Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2015

Military Police Complaints Commission

For the year ended March 31
  Estimated
Results
2014-15
Planned
Results
2015-16
(in dollars)
Net cost of operations $5,459,742 $5,005,111
Expenses
Complaints Resolution Program $3,275,845 $2,446,690
Internal Services 2,183,897 2,558,421
Total expenses 5,459,742 5,005,111
 

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 (MPCC) as described in the Report on Plans and Priorities.

The information in the estimated results for the fiscal year 2014-15 is based on actual results as at December 31, 2014 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2015-16 fiscal year.

The main assumptions underlying the forecasts are as follows:

  1. The MPCC’s activities will remain substantially the same as in the previous year; and
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.

These assumptions are adopted as at December 31, 2014.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2014-15 and for 2015-16, 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 MPCC 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 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 the following:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense;
  2. Implementation of new collective agreements and;
  3. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, 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 Performance Report.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using the Government of Canada'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 MPCC'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, which are recorded as expenses at their estimated cost. Vacation pay is accrued and expenses are recorded as the benefits are earned by employees under their 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 MPCC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the MPCC do not parallel financial reporting according to generally accepted accounting principles because 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 MPCC 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
2014-15
Planned
2015-16
(in dollars)
Requested authorities $8,638,187 $5,614,814
Net cost of operations $5,459,742 $5,005,111
 
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (173,830) (236,456)
Amortization of tangible capital assets (30,703) (30,779)
Change in vacation pay and compensatory leave 46,783 (629)
Change in prepaid expenses (6,500) 0
Total items affecting net cost of operations but not affecting authorities (164,250) (267,864)
 
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets including work in progress 175,356 877,567
Change in prepaid expenses 6,500 0
Total items not affecting net cost of operations but affecting authorities 181,856 877,567
 
Forecast current year lapse 3,160,839 0
     
(b) Authorities Requested
  Estimated
2014-15
Planned
2015-16
(in dollars)
Authorities requested:
Requested authorities $8,638,187 $5,614,814
Vote 1 - Operating expenditures $8,190,764 $5,158,208
Statutory amounts 447,423 456,606
 
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