2018-2019 Future-Oriented Statement of Operations

Future-Oriented Statement of Operations (unaudited) for the year ending March 31 (in dollars)

	Forecast results 2017–18	Planned results 2018–19
Expenses
Commissioner's Review Program	1,607,700	1,677,645
Internal Services	668,107	637,826
Total Expenses	2,293,807	2,315,471
Net cost of operations	2,293,807	2,315,471

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 the government priorities and the departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2017–18 is based on the actual results as at December 31, 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:

• The office's activities will remain the substantially the same as in the previous year.
• 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.

These assumptions are made as at December 31, 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, the Office of the Communications Security Establishment Commissioner 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:

• the timing and amounts of acquisitions and disposals of tangible capital assets may affect gains/losses and amortization expense;
• implementation of new collective agreements; and
• other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, the Office of the Communications Security Establishment Commissioner 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'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:

Expenses

The office records expenses on an accrual basis.

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 provision for bad debts, loans, investments and advances and inventory obsolescence, as wells as utilization of inventories and prepaid expenses, and others are also included in other expenses.

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 tables below.

a) Reconciliation of net cost of operations to requested authorities (in dollars)

	Forecast results 2017–18	Planned results 2018–19
Net cost of operations	2,293,807	2,315,471
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(129,107)	(122,122)
Services provided without charge by other government departments	(103,969)	(91,575)
Change in vacation pay and compensatory leave	2,830	(1,136)
Total items affecting net cost of operations but not affecting authorities	(230,246)	(214,833)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	16,429	20,000
Forecast current year lapse	148,401	-
Requested authorities	2,228,391	2,120,638

b) Authorities requested (in dollars)

	Forecast results 2017–18	Planned results 2018–19
Authorities requested
Vote 1 - Operating expenditures	2,059,246	1,954,662
Statutory amounts	169,145	165,976
Total authorities requested	2,228,391	2,120,638