Details on Transfer Payment Programs (Exceeding $5 million during the reporting year)

Name of transfer payment program: Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund (Statutory)

Start date: 1987

End date: Perpetuity

Description: To make payments to the province of Newfoundland and Labrador equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Newfoundland and Labrador offshore area.

This transfer payment program does not have any repayable contributions.

Strategic outcome: 1) Canada’s Natural Resource Sectors are Globally Competitive

Results achieved: The transfer to the Province of an amount equivalent to the amounts received by Canada in relation to oil and gas activity in the Canada-Newfoundland and Labrador offshore area was completed in a timely manner, as set out in Sections 97, 214 and 217 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act.

Program: 1.4) Statutory Programs – Atlantic Offshore ($ millions)
2010-11
Actual
Spending
2011-12
Actual
Spending
2012-13
Planned
Spending
2012-13
Total
Authorities
2012-13
Actual
Spending
Variances
Total Contributions 1227.8 1059.8 987.9 566.1 566.1 421.8
Total Program 1227.8 1059.8 987.9 566.1 566.1 421.8

Comments on variances: Planned spending was forecasted eighteen months prior and did not anticipate the significant decrease in production that resulted from the unforeseen shut-downs of all three of the oil producing platforms

Audits completed or planned: An audit of Nova Scotia and Newfoundland Statutory Transfers was completed for fiscal year 2008. Additionally, Office of the Auditor General (OAG) conducts annual audits of these statutory transfers.

Evaluations planned: N/A

Engagement of applicants and recipients: N/A