2021-22 Future-Oriented Statement of Operations (Unaudited)

Future-Oriented Statement of Operations

Unaudited

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 2021-22 Departmental Plan.

The information in the forecast results for fiscal year 2020-21 is based on actual results as at December 24, 2020 and on forecasts for the remainder of the fiscal year. Forecasts have been made for planned results for 2021-22 fiscal year.

The main assumptions underlying the forecasts are as follows:

(a) The Office of the Information Commissioner of Canada (OIC) activities will remain substantially the same as in the previous year;

(b) Expenses, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue;

(c) Estimated year end information for 2020-21 is used as the opening position for the 2021-22 planned results.

These assumptions are adopted as at December 24, 2020.

2. Variations and changes to the forecast financial information

While every attempt has been made to accurately forecast final results for the remainder of 2020-21 and for 2021-22, 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 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 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 statements of operations include:

(a) the timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains, losses and amortization expense;  

(b) the implementation of new collective agreements;

(c) other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the 2021-22 Departmental plan is tabled in Parliament, the Office of the Information Commissioner of Canada 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 2020-21, 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 policy is as follows:

(a) Expenses

Expenses are recorded on an accrual basis. Expenses for the Office's operations are  generally recorded when goods are received or services are rendered including services provided without charges for accommodation, employee contributions to health and dental insurance plans 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 event 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 Office 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 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

(b) Authorities requested