Report on Plans and Priorities - Financial Statements 2014-2015

Future-Oriented Statement of Operations (Unaudited)

For the year ending March 31
(in dollars)

Estimated
Results
2013-14

Planned
Results
2014-15
Expenses    
Human Rights Knowledge Development and Dissemination Program 4,646,049 3,604,314
Discrimination Prevention Program 4,039,563 3,785,112
Human Rights Dispute Resolution Program 11,229,212 11,618,493
Internal Services 8,781,408 8,886,596
Total Expenses 28,696,232 27,894,515
Revenues
Internal Supoort Services 1,223,000 1,200,000
Total Revenues 1,223,000 1,200,000
Net Cost of Operations 27,473,232 26,694,515


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 Report on Plans and Priorities.

The information in the estimated results for fiscal year 2013−14 is based on actual results as at January 16, 2014 and

on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2014−15 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 historial pattern is expected to continue.

These assumptions are adopted as at January 17, 2014.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2013−14 and for 2014−15, 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 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 ssumptions are continually evaluated and are based on historical 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 financial statement of operations include:

a)The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.

b)Implementation of new collective agreements.

c) 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 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 that came into effect for the 2013−14 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 the 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 respective 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 year.

4. Parliamentary authorities

The Commission is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Commission do not parallel financial reporting according to public sector accounting standards since 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 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
2013-14
Planned
Results
2014-15
 Net cost of operations  27,473,233  26,694,515
Adjustments for items affecting net cost of operations but not affecting authorities:  
Amortization of tangible capital assets (278,769) (312,889)
Decrease (increase) in employee future benefits 460,700 (15,899)
Decrease (increase) in vacation pay and compensatory leave (103,992) 67,672
Services provided without charge by other government departments (3,964,859) (3,791,914)
  (3,886,920) (4,053,030)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 121,695 408,241
  121,695 408,241
Requested authorities 23,708,008 23,049,726
b) Authorities requested (in dollars) Estimated
Results
2013-14
Planned
Results
2014-15
Authorities requested    
Vote 10 − Program expenditures 21,504,239 20,589,234 
Statutory amounts − Contribution to employee benefits plan 3,153,769 2,882,472
Forecast authorities available 24,658,008 23,471,706
Forecast current year lapse (950,000) (421,980)
Requested authorities 23,708,008 23,049,726

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.

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