Future Oriented Statement of Operations – March 31st, 2019

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

(in thousands of dollars) Forecast
results
2017-18
Planned
results
2018-19
Expenses
Conditional release decisions $ 44,725 $ 45,023
Conditional release openness and accountability 4,949 4,867
Record suspension decisions and clemency
recommendations

6,591

6,455
Internal services 9,358 9,212
Total expenses 65,623 65,557
Revenues
Regulatory fees – Record suspension 7,193 7,193
Revenues earned on behalf of Government (1,835) (1,835)
Total revenues 5,358 5,358
Net cost of operations before government funding and transfers $ 60,265 $ 60,199

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

The future-oriented statement of operations has been prepared on the basis of government priorities and departmental plans as described in the Departmental Plan.

1.     Methodology and Significant Assumptions 

The information in the forecast results for fiscal year 2017-18 is based on actual results as at December 31, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2018-19 fiscal year. 

The main assumptions underlying the forecasts are as follows:

  • The department’s 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 historical experience. The general historical pattern is expected to continue.

These assumptions are made as at December 31, 2017.

2.    Variation and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the PBC has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical financial statements of operations include the following:

  • The timing and amounts of acquisitions and disposals of equipment may affect gains/losses and amortization expense.
  • Implementation of new collective agreements.
  • Economic conditions may affect the amount of revenue earned.
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

 
Once the Departmental Plan is presented, the PBC will not be updating the forecasts for any changes to appropriations or forecast financial information 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 Government’s accounting policies that came in effect for the 2017-18 fiscal year, 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:

  1. Expenses

    The department records expenses on an accrual basis. 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 the liability for severance benefits, are also included in other expenses.
  2. Revenues

    Revenues from regulatory fees for record suspensions are recognized in the accounts once the application has been accepted.

    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 regarding 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 in reduction of the entity's gross revenues.

4. Parliamentary Authorities

The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department 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 department 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 thousands of dollars)
Forecast results
2017-18
Planned results
2018-19
Net cost of operations before government funding and transfers
$ 60,265 $ 60,199
Adjustment for items affecting net cost of operations but not
affecting authorities:
Services provided without charge by other government departments (11,121) (11,121)
Amortization of tangible capital assets (791) (488)
Decrease in employee future benefits 170 170
Increase in vacation pay and compensatory leave (167) -
Total items affecting net cost of operations but not
affecting authorities
(11,909) (11,439)
Adjustment for items not affecting net cost of operations but
affecting authorities:
Acquisitions of tangible capital assets 400 500
400 500
Requested authorities $ 48,756 $ 49,260

 

b) Authorities requested
(in thousands of dollars)
Forecast results
2017-18
Planned results
2018-19
Authorities requested
Vote 1 - Program expenditures $ 44,294 $ 43,581
Statutory amounts 5,586 5,679
Less:
Lapsed authorities: Program expenditures (1,124) -
Requested authorities $ 48,756 $ 49,260
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