2022-2023 Future-Oriented Statement of Operations (Unaudited): Public Health Agency of Canada

Public Health Agency of Canada Future-Oriented Statement of Operations (unaudited) for the year ending March 31 (in thousands of dollars)
  Forecast
results
2021-22
Planned
results
2022-23
Expenses
Infectious disease prevention and control $ 12,228,644 $ 8,321,078
Health promotion and chronic disease prevention 377,883 410,518
Health security 3,157,561 535,826
Internal services 294,799 227,781
Expenses incurred on behalf of government (60) (66)
Total expenses 16,058,827 9,495,137
Revenues
Sales of goods and services
Rights and privileges 222 224
Services of a non-regulatory nature 14,230 14,234
Interest 4 4
Other 64 49
Revenues earned on behalf of government (411) (409)
Total revenues 14,109 14,102
Net cost of operations before government funding and transfers $ 16,044,718 $ 9,481,035

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 the Public Health Agency of Canada's (the Agency) plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2021-22 is based on actual results as at December 31, 2021 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2022-23.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at December 31, 2021.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, actual results achieved 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 Agency 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:

After the Departmental Plan is tabled in Parliament, the Agency 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 2021-22, 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:

(a) Expenses

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 and advances and inventory obsolescence as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

(b) Revenues

Revenues from regulatory fees are recognized based on the services provided in the fiscal year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

Other revenues are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the Agency's liabilities. Although the deputy head is expected to maintain accounting control, he 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 as a reduction of the Agency's gross revenues.

4. Parliamentary authorities

The Agency is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Agency 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 Agency 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
2021-22
Planned
results
2022-23
Net cost of operations before government funding and transfers $ 16,044,718 $ 9,481,035
Adjustment for items affecting net cost of operations but not affecting
authorities:
Amortization of tangible capital assets (25,980) (31,548)
Loss on disposal of tangible capital assets (17) (18)
Services provided without charge by other government departments (57,979) (54,049)
Decrease in vacation pay and compensatory leave 7,756 2,984
Decrease in employee future benefits 278 284
Refunds/adjustments of previous years' expenditures 7,151 7,627
Bad debt expense (72) (76)
Decrease in inventory (415,224) (93,326)
Amortization of prepaid expenses (1,680,215) (854,722)
Statutory spending authority equivalent to revenues earned 13,413 13,413
Other 59 67
Total items affecting net cost of operations but not affecting authorities (2,150,830) (1,009,364)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 115,786 23,300
Issuance of prepaid expenses 637,890 0
Proceeds from disposal of Crown assets 47 38
Total items not affecting net cost of operations but affecting authorities 753,723 23,338
Requested authorities forecasted to be used $ 14,647,611 $8,495,009
(b) Authorities provided/requested (in thousands of dollars)
  Forecast
results
2021-22
Planned
results
2022-23
Authorities provided/requested
Vote 1: operating expenditures $ 15,684,512 $ 7,853,559
Vote 5: capital expenditures 115,786 23,300
Vote 10: grants and contributions 878,213 538,766
Statutory amounts 82,113 79,384
Total authorities provided/requested 16,760,624 8,495,009
Less: Estimated unused authorities (2,113,013) 0
Requested authorities forecasted to be used $ 14,647,611 $ 8,495,009
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