2024-2025 Future Oriented Statement of Operations
For the Year Ending March 31, 2025

Impact Assessment Agency of Canada
Future-Oriented Statement of Operations (unaudited)
for the year ending March 31
(in dollars)

 

Forecast Results
2023-24

Planned Results
2024-25

Expenses

Internal services

21,206,692

23,581,029

Assessment administration, conduct and monitoring

65,850,959

73,690,716

Indigenous relations and engagement

17,716,690

20,633,400

Total expenses

104,774,341

117,905,145

Revenues

Environmental assessment and training services

663,749

625,000

Net cost of operations before government funding and transfers

104,110,592

117,280,145

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

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

1. Methodology and significant assumptions

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

The information in the forecast results for fiscal year 2023-24 is based on actual results as at November 30, 2023 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2024-25.

The main assumptions underlying the forecasts are as follows:

These assumptions are valid as of January 3, 2024.

2. Variations and changes to forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2023-24 and for 2024-25, actual results achieved for both years are likely to differ from the forecast information presented, and this variance 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 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:

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 2023-24, 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) 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 others are also included in other expenses.

b) Revenues

Revenues from regulatory fees are recognized 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.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

Other revenues are recognized in the period the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the Agency’s liabilities. Although the President 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 Agency’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
2023-24

Planned Results
2023-24

Net cost of operations before government funding and transfers

104,110,592

117,280,145

Adjustments for items affecting net cost of operations but not affecting authorities:

Services provided without charge by other government departments

(9,207,280)

(10,743,588)

Amortization of tangible capital assets

(322,381)

(88,260)

Decrease in vacation pay and compensatory leave

405,629

342,018

Decrease for employee future benefits

(239,537)

(136,938)

Refund of prior years’ expenditures

29,077

(9,003)

Total items affecting net cost of operations but not affecting authorities

(9,334,492)

(10,635,771)

Requested authorities forecasted to be used

94,776,100

106,644,374

b) Authorities requested
(in dollars)
 

Forecast Results
2023-24

Planned Results
2024-25

Vote 1: operating expenditures

72,705,761

77,358,614

Vote 10: grants & contributions

21,453,903

21,253,903

Statutory amounts

7,572,008

8,031,857

Total authorities provided/requested

101,731,672

106,644,374

Less: Estimated unused authorities and other adjustments

6,955,572

0

Requested authorities forecasted to be used

94,776,100

106,644,374

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