Future-Oriented Condensed Statement of Operations for the year ended March 31, 2018

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Future Oriented Statement of Operations (Unaudited)

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

	2016-17 Forecast Results	2017-18 Planned Results
Expenses
Compliance	12,088	11,729
Research & Policy Development	3,859	3,765
Public Outreach	2,991	2,897
Internal Services	9,482	9,643
Total Expenses	28,420	28,034
Revenues
Internal Support Services	100	200
Total Revenues	100	200
NET COST OF OPERATIONS BEFORE GOVERNMENT FUNDING AND TRANSFERS	28,320	27,834

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 described in the Office's 2017-2018 Departmental Plan (DP).

The main assumptions are as follows:

• (a) The Office’s activities will remain substantially the same as the previous year.
• (b) Expenses and revenues, 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 January 19, 2017.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2016-17 and for 2017-18, 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 DP 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 Office Results 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 2016-17 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.

Revenues

Revenues from Internal Support Services are recognized in the accounts based on the services provided in the year.

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)

	2016-17 Forecast Results	2017-18 Planned Results
Net cost of operations before government funding and transfers	28,320	27,834
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(790)	(790)
Services provided without charge by other government departments	(3,149)	(3,149)
Increase in vacation pay and compensatory leave	(14)	(9)
Decrease in employee future benefits	2	62
Total items affecting net cost of operations but not affecting authorities	(3,951)	(3,886)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	88	396
Total items not affecting net cost of operations but affecting authorities	88	396
Requested authorities	24,457	24,344

(b) Authorities requested

(in thousands of dollars)

	2016-17 Forecast Results	2017-18 Planned Results
Authorities requested
Vote 5 - Operating expenditures	21,976	22,075
Statutory amounts	2,481	2,269
Requested authorities	24,457	24,344