Future-Oriented Financial Statements 2013-2014

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 December 31, 2012 and reflect the plans described in the 2013-2014 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.

Original signed by:


Suzanne Legault
Information Commissioner of Canada


Layla Michaud, CPA, CMA, MBA
Director General, CFO Corporate Services

Ottawa, Canada
February 4, 2013

Future-Oriented Statement of Financial Position

Office of the Information Commissioner of Canada
Unaudited

As at March 31 (in dollars) Estimated Results
2013
Planned Results
2014
Liabilities    
Accounts payable (Note 6) 470,318 626,990
Accrued employee salaries  176,371 261,955
Vacation pay and compensatory leave 432,879 439, 372
Employee future benefits (Note 7) 739,562 507,279

Total Liabilities

1,819,130 1,835,596
Financial assets    
Due from the Consolidated Revenue Fund 523,460 761,509
Accounts receivable and advances (Note 8) 84,573 73,991

Total financial assets

608,033 835,500

Net debt

1,211,097 1,000,096
Non-financial assets    
Prepaid expenses 31,529 32, 002
Tangible capital assets (Note 9) 746,939 2,471,618

Total non-financial assets

778,468 2,503, 620
Net financial position (432,629) 1,503,524

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

Future-Oriented Statement of Operations and Net Financial Position

Office of the Information Commissioner of Canada
Unaudited

For the year ending March 31
(in dollars)
Estimated Results
2013
Planned Results
2014
   
Expenses    
Compliance with access to information obligations 11,123,106 10,710,674
Internal Services 3,322,488 3,684,294
Cost of operations before government funding 14,445,594 14,394,968
Government funding    
Net cash provided by Government of Canada 12,544,499 14,277,488
Change in due from Consolidated Revenue Fund 43,868 238,049
Services provided without charge from other government departments (Note 10) 1,866,293 1,815,584
Cost of operations after government funding (9,066) (1,936,153)
Net financial position - Beginning of year (441,695) (432,629)
Net financial position - End of year (432,629) 1,503,524

Segmented information (Note 11)

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

Future-Oriented Statement of Change in Net Debt

Office of the Information Commissioner of Canada
Unaudited

For the year ending March 31
(in dollars)
Estimated Results
2013
Planned Results
2014
   
Cost of operations after government funding (9,066) (1,936,153)

Change Due to Tangible Capital Assets

   
Net acquisitions of tangible capital assets (Note 9) 7,859 2,140,965
Amortization of tangible capital assets (356,952) (416,286)
Total change due to tangible capital assets (349,093) 1,724,679
Change due to prepaid expenses 0 473
Net increase (decrease) in net debt (358,159) (211,001)
Net debt - Beginning of year 1,569,256 1,211,097
Net debt - End of year 1,211,097 1,000,096

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

Future-Oriented Statement of Cash Flows

Office of the Information Commissioner of Canada
Unaudited

For the year ending March 31
(in dollars)
Estimated Results
2013
Planned Results
2014
   
OPERATING ACTIVITIES    
Cost of operations before government funding 14,445,594 14,394,968
Non-cash items    
Amortization of tangible capital assets (356,952) (416,286)
Services provided without charge by other government departments (Note 10) (1,866,293) (1,815,584)
Variations in Statement of Financial Position    
Decrease (increase) in liabilities 382,658 (16,466)
Decrease in accounts receivable and advances (68,367) (10,582)
Increase in prepaid expenses 0 473
Cash used in operating activities 12,536,640 12,136,523
CAPITAL ACTIVITIES    
Net acquisitions of tangible capital assets (Note 9) 7,859 2,140,965

Cash used in capital activities

7,859 2,140,965
NET CASH PROVIDED BY GOVERNMENT OF CANADA 12,544,499 14,277,488

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

Notes to the Future-Oriented Financial Statements

Office of the Information Commission

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 2013-2014 Report on Plans and Priorities.

The main assumptions are as follows:

  1. In 2013-14, the OIC will be moving its operations from Ottawa to Gatineau. The cost of the move is currently estimated at $2.6M for 2013-14. This one-time funding received in the form of loan arrangement will be for the office setup and equipment. This amount is reflected under the Internal Services program and will be reimbursed over a period of 15 years.

  2. With the exception of the move, the OIC's activities will remain substantially the same as for the previous year.

  3. Budget 2012 Implementation – as result of the initiative and saving measures announced in Budget 2012, OIC will see budget reductions of $100,000 in 2012-2013, $300,000 in 2013-2014, and with a final ongoing reduction of $500,000 beginning in 2014-2015.

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

  5. Estimated year end information for 2012-2013 is used as the opening position for the 2013-2014 planned results..

These assumptions are adopted as at December 31, 2012.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2012-2013 and for 2013-2014, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these 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:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  2. The operating budget may be modified through additional initiatives or technical adjustments later in the year.
  3. The forecasted costs of the relocation of the Office planned for 2013-14, including the related planned Net acquisitions of tangible capital assets, may vary from the estimated amounts.

Once the 2013-2014 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 2012-2013 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:
  1. 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.

  2. Net Cash Provided by Government of Canada

    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 departments of the Government..

  3. Due from the Consolidated Revenue Fund

    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.

  4. Accounts receivable

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

  5. 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 equipment10 years
    Informatics hardware3 years
    Computer software 3 years
    Furniture and fixtures10 years
    Motor vehicles10 years
    Leasehold ImprovementsLesser 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.

  6. Employee future benefits
  1. 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

  2. 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.

5. Parliamentary Authorities

The Office receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Office 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:

  1. Authorities requested

    (in dollars) Estimated Results
    2013
    Planned Results
    2014
      
    Authorities requested   
    Vote 40 - Program expenditures11,093,747 13,171,029
    Statutory amounts: Contributions to employee benefit plans1,515,732 1,358,824
    Forecast authorities available 12,609,479 14,529,853

    Forecast authorities requested for the year ending March 31, 2013 are the planned spending amounts presented in the 2013-2014 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2013 include amounts presented in the 2012-2013 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. 

  2. Reconciliation of net cost of operations to requested authorities

    (in dollars) Estimated Results
    2013
    Planned Results
    2014
      
    Cost of operations before government funding14,445,594 14,394,968
    Adjustments for items affecting net cost of operations before government funding but not affecting authorities:  
    Amortization of tangible capital assets (356,952) (416,286)
    Services provided without charge by other government departments (Note 10)(1,866,293) (1,815,584)
    Decrease (increase) in vacation pay and compensatory leave 0 (6,493)
    Decrease in employee severance benefits (Note 7)379,271 232,283
     (1,843,974) (2,006,080)

    Adjustments for items not affecting net cost of operations before government funding but affecting authorities:

      

    Acquisitions of tangible capital assets

    7,859 2,140,965
    7,859 2,140,965
    Forecast authorities available 12,609, 479 14,529,853

6. Accounts Payable

  • (in dollars) Estimated Results
    2013
    Planned Results
    2014
      
    Accounts Payable - External parties 342,962471,521
    Accounts Payable - Other government departments 127,356155,469
    Total470,318 626,990

7. Employee Future Benefits

  1. Prestations de retraite

    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.

  2. 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:

    As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

    (in dollars) Estimated Results
    2013
    Planned Results
    2014
     
    Accrued benefit obligation of year1,118,833739,562
    Expense for the year(379,271) (232,283)
    Accrued benefit obligation, end of year739,562507,279

8. Accounts receivable and advances

  • (in dollars) Estimated Results
    2013
    Planned Results
    2014
     
    Accounts receivable - external parties and other government departments83,773 73,191
    Employee advances800 800
    Total 84,573 73,991

9. Tangible Capital Assets

  • (in dollars) Estimated Results
    2013
    Planned Results
    2014
     
    Opening balance1,096,032 746,939
    Net acquisitions of tangible capital assets 7,859 2,140,965
    Less: Current year amortization(356,952) (416,286)
    Net Book Value *746,939 2,471,618
  • * The increase in net book value is a result of planned acquisition of new furniture and equipment related to the move of the OIC to new premises in 2013.

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.

  1. 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:

    (in dollars) Estimated Results
    2013
    Planned Results
    2014
      
    Accommodation provided by Public Works and Government Services Canada1,017,201 966,492
    Employer's share of employees' insurance premiums paid by Treasury Board Secretariat744,151 744,151
    Payroll services provided by Public Works and Government Services Canada5,141 5,141
    Audit services provided by the Office of the Auditor General of Canada99,800 99,800
    Total1,866,293 1,815,584

11. Segmented information

Presentation by segment is based on the Office's program alignment architecture as described in note 1. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. Direct expenses are charged to the relevant program activity with the exception of overhead related expenses which are allocated to the programs based on a prorata basis based on full time equivalent per activity. The following table presents the estimated and planned results for the programs, by major object of expenses.

  • (in dollars) Estimated Results 2013 Compliance with access to information obligations Internal Services Planned Results
    2014
    Expenses    
    Salaries and employee benefits10,492,726 7,458,622 2,227,900 9,686,522
    Professional and special services2,078,794 1,602,892 684,349 2,287,241
    Accommodation1,017,202 744,199 222,293 966,492
    Amortization of tangible capital assets356,952 320,540 95,746 416,286
    Transport and telecommunications150,262 129,755 38,758 168,513
    Information 117,251 96,250 28,750 125,000
    Rentals131,285 144,342 60,475 204,817

    Utilities, materials and supplies

    41,110 29,463 8,801 38,264
    Repair and maintenance16,204 60,214 17,986 78,200
    Acquisition of equipment43,809 124,397 299,236 423,633

    Costs of operation before government funding

    14,445,595 10,710,674 3,684,294 14,394 968