Employment and Social Development Canada Consolidated Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2024

Consolidated Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2024

Table 1: Consolidated Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2024 (in thousands of dollars)
Detail Forecast Results 2023 Planned Results 2024
Expenses
Pensions and Benefits 71,564,066 78,359,178
Learning, Skills Development and Employment 36,008,450 33,822,958
Social Development 6,287,772 6,911,204
Internal Services 1,389,805 1,166,904
Information Delivery and Services for Other Departments 280,074 421,869
Working Conditions and Workplace Relations 162,816 160,858
Expenses incurred on behalf of Government 17,042 (3,753)
Total expenses 115,710,025 120,839,218
Revenues
Employment Insurance 26,911,500 27,993,500
Recovery of CPP administration costs 580,947 477,380
Recovery of Other Government Department service delivery costs 252,129 327,385
User fees 129,288 133,338
Interest on loans receivable 8,106 382,747
Other 9,414 8,420
Revenues earned on behalf of Government (457,211) (560,533)
Total revenues 27,434,173 28,762,237
Net cost of operations before government funding and transfers 88,275,852 92,076,981

Table notes:

Notes to the Consolidated Future-Oriented Statement of Operations (Unaudited)

1. Methodology and significant assumptions

The Consolidated Future-Oriented Statement of Operations has been prepared on the basis of government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for the year 2023 is based on actual results as at November 30, 2022 and on forecasts for the remainder of the year. Forecasts have been made for the planned results for the 2024 year.

The main assumptions underlying the forecasts are as follows:

These assumptions are adopted as of January 6, 2023.

2. Variations and changes to the forecast consolidated financial information

Although every attempt has been made to forecast final results for the remainder of 2023 and for 2024, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Consolidated Future-Oriented Statement of Operations, ESDC 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 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 Consolidated Future-Oriented Statement of Operations and the historical statement of operations include:

After the Departmental Plan is tabled in Parliament, ESDC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates or budget announcements. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Consolidated Future-Oriented Statement of Operations has been prepared using ESDC’s accounting policies in effect for fiscal year 2023, which are 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) Consolidation

This Consolidated Future-Oriented Statement of Operations includes the transactions of the Employment Insurance Operating (EIO) Account, a consolidated specified purpose account which includes revenues credited and expenses charged under the Employment Insurance Act and for which the Deputy Minister as Chairperson of the Canada Employment Insurance Commission is accountable. The accounts of the EIO Account have been consolidated with those of ESDC, and all inter-organizational balances and transactions have been eliminated.

The Canada Pension Plan (CPP) is excluded from ESDC's reporting entity because changes to the CPP require the agreement of two thirds of the provinces and therefore, the CPP is not controlled by ESDC.

(b) Expenses

Expenses are recorded on an accrual basis of accounting:

(c) Revenues

Revenues are recorded on an accrual basis of accounting:

4. Parliamentary authorities

ESDC receives most of its funding through annual parliamentary authorities. Items recognized in the Consolidated Future-Oriented Statement of Operations in 1 year may be funded through parliamentary authorities in prior, current or future years. Furthermore, as a consolidated specified purpose account, the EIO Account expenses and revenues recognized in ESDC’s Consolidated Future-Oriented Statement of Operations do not affect parliamentary authorities. Accordingly, ESDC 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:

Table 2: (a) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Detail Forecast Results 2023 Planned Results 2024
Net cost of operations before government funding and transfers 88,275,852 92,076,981
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (63,432) (61,132)
Services provided without charge by other government departments (79,294) (79,328)
Decrease in vacation pay 26,932 12,312
Decrease in employee future benefits 6,989 2,309
Bad debt expense (excluding EI) (194,255) (173,877)
Refund of program expenditures (175,438) 88,689
Decrease (increase) in accounts payable and accrued liabilities not charged to authorities 36,285 169,982
Revenue not available for respending 192,474 183,818
Revenue for services provided to Other Government Departments 252,129 327,385
Allowance for the Repayment Assistance Plan for Canada Student Loans (147,615) (148,564)
Net EIO Account transactions 902,696 1,938,711
Other adjustments 1,135 3,401
Total items affecting net cost of operations but not affecting authorities 758,606 2,263,706
Adjustments for items not affecting net cost of operations but affecting authorities:
Canada Student and Apprentice Loans forgiveness (48,053) (62,497)
Acquisition of tangible capital assets (128,709) (139,105)
Total items not affecting net cost of operations but affecting authorities (176,762) (201,602)
Requested authorities forecasted to be used 88,857,696 94,139,085
Table 3: (b) Authorities requested (in thousands of dollars):
Detail Forecast Results 2023 Planned Results 2024
Authorities requested:
Vote 1 – Operating expenditures 1,493,404 1,273,327
Vote 5 – Grants and contributions 10,249,881 9,879,059
Debt write-offs 227,472 0
Statutory amounts 76,886,939 82,986,699
Requested authorities forecasted to be used 88,857,696 94,139,085

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