Office of the Information Commissioner of Canada - Supplementary Tables

Future-oriented Financial Statements
For the year ended March 31, 2012

Table of Contents

Statement of Management Responsibility

Management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at February 1, 2012 and reflect the plans described in the 2012-2013 Report on Plans and Priorities. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.


Suzanne Legault  
Information Commissioner of Canada   
Layla Michaud
Chief Financial Officer

 

 

Ottawa, Canada
March 31, 2012

Office of the Information Commissioner of Canada
Future-oriented Statement of Financial Position (Unaudited)
As at March 31

(in dollars)
  Estimated Results 2012 Planned Results 2013

The accompanying notes form an integral part of these future-oriented financial statements.

ASSETS
 
Financial assets
Amount due from Consolidated Revenue Fund $589,633 $560,239
Accounts receivable and advances (Note 6) 50,800 50,800
Total financial assets 640,433 611,039
   
Non-financial assets    
Prepaid expenses 16,202 17,217
Tangible capital assets (Note 7) 1,208,894 1,062,227
Total non-financial assets 1,225,096 1,079,444
TOTAL $1,865,529 $1,690,483
     
LIABILITIES AND EQUITY OF CANADA    
   
Liabilities    
Accounts payable (Note 8) $474,247 $427,603
Accrued employee salaries 200,601 215,128
Vacation pay and compensatory leave 384,927 316,998
Employee severance benefits (Note 9) 1,399,144 1,018,239
Total Liabilities 2,458,919 1,977,968
   
Equity of Canada (Note 11)                         (593,390) (287,485)
   
TOTAL $1,865,529 $1,690,483

Office of the Information Commissioner of Canada
Future-oriented Statement of Operations (Unaudited)
For the Year Ending March 31

(in dollars)
Estimated Results 2012 Planned Results 2013
Expenses
Compliance with access to information obligations $10,139,862 $9,024,867
Internal Services 4,771,699 4,246,995
Cost of Operations $14,911,561 $13,271,862

Segmented information (Note 12)
The accompanying notes form an integral part of these future-oriented statements

Office of the Information Commissioner of Canada
Future-oriented Statement of Equity of Canada (Unaudited)  
For the Year Ending March 31


(in dollars)
Estimated Results 2012 Planned Results 2013
Equity of Canada, beginning of year $(1,172,515) $(593,390)
Net cost of operations (14,911,561) (13,271,862)
Services provided without charge
by other government departments (Note 10) 1,852,772 1,866,293
Net cash provided by Government 13,955,750 11,740,868
Change in due from the Consolidated Revenue Fund (317,836) (29,394)
EQUITY OF CANADA, END OF YEAR $(593,390) (287,485)

The accompanying notes form an integral part of these future-oriented financial statements

Office of the Information Commissioner of Canada
Future-oriented Statement of Cash Flow (Unaudited)
For the Year Ending March 31


Estimated Results 2012 Planned Results 2013
OPERATING ACTIVITIES
Net cost of operations $14,911,561 $13,271,862
Non-cash items:
Amortization of tangible capital assets (254,056) (226,667)
Services provided without charge other government departments (Note 10) (1,852,772) (1,866,293)
Variations in Future-oriented Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (15,915) 0
Increase (decrease) in prepaid expenses (10,822) 1,015
Decrease in liabilities 739,099 480,951
Cash used in operating activities 13,517,095 11,660,868
Capital investing activities:
Net Acquisitions of tangible capital assets (Note 7) 438,655 80,000
Cash used in capital investing activities 438,655 80,000
NET CASH PROVIDED BY GOVERNMENT OF CANADA $13,955,750 $11,740,868

The accompanying notes form an integral part of these future-oriented financial statements.

Notes to Future-oriented Financial Statements (Unaudited)
Office of the Information Commissioner of Canada

1. Authority and Objectives

The Office of the Information Commissioner of Canada (OIC) was created under the Access to Information Act, which came into force on July 1, 1983. The OIC is listed under Schedule I.1 of the Financial Administration Act and is funded through annual appropriations. The Information Commissioner is an independent Agent of Parliament appointed by the Governor-in-Council following approval of the appointment by resolution of the Senate and the House of Commons. The Commissioner is accountable to Parliament for the results achieved by the OIC.

The Access to Information Act is the statutory authority for the activities of the Information Commissioner and the OIC, whose mission is to defend and protect the public’s right of access to government information. In fulfilling this mission, the OIC is guided by the following objectives, which form the basis of its Strategic Plan for 2011-2014:

  • Conduct efficient, fair and confidential investigations into access complaints and issues. To carry out investigations and effectively resolve non-compliance issues, the Commissioner may use various powers at her disposal, including the conduct of formal inquiries, where required. She may also bring complex and contentious issues before the courts for enforcement or interpretation, while influencing jurisprudence in favour of disclosure. The goal is to become a centre of investigative and legal expertise on access matters;

  • Provide expert advice to Parliament and institutions to maximize compliance with the Act and modernize the access to information regime. To this end, the OIC acts as a catalyst for the convergence of access to information and open government standards. The goal is to reverse the declining trends in timeliness and disclosure of public sector information;

  • Create an exceptional workplace driven by talent management and an enabling infrastructure and guided by four core values, as defined by OIC staff: excellence in service delivery, leadership, integrity and respect.

2. Significant assumptions

The future-oriented financial statements are consistent with the information contained in the 2012-2013 Report on Plans and Priorities.
The main assumptions are as follows:

  • (a) The OIC's activities will remain substantially the same as for the previous year.

  • (b) Expenses, including the determination of amounts internal and external to the government, are based on historical costs, trend analysis and other analytical methodologies.

  • (c) Estimated year end information for 2011-12 is used as the opening position for the 2012-13 planned results.

These assumptions are adopted as at February 1, 2012.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2011-12 and for 2012-13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements the Office of the Information Commissioner of Canada has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

  • (a) The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense. 

  • (b) The operating budget may be modified through additional initiatives or technical adjustments later in the year.

Once the 2012-13 Report on Plans and Priorities is presented, the Office of the Information Commissioner of Canada will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2011-2012 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Parliamentary authorities - The Office of the Information Commissioner of Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting.

(b) Net Cash Provided by Government – The Office of the Information Commissioner of Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the OIC is deposited to the CRF and all cash disbursements made by the OIC are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between federal institutions.

(c) Amounts due from the Consolidated Revenue Fund (CRF) - Amounts due from the CRF represent the net amount of cash that the OIC is entitled to draw from the Consolidated Revenue Fund without further appropriations, in order to discharge its liabilities.

(d) Accounts receivable – Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.

(e) Expenses – are recorded on an accrual basis:

Vacation pay and compensatory leave are accrued as the benefits are earned under the respective terms of employment.
Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, the payroll services, audit services and other services are reported as operating expenses at their estimated cost.

(f) Employee future benefits

(i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The OIC’s contributions to the plan are charged to expenses in the year incurred and represent the total pension obligation of the OIC to the Plan. Current legislation does not require the OIC to make contributions for any actuarial deficiencies of the Plan.

(ii) Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment.  The cost of these benefits is accrued as employees render the services necessary to earn them.  The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Tangible capital assets –All tangible capital assets and leasehold improvements providing multi-year benefits to the OIC with an initial cost of $2,500 or more are recorded at their acquisition cost. Similar items with a cost less than $2,500 are included in the future-oriented statement of operations. Amortization of tangible capital assets is done on a straight line basis over the estimated useful life of the asset as follows:

Asset class Amortization period
Telecommunications equipment 10 years
Informatics hardware 3 years
Computer software 3 years
Furniture and fixtures 10 years
Motor vehicles 10 years
Leasehold Improvements Lesser of the remaining term of the lease or useful life of the improvement

Software under development forms the basis of the Work in Progress account. They are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

5. Parliamentary Authorities

The OIC receives most of its funding through parliamentary authorities provided by Parliament. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the OIC has different net results 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) Authorities requested

Estimated Results 2012 Planned Results 2013
(in dollars)
Authorities requested $11,977,464 $10,348,813
Vote 40 – Program expenditures
Statutory amounts:
Contributions to employee benefit plans
1,694,053 1,358,923
Forecast authorities available $13,671,517 $11,707,736

Forecast authorities requested for the year ending March 31, 2012 are the planned spending amounts presented in the 2012-2013 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2012 include amounts presented in the 2011-2012 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes. 

(b) Reconciliation of net cost of operations to requested authorities:

Estimated Results 2012 Planned Results 2013
(in dollars)
Net cost of operations 14,911,561 13,271,862
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (254,056) (226,667)
Services provided without charge by other government departments (Note 10) (1,852,772) (1,866,293)
Decrease (increase) in vacation pay and compensatory leave (5,148) 67,929
Decrease in employee severance benefits (Note 9) 433,277 380,905
(1,678,699) (1,644,126)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 438,655 80,000
438,655 80,000
Forecast authorities available 13,671,517 11,707,736

6. Accounts receivable and advances

The following table presents details of the Office’s accounts receivable and advances balances:

Estimated Results 2012 Planned Results 2013
(in dollars)
Accounts receivable - external parties and other government departments $50,000 $50,000
Employee advances 800 800
$50,800 $50,800

7. Tangible Capital Assets

Estimated Results 2012 Planned Results 2013
(in dollars)
Opening balance $1,024,295 $1,208,894
Acquisitions of tangible capital assets 438,655 80,000
Less: Current year amortization (254,056) (226,667)
$1,208,894 $1,062,227

8. Accounts payable

The following table presents details of the Office’s accounts payable:

Estimated Results 2012 Planned Results 2013
(in dollars)
Accounts payable to external parties $306,087 $282,427
Accounts payable to other government departments and agencies 168,160 145,176
Total $474,247 $427,603

9. Employee Benefits

(a) Pension benefits:

The OIC's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.
The OIC’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.

(b) Severance benefits:

The Office of the Information Commissioner of Canada provides severance benefits to its employees based on eligibility, years of service and final salary. The benefit plan is not pre-funded and thus has no assets, resulting in a plan deficit equal to the accrued benefit obligation. Benefits will be paid from future authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:

Estimated Results 2012 Planned Results 2013
(in dollars)
Accrued benefit obligation, beginning of year $1,832,421 $1,399,144
Expense for the year (433,277) (380,905)
Accrued benefit obligation, end of year $1,399,144 $1,018,239

10. Related party transactions

The OIC is related as a result of common ownership to all Government departments, agencies, and Crown corporations. The OIC enters into transactions with these entities in the normal course of business and on normal trade terms.

a) Common services provided without charge by other government departments:

During the year the OIC receives services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans, payroll services and audit services. These services without charge have been recognized in the OIC's future-oriented Statement of Operations as follows:

Estimated Results 2012 Planned Results 2013
(in dollars)
Accommodation provided by Public Works and Government Services Canada $1,005,480 $1,017,201
Employer's share of employees' insurance premiums paid by Treasury Board Secretariat 744,151 744,151
Payroll services provided by Public Works and Government Services Canada 5,141 5,141
Audit services provided by the Office of the Auditor General of Canada 98,000 99,800
Total $1,852,772 $1,866,293

11. Equity of Canada

The equity of Canada represents liabilities incurred by the OIC, net of tangible capital assets and prepaid expenses, that have not yet been funded through appropriations. Significant components of this amount are employee severance benefits and vacation pay liabilities. These amounts are expected to be funded by appropriations in future years as they are paid.

12. Segmented information

Presentation by segment is based on the OIC's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the forecasted expenses incurred and forecasted revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

In dollars
Estimated Results 2012 Compliance with access to information obligations Internal services Planned Results 2013
Operating Expenses
Salaries and employee benefits $11,687,864 $6,617,023 $3,113,893 $9,730,916
Professional and special services 1,528,628 1,040,691 489,737 1,530,428
Accommodation 1,005,480 691,697 325,504 1,017,201
Amortization of tangible capital assets 254,056 154,134 72,533 226,667
Transportation and telecommunications 152,565 133,042 62,608 195,650
Information 100,921 86,360 40,640 127,000
Rentals 86,123 61,880 29,120 91,000
Utilities, materials and supplies 56,679 39,372 18,528 57,900
Repair and maintenance 37,338 59,908 28,192 88,100
Acquisition of equipment 1,907 140,760 66,240 207,000
Other 0 0 0 0
Total Costs of Operations $14,911,561 $9,024,867 $4,246,995 $13,271,862