Future Oriented Statement of Operations - March 31, 2022

From: Parole Board of Canada

Future-Oriented Statement of Operations (unaudited)

For the Year Ending March 31

(in thousands of dollars)

Forecast
results
2020-21
Planned
results
2021-22
Expenses
   Conditional release decisions 43,168 39,517
   Conditional release openness and accountability 4,435 4,387
   Record suspension decisions and clemency recommendations 6,732 6,523
   Internal services 12,531 13,498
Total expenses 66,866 63,925
Revenues
   Regulatory fees – Record suspension 3,548 4,943
   Revenues earned on behalf of Government (886) (1,208)
Total revenues 2,662 3,735
Net cost of operations before government funding and transfers 64,204 60,190

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

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 2020-21 is based on actual results as at November 30, 2020 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2021-22 fiscal year. 

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at November 30, 2020.

2.   Variation and Changes to the Forecast Financial Information  

Although every attempt has been made to forecast final results for the remainder of 2020-21 and for 2021-22, 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 Parole Board of Canada (PBC) has made estimates and assumptions concerning 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 financial statement of operations include:

After the Departmental Plan is tabled in Parliament, the PBC 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 Government’s accounting policies in effect for fiscal year 2020-21, 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:

  1. Expenses

    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 once the application has been accepted.

    Other revenues are recognized in the period the event giving rise of the revenues occurred. Revenues that are non-respendable are not available to discharge the department's liabilities. Although the Chairperson is expected to maintain accounting control, she 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 in reduction of the department'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
2020-21
Planned results
2021-22
Net cost of operations before government funding and transfers 64,204 60,190
Adjustment for items affecting net cost of operations but not affecting authorities:
   Services provided without charge by other government departments (4,094) (4,094)
   Amortization of tangible capital assets (694) (725)
   Increase in vacation pay and compensatory leave (95) -
   Increase in employee future benefits (40) -
  Total items affecting net cost of operations but not affecting authorities (4,923) (4,819)
Adjustments for items not affecting net cost of operations but affecting authorities:
   Acquisition of tangible capital assets 199 -
   Total items not affecting net cost of operations but affecting authorities 199 -
Requested authorities forecasted to be used 59,480 55,371

b) Authorities provided / requested (in thousands of dollars)

Forecast results
2020-21
Planned results
2021-22
Authorities provided / requested
Vote 1 - operating expenditures 52,837 49,324
Statutory amounts 6,643 6,047
Total authorities provided / requested 59,480 55,371
Less: Estimated unused authorities and other adjustments - -
Requested authorities forecasted to be used 59,480 55,371
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