Future-Oriented Statement of Operations

Unaudited

For the year ending March 31
(in dollars)

Estimated
Results

2013-14

Planned
Results

2014-15

Expenses

  • Compliance with access to information obligations
  • Internal Services
  • 10,998,652
  • 3,915,762
  • 10,107,550
  • 3,019,138
Net cost of operations 14,914,414 13,126,688

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

Notes to the Future-Oriented Statement of Operations

1.  Methodology and Significant Assumptions

The future-oriented statement of operations is consistent with the information contained in the 2014-2015 Report on Plans and Priorities.

The information in the estimated results for fiscal 2013-14 is based on actual results as at December 31, 2013 and on forecasts for the remainder of the fiscal year. Forecasts have been made for planned results for 2014-15.

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 a 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 2014-15.
  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 2013-14 is used as the opening position for the 2014-15 planned results.

These assumptions are adopted as at December 31, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2013-14 and for 2014-15, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this future-oriented statement of operations 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 statement of operations and the historical statement of operations 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 2014-2015 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.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared in accordance with the Treasury Board accounting policies in effect for the 2013-14 fiscal year. These accounting policies 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 generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Expenses

Expenses are recorded on an accrual basis. Expenses for the OIC 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, legal services and worker’s compensation 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 provisions to reflect changes in the value of assets, including contingent liabilities to the extent the future eve/1nt is likely to occur and a reasonable estimate can be made.

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

The Office is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the OIC do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based 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 Office 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

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

Office of the Information Commissioner of Canada
Unaudited


(in dollars)
Estimated
2013-14
Planned
2014-15
Net cost of operation 14,914,414 13,126,688
Adjustments for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capital assets (320,401) (357,932)
Services provided without charge by other government departments (1,884,380) (1,622,686)
Increase in vacation pay and compensatory leave (9,856) (5,240)
Decrease in employee severance benefits 349,353 60,130
Total items affecting net cost of operations but not affecting authorities (1,865,284) (1,925,728)
Adjustments for items not affecting net cost of operations but affecting authorities:    
Acquisitions of tangible capital assets 2,008,620 0
Total items not affecting net cost of operations but affecting authorities 2,008,620 0
Requested authorities 15,057,750 11,200,960

(b) Authorities requested


(in dollars)
Estimated
2013-14
Planned
2014-15
Authorities requested     
Vote 40 - Program expenditures 13,686,195 9,897,674
Statutory amounts: Contributions to employee benefit plans 1,371,555 1,303,286
Requested authorities 15,057,750 11,200,960
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