2020-2021 Future Oriented Statement of Operations

Impact Assessment Agency of Canada
Future-Oriented Statement of Operations (unaudited)
For the Year Ending March 31, 2021
(in dollars)

	Forecast Results 2019-20	Planned Results 2020-21
Expenses
Environmental Assessment Delivery Program	44,417,997	46,238,904
Environmental Assessment Policy Program	14,090,009	14,667,626
Internal Services	23,674,006	24,644,518
Total expenses	82,182,012	85,551,048
Revenues
Environmental assessment and training services	2,300,000	3,100,000
Miscellaneous revenues	0	0
Revenues earned on behalf of government	0	0
Total revenues	2,300,000	3,100,000
Net Cost of operations before government funding and transfers	79,882,012	82,451,048

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to the Consolidated Future-Oriented Statement of Operations (unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of the government’s priorities and departmental plans as described in the Departmental Plan.

Forecast Results for fiscal year 2019-2020 are based on actual results as at December 31, 2019 and on forecasts for the remainder of the fiscal year. Planned Results are based on forecasts made for the 2020-2021 fiscal year.

The main assumptions underlying the forecasts are as follows:

• Following the coming into force of the Impact Assessment Act in August 2019, which changed the name of the Agency to the new Impact Assessment Agency of Canada and expanded the Agency’s mandate in conducting environmental and impact assessments. Following a period of rapid growth the Agency’s activities will now remain substantially similar year over year;
• Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience;
• Allowances are based on historical experience and the most up-to-date information possible.

These assumptions are valid as of January 31, 2020.

2. Variations and changes to forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2019-2020 and for 2020-2021, actual results achieved for both years are likely to differ from the forecast information presented, and this variance could be material.

In preparing this Future-Oriented Statement of Operations, the Agency has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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 Future-Oriented Statement of Operations and the Statement of Operations include:

• the timing and the amount of acquisitions and disposals of equipment which may affect gains/losses and amortization expense;
• the implementation of new collective agreements;
• economic conditions, which may affect both the amount of revenue earned and the collectability of receivables;
• 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, the Agency 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.

3. Summary of Significant Accounting Policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2019-2020, 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:

a) Expenses

The Agency records expenses on an accrual basis.

Grants and contributions in the form of transfer payments are recorded as an expense in the year the transfer is authorized and issued, 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 as well as utilization of inventories and prepaid expenses, and others are also included in other expenses.

b) Revenues

Revenues from fees are recognized based on the services provided in the fiscal year.

Other revenues are recognized in the period the event giving rise to the revenues occurred.

4. Parliamentary authorities

The Agency is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Agency differs from financial reporting according to generally accepted accounting principles because authorities are based mainly 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 Agency 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 2019-20	Planned Results 2020-21
Net cost of operations before government funding and transfers	79,882,012	82,451,048
Adjustments for items affecting net cost of operations but not affecting authorities
Services provided without charge by other government departments	(5,654,018)	(5,900,759)
Increase in vacation pay and compensatory leave	(117,095)	(127,019)
Decrease for employee future benefits	52,247	49,856
Refund of previous years’ expenditures	11,867	10,269
Total items affecting net cost of operations but not affecting authorities	(5,706,999)	(5,967,653)
Requested authorities	74,175,013	76,483,395

b) Authorities requested (in dollars)

	Forecast results 2019–20	Planned results 2020–21
Authorities requested
Vote 1: Operating expenditures	53,511,120	51,710,081
Vote 10: Grants and Contributions	14,525,184	18,939,140
Statutory amounts	6,138,709	5,834,174
Total authorities requested	74,175,013	76,483,395