Future Oriented Financial Statements for the year ended March 31, 2015

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Future Oriented Statement of Operations (Unaudited)

For the year ended March 31
(in thousands of dollars)

	Estimated Results 2013-14	Planned Results 2014-15
Expenses
Compliance	13,537	13,271
Public Outreach	3,591	3,521
Research & Policy Development	4,367	4,292
Internal Services	6,631	6,858
Net Cost of Operations	28,126	27,942

The accompanying notes form an integral part of these future-oriented financial statements.

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Notes to the Future Oriented Statement of Operations (Unaudited)
Office of the Privacy Commissioner of Canada

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 Office as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2013-14 is based on actual results as at November 30, 2013 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2014-15 fiscal year.

The main assumptions are as follows:

• (a) The OPC will see its operations move from downtown Ottawa to Gatineau by end of March 2014. The move provides the opportunity to trade up to a new building boasting the latest technology as well as being environmentally certified. Additionnal funding has been received and used for the sole purpose of the move.
• (b) Notwithstanding the move, the Office's activities will remain substantially the same as for the previous years.
• (c) 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 November 30, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2013-14 and for 2014-15, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this future-oriented statement of operations, the Office of the Privacy 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 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:

• (a) The timing and amounts of acquisitions and disposals of property and equipment may affect gains/losses and amortization expense.
• (b) Implementation of new collective agreements.
• (c) 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, the Office of the Privacy 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 Performance Report.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using Government's accounting policies that came into effect for the 2013-14 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 an accrual basis. Expenses for the Office operations are recorded when goods are received or services are rendered including services provided without charges for accommodation, employee contribution to health and dental insurance plan 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.

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement or, in the case of transactions which do not form part of an existing program, when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statement. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.

Expenses also include provisions to reflect changes in the value of assets, including provision for bad debt on accounts receivable, provision for advances or liabilities, 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 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, 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

(in thousands of dollars)

	Estimated Results 2013-14	Planned Results 2014-15
Net cost of operations	28,126	27,942
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(450)	(828)
Services provided without charge by other government departments	(3,126)	(3,126)
Decrease in vacation pay and compensatory leave	13	50
Decrease in employee future benefits	1,176	57
Total items affecting net cost of operations but not affecting authorities	(2,387)	(3,847)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	4,185	225
Total items not affecting net cost of operations but affecting authorities	4,185	225
Requested authorities	29,924	24,320

(b) Authorities requested

(in thousands of dollars)

	Estimated Results 2013-14	Planned Results 2014-15
Authorities requested
Vote 5 - Operating expenditures	27,273	21,949
Statutory amounts	2,651	2,371
Requested authorities	29,924	24,320