Future Oriented Statement of Operations - March 31, 2025

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 based on government 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 the 2024-25 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;
   • The department will maximize its Operating Budget Carry Forward up to five percent of the 2023-24 Main Estimates and will receive the approval to spend the funds in 2024-25.
   • The department will receive the authority to reprofile unspent capital investment funds for the Pardon and Record Suspension System (PARSS).
   • 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, however activities will be undertaken to find savings following the Government of Canada's Budget 2023 announcing its plan to build a stronger, more sustainable and more secure economy for Canadians.  The PBC will review and examine its work and its spending and ensure that its resources are being effectively and efficiently with minimum impact to our employees and operations, and in a way that continues to fully support the delivery of our important public safety mandate.

   These assumptions are made as at November 30, 2023.

2. Variation and Changes to the 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 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:

   • the timing and amounts of acquisitions and disposals of equipment may affect gains, losses and amortization expense;
   • the implementation of new collective agreements;
   • economic conditions, which may affect the amount of revenue earned;
   • 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 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 2023-24 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 suspension/pardon are recognized once the application has been accepted.

      Revenues from Procurement Management Services provided to other small departments and agencies 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:

   1. Reconciliation of net cost of operations to requested authorities
      (in thousands of dollars)

      	Forecast results 2023-24	Planned results 2024-25
      Net cost of operations before government funding and transfers	86,121	88,218
      Adjustment for items affecting net cost of operations but not affecting authorities:
      Services provided without charge by other government departments	(9,444)	(9,586)
      Amortization of tangible capital assets	(402)	(443)
      Decrease (Increase) in employee future benefits	(202)	295
      Total items affecting net cost of operations but not affecting authorities	(10,048)	(9,734)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Acquisition of tangible capital assets	78	100
      Total items not affecting net cost of operations but affecting authorities	78	100
      Requested authorities forecasted to be used	76,151	78,584

   2. Authorities provided / requested (in thousands of dollars)

      	Forecast results 2023-24	Planned results 2024-25
      Authorities provided / requested
      Vote 1 - operating expenditures	72,471	70,485
      Statutory amounts	7,409	8,099
      Total authorities provided / requested	79,880	78,584
      Less: Estimated unused authorities and other adjustments	3,729	-
      Requested authorities forecasted to be used	76,151	78,584