2018-2019 Future-Oriented Statement of Operations

Future-Oriented Statement of Operations (unaudited)
For the Year Ending March 31
(in dollars)

Forecast results 2017–18 Planned results 2018–19
Expenses
Environmental Assessment Delivery Program 31,614,270 30,048,872
Environmental Assessment Policy Program 5,889,879 4,719,814
Internal Services 7,109,873 5,697,446
Expenses incurred on behalf of government 0 0
Total expenses 44,614,022 40,466,132
Revenues
Environmental Assessment and training services 1,842,729 2,066,246
Miscellaneous revenues 129,923 144,561
Revenues earned on behalf of government (344,718) (210,807)
Total revenues 1,626,934 2,000,000
Net cost of operations before government funding and transfers 42,987,088 38,466,132

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Canadian Environmental Assessment Agency Notes to the Future-Oriented Statement of Operations (unaudited)
For the Year Ending March 31
(in dollars)

1. Methodology and Significant Assumptions

The 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 fiscal year 2017-2018 is based on actual results as at November 30th, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-2019.

The main assumptions are as follows:

  • The Canadian Environmental Assessment Agency (The Agency) activities will remain substantially the same as in the previous year;
  • 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;
  • Estimated year end information for 2017-2018 is used as the opening position for the 2018-2019 forecasts.

These assumptions are made as at January 11, 2018.

In 2018-19, the Agency will be subject to a number of additional financial pressures including: costs related to the review of environmental assessment processes; costs associated with the delivery of non-cost recoverable environmental assessment review panels; and increasing legal and litigation costs. Due to the uncertainties associated with these items, these costs have not been reflected in the planned spending. The Agency will develop strategies to manage these pressures as details and timing of these activities become clearer.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2017-2018 and for 2018-2019, 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 Agency 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 equipment which may affect gains, losses and amortization expense;
  • the implementation of new collective agreements;
  • economic conditions, which may affect both the amount of revenue earned and the collectability of receivables;
  • other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, the Agency 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 2017-18 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 Agency records expenses on an accrual basis.

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

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 in the accounts based on the services provided in the fiscal year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Funds that have been received are recorded as deferred revenue, provided the Department has an obligation to other parties for the provision of goods, services or the use of assets in the future.

Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

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 considered to be 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 Agency is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Agency 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 Agency 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 2017–18 Planned results 2018–19
Net cost of operations before government funding and transfers 42,987,088 38,466,132
Adjustment for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capitals assets (20,684) 0
Services provided without charge by other government departments (5,260,955) (5,147,129)
Decrease in vacation pay and compensatory leave 316,039 29,802
Decrease in employee future benefits 917,214 207,327
Bad debt expense 0 0
Refunds of previous years' expenditures 139,858 73,643
Forecast current year lapse 0 0
Total items affecting net cost of operations but not affecting authorities (3,908,528) (4,836,357)
Adjustment for items not affecting net cost of operations but affecting authorities:
Total items not affecting net cost of operations but affecting authorities 0 0
Requested authorities 39,078,560 33,629,775

b) Authorities requested (in dollars)

Forecast results for 2017–18 Planned results for 2018–19
Authorities requested
Vote 1: operating expenditures 35,592,524 30,232,320
Statutory amounts 3,486,036 3,397,455
Total authorities requested 39,078,560 33,629,775
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