Future-Oriented Statement of Operations
Future-Oriented Statement of Operations (Unaudited) (PDF)
| in dollars | Forecast Results 2020–21 | Planned Results 2021–22 |
|---|---|---|
| Expenses (Note 6) | ||
| Registry services | 15,311,344 | 19,372,680 |
| Legal services | 9,562,004 | 11,191,852 |
| Mandate and Members Services | 52,121,017 | 66,302,012 |
| Internal services | 26,803,619 | 28,024,624 |
| Total expenses | 103,797,983 | 124,891,167 |
| Revenues | ||
| Revenues Netted Against Expenditures | 28,963,940 | 42,546,838 |
| Miscellaneous revenues | 537 | 537 |
| Revenues earned on behalf of Government | (4,923,550) | (3,891,760) |
| Total revenues | 24,040,928 | 38,655,615 |
| Net cost of operations before government funding and transfers | 79,757,055 | 86,235,552 |
The accompanying notes form an integral part of this Future-Oriented Statement of Operations.
Notes to Future-Oriented Financial Statements (Unaudited)
1. Methodology and significant assumptions
The Future-Oriented Statement of Operations has been prepared on the basis of government priorities and the ATSSC plans as described in the Departmental Plan.
The information in the forecasted results for fiscal year 2020–21 is based on actual results as at October 31, 2020 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2021–22.
The main assumptions underlying the forecasts are as follows:
- The ATSSC's activities will remain substantially the same as in the previous year. Given the COVID-19 pandemic, the level of activities may fluctuate.
- Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
These assumptions are made as at November 25, 2020.
2. Variations and changes to the forecast financial information
Although every attempt has been made to forecast final results for the remainder of 2020–21 and for 2021–22, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.
In preparing this Future-Oriented Statement of Operations, the ATSSC has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.
Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:
- The timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
- Implementation of new collective agreements
- Economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
- Other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year;
- Changes in standard rate used by Treasury Board to calculate employee benefits;
- Unforeseen circumstances related to the global pandemic.
After the Departmental Plan is tabled in Parliament, the ATSSC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.
3. Summary of significant accounting policies
The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2020–21, and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
Significant accounting policies are as follows:
(a) Expenses
The department records expenses on an accrual basis.
Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.
(b) Revenues
Revenues from regulatory fees are recognized based on the services provided in the fiscal year.
Revenues that are non-respendable are not available to discharge the department’s liabilities. Although the deputy head is expected to maintain accounting control, he or she has no authority over the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the department’s gross revenues.
4. Parliamentary Authorities
The ATSSC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the ATSSC differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the ATSSC has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
-
(a) Reconciliation of net cost of operations to requested authorities
in dollars Forecast Results
2020–21Planned Results
2021–22Net cost of operations before government funding and transfers 79,757,055 86,235,552 Adjustment for items affecting net cost of operations but not affecting authorities: Services provided without charge by othe government departments (10,910,534) (11,019,639) Amortization of tangible capital assets (3,289,462) (2,350,959) Decrease in vacation pay and compensatory leave (288,356) (298,624) Increase in employee future benefits 349,392 33,259 Amortization of prepaid expenses (192,466) (194,391) Refunds of previous years' expenditures 145,494 146,112 (14,185,931) (13,684,242) Adjustments for items not affecting net cost of operations but affecting appropriations: Acquisitions of tangible capital assets 1,813,743 1,831,880 Decrease in prepaid expenses 130,083 128,159 Forecasted current year lapse 9,673,775 6,284,810 Requested authorities 77,188,725 80,796,161 -
Authorities requested:
in dollars Forecast Results
2020–21Planned Results
2021–22Authorities requested Vote 1 – Program expenditures 63,446,821 63,306,778 Vote 25 – Operating Budget Carry Forward 3,095,984 5,016,528 Vote 30 – Paylist Requirements 1,026,559 1,198,760 Statutory contributions to employee benefit plans 9,619,361 11,274,095 Authorities requested 77,188,725 80,796,161
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