Future-Oriented Financial Statements for the Years Ending March 31, 2020 and March 31, 2021

Future-Oriented Statements of Operations (unaudited)

For the Year Ended March 31
  Forecast results
(in dollars)
2019-20
Planned results
(in dollars)
2020-21
The accompanying notes form an integral part of the Future-Oriented Statement of Operations.
Expenses
Civilian review of RCMP members' conduct in the performance of their duties
$9,190,929 $8,410,865
Internal services
3,261,724 2,984,891
Total expenses 12,452,653 11,395,756
Revenues
Miscellaneous revenue
5,312 4,509
Revenues earned on behalf of government
(5,312) (4,509 )
Total revenues - -
Net cost of operations before government funding and transfers $12,452,653 $11,395,756

Notes to the Future-Oriented Statements of Operations (unaudited)

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 2019–20 is based on actual results as at December 24th, 2019 and on forecasts for the remainder of the fiscal year.  Forecasts have been made for the planned results for the 2020-21 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The commission'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 24th, 2019.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2019–20 and for 2020–21, 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 Civilian Review and Complaints Commission for the RCMP 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 collective agreements; 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 Civilian Review and Complaints Commission for the RCMP 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 2019–20, 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 commission records expenses on an accrual basis.

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.

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.

Other revenues are recognized in the period the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the commission'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 commission is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the commission 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 commission 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
  Forecast results
(in dollars)
2019-20
Planned results
(in dollars)
2020-21
Net cost of operations before government funding and transfers $12,452,653 $11,395,756
Adjustment for items affecting net cost of operations but not affecting authorities:    
Amortization of tangible capitals assets
(84,411) (84,411)
Services provided without charge by other government departments
(1,188,952) (1,187,973)
Decrease (increase) in vacation pay and compensatory leave
311 (9,608)
Decrease (increase) in employee future benefits
14,156 2,433
Adjustments to previous years' payables at year-end
51,555 27,060
Refunds of previous years' expenditures
4,491 4,2429
Total items affecting net cost of operations but not affecting authorities
(1,231,162) (1,248,257)
Adjustment for items not affecting net cost of operations but affecting authorities:
Increase in salary overpayments
9,493 36,387
Increase in other loans and advances to employees
0 2,701
Total items not affecting net cost of operations but affecting authorities
9,493 39,088
Requested authorities $11,230,983 $10,186,587


b) Authorities requested
  Estimated
(in dollars)
2019-20
Planned
(in dollars)
2020-21
Authorities requested:
Vote 1 – Operating expenditures
$10,235,241 $9,284,989
Statutory amounts
995,743 901,598
Total authorities requested $11,230,984 $10,186,587
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