2020-21 Future-Oriented Statement of Operations

Future-oriented Statement of Operations (Unaudited)

For the year ending March 31
(in dollars)
Expenses
Revenues
	Forecast Results 2019-20	Planned Results 2020-21
Engagement and Advocacy	7,340,850	7,687,806
Complaints	13,053,579	13,274,039
Proactive Compliance	3,329,647	5,797,608
Internal Services	13,341,032	12,708,001
Total Expenses	37,065,108	39,467,454
Internal Support Services	1,800,000	1,800,000
Total revenues	1,800,000	1,800,000
Net cost of operations before government funding and transfers	35,265,108	37,667,454

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 2019−20 is based on actual results as at December 12, 2019 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2020−21 fiscal year.

The main assumptions underlying the forecasts are as follows:

The Commission's activities will remain substantially the same as the previous year.
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 December 12, 2019.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2019−20 and for 2020−21, 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:

The timing and the amount of acquisitions and disposals of property and equipment which may affect gains, losses and amortization expense.
Implementation of new collective agreements.
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 Results 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 2019-20, 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:

Expenses
Expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts as well as utilization of prepaid expenses are also included in other expenses.
Revenues
Revenues from Internal Support Services are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place. Revenues that are non-respendable are not available to discharge the Commission's liabilities. Although the Chief Commissioner is expected to maintain accounting control, she has no authority over the disposition of non-respendable revenues. As a result, non respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the Commission's gross revenues.

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)
Total adjustments for items affecting net cost of operations but not affecting authorities	(4,839,700)	(5,163,182)
Total adjustments for items not affecting net cost of operations but affecting authorities	-	1,100,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Adjustments for items not affecting net cost of operations but affecting authorities:
	Forecast Results 2019-20	Planned Results 2020-21
Net cost of operations government funding and transfers	35,265,108	37,667,454
Amortization of tangible capital assets	(479,532)	(564,644)
Decrease in employee future benefits	45,000	(15,200)
Increase in vacation pay and compensatory leave	(76,104)	(118,288)
Services provided without charge by other government departments	(4,329,064)	(4,465,050)
Acquisition of tangible capital assets	-	1,100,000
Requested authorities	30,425,408	33,604,272

b) Authorities requested (in dollars)
Authorities requested
	Forecast Results 2019-20	Planned Results 2020-21
Vote 1 - Operating expenditures	28,152,910	30,144,902
Statutory amounts - Contribution to employee benefit plans	3,379,498	3,459,370
Forecast authorities available	31,532,408	33,604,272
Lapse	(1,107,000)	-
Requested authorities	30,425,408	33,604,272

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.