2018-19 Future-oriented Financial Statement

Statement of Management Responsibility (unaudited)
For the Year ending March 31

Management of the Office of the Correctional Investigator (OCI) is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at December 29, 2017 and reflect the plans described in the Departmental Plan.

These Future-oriented Financial Statements have been prepared in accordance with the Treasury Board's accounting policies and its Guide on the preparation of general purpose Future-oriented Financial Statements.

These Future-oriented Financial Statements have not been audited.

Ivan Zinger J.D., Ph.D
Correctional Investigator
Ottawa, Canada

Manuel Marques
Chief Financial Officer
Ottawa, Canada

Future-Oriented Statement of Operations (unaudited)
For the Year ending March 31
(in dollars)
Forecast results
2017-18
Planned results
2018-19
Expenses
Ombudsman for federal offenders
$4,072,110 $0
Independent Oversight of Federal Corrections
0 4,136,905
Internal services
1,101,848 1,119,380
Total expenses $5,173,958 $5,256,285
Revenues
Miscellaneous revenues
230 40
Revenues earned on behalf of government
(230) (40)
Total revenues $ 0.00 $ 0.00
 
Net Cost of Operations $5,173,958 $5,256,285

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

In 2018–19, the Office of Correctional Investigator transitioned from a reporting framework comprising Strategic Outcomes and a Program Alignment Architecture to a Departmental Results Framework comprising Core Responsibilities and Departmental Results. For more information on the Office’s Core Responsibilities, see the “Planned results” section of the Office of the Correctional Investigator’s 2018-19 Departmental Plan at: Reports - Office of the Correctional Investigator

 

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

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 2017–18 is based on actual results as at December 29th, 2017 and on forecasts for the remainder of the fiscal year.  Forecasts have been made for the planned results for the 2018-19 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The office’s activities will remain substantially the same as for the previous year;
  • 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 made as at December 29th, 2017.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2017–18 and for 2018–19, 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 Office of the Correctional Investigator has made estimates and assumptions about 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 acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense;
  • the implementation of new pay increases; and
  • 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 Office of the Correctional Investigator 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 2017–18, 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

The office records expenses on an accrual basis.

Expenses 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

Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Funds that have been received are recorded as deferred revenue, provided the Department has an obligation to other parties for the provision of goods, services or the use of assets in the future.

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 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 office is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the office 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 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 dollars) Forecast results
2017-18
Planned results
2018-19
Net cost of operations before government funding and transfers $5,173,958 $5,256,285
Adjustments for items affecting net cost of operations but not affecting authorities:    
Decrease (increase) in employee future benefits
42,171 10,000
Services provided without charge by other government departments
(651,405) (679,568)
Decrease (increase) in vacation pay and compensatory leave
19,062 (4,760)
Refunds of previous years' expenditures
1,508 1,041
Adjustments to previous years’ payables at year end
12,710 16,911
Total items affecting net cost of operations but not affecting authorities
(575,954) (656,376)
Adjustment for items not affecting net cost of operations but affecting authorities:    
Increase in salary overpayments
7,500 6,701
Increase in other loans and advances to employees
10,000 8,894
Total items not affecting net cost of operations but affecting authorities
17,500 15,595
Requested authorities $4,615,504 $4,615,504

 

b) Authorities requested
(in dollars) Forecast results
2017-18
Planned results
2018-19
Authorities requested:    
Vote 1 – operating expenditures
$4,102,301 $4,102,301
Statutory amounts
513,203 513,203
Total authorities requested $4,615,504 $4,615,504