2016-2017 Future Oriented Financial Statements

Future - Oriented Financial Statements of Operations

Unaudited

For the year ending March 31 (in dollars)	Forecast Results 2015-16	Planned Results 2016-17
Expenses Compliance with access to information obligations Internal Services	$10,070,065 3,018,787	$10,141,172 3,029,181
Net cost of operations	$13,088,852	$13,170,353

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

Notes to the Future-Oriented Statement of Operations

1. Methodology and Significant Assumptions

The future-oriented statement of operations is consistent with the information contained in the 2016-2017 Report on Plans and Priorities.

The information in the estimated results for fiscal 2015-16 is based on actual results as at December 31, 2015 and on forecasts for the remainder of the fiscal year. Forecasts have been made for planned results for 2016-17.

The main assumptions are as follows:

• (a) The Office of the Information Commissioner of Canada (OIC) activities will remain substantially the same as for the previous year.

• (b) Expenses, including the determination of amounts internal and external to the government, are based on historical costs, trend analysis and other analytical methodologies. The general historical pattern is expected to continue.

• (c) Estimated year end information for 2015-16 is used as the opening position for the 2016-17 planned results.

These assumptions are adopted as at December 31, 2015.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2015-16 and for 2016-17, 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 Information 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, plant and equipment may affect gains/losses and amortization expense.

• (b) Implementation of new collective agreements.

• (c) The operating budget may be modified through additional initiatives or technical adjustments later in the year.

Once the 2016-2017 Report on Plans and Priorities is presented, the Office of the Information Commissioner of Canada will not be updating the forecasts for any changes to appropriations or forecast financial information 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 in accordance with the Treasury Board accounting policies in effect for the 2015-16 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 generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Expenses

Expenses are recorded on an accrual basis. Expenses for the OIC’s operations are recorded when goods are received or services are rendered including services provided without charges for 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 under their respective terms of employment.

Expenses also include provisions to reflect changes in the value of assets, 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 OIC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the OIC 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 OIC 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 2015-16	Planned Results 2016-17
Net cost of operation	$13,088,852	$13,170,353
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(293,713)	(361,774)
Services provided without charge by other government departments	(1,557,038)	(1,557,038)
Decrease (increase) in vacation pay and compensatory leave	112,671	(10,455)
Decrease in employee severance benefits	101,453	0
Total items affecting net cost of operations but not affecting authorities	(1,636,627)	(1,929,267)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	245,000	50,000
Total items not affecting net cost of operations but affecting authorities	245,000	50,000
Requested authorities	$11,697,225	$11,291,086

(b) Authorities requested

(in dollars)	Forecast Results 2015-16	Planned Results 2016-17
Authorities requested
Vote 1 - Program expenditures	$10,323,672	$9,927,361
Statutory amounts: Contributions to employee benefit plans	1,373,553	1,363,725
Requested authorities	$11,697,225	$11,291,086