2025-2026 Future-Oriented Statement of Operations
For the Year Ending March 31, 2026

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

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

Notes to the 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 2024-25 is based on actual results as at September 30^th, 2024 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2025-26.

The main assumptions underlying the forecasts are as follows:

• Unused funds in 2024-25 are being forecast as a result the Impact Assessment Agency of Canada (IAAC) being financially prudent and applying spending restrain measures to staffing and operations and management budget. By adopting these expenditures control measures, the IAAC contributes to the government’s broader fiscal objectives, potentially resulting in a budgetary surplus that can be reallocated to other priorities.
• Total expenses are expected to increase in 2025-26 by $13,207,842, or 11.3%, primarily due to the following reasons:
  • IAAC continues to expand its FTE count in alignment with the funding renewal ceiling established in 2022, ensuring it has the necessary capacity to meet its growing regulatory responsibilities and deliver timely, high-quality impact assessments.
  • Increasing number of ongoing projects undergoing assessments, reflecting heightened demand for regulatory oversight
  • Higher volume of major projects being referred to review panels, leading to an increase in cost-recoverable revenues from project proponents
• Revenues are expected to rise by $3,085,194 in 2025-26.

These assumptions are valid as of February 10, 2025.

2. Variations and changes to forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2024-25 and for 2025-26, 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, IAAC 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:

• labor market for skilled and specialized personnel;
• economic conditions, which may affect both the amount of revenue earned and the collectability of receivables; and
• 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, IAAC 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 2024-25, 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

IAAC 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, salary overpayments and advances as well as utilization of prepaid expenses, and others are also included in other expenses.

b) Revenues

Environmental assessment and training services are recognized in the period the event gives rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge IAAC’s liabilities. While IAAC’s President is expected to maintain accounting control, he has no authority regarding 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 IAAC’s gross revenues.

4. Parliamentary authorities

IAAC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to IAAC 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, IAAC has different net costs of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables: