Future Oriented Statement of Operations - March 31, 2027

Future-Oriented Statement of Operations (unaudited)

For the Year Ending March 31

(in thousands of 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 based on government priorities and departmental plans as described in the Departmental Plan.

   The information in the forecast results for fiscal year 2025-26 is based on actual results as at September 30, 2025 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2026-27 fiscal year.

   The main assumptions underlying these forecasts are as follows:

   • The Parole Board of Canada’s (PBC) planned spending will decrease in 2026-27 as a result of the Refocusing Government Spending stemming from Budget 2023 and the Comprehensive Expenditure Review (CER) stemming from Budget 2025. In addition, 2025-26 is the last fiscal year of funding for the implementation of the renewed Pardon and Record Suspension System (PARSS) of PBC.
   • The operating budget carry forward will be available for spending in fiscal year 2026-27.

   • The general historical pattern is expected to continue. However, the PBC will continue to review its work and its spending to ensure that its resources are being used effectively and efficiently, while minimizing the impacts on operations and fully supporting the delivery of its public safety mandate.

     These assumptions are made as of January 7, 2026.

2. Variation and Changes to the Forecast Financial Information

   Although every attempt has been made to forecast the final results for the remainder of 2025-26 and for 2026-27, the actual results for both years are likely to differ 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 about the future. These estimates and assumptions may differ from the subsequent actual results. They are based on experience and other factors, including expectations of future events considered 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 the amount of acquisitions and disposals of equipment which may affect gains, losses and amortization expense;
   • the implementation of new collective agreements;
   • 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 the Government of Canada accounting policies in effect for fiscal year 2025-26 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 expenses.

   2. Revenues

      Revenues from Procurement Management Services provided to other small departments and agencies are recognized in the period the event giving rise to the revenues occurred.

      Revenues from regulatory fees for record suspension/pardon are recognized once the application has been accepted.  These revenues are non-respendable and are not available to discharge the department's liabilities. Although the Chairperson is expected to maintain accounting control, 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 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 depending 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 2025-26	Planned results 2026-27
      Net cost of operations before government funding and transfers	80,251	85,174
      Adjustment for items affecting net cost of operations but not affecting authorities:
      Services provided without charge by other government departments	(9,317)	(9,457)
      Amortization of tangible capital assets	(228)	(1,105)
      Decrease (Increase) in employee future benefits	(133)	-
      Total items affecting net cost of operations but not affecting authorities	(9,678)	(10,562)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Acquisition of tangible capital assets	917	-
      Total items not affecting net cost of operations but affecting authorities	917	-
      Requested authorities forecasted to be used	71,490	74,612

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

      	Forecast results for 2025-26	Planned results for 2026-27
      Authorities provided / requested
      Vote 1 - Operating expenditures	67,080	66,119
      Statutory amounts	8,111	8,493
      Total authorities provided / requested	75,191	74,612
      Less: Estimated unused authorities and other adjustments	3,701	-
      Requested authorities forecasted to be used	71,490	74,612