Future-Oriented Statement of Operations (Unaudited) 2021-22

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared based on 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 2020-21 is based on actual results as at December 18, 2020 and on forecasts for the remainder of the fiscal year. Forecasts have been made for planned results for fiscal year 2021-22.

1. OCOL's activities will remain substantially the same as in the previous year;
2. Expenses, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue; and
3. Estimated year end information for 2020-21 is used as the opening position for the 2021-22 planned results.

These assumptions are made as at December 18, 2020

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2020-21 and for 2021-22, 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 about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on 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:

1. The timing and amount of acquisitions and disposals of tangible capital assets, which may affect gains, losses and amortization expenses;
2. The implementation of new collective agreements; and
3. 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 2020-21 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 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, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

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: