Future-Oriented Statement of Operations 2020-21

Future-Oriented Statement of Operations (unaudited) for the Year Ending March 31 (in thousands of dollars)
  Forecast results 2019-20 Planned results 2020-21
Emergency Management $614,514 $479,219
Community Safety 307,333 361,925
Internal Services 79,216 73,782
National Security 29,634 36,675
Total expenses 1,030,697 951,601
Interdepartmental provision of internal support services 2,087 2,095
Miscellaneous revenues 60 70
Revenues earned on behalf of government (60) (70)
Total revenues 2,087 2,095
Net cost of operations before government funding and transfers $1,028,610 $949,506

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

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 Departmental Plan.

The information in the forecast results for fiscal year 2019–20 is based on actual results as at December 16th, 2019 and on forecasts for the remainder of the fiscal year.  Forecasts have been made for the planned results for the 2020-21 fiscal year.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at December 16th, 2019.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2019–20 and for 2020–21, 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, Public Safety and Emergency Preparedness Canada 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:

After the Departmental Plan is tabled in Parliament, Public Safety and Emergency Preparedness 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 2019–20, 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:

a) Expenses

The department records expenses on an accrual basis.

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

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

b) Revenues

Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Other revenues are recognized in the period the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the department’s liabilities. Although the deputy head is expected to maintain accounting control, he or she has no authority over the disposition of non-respendable revenues. As a result, non respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the department’s gross revenues.

4. Parliamentary authorities

The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department 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 department 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 (in thousands of dollars)
  Forecast results 2019-20 Planned results 2020-21
Net cost of operations before government funding and transfers $1,028,610 $949,506
Adjustment for items affecting net cost of operations but not affecting authorities:
Adjustments to previous years’ payables at year end 7,911 7,965
Refunds of previous years' expenditures 1,580 2,566
Decrease (increase) in employee future benefits 290 (221)
Decrease (increase) in vacation pay and compensatory leave 1,223 (454)
Amortization of tangible capital assets (1,411) (1,392)
Services provided without charge by other government departments (22,138) (21,209)
Decrease (increase) in accruals for Disaster Financial Assistance Arrangements (DFAA) (112,175) (210,715)
Total items affecting net cost of operations but not affecting authorities (124,720) (223,460)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible assets 200 80
Total items not affecting net cost of operations but affecting authorities 200 80
Requested authorities $904,090 $726,126
b) Authorities requested (in thousands of dollars)
Authorities requested Forecast results 2019-20 Planned results 2020-21
Vote 1: operating expenditures $157,326 $144,446
Vote 5: grants and contributions 730,191 565,749
Capital allotment 200 80
Contribution to employee benefits plan 16,373 15,851
Total authorities requested $904,090 $726,126
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