2015-2016 Departmental Performance Report (DPR)

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Section II: Expenditure Overview

Actual Expenditures

Budgetary Financial Resources (dollars)

2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	Difference (actual minus planned)
3,633,262,748	3,633,262,748	3,762,351,961	3,190,441,756	(442,820,992)

Human Resources (Full-Time Equivalents [FTEs])

2015-16 Planned	2015-16 Actual	2015-16 Difference (actual minus planned)
370	357	(13)

INFC's program design recognizes the provincial, territorial and municipal responsibility for the  majority of public infrastructure, and the Department's participation as a funding partner. Accordingly, INFC is not responsible for the management of infrastructure projects, with the exception of the NCBC. In the case of its contribution programs, INFC reimburses eligible expense claims submitted by funding recipients – the project managers. As such, it is important to note that the Department's cash flows lag behind the actual rate of construction of projects. Work begins upon project approval: contracts are put in place, plans are drawn up, materials are ordered and construction starts. While the Department commits funds upon project approval, federal funding does not actually flow to recipients until they have submitted their claims for actual costs incurred. This is a key risk-management approach for the Department, one that ensures that it only pays for work that has already been undertaken. This also means that INFC's performance results are directly affected by project proponents' schedules, which may change. In particular, INFC Programs targeting large-scale projects can experience delays due to factors that are outside the Department's control, such as inclement weather, geological challenges, shortages of labour, and technical or other construction-related complexities that prevent proponents from completing work and submitting associated claims.

The Department works continually with provinces, territories, municipalities and other partners to ensure that forecasts are as accurate as possible and to re-profile funding under all INFC programs to meet the construction needs of its partners.

Budgetary Performance Summary

Budgetary Performance Summary for Program(s) and Internal Services (dollars)

Program(s) and Internal Services	2015-16 Main Estimates	2015-16 Planned Spending	2016-17 Planned Spending	2017-18 Planned Spending	2015-16 Total Authorities Available for Use	2015-16 Actual Spending (authorities used)	2014-15 Actual Spending (authorities used)	2013-14 Actual Spending (authorities used)
Funding for Provincial-Territorial Priorities	91,061,247	91,061,247	97,380,082	0	90,885,828	50,036,481	25,078,120	191,464,385
Permanent and Flexible Public Infrastructure Funding	1,976,213,928	1,976,213,928	2,074,601,337	2,074,595,243	1,975,090,837	1,974,079,201	1,974,387,706	2,107,905,313
Investments in National Infrastructure PrioritiesFootnote 6	148,607,942	148,607,942	49,588,756	387,828,588	146,771,469	84,854,656	139,119,440	See footnote 6
Large-Scale Infrastructure InvestmentsFootnote 6b	1,174,990,518	1,174,990,518	705,844,608	1,026,629,508	1,172,413,053	887,432,689	787,479,954	See footnote 6
Infrastructure Investments in Small Communities and Rural Areas Footnote 6c	171,319,905	171,319,905	227,236,114	109,369,164	170,100,556	88,141,483	92,993,364	See footnote 6
New Bridge for the St. Lawrence Corridor Project	42,661,977	42,661,977	91,859,300	534,327,337	167,474,282	66,281,311	40,687,967	See footnote 6
Programs under Former PAA	0	0	0	0	0	0	0	1,179,051,643
Sub-Total	3,604,855,517	3,604,855,517	3,246,438,197	4,132,749,840	3,722,736,025	3,150,825,820	3,059,746,551	3,478,421,341
Internal Services Sub-TotalFootnote 7	28,407,231	28,407,231	29,976,406	28,719,198	39,615,936	39,615,936Footnote 6d	36,135,562	35,404,150
Total	3,633,262,748	3,633,262,748	3,276,486,603	4,161,469,038	3,762,351,961	3,190,441,756	3,095,882,113	3,513,825,491

INFC provides significant funding for large, complex projects which can result in variance in Programs 1.3 Investments in National Infrastructure Priorities and 1.4 Large-Scale Infrastructure Investments. It is typical for some of these projects to require a significant amount of upfront planning, design and procurement. For these programs as well as for Program 1.5 Infrastructure Investments in Small Communities and Rural Areas, even once construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower-than-anticipated project costs to project delays as a result of inclement weather, and technical and other construction-related complexities. It is also important to note that federal funding does not actually flow to recipients until they have submitted their claims for actual costs incurred.

Departmental Spending Trend

In 2015-16, INFC's actual spending was over $3.19 billion on infrastructure investments under its programs to meet the expected program results and contribute to its Strategic Outcome.

* Sunset Programs are time-limited programs that do not have an ongoing funding nor policy authority.
** Funding under the Gas Tax Fund includes both Voted Spending and Statutory Spending until March 31, 2014. As of April 1, 2014, spending under this program became only Statutory Spending.
See text description of Graph 1

Departmental spending has decreased from almost $3.6 billion in 2014-15, to just over $3.19 billion in 2015-16. In the last few years, infrastructure spending had been on the decline, as sunsetting programs were approaching completion.

Over the next few years, infrastructure spending is projected to increase as new programs get implemented. Budget 2016 announced a new 10-year infrastructure plan for public transit, green infrastructure, and social infrastructure. Infrastructure spending is projected to increase to approximately $3.3 billion in 2016-17 and to $4.2 billion in 2017-18.

Expenditures by Vote

For information on INFC's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2016,^xi which is available on the Public Services and Procurement Canada website.^xii

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2015-16 Actual Spending With the Whole-of-Government Framework ^xiii (dollars)

Strategic Outcome	Program	Spending Area	Government of Canada Outcome	2015-16 Actual Spending
Public Infrastructure for a More Prosperous Canada	Funding for Provincial-Territorial Priorities	Economic Affairs	Strong Economic Growth	50,036,481
	Permanent and Flexible Public Infrastructure Funding	Economic Affairs	Strong Economic Growth	1,974,079,201
	Investments in National Infrastructure Priorities	Economic Affairs	Strong Economic Growth	84,854,656
	Large-Scale Infrastructure Priorities	Economic Affairs	Strong Economic Growth	887,432,689
	Infrastructure Investments in Small Communities and Rural Areas	Economic Affairs	Strong Economic Growth	88,141,483
	New Bridge for the St. Lawrence Corridor Project	Economic Affairs	Strong Economic Growth	66,281,311

Total Spending by Spending Area (dollars)

Spending Area	Total Planned Spending	Total Actual Spending
Economic Affairs	3,604,855,517	3,150,825,820

Note: The Total Planned Spending number provided in this table does not include expenses made by the Department under its Internal Services.

Financial Statements and Financial Statements Highlights

Financial Statements

INFC's Financial Statements ^xiv can be found on the Department's website.

Financial Statements Highlights

Infrastructure Canada Condensed Statement of Operations (unaudited)
For the Year Ended March 31, 2016 (dollars)

Financial Information	2015-16 Planned Results	2015-16 Actual	2014-15 Actual	Difference (2015-16 actual minus 2015-16 planned)	Difference (2015-16 actual minus 2014-15 actual)
Total expenses	3,613,455,000	3,141,766,000	3,035,684,000	(471,689,000)	106,082,000
Total revenues	N/A-	N/A-	N/A-	N/A-	N/A-
Net cost of operations before government funding and transfers	3,613,455,000	3,141,766,000	3,035,684,000	(471,689,000)	106,082,000
Departmental net financial position	N/A-	63,243,000	16,816,000	N/A-	46,427,000

Infrastructure Canada Condensed Statement of Financial Position (unaudited)
As at March 31, 2016 (dollars)

Financial Information	2015-16	2014-15	Difference (2015-16 minus 2014-15)
Total net liabilities	767,084,000	154,213,000	612,871,000
Total net financial assets	188,880,000	151,283,000	37,597,000
Departmental net debt	578,204,000	2,930,000	575,274,000
Total non-financial assets	641,447,000	19,746,000	621,701,000
Departmental net financial position	63,243,000	16,816,000	46,427,000

Footnotes

Footnote 6

There were no expenditures under these programs in 2013-2014, as until March 31, 2014 INFC had a different PAA structure. The Department's current PAA structure came into effect on April 1, 2014.

Return to Footnote 6

Return to Footnote 6b

Return to Footnote 6c

Return to Footnote 6d

Footnote 7

The 2015-16 Actual Spending under Internal Services does not include expenses for the GHIB, as the team was transferred from Transport Canada to INFC effective April 1, 2016. Expenditures for the team in 2015-16 will be reported by Transport Canada.

Return to Footnote 7

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