Future-Oriented Statement of Operations (unaudited) for the year ended March 31, 2019

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Publication author : Canada Economic Development for Quebec Regions

Publish date : April 16, 2018

Summary : This report presents Canada Economic Development's Future-Oriented Statement of Operations (unaudited) for the year ended March 31, 2019.

Future-Oriented Statement of Operations

Canada Economic Development for Quebec Regions

Future-Oriented Statement of Operations (unaudited)
for the year ending March 31
(in thousands of dollars)
Forecast
results
2017-18
Planned
results
2018-19
Expenses
Economic Development in Quebec 204,648 173,699
Internal Services 22,972 22,725
Expenses incurred on behalf of government (6,025) (1,141)
Total expenses 221,595 195,283
Revenues
Interest income 655 236
Miscellaneous revenues 28 59
Revenues earned on behalf of government (683) (295)
Total revenues 0 0
Net cost of operations before government funding and transfers 221,595 195,283

The accompanying notes form an integral part of the 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 government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2017-18 is based on actual results as at November 30, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-19.

The main assumptions underlying the forecasts are as follows:

These assumptions are adopted as at November 30, 2017.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, 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, Canada Economic Development for Quebec Regions (CED) 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 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:

After the Departmental Plan is tabled in Parliament, CED 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 2017-18, 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

The department records expenses on an accrual basis.

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

Other 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 and advances, as well as prepaid expenses, and other are also included in other expenses.

b) Revenues

Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place, except for the item listed below. Loans are non-interest bearing and, due to the uncertainty as to final collection, interest income is only charged on overdue amounts when received. Other revenues consist of other fees and gains on the disposal of capital and non-capital assets.

Revenues that are non-respendable are not available to discharge the department's liabilities. Although the deputy head is expected to maintain accounting control, he 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 department's gross revenues.

4. Parliamentary authorities

The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department 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 department 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 thousands of dollars)
Forecast
results
2017-18
Planned
results
2018-19
Net cost of operations before government funding and transfers 221,595 195,283
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (373) (348)
Services provided without charge by other government departments (5,948) (5,762)
Decrease in vacation pay and compensatory leave 68 104
Repayment of previous years' contributions and expenses 4,105 4,595
Other 108 185
Total items affecting net cost of operations but not affecting authorities (2,040) (1,226)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 237 770
Loans issued on behalf of government 89,969 81,678
Total items not affecting net cost of operations but affecting authorities 90,206 82,448
Requested authorities 309,761 276,505
b) Authorities requested (in thousands of dollars)
Forecast
results
2017-18
Planned
results
2018-19
Authorities requested
Vote 1 - operating expenditures 40,748 38,634
Vote 5 - grants and contributions 268,615 233,365
Statutory amounts 4,748 4,505
Less:
Lapsed: operating and grants and contributions (4,350)
Total authorities requested 309,761 276,505
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