2017–18 Future-Oriented Statement of Operations
Office of the Public Sector Integrity Commissioner of Canada
Future-Oriented Statement of Operations (unaudited) for the year ending March 31
(in thousands of dollars)
|Disclosure and Reprisal Management Program
|Net cost of operations before government funding
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 on the basis of government priorities and departmental plans as described in the Departmental Plan.
The information in the forecast results for fiscal year 2016-17 is based on actual results as at December 31, 2016 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2017-18.
The main assumptions underlying the forecasts are as follows:
These assumptions are made as at January 31, 2017.
- The department’s activities will remain substantially the same as in the previous year.
- Expenses, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
2. Variations and changes to the forecast financial information
Although every attempt has been made to forecast final results for the remainder of 2016-17 and for 2017-18, 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 Office of the Public Sector Integrity Commissioner (the Office) 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 past 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 Office 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.
- the timing and the amount of acquisitions and disposals of property, plant and 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.
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 2016-17, 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:
The department records expenses on an accrual basis.
Expenses for the department’s operations are recorded when goods are received or services are rendered, including services provided without charge for accommodation, employer contributions to health and dental insurance plans, legal services and workers’ compensation, which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave, as well as severance benefits, are accrued, and expenses are recorded as the benefits are earned by employees under their terms of employment.
Transfer payments are recorded as expenses when the recipients have met all the eligibility criteria and the fulfilled the terms of a contractual transfer agreement.
Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.
The Office 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 Office 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:
Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Net cost of operations before government funding and transfers 5,491,860 6,178,761 Adjustment for items affecting net cost of operations but not affecting authorities: Amortization of tangible capitals assets (65,004) (60,933) Services provided without charge by other government departments (639,581) (675,151) Decrease (increase) in vacation pay and compensatory leave (40,426) 1,629 Decrease (increase) in employee future benefits - (2,925) Total items affecting net cost of operations but not affecting authorities (745,011) (737,380) Adjustment for items not affecting net cost of operations but affecting authorities: Acquisition of tangible capital assets 75,011 - Increase in prepaid expenses 350 - Total items not affecting net cost of operations but affecting authorities 75,361 - Requested authorities 4,822,210 5,441,381
Authorities requested (in thousands of dollars)
Forecast results for
Planned results for
Authorities requested Vote 1 – operating expenditures 5,202,586 4,957,842 Statutory amounts 526,053 483,539 Authorities available 5,728,639 5,441,381 Lapse 906,429 - Total authorities requested 4,822,210 5,441,381