Publication

CANADIAN INTERGOVERNMENTAL CONFERENCE SECRETARIAT
Future-Oriented Statement of Operations (unaudited)

For the Year ending March 31
(in dollars)

Forecast
Results for
2018-19
Planned
Results for
2019-20
Expenses

 Intergovernmental Conference Services
 Internal Services

 
4,822,045
1,528,505
 
4,827,678
1,588,592
Total expenses 6,350,550 6,416,270
Revenues

 Sharing cost agreement – Transfers received from the provincial governments
 Revenues earned on behalf of government

 
1,100,000
(1,100,000)
 
1,100,000
(1,100,000)
Total revenues 0 0
Net cost of operations before government funding and transfers 6,350,550 6,416,270

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

Notes to the Future-Oriented Statement of Operations (Unaudited)

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 2018−19 is based on actual results as at December 31, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2019−20 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The department’s activities will remain substantially the same as the previous year.
  • The Secretariat expects conference activities will evolve to correspond with maximum capacity in fiscal year 2019-20.
  • 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 December 31, 2018.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2018−19 and for 2019−20, 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, the Canadian Intergovernmental Conference Secretariat (CICS) has made estimates and assumptions concerning 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:

  • The timing and the amount of equipment acquisitions or disposals may affect gains, losses and amortization expense.
  • Implementation of new collective agreements.
  • Intergovernmental influences may affect the number of conferences organized and managed by Intergovernmental Conference Services.
  • Other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, the CICS 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 2018−19, 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

Expenses for the CICS’ 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

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 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 dollars)

Forecast
Results for
2018-19
Planned
Results for
2019-20
Net cost of operations before government funding and transfers

Adjustments for items affecting net cost of operations but not affecting authorities:
 Amortization of tangible capital assets
 Increase in employee future benefits
 Increase in vacation pay and compensatory leave
 Services provided without charge by other government departments

6,350,550

 
(40,518)
(8,036)
(6,761)
(497,449)

6,416,270

 
(55,518)
(960)
(22,685)
(627,857)

 

(552,764)

(707,020)

Adjustments for items not affecting net cost of operations but affecting authorities:
 Acquisition of tangible capital assets
150,000
  150,000
Requested authorities 5,797,786 5,859,250

b) Authorities requested

(in dollars)

Forecast
Results for
2018-19
Planned
Results for
2019-20
Authorities requested                            
 Vote 1 − Operating expenditures
 Statutory amounts

 
5,861,930
385,855

 
5,681,372
461,945

Forecast authorities available
 Lapse

6,247,785
(449,999)
6,143,317
(284,067)
Requested authorities

5,797,786

5,859,250

Forecast authorities reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.