Report on Plans and Priorities - Financial Statements 2015-16

Future-Oriented Statement of Operations (Unaudited)

For the year ending March 31
(in dollars)


Human Rights Knowledge Development and Dissemination Program 3,753,136 -
Discrimination Prevention Program 3,962,245 -
Human Rights Dispute Resolution Program 10,936,027 -
Human Rights Program - 17,086,000
Internal Services 8,987,170 9,858,543
Total Expenses 27,638,578 26,944,543
Internal Support Services 1,119,400 1,200,000
Total Revenues 1,119,400 1,200,000
Net Cost of Operations 26,519,178 25,744,543

The accompanying notes form an integral part of this future-oriented statement of operations.

*The Commission introduced significant changes to its Program Alignment Architecture for 2015–16. Estimated results 2014-15 have been provided according to the current PAA and the planned results 2015-16 have been provided according to the new PAA.


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 2014−15 is based on actual results as at January 14, 2015 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2015−16 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 adopted as at January 14, 2015.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2014−15 and for 2015−16, 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 assumptions 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 2014−15 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 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.

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)
 Net cost of operations 26,519,178 25,744,543
Adjustments for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capital assets (285,420) (292,671)
Increase in employee future benefits (72,896) (14,002)
Decrease (increase) in vacation pay and compensatory leave (62,034) 150,072
Services provided without charge by other government departments (3,887,700) (3,725,524)
  (4,308,050) (3,882,125)
Adjustments for items not affecting net cost of operations but affecting authorities:
Transition payment 600,855 -
Acquisition of tangible capital assets 546,621 300,000
  1,147,476 300,000
Requested authorities 23,358,604 22,162,418
b) Authorities requested
(in dollars)
Authorities requested    
Vote 10 − Program expenditures 21,380,424 20,135,716
Statutory amounts − Contribution to employee benefits plan 2,794,012 2,512,177
Forecast authorities available 24,174,436 22,647,893
Forecast current year lapse (815,832) (485,475)
Requested authorities 23,358,604 22,162,418

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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