Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2018

Military Police Complaints Commission of Canada
Future-Oriented Statement of Operations (unaudited)
For the year ended March 31
(in dollars)
Expenses Forecast Results
2017‑18
Planned Results
2018‑19
Independent oversight of the Military Police 2,796,130 2,737,273
Internal Services 2,345,686 2,361,134
Total expenses 5,141,816 5,098,407
Net cost of operations before government funding and transfers 5,141,816 5,098,407

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 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 31, 2017 and on 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:

These assumptions are made as at December 31, 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 Military Police Complaints Commission of Canada (MPCC) 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:

After the Departmental Plan is tabled in Parliament, the MPCC 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 2017‑18, 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 department records expenses on an accrual basis.

Transfer payments are recorded as an expense 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 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.

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
2017‑18
Planned Results
2018‑19
Net cost of operations before government funding and transfers 5,141,816 5,098,407
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (253,764) (239,841)
Amortization of tangible capital assets (220,164) (217,983)
Decrease (increase) in vacation pay and compensatory leave 19,575 11,815
Total items affecting net cost of operations but not affecting authorities (454,353) (446,009)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets including work in progress 100,072 65,000
Total items not affecting net cost of operations but affecting authorities 100,072 65,000
Forecast current year lapse 91,930 0
Requested authorities 4,879,465 4,717,398
(b) Authorities Requested (in dollars)
Authorities requested: Forecast Results
2017‑18
Planned Results
2018‑19
Vote 1 - Operating expenditures 4,449,113 4,288,506
Statutory amounts 430,352 428,892
Total authorities requested 4,879,465 4,717,398
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