Unaudited Future-Oriented Statement of Operations for the years ending March 31, 2014 and 2015

Statement of Management Responsibility

Responsibility for the compilation, content and presentation of the accompanying future-oriented financial information for the years ended March 31, 2014 and 2015 rests with the Canadian Intergovernmental Conference Secretariat’s (CICS) management.  The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.  The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and will be used in the department’s Departmental Performance Report to compare with actual results.

These statements are based on the best information available and the appropriateness of the assumptions adopted as at December 17, 2013 and reflect the plans described in the Report on Plans and Priorities.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions.  Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives.  Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality.  At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable.  However, as with all such assumptions, there is a measure of uncertainty surrounding them.  This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material.
The Future-oriented Financial Statements for CICS have not been audited.

The paper version was approved and signed by:

André M. McArdle
Ottawa, Canada 
Date: February 7, 2014 

Brian J. Berry
Assistant Secretary and
Chief Financial Officer
Ottawa, Canada 
Date:  February 7, 2014

Future-Oriented Statement of Operations (unaudited)
For the Year ending March 31

(in dollars)
Conference Services 3,801,337 4,133,378
Internal Services 2,400,112 2,379,357
Total expenses 6,201,449 6,512,735
Shared cost agreement with provincial governments 1,100,000 1,100,000
Revenues earned on behalf of Government (1,100,000) (1,100,000)
Total revenues
Net cost of operations  6,201,449 6,512,735

The accompanying notes form an integral part of these future-oriented Statement of Operations.

Notes to the Future-Oriented Statements of Operations

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 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 underlying the forecasts are as follows:

  • The department’s activities will remain substantially the same as for the previous year for the current year.
  • The Secretariat expects conference activities will evolve to correspond with maximum capacity in Fiscal year 2014-15.
  • 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.
  • The CICS office will be moving to a new location in the fall of 2014.

These assumptions are adopted as at December 17 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to 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 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 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 value of equipment acquisitions or disposals may impact amortization expense.
  • Implementation of new collective agreements.
  • Intergovernmental influences may affect the number of conferences organized and managed by Conference Services.
  • 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 CICS will not be updating the forecasts for any changes in financial resources as a result of ensuing supplementary estimates and any 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:

a) Expenses

Expenses are recorded on an accrual basis. Expenses for the Department operations are recorded when goods are received or services are rendered including services provided without charges (e.g., accommodation, employee contributions to health and dental insurance plans, legal services 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 according to their terms of employment.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable, provision for valuation on loans, investments and advances and inventory obsolescence or liabilities, including contingent liabilities and environmental liabilities to the extent the future event is likely to occur and a reasonable estimate can be made.

Expenses also include the amortization of tangible capital assets which are capitalized at their acquisition cost.  The amortization of tangible capital assets is on a straight-line basis, over the estimated useful life of the asset. 

b) Revenues

Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

Revenues that are non-respendable are not available to discharge the Department’s liabilities. While the Deputy Head is expected to maintain accounting control, he or she has no authority regarding 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 in reduction of the entity’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 do not parallel financial reporting according to generally accepted accounting principles since the 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 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)
Net cost of operations 6,201,449 6,512,735
Adjustment for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capitals assets -111,028 -112,279
Services provided without charge by other government departments -625,896 -625,896
Increase in vacation pay and compensatory leave 37,159 -5,000
Increase in employee future benefits 103,544 0
Total items affecting net cost of operations but not affecting authorities -596,221 -743,175
Adjustment for items not affecting net cost of operations but affecting appropriations:    
Acquisition of tangible assets 132,502 70,000
Total items not affecting net cost of operations but affecting authorities 132,502 70,000
Requested authorities 5,737,730 5,839,560

b) Authorities requested

(in dollars)
Authorities requested:
Vote 5 – Program expenditures 5,597,587 5,548,958
Transfer from Treasury Board Vote 15 compensation adjustments 1,373  
Less estimated lapse (250,490) (104,398)
Statutory contributions to employee benefits 389,260 395,000
Requested authorities 5,737,730 5,839,560