Accessibility Standards Canada: 2021 to 2022 Departmental Plan - Future-Oriented Condensed Statement of Operations (Unaudited)

The Future-Oriented Statement of Operations provided in this section is meant to give an overview of the operations of the Organization. The forecasted financial information on expenses and revenues are prepared on an accrual accounting basis to improve:

• accountability;
• transparency; and
• financial management.

The Future-Oriented Statement of Operations is prepared on an accrual accounting basis. Amounts provided in other sections of the report are on an expenditure basis. Forecast and planned spending amounts may differ.

For the year ended March 31 (in dollars)	Forecast Results 2020 to 2021	Planned Results 2021 to 2022
Expenses
Accessibility Standards	10,564,708	13,643,244
Internal Services	3,995,592	5,487,407
Total Expenses	14,560,300	19,130,651
Revenues
Total Revenues	N/A	N/A
Net cost of operations before government funding and transfers	14,560,300	19,130,651

 

Original signed by Chief Executive Officer Philip Rizcallah

Original signed by Chief Financial Officer Philipe Sarrazin

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations is based on  the government’s priorities and the plans described in Accessibility Standards Canada’s  Departmental Plan.

The information in the forecast results for the fiscal year (April 1, 2020 to March 31, 2021) is based on a combination of:

• actual results as of December 20, 2020; and 
• forecasts for the rest of the fiscal year.  

Forecasts have been made for the planned results for the 2021 to 2022 fiscal year.

Two assumptions inform the forecasts:

a) the Organization’s activities will be similar as the year before.

b) Expenses related to work inside and outside the government are based on past experience. The general patterns shown in the past are likely to continue. This is with exception of the planned move to new offices in the end of 2020 to 2021.

These assumptions are made as of December 14, 2020.

2. Variations and Changes to the Forecast Financial Information

Accessibility Standards Canada forecasts its final results for the rest of 2020 to 2021 and for 2021 to 2022 on a best efforts basis. The actual results achieved may differ from the forecast information given. This difference could be material.

The Organization has made estimates and assumptions about the future to prepare this report. These estimates and assumptions may differ from the actual results achieved. Estimates and assumptions are made using the information that is currently available. The estimates and assumptions are always being evaluated, but the information for future events is reasonable.

Reasons that there may be differences between the Future-Oriented Statement of Operations and the past statement of operations are:

a) The timing and the amount of acquisitions and disposals of property and equipment which may affect gains, losses and amortization expense.

b) Having new collective agreements in place.

c) Other changes to the operating budget, such as new projects and administrative changes made later in the fiscal year.

After the Departmental Plan is discussed in Parliament, Accessibility Standards Canada will not update the forecasts for any added financial changes. Any changes to the estimates will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations uses the following:

• the Government's accounting policies in place for fiscal year 2020 to 2021; and 
• Canadian public sector accounting standards. 

There are no significant differences in estimates when using Canadian public sector accounting standards or the accounting policies listed above.

Significant accounting policies are as follows:

a) Expenses

Transfer payments are recorded as expenses in the year the transfer is approved. All eligibility criteria must be met by the recipient.

Other expenses are mostly recorded when products are received or services are provided. This includes expenses related to:

• personnel;
• professional and special services;
• repair and maintenance;
• utilities;
• materials and supplies; and
• amortization of physical capital assets.

Other expenses also include any changes to the value of assets or liabilities (such as bad debts or the use of prepaid expenses).

b) Accounts receivable

Amounts that are owed to the Organization are recorded based on what they actually cost. Sometimes, these need to be changed to show a different amount if the full amount cannot be received.

c)  Employee future benefits

Pension benefits - Eligible employees can take part in the Public Service Pension Plan. This is a pension plan that multiple employers pay into. It is managed by the Government of Canada. Accessibility Standards Canada’s payments to the Plan are recorded as expenses on an accrual basis. They represent the total amount due to the Plan by Accessibility Standards Canada. The Organization’s responsibility is to make the payments it is required to make. Actuarial surpluses or deficiencies in the Plan can be seen in the Government of Canada’s financial statements.

4. Parliamentary authorities

Accessibility Standards Canada is funded by the Government of Canada through parliamentary authorities. Financial reporting of money given to the Organization is different from financial reporting in generally-accepted accounting principles because the authorities are based mainly on cash flow needs.

Items listed for one year in the Future-Oriented Statement of Operations may be funded through parliamentary authorities paid in past, current, or future years. Accordingly, Accessibility Standards Canada 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 dollars)	Forecast Results 2020 to 2021	Planned Results 2021 to 2022
Net cost of operations before government funding and transfers	14,560,300	19,130,651
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(443,487)	(515,161)
Amortization of tangible capital assets	-	(136,376)
Increase in employee future benefits	(107,952)	(6,400)
Increase in vacation pay and compensatory leave	(212,659)	(36,693)
Total items affecting net cost of operations but not affecting authorities	(764,098)	(694,630)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	3,409,419	1,629,536
Total items not affecting net cost of operations but affecting authorities	3,409,419	1,629,536
Current year authorities used	17,205,621	20,065,557

b) Authorities requested

(in dollars)	Forecast Results 2020 to 2021	Planned Results 2021 to 2022
Authorities requested
Vote 1 - Operating expenditures	10,989,720	10,736,821
Vote 5 – Grants & Contributions	5,500,000	8,500,000
Statutory amounts - Contributions to employee benefits plan	715,901	828,736
Forecast authorities available	17,205,621	20,065,557
Lapse	-	-
Requested Authorities	17,205,621	20,065,557