Future-Oriented Statement of Operations (Unaudited) 2020-21
Future-Oriented Statement of Operations (Unaudited)
Expenses | Forecast Results 2019-20 | Planned Results 2020-21 |
---|---|---|
Protection of Rights Related to Official Languages | 9,460,522 | 8,957,933 |
Advancement of English and French in Canadian Society | 8,468,627 | 8,244,166 |
Internal Services | 7,814,703 | 7,742,918 |
Total expenses | 25,743,852 | 24,945,017 |
Net cost of operations before government funding and transfers | 25,743,852 | 24,945,017 |
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 Office of the Commissioner of Official Languages (OCOL)’ plans 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 1, 2019 and forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2020-21.
The main assumptions underlying the forecasts are as follows:
- OCOL's activities will remain substantially the same as for the previous year; and
- Expenses, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
These assumptions are made as at December 1, 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 2021-21, 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, OCOL 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 amount of acquisitions and disposals of tangible capital assets, which may affect gains, losses and amortization expenses;
- The implementation of new collective agreements; and
- Other changes to the operating budget through additional new initiatives or technical adjustments later in the fiscal year.
After the Departmental Plan is tabled in Parliament, OCOL 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 of Canada'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:
- (a) Expenses
Expenses are recorded on an accrual basis. Expenses for OCOL's operations are recorded when goods are received, or services are rendered including services provided without charges for accommodation, employer 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 are accrued, and expenses are recorded as the benefits are earned by employees under their respective terms of employment.
Expenses also include provisions to reflect changes in the value of assets, including contingent liabilities to the extent the future event is likely to occur and a reasonable estimate can be made.
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
OCOL is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to OCOL 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 are not necessarily the same as those provided through authorities from parliament. 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, OCOL 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:
Reconciliations | Forecast Results 2019-20 | Planned Results 2020-21 |
---|---|---|
Net cost of operations before government funding and transfers | 25,743,852 | 24,945,017 |
Adjustments for items affecting net cost of operations but not affecting authorities: Services provided without charge by other government departments |
(3,186,231) | (3,174,889) |
Adjustments for items affecting net cost of operations but not affecting authorities: Amortization of tangible capital assets | (396,112) | (455,709) |
Adjustments for items affecting net cost of operations but not affecting authorities: Decrease in employee future benefits |
59,212 | 41,043 |
Adjustments for items affecting net cost of operations but not affecting authorities: Decrease (increase) in vacation pay and compensatory leave |
(27,185) | 20,063 |
Total items affecting net cost of operations but not affecting authorities | (3,550,316) | (3,569,492) |
Adjustment for items not affecting net cost of operations but affecting authorities: Acquisition of tangible capital assets |
437,989 | 157,989 |
Adjustment for items not affecting net cost of operations but affecting authorities: Decrease in prepaid expenses |
(96) | (15,559) |
Total items not affecting net cost of operations but affecting authorities | 437,893 | 142,430 |
Requested authorities | 22,631,429 | 21,517,955 |
Expence | Forecast Results 2019-20 | Planned Results 2020-21 |
---|---|---|
Authorities requested: Vote 1 - Program expenditures |
20,325,109 | 19,298,567 |
Authorities requested: Statutory - Contributions to employee benefit plans |
2,306,320 | 2,219,388 |
Total authorities requested | 22,631,429 | 21,517,955 |