2018–19 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)

  Forecast results
Planned results
Disclosure and Reprisal Management Program 2,861,132 4,734,100
Internal services 1,753,750 1,414.081
Total expenses 4,614,882 6,148,181
Net cost of operations before government funding 4,614,882 6,148,181

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 2017-18 is based on actual results as at January 31, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-19.

The main assumptions underlying the forecasts are as follows:

  • The department’s activities will remain substantially the same as in the previous year.
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.

These assumptions are made as at January 31, 2018.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, 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 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:

  • 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;
  • economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
  • interest rates in effect at the time of issue, which will affect  the net present value of non‑interest‑bearing loans; and
  • 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 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.

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 2017-18, 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:

b) Expenses

The department records expenses on an accrual basis.

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

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:

a) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
  Forecast results
Planned results
Net cost of operations before government funding and transfers 4,614,882 6,148,181
Adjustment for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capitals assets (33,907) (30,236)
Services provided without charge by other government departments (704,651) (712,502)
Decrease (increase) in vacation pay and compensatory leave 16,549 1,673
Decrease (increase) in employee future benefits - (2,370)
Total items affecting net cost of operations but not affecting authorities (722,009) (743,435)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 50,000 100,000
Increase in prepaid expenses (200) -
Total items not affecting net cost of operations but affecting authorities 49,800 100,000
Requested authorities 3,942,673 5,504,746
b) Authorities requested (in thousands of dollars)
  Forecast results for
Planned results for
Authorities requested
Vote 1 – operating expenditures 3,459,134 4,358,043
Statutory amounts 483,539 494,859
Total authorities requested 3,942,673 5,504,746