Future-Oriented Statement of Operations (Unaudited) 2017-18

Future-Oriented Statement of Operations (Unaudited)

Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31

(in dollars)
  Forecast Results 2016-17 Planned Results 2017-18
Expenses
Protection of Language Right 8,830,898 8,468,530
Promotion of Linguistic Duality 8,302,817 7,902,302
Internal Services 7,685,304 7,489,944
Total expenses 24,819,019 23,860,776

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 2016-17 is based on actual results as at November 29, 2016 and forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2017-18 fiscal year.

The main assumptions underlying the forecasts are as follows:

  1. OCOL's activities will remain substantially the same as for the previous year;
  2. Expenses, 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 9, 2016.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2016-17 and for 2017-18, 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 Office of the Commissioner of Official Languages 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:

  1. The timing and amounts of acquisitions and disposals of equipment may affect gains/losses and amortization expense.
  2. The implementation of new collective agreements.
  3. Other changes to the operating budget, such as new initiatives or technical adjustments later in the year.

After the Departmental Plan is tabled in Parliament, the Office of the Commissioner of Official Languages 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 Government's accounting policies in effect for Fiscal year 2014-15 , and 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:

The department records expenses are recorded on an accrual basis.

Expenses for OCOL 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, payroll and audit services 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.

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 primarily 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, 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:

(a) Reconciliation of net cost of operations to requested authorities
(in dollars)
  Forecast Estimated 2016-17 Planned Results 2017-18
Net cost of operations 24,819,019 23,860,776
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (2,898,856) (2,920,526)
Amortization of tangible capital assets (337,385) (322,586)
Decrease in employee future benefits 170,000 96,652
Decrease (increase) in vacation pay and compensatory leave 63,157 (14,332)
Total items affecting net cost of operations but not affecting authorities (3,003,084) (3,160,792)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 40,000 30,000
Decrease in prepaid expenses (36,511) 0
Total items not affecting net cost of operations but affecting authorities 3,489 30,000
(b) Authorities requested
(in dollars)
  Forecast Estimated 2015-17 Planned Results 2017-18
Vote 1 - Program expenditures 19,487,207 18,595,492
Statutory - Contributions to employees benefit plans 2,332,217 2,134,492