Departmental Plan - Financial Statements 2017-18

Future-Oriented Statement of Operations (Unaudited)

For the year ending March 31
(in dollars)

Estimated
Results
2016-17

Planned
Results
2017-18
Expenses    
Engagement and Advocacy 5,363,135 5,504,753
Human Rights Complaints 10,657,040 10,917,276
Employment Equity Audits 2,020,797 1,423,165
Internal Services 9,819,538 9,078,091
Total Expenses 27,860,510 26,923,285
Revenues    
Internal Support Services 1,366,676 1,200,000
Total Revenues 1,366,676 1,200,000
Net cost of operations before government funding and transfers 26,493,834 25,723,285

The accompanying notes form an integral part of this 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 the government priorities and the plans of the Commission as described in the Departmental Plan.

The information in the forecast results for fiscal year 2016−17 is based on actual results as at January 17, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2017−18 fiscal year.

The main assumptions underlying the forecasts are as follows:

a) The Commission’s activities will remain substantially the same as the previous year.

b) Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

These assumptions are made as at January 17, 2017.

2. Variations and Changes to the Forecast Financial Information

Althought 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 Commission has made estimates and assumptions concerning 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:

a) The timing and the amount of acquisitions and disposals of property, plant and equipment which may affect gains, losses and amortization expense.

b) Implementation of new collective agreements.

c) Other changes to the operating budget, such as new initiative or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, the Commission 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 the Government'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:

a) Expenses

The Commission records expenses on an accrual basis.

Expenses for the Commission's operations are recorded when goods are received or services are rendered including services provided without charges for accomodation, 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 terms of employment.

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.

b) Revenues

Revenues from Internal Support Services are recognized in the accounts based on the services provided in the fiscal year.

4. Parliamentary authorities

The Commission is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Commission 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 Commission 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)
Estimated
Results
2016-17
Planned
Results
2017-18
 Net cost of operations 26,493,834 25,723,285
Adjustments for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capital assets (221,941) (269,448)
Increase in employee future benefits (3,699) (11,100)
Decrease in vacation pay and compensatory leave 46,019 31,120
Services provided without charge by other government departments (3,993,400) (4,050,737)
  (4,173,021) (4,300,165)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 152,468 400,000
  152,468 400,000
Requested authorities 22,473,281 21,823,120
b) Authorities requested
(in dollars)
Estimated
Results
2016-17
Planned
Results
2017-18
Authorities requested    
Vote 10 − Program expenditures 20,526,241 19,222,932
Statutory amounts − Contribution to employee benefits plan 2,897,040 2,600,188
Forecast authorities available 23,423,281 21,823,120
Lapse (950,000) -
Requested authorities 22,473,281 21,823,120

Forecast authorities reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.