National Round Table on the Environment and the Economy
Annual Report 2000-2001

Notes to the Statement of Operations

March 31, 2001

1. Authority and Purpose

The National Round Table on the Environment and the Economy (Round Table) was established in 1994 under the National Round Table on the Environment and the Economy Act and is a departmental corporation named in Schedule II of the Financial Administration Act. The Round Table fulfils its objective of promoting sustainable development, and the integration of environment and economy in decision making in all sectors, by conducting studies, organizing multistakeholder "dialogues" on specific issues and economic sectors, providing advice, carrying out educational and communication activities, and acting as a catalyst for change. Its operating expenditures are funded mainly by a budgetary lapsing authority, and to a lesser extent from cost recovery and cost sharing for specific activities. Employee benefits are authorized by statutory authorities.

2. Significant Accounting Policies

The statement of operations has been prepared using the following accounting policies:

a) Expenditure recognition
All expenditures are recorded on the accrual basis with the exception of termination benefits, vacation pay and compensatory time off, which are recorded on a cash basis.

b) Revenue recognition
Revenues are recorded on an accrual basis.

c) Capital purchases
Acquisitions of capital assets are charged to operating expenditures in the year of purchase.

d) Services provided without charge by Government departments
Estimates of amounts for services provided without charge by Government departments are included in expenditures.

e) Refunds of previous years' expenditures
Refunds of previous years' expenditures are recorded as revenues when received, and are not deducted from expenditures.

f) Public Service Superannuation Plan
Employees participate in the Public Service Superannuation Plan administered by the Government of Canada. The employees and the Round Table contribute equally to the cost of the Plan. The Round Table's contributions are recorded as expenditure in the year they are made and they represent the total pension obligation of the Round Table under the Plan.

3. Parliamentary Appropriations

	2001	2000
	$	$
Privy Council - Vote 40	3,170,000	3,114,138
Governor General Special Warrants 1	929,000	-
Supplementary - Vote 40a	152,850	98,600
	4,251,850	3,212,738
Lapsed	147,922	178,342
	4,103,928	3,034,396
Statutory contributions to employee benefit plans	264,000	266,000
Spending of revenues from the sale of publications and conference materials in accordance with section 29.1 (1) of the FAA	11,353	18,956
Spending of proceeds from the disposal of surplus Crown assets	8	369
Total use of appropriations	4,379,289	3,319,721
Add:
accommodations and other services provided without charge by other Government departments	182,280	182,280
funds received from other Gvernment departments	214,549	67,033
Less: non-tax revenue	25,849	19,325
Net cost of operations	4,750,269	3,549,709

4. Specified Purpose Account

When the Round Table was created, a specified purpose account was established pursuant to section 21 of the Financial Administration Act to record grants and donations received from third parties, and expenses incurred to do various studies related to the principles of sustainable development in Canada and internationally. This account is also used to reflect financial transactions of the Canadian chapter of the LEAD (Leadership for Environment and Development) International training program, which will sunset in December 2001. These receipts and expenses are not included in the statement of operations of the Round Table. The unspent balance in this account is carried forward for future use.

	2001	2000
	$	$
Balance at beginning of year	197,852	21,065
Receipts	51,044	597,024
	248,896	618,089
Expenses	175,122	420,237
Balance at end of year	73,774	197,852

5. Accounts Receivable

As of March 31, amounts receivable are as follows:

	2001	2000
	$	$
Current:
Government of Canada	30,000	-
	30,000	-

6. Capital Assets and Accumulated Amortization

Internal controls are maintained to safeguard capital assets costing over $1,000. The following supplemental information reflects historical cost and amortization if the assets were amortized on a straight-line basis over their useful life of five years.

Capital assets at cost	March 31, 2000	Acquisitions	Disposal	March 31, 2001
	$	$	$	$
Informatics Equipment	306,353	72,601	176,334	202,620
Office Furniture and Equipment	141,019	3,696	7,224	137,491
	447,372	76,297	183,558	340,111
Accumulated	March 31, 2000	Amortization	Disposal	March 31, 2001
	$	$	$	$
Informatics Equipment	209,891	33,745	159,578	84,058
Office Furniture and Equipment	73,374	25,445	7,151	91,668
	283,265	59,190	166,729	175,726

7. Inventory of Publications Intended for Sale

Effective May 28, 1996, the Round Table began a cost-recovery program for its publications. Canadian distribution is done through a distributor who is entitled to a 50 per cent commission fee on the sale price of each publication sold. Inventory of publications intended for sale is valued at net realizable value.

	2001	2000
	$	$
Inventory at beginning of year	150,734	246,984
Add: new publications produced	42,118	38,488
Less:
sales	11,043	15,576
written off	45,455	-
allowance for obsolescence	69,344	119,162
Inventory at end of year	67,010	150,734

8. Liabilities

As of March 31, liabilities are as follows:

	2001	2000
	$	$
a) Accounts payable and accrued charges
Accounts payable	1,062,462	500,014
Accrued salaries	48,680	60,712
	1,111,142	560,726
b) Other liability
Accrued vacation pay	55,294	58,646
Compensatory time off	2,605	2,968
	57,899	61,614

9. Comparative Figures

Certain of the 2000 comparatives figures have been reclassified to conform to the current year's presentation.

 

1 The established procedure for obtaining Supplementary Parliamentary Appropriations when Parliament is dissolved for a general election is through Governor General Special Warrants.

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