Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2014

Military Police Complaints Commission

For the year ended March 31
  Estimated
Results
2013-14
Planned
Results
2014-15
(in dollars)
Net cost of operations $6,317,896 $5,281,513
Expenses
Complaints Resolution Program $3,983,333 $2,639,664
Internal Services 2,334,563 2,641,849
Total expenses 6,317,896 5,281,513
 

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 has been prepared on the basis of the government priorities and the plans of the Military Police Complaints Commission (the Commission) as described in the Report on Plans and Priorities.

The information in the estimated results for the fiscal year 2013-14 is based on the actual results as at December 31, 2013 and forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2014-15 fiscal year.

The main assumptions underlying the forecasts are as follows:

These assumptions are adopted as at December 31, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2013-14 and for 2014-15, 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 Commission 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:

Once the Report on Plans and Priorities is presented, the Commission will not be updating the forecasts for any changes for any changes in financial resources 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 using the Government's accounting policies that came into effect for the 2011-12 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 public sector accounting standards.

Significant accounting policies are as follows:

(a) Expenses

Expenses are recorded on an accrual basis. Expenses for the Commission's operations are recorded when goods are received or services are rendered including services provided without charges for employee contributions to health and dental insurance plans 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 provisions for bad debt on accounts receivable, provision for valuation on loans, investments and advances and inventory obsolescence or liabilities, including contingent liabilities and environmental 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 Commission is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Commission 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 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
  Estimated
2013-14
Planned
2014-15
(in dollars)
Requested authorities $6,293,370 $5,618,520
Net cost of operations $6,317,896 $5,281,513
 
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge (178,608) (225,067)
Amortization of tangible capital assets (42,066) (62,866)
Change in employee future benefits 138,764 -
Revenue not available for spending 66 -
Change in vacation pay and compensatory leave 15,482 (12,134)
Refunds of prior year's expenditures 3,786 -
Total items affecting net cost of operations but not affecting authorities (62,576) 4,981,446
 
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 38,050 637,074
 
(b) Authorities Requested
  Estimated
2013-14
Planned
2014-15
(in dollars)
Authorities provided
Requested authorities $6,293,370 $5,618,520
Vote 25 - Operating expenditures $10,878,279 $5,171,097
Statutory amounts 248,134 447,423
  11,126,413 5,618,520
Less:    
Lapsed: Operating (4,833,043) -
 
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