Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2016

Military Police Complaints Commission of Canada
Future-Oriented Statement of Operations (unaudited)
For the year ended March 31
(in dollars)
Expenses Forecast Results
2015‑16
Planned Results
2016‑17
Complaints Resolution Program $2,455,642 $2,491,866
Internal Services 2,430,123 2,648,320
Total expenses 4,885,765 5,140,186
Net cost of operations before government funding and transfers $4,885,765 $5,140,186

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 Report on Plans and Priorities.

The information in the forecast results for the fiscal year 2015‑16 is based on actual results as at December 31, 2015 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2016‑17 fiscal year.

The main assumptions underlying the forecasts are as follows:

These assumptions are adopted as at December 31, 2015.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2015‑16 and for 2016‑17, 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 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 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:

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's accounting policies that came into effect for the 2015‑16 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 accommodation, employer contributions to health and dental insurance plans, legal services and workers’ 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 terms of employment.

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement or, in the case of transactions that do not form part of an existing program, when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statement. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.

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 (in dollars)
  Forecast Results
2015‑16
Planned Results
2016‑17
Net cost of operations before government funding and transfers $4,885,765 $5,140,186
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (214,195) (252,930)
Amortization of tangible capital assets (61,272) (194,704)
Decrease (increase) in vacation pay and compensatory leave 917 (22,241)
Total items affecting net cost of operations but not affecting authorities (274,550) (469,875)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets including work in progress 1,170,854 15,000
Total items not affecting net cost of operations but affecting authorities 1,170,854 15,000
Forecast current year lapse 88,883 0
Requested authorities $5,870,952 $4,685,311
(b) Authorities Requested (in dollars)
Authorities requested: Forecast Results
2015‑16
Planned Results
2016‑17
Vote 1 - Operating expenditures 5,414,346 4,217,527
Statutory amounts 456,606 467,784
Requested authorities 5,870,952 4,685,311
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