount corresponds to the Estimates as presented to the Legislative Assembly in September 2005. |
| 2 | "Other Authorizations" include access to Operating Contingencies for the Living Rivers Trust Fund contribution for $9 million, Financial Incentives for Recycling Scrap Tires for $1.16 million and Benefits Cost Pressures for $0.37 million. Access to capital contingencies was for Capitalized Vehicle Leases in the amount of $7.281 million. |
| 3 | Executive and Support Services include expenses for the Minister's Office, Deputy Minister's Office, Strategic Policy Division, Corporate Services Division (shared with the Ministry of Agriculture and Lands), and shared administrative staff in the regional offices. |
| 4 | Capital Expenditures in fiscal 2005/06 included $6.5 million on the Myra Canyon trestles, $5.5 million in Park and Protected Area land acquisitions, $12 million in park facilities and $6.7 million for Capitalized Vehicle Leases. |
Operating Expenses
Overall, the ministry's actual expenses were less than the total estimated expenses by $1.27 million or 0.7%. Any core business surpluses were redirected within the ministry to address priorities. The surplus variance in Water Stewardship, which was due to water rental remissions, contributed toward the $14 million government transfer payment made to the Living Rivers Trust Fund by Environmental Stewardship.
The Executive and Support Services variance was due to lower than anticipated overhead and shared service costs.
Full-time Equivalents
Overall, the ministry utilized 14 FTEs more than estimated. Environmental Stewardship used 41 FTEs more than budgeted due to staff hired to meet the objectives of recoverable programs. Although salaries costs were recovered by sources outside the ministry (e.g., Forest Investment Account, BC Hydro), the FTE usage was not. This overage was mostly offset by underuse in Executive and Support Services due to recruitment lag.
Capital Expenditures
Overall, the ministry's capital expenditure was under total estimates by $3.00 million or 8.8%. Information systems development plan delays, as a result of government reorganization, led to a surplus in Executive and Support Services. Where possible, surpluses were redirected to address air/water monitoring equipment and aging equipment replacement needs in Environmental Protection and Compliance programs. Environmental Stewardship was under budget by $0.60 million due to vehicles not being delivered before fiscal year-end and $0.50 million due to Myra Canyon trestle delays.
Comparison of 2005/06 and 2004/05 Expense
The ministry's gross expense in 2005/06 increased by $24.40 million from 2004/05 primarily as a result of program transfers related to government reorganization ($12.75 million), and approved budget lifts ($9.18 million) for initiatives such as increased environmental protection activities, additional park rangers and conservation officers, and the creation of the B.C. Conservation Corps.
The breakdown of these expenses is as follows:
- Salaries and benefits increased by $8.20 million, due to the addition of the Water Stewardship and Oceans and Marine Fisheries programs ($6.94 million), and the increase of Park Ranger and Conservation Officer positions.
- Operating costs increased by $6.89 million, as a result of the inclusion of Water Stewardship and Oceans and Marine Fisheries and other program budget lifts noted above.
- Government transfers increased by $4.1 million, of which $2.30 million is accounted for by the addition of Water Stewardship and Oceans and Marine Fisheries.
- Other expenses increased by $5.30 million, primarily due to water rental remissions in the amount of $3.66 million.
Year-Over-Year Resource Changes
Figure 6 provides a year-over-year description of the changes to the ministry's resources. It should be noted that additional programs (Water Stewardship and Oceans and Marine Fisheries) were added to the ministry during fiscal 2005/06.
Previous fiscal periods have not been restated for comparative purposes to reflect these resource increases. The two new programs accounted for $23.38 million in 2005/06 voted appropriations.
Figure 6. Three-year comparison of gross expense18
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| 18 | Source: B.C. Draft Public Accounts, 2005 - 2006 |
Environmental Appeal Board and Forest Appeals Commission
The Environmental Appeal Board (Board) and Forest Appeals Commission (Commission) are independent, quasi-judicial tribunals jointly administered by the same office. They hear appeals of government decisions under several provincial statutes concerned with natural resource management, environmental quality and public health protection.
The Board has statutory authority to hear appeals from administrative decisions under the Environmental Management Act, the Health Act, the Integrated Pest Management Act, the Water Act and the Wildfire Act. For 2005/06, the Board received approximately 67 appeals against 64 orders/permits/decisions.
The Commission has statutory authority to hear appeals from administrative decisions made with respect to a variety of matters regulated by the Forest and Range Practices Act, the Forest Act, the Range Act, the Wildfire Act and the Private Managed Forest Land Act. For 2005/06, the Commission received 112 appeals against 111 orders/permits/decisions.
The Board19 and Commission20 each produce an annual report, which is provided to their ministers for tabling in the legislature.
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| 19 | Go to http://www.eab.gov.bc.ca for more information on the Environmental Appeal Board. |
| 20 | Go to http://www.fac.gov.bc.ca for more information on the Forest Appeals Commission. |
