2018-2019 Consolidated Future-Oriented Statement of Operations (Unaudited) (PDF Version, 418 KB)
For the years ending March 31, 2018 and 2019
| Forecast Results 2017-18 |
Planned Results 2018-19 |
|
|---|---|---|
| Expenses (Note 6) | ||
| Business Risk Management | $1,133,823 | $- |
| Science, Innovation, Adoption and Sustainability | 555,504 | - |
| Market Access, Negotiations, Sector Competitiveness, and Assurance Systems | 195,704 | - |
| Industry Capacity | 65,767 | - |
| Canadian Pari-Mutuel Agency | 10,607 | - |
| Farm Products Council of Canada | 2,836 | - |
| Sector Risk | - | 1,538,456 |
| Science and Innovation | - | 557,642 |
| Domestic and International Markets | - | 261,936 |
| Internal Services | 289,487 | 262,343 |
| Total expenses | 2,253,728 | 2,620,377 |
| Revenues | ||
| Sale of goods and services | 66,563 | 67,396 |
| Interest | 17,058 | 16,818 |
| Joint project and cost sharing agreements | 8,065 | 8,036 |
| Gain on disposal of assets | 2,502 | 3,171 |
| Crop Re-insurance Fund | 2,446 | 1,144 |
| Revenues earned on behalf of Government | (30,702) | (28,584) |
| Total revenues | 65,932 | 67,981 |
| Net cost of operations before government funding and transfers | $2,187,796 | $2,552,396 |
|
- represents zero The accompanying notes form an integral part of the Consolidated Future-Oriented Statement of Operations. |
||
Notes to the Consolidated Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31
1. Departmental Core Responsibilities
In 2018-19, Agriculture and Agri-Food Canada transitioned from a reporting framework comprising Strategic Outcomes and a Program Alignment Architecture to a Departmental Results Framework comprising Core Responsibilities and Departmental Results (see note 6). For more information on the Department's Core Responsibilities, see the “Planned results” section of the Departmental Plan.
2. Methodology and significant assumptions
The Consolidated Future-Oriented Statement of Operations has been prepared on the basis of the government priorities and departmental plans as described in the Departmental Plan.
The information in the forecast results for fiscal year 2017–18 is based on actual results as at December 31, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-19.
The main assumptions underlying the forecasts are as follows:
- The Department'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 past experience. The general historical pattern is expected to continue.
- Allowances for uncollectibility are based on past experience. The general historical pattern is expected to continue.
These assumptions are adopted as at February 7, 2018.
3. Variations and changes to the forecast financial information
Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.
In preparing this Consolidated Future-Oriented Statement of Operations, Agriculture and Agri-Food Canada has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and 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 Consolidated Future-Oriented Statement of Operations and the historical statement of operations include the following:
- the timing and amount of acquisitions and disposals of property, plant and equipment, which may affect gains/losses and amortization expense;
- the implementation of new collective agreements;
- economic conditions, which may affect expenses and the amount of revenue earned;
- interest rates in effect at the time of issue, which will affect the net present value of non-interest bearing loans; 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, Agriculture and Agri-Food Canada 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.
4. Summary of significant accounting policies
The Consolidated Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for fiscal year 2017-18, 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:
- Consolidation
This Consolidated Future-Oriented Statement of Operations includes the accounts of the sub-entities that the deputy head is accountable for. The accounts of these sub-entities have been consolidated with those of the department, and all inter-organizational balances and transactions have been eliminated. The accounting entity comprises the Department of Agriculture and Agri-Food, the Farm Products Council of Canada and the Canadian Pari-Mutuel Agency. The Consolidated Future-Oriented Statement of Operations does not include the accounts of the Canadian Grain Commission, the Canadian Dairy Commission and Farm Credit Canada because they are not under the control of Agriculture and Agri-Food Canada and therefore are not consolidated.
- Expenses
The department records expenses on an accrual basis.
Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
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.
- Revenues
Revenues from regulatory fees are recognized in the accounts based on the services provided in the fiscal 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.
Funds that have been received are recorded as deferred revenue, provided the Department has an obligation to other parties for the provision of goods, services or the use of assets in the future.
Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
Revenues that are non-respendable are not available to discharge the department'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.
5. Parliamentary authorities
The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department differs from financial reporting according to generally accepted accounting principles since authorities are based mainly on cash flow requirements. Items recognized in the Consolidated Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the department 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:
- Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Parliamentary Authorities - (a) Reconciliation of net cost of operations to requested authorities Forecast Results
2017-18Planned Results
2018-19Net cost of operations before government funding and transfers $2,187,796 $2,552,396 Adjustments for items affecting net cost of operations but not affecting authorities: Amortization of tangible capital assets (38,813) (40,540) Gain (Loss) on disposal of tangible capital assets (6,576) 1,159 Non-cash changes of tangible capital assets 501 700 Services provided without charge by other government departments (59,465) (58,419) Increase (decrease) in prepaid and inventory (4,377) (1,467) Decrease (increase) in vacation pay and compensatory leave (2,437) (358) Decrease (increase) in accrued liabilities 2,580 1,983 Decrease (increase) in employee future benefits 766 2,728 Decrease (increase) in allowances for bad debt expenses (5,930) (9,653) Refund and adjustment of prior years' expenditures 2,926 (589) Respendable revenue 5,882 6,460 Other 3,901 (2,205) Total items affecting net cost of operations but not affecting authorities (101,042) (100,201) Adjustments for items not affecting net cost of operations but affecting authorities: Acquisitions of tangible capital assets 58,229 44,743 Proceeds from disposal of tangible capital assets (2,704) (2,693) Increase (decrease) in loan receivables 19,646 21,700 Increase (decrease) in inventory 58 58 Increase (decrease) in receivables from external parties – transition payment for pay in arrears 4 - Total items not affecting net cost of operations but affecting authorities 75,233 63,808 Requested authorities $2,161,987 $2,516,003 - represents zero - Authorities requested (in thousands of dollars)
Forecast
Results
2017-18Planned
Results
2018-19Authorities requested: Vote 1 - Operating expenditures $606,456 $568,454 Vote 5 - Capital expenditures 80,136 54,888 Vote 10 - Transfer payments 394,758 425,525 Statutory amounts 1,305,958 1,467,136 Total authorities requested 2,387,308 2,516,003 Less: Estimated unused authorities and other adjustments 225,321 - Requested authorities forecast to be used $2,161,987 $2,516,003 - represents zero
6. Comparative information
Because of significant differences between Agriculture and Agri-Food Canada's previous Program Alignment Architecture and its new Departmental Results Framework, expenses for 2017–18 and 2018–19 could not be prepared on the same basis. The 2017–18 expenses are presented by Program in accordance with the Department's previous Program Alignment Architecture, whereas expenses for 2018–19 are presented by Core Responsibility in accordance with the new Departmental Results Framework.