Future-Oriented Statement of Operations For the year ending March 31, 2024

Shared Services Canada - Future-Oriented Statement of Operations (unaudited) for the year ending March 31 (in thousands of dollars)
Item Forecast results
2022-23
Planned results
2023-24
Expenses
Common Government of Canada IT Operations 3,518,160 3,272,065
Internal Services 291,757 282,013
Total expenses 3,809,917 3,554,078
Revenues
Sale of goods and services 872,953 864,738
Miscellaneous revenues 365 364
Revenues earned on behalf of Government (11,766) (11,762)
Total revenues 861,552 853,340
Net cost of operations before government funding and transfers 2,948,365 2,700,738

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

Notes to the Future-Oriented Statement of Operations (unaudited) For the year ending March 31

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 2022-23 has been calculated on the basis of available departmental authorities. Considering this, actual expenditures and revenues are expected to be higher, aligned with actual revenues collected. Forecasts have been made for the planned results for fiscal year 2023-24.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at January 19, 2023.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2022-23 and for 2023-24, 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, Shared Services Canada (SSC) 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, SSC 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 2022-23, 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

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 provision for bad debts, as well as utilization of prepaid expenses, and others are also included in expenses.

b) Revenues

Revenues are recognized in the period the event giving rise to the revenues occurs.

Revenues that are non-respendable are not available to discharge SSC’s liabilities. While the President is expected to maintain accounting control, he 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 SSC’s gross revenues.

4. Parliamentary authorities

SSC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to SSC 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, SSC 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)
Item Forecast results
2022-23
Planned results
2023-24
Net cost of operations before government funding and transfers 2,948,365 2,700,738
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (379,234) (337,975)
Net loss on disposal of tangible capital assets including adjustments (24) -
Services provided without charge by other government departments (110,651) (112,298)
Decrease (increase) in vacation pay and compensatory leave 37 (923)
Decrease (increase) in employee future benefits 13 (314)
Refunds and adjustments to previous years’ expenses 6,121 6,518
Other 338 340
Total items affecting net cost of operations but not affecting authorities (483,400) (444,652)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 348,304 257,710
Payments on lease obligations for tangible capital assets 71,659 68,064
Payments on obligation under public-private partnership 3,766 3,907
Increase (decrease) in prepaid expenses (8,083) 6,202
Total items not affecting net cost of operations but affecting authorities 415,646 335,883
Requested authorities forecasted to be used 2,880,611 2,591,969
b) Authorities provided/requested (in thousands of dollars)
Item Forecast results
2022-23
Planned results
2023-24
Authorities provided/requested:
Vote 1 – Operating expenditures 2,409,173 2,199,109
Vote 5 – Capital expenditures 353,729 269,680
Statutory amounts 117,709 123,180
Requested authorities forecasted to be used 2,880,611 2,591,969

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