2017-2018 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
2016–17
Planned results
2017–18
Expenses
Disclosure and Reprisal Management Program 3,374,562 4,091,075
Internal services 2,117,298 2,087,686
Total expenses 5,491,860 6,178,761
Net cost of operations before government funding 5,491,860 6,178,761

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:

    • 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.

    These assumptions are made as at January 31, 2017.

  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:

    • 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.

    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 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:

    1. Expenses

      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.

  4. Parliamentary authorities

    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:

    1. Reconciliation of net cost of operations to requested authorities (in thousands of dollars)

        Forecast results
      2016–17
      Planned results
      2017–18
      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
    2. Authorities requested (in thousands of dollars)

        Forecast results for
      2016–17
      Planned results for
      2017–18
      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
2017-03-09