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2016–17 Future-oriented statement of operations

Table of contents

  1. Methodology and significant assumptions
  2. Variations and changes to the forecast financial information
  3. Summary of significant accounting policies
  4. Parliamentary authorities
Future-oriented Statement of Operations
For the year ending March 31
(in dollars) Estimated Results
2016
Planned Results
2017
Expenses    
Registration of Lobbyists   1,435,294   1,032,976
Education and Research 823,627 918,957
Reviews and Investigations under the Lobbying Act and the Lobbyists' Code of Conduct 1,287,841 1,332,893
Internal Services 1,988,618 1,704,173
Net cost of operations   5,535,380   4,988,999

The accompanying notes form an integral part of these future-oriented statement of operations

Notes to the Future-oriented Statement of Operations

1. Methodology and significant assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of the organization as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2015–16 is based on actual results as at and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the year 2016–17 (future year) fiscal year.

The main assumptions underlying the forecasts are as follows:

  • OCL's activities will remain substantially the same as for the previous year.
  • Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

These assumptions are adopted as at .

2. Variations and changes to the forecast financial information

While every attempt has been made to forecast final results for the remainder of 2014–15 and for 2016–17, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented statement of operations, OCL 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:

  • The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  • Implementation of new collective agreements.
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, OCL will not be updating the forecasts for any changes in financial resources 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 using the Government's accounting policies that came into effect for the 2011-12 fiscal year which 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 public sector accounting standards.

Significant accounting policies are as follows:

Expenses
Expenses are recorded on the accrual basis:

  • Expenses for the OCL 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, and audit services 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 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

OCL is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to OCL 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, OCL has different net costs 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) Estimated
2015-2016
Planned
2016-2017
Net cost of operations before government funding 5,535,380 4,988,999
Adjustments for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capital assets (456,152) (195,073)
Decrease (increase) in employee future benefits 774 61,850
Decrease (Increase) in vacation pay and compensatory leave (21,127) 4,249
Services provided without charge by other government departments (638,895) (631,944)
Total items affecting net cost of operations but not affecting authorities (1,115,400) (760,918)
Adjustments for items not affecting net cost of operations but affecting authorities:    
Acquisitions of tangible capital assets 242,589 296,675
Payment in arrears - -
Increase in prepaid expenses (2,091) (220)
Total items not affecting net cost of operations but affecting authorities 240,497 296,455
Requested Authorities 4,660,477 4,524,536
(b) Authorities Requested
(in dollars) Estimated
2015-2016
Planned
2016-2017
Authorities requested    
Vote 45 - Program expenditures 4,234,351 4,088,264
Statutory amounts - Contributions to employee benefit plans 426,126 436,272
Requested authorities 4,660,477 4,524,536
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