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Future-Oriented Statement of Operations (Unaudited) For the Year Ending March 31

Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31

(in dollars)

  Forecast
Results
2015-16
Planned
Results
2016-17
The accompanying notes form an integral part of the future-oriented statement of operations.
Expenses
Business Development and Innovation $ 81,888,465 $ 82,851,377
Community Economic Growth 31,550,680 56,993,254
Policy, Advocacy and Coordination 10,118,070 9,385,095
Internal Services 16,728,377 13,965,032
Expenses incurred on behalf of Government (2,995,241) (56,901)
Total expenses 137,290,351 163,137,857
 
Revenues
Amortization of discount 63,391 92,016
Interest 30,366 44,086
Other 828,883 1,688
Revenues earned on behalf of Government (921,468) (136,546)
Total revenues 1,172 1,244
 
Net cost of operations before government funding and transfers $ 137,289,179 $ 163,136,613

 


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Notes to the Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31

1. Methodology and Significant Assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and departmental plans as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2015–16 is based on actual results as at November 30, 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 November 30, 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, Western Economic Diversification Canada (WD) 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, WD 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 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:

4. Parliamentary Authorities

WD is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to WD 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, WD 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
2015-16
Planned Results
2016-17
(in dollars)
Net cost of operations before government funding and transfers $ 137,289,179 $ 163,136,613
 
Adjustments for items affecting net cost of operations
but not affecting authorities:
Amortization of tangible capital assets (122,187) (42,779)
Gain (loss) on disposal of tangible capital assets 1,172 1,244
Services provided without charge by other government departments (5,764,584) (5,207,005)
Decrease in vacation pay and compensatory leave 154,181 44,249
Decrease (increase) in employee future benefits 31,887 (794)
Decrease in accrued liabilities not charged to authorities 794,838 1,283,146
Refund of previous years' expenditures 4,333,405 862,446
Total items affecting net cost of operations but not affecting authorities (571,288) (3,059,493)
 
Adjustments for items not affecting net cost of operations
but affecting authorities:
Transition payment for salary payments in arrears 22,785 0
Unconditionally repayable transfer payments 22,537,605 13,314,416
Total items not affecting net cost of operations but affecting authorities 22,560,390 13,314,416
 
Forecast current year lapse 2,482,785 0
 
Requested authorities $ 161,761,066 $ 173,391,536

b) Authorities requested

  Forecast Results
2015-16
Planned Results
2016-17
(in dollars)
Authorities requested
Vote 1 - Operating expenditures $ 41,158,128 $ 34,870,554
Vote 5 - Transfer payments 116,419,215 134,432,914
Statutory amounts 4,183,723 4,088,068
Requested authorities $ 161,761,066 $ 173,391,536
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