Future Oriented Statement of Operations 2016-17 (RPP)

Office of the Public Sector Integrity Commissioner of Canada

Future-Oriented Statement of Operations (Unaudited)

For the year ending March 31
(in dollars)
Forecast
Results
2015-16
Planned
Results
2016-17
Operating Expenses
Disclosure and Reprisal Management 3,088,464 4,063,115
Internal Services 2,063,071 2,173,124
Net cost of operations 5,151,535 6,236,239

The accompanying notes form an integral part of these future-oriented financial statements.

Notes to the Future-Oriented Financial Statement of Operations (Unaudited)

1. Methodology and Significant Assumptions

The future-oriented financial statement of operations has been prepared on the basis of the government priorities and the plans of the Office of the Public Sector Integrity Commissioner (the Office) as described in the Report on Plans and Priorities.

The information in the forecast results for fiscal year 2015-16 is based on acutal results as at December 31, 2015 and on forecasts for the remainder of the year. Forecasts have been made for the planned results for the 2016-17 fiscal year.

The main assumptions underlying the forecasts are as follows:

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

These assumptions are adopted as at January 7, 2016.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2015-16 and for 2016-17, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this future-oriented financial statement of operation the Office has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include:

  • The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  • Implementation of new collective agreements.
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, 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 Performance Report.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using Government's accounting policies that came into effect for the 2015-16 fiscal year, which are 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 recorded on an accrual basis. Expenses for the Office's operations are recorded when goods are received or services are rendered, including services provided without charges for accommodation, employee contributions to health and dental insurance plans and worker’s 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 respective terms of employment.

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria and 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 Office do not parallel financial reporting according to generally accepted accounting principles because authorities are primarily based 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:

(a) Reconciliation of Net cost of operations to requested authorities
(in dollars)
Forecast
Results
2015-16
Planned
Results
2016-17
Net cost of operations before government funding and transfers 5,151,535 6,236,239
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (71,002) (57,594)
Decrease (increase) in employee future benefits 20,000 (2,880)
Decrease (increase) in vacation pay and compensatory leave 28,749 (12,410)
Services provided without charge by other government departments (652,392) (701,183)
Total items affecting net cost of operations but not affecting authorities (674,645) (774,067)
Adjustments for items not affecting net cost of operations but affecting authorities:
Increase in prepaids 1,610 301
Acquisitions of tangible capital assets 19,500 -
Total items not affecting net cost of operations but affecting authorities 21,110 301
Requested authorities 4,498,000 5,462,474

(b) Authorities requested
(in dollars)
Forecast Results
2015-16
Planned Results
2016-17
Authorities requested
Vote 1 - Program expenditures 5,180,606 4,936,421
Statutory amounts 434,281 526,053
Authorities Available 5,614,887 5,462,474
Lapse 1,116,887 0
Requested authorities 4,498,000 5,462,474
2016-03-08