Indigenous Services Canada – Future-Oriented Statements of Operations for the Year Ending March 31, 2019

Consult: Crown Indigenous Relations and Northern Affairs – Future-Oriented Statements of Operations for the Year Ending March 31, 2019

Table of contents

Future-Oriented Statement of Operations (Unaudited)
For the Year Ended March 31

(in thousands of dollars) Forecast Results
2017-18
Planned Results
2018-19
Expenses
Individuals and Families
1,609,713 4,327,318
First Nations and Inuit Health
1,331,930 3,269,193
Community and Regional Development
1,395,924 1,836,811
Internal Services
30,392 109,810
Rights and Self-Determination
44,558 0
Expenses incurred on behalf of Government
(5,740) (5,871)
Total expenses 4,406,777 9,537,261
Revenues
Finance and administrative services
72,658 159,703
Interest on loans
810 200
Leases and rentals
40 94
Miscellaneous
35 63
Revenues earned on behalf of Government
(857) (303)
Total revenues 72,686 159,757
Net cost of operations before government funding and transfers 4,334,091 9,377,504
  • The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to the Future-Oriented Statement of Operations (Unaudited)
For the Year Ended March 31

1. Methodology and Significant Assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of the government priorities and departmental plans as described in the Departmental Plan.

The information in the forecasted results for fiscal year 2017-18 is based on actual results as at October 31, 2017 and forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-19.

The main assumptions underlying the forecasts are as follows:

  1. the department's activities will remain substantially the same as the previous year;
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue;
  3. Indigenous Services Canada had been created on November 30, 2017 by the transfer of two programs of Indigenous and Northern Affairs Canada (INAC) and one program of Health Canada. Estimates and assumptions have been made by the INAC and Health Canada historical data on these three programs.
  4. Allowances for uncollectibles are based on historical experience.

These assumptions are adopted as of December 31, 2017.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast the final results for the remainder of 2017-18 and for 2018-19, actual results achieved for both years are likely to differ from the forecasted information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the Indigenous Services Canada 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:

  1. the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
  2. the implementation of new collective agreements;
  3. economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
  4. interest rates in effect at the time issue, which will affect the net present value of non-interest-bearing loans; and
  5. other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Department Plan is tabled in Parliament, Indigenous Services Canada 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 the fiscal year 2017-2018, 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:

  1. Expenses

    The department records expenses on an accrual basis.

    Transfer payments are recorded as an expenses in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

    Other 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 bad debts, loans, investments and advances, as well as utilization of prepaid expenses, and other are also included in other expenses.

  2. Revenues

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

    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. Although the deputy head is expected to maintain accounting control, he or she 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 department differs from financial reporting according to generally accepted accounting principles since 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 authorities requested (in thousands of dollars)
  Forecast Results
2017-18
Planned Results
2018-19
Net cost of operations before government funding and transfers 4,334,091 9,377,504
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets
(4,354) (5,529)
Gain (loss) on disposal of tangible capital assets
9 5
Services provided without charge by other government departments
(21,598) (58,719)
Bad debt expense (not incurred on behalf of government)
(1,232) (2,140)
Decrease (increase) in vacation pay and compensatory leave
(1,631) (1,334)
Decrease (increase) in employee future benefits
(239) 969
Increase (decrease) in transfer payment accrual
12,996 (1,244)
Other
0 (1)
Refunds/adjustments of previous years' expenditures
19,961 43,607
Total items affecting net cost of operations but not affecting authorities 3,912 (24,386)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets
7,448 5,520
Proceeds from disposal of Crown assets
16 38
Total items not affecting net cost of operations but affecting authorities 7,464 5,558
Requested authorities 4,345,467 9,358,676
b. Authorities requested (in thousands of dollars)
  Forecast Results
2017-18
Planned Results
2018-19
Authorities requested:
Vote 1 – Operating expenditures 734,804 1,543,631
Vote 5 – Capital expenditures 7,448 5,519
Vote 10 – Grants and contributions 3,560,528 7,726,188
Statutory amounts 42,687 83,338
Total authorities requested 4,345,467 9,358,676
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