2017–18 Departmental Plan

Future-Oriented Statement of Operations (Unaudited)
Office of the Chief Electoral Officer
For the year ending March 31, 2018

Future-Oriented Statement of Operations (Unaudited)

For the Year Ending March 31, 2018
Expenses
	(in thousands of dollars)
	Forecast Results 2016–17	Planned Results 2017–18
Electoral Operations	$46,645	$51,344
Regulation of Electoral Activities	14,867	11,486
Electoral Engagement	9,184	9,742
Internal Services	45,692	44,172
Total expenses	116,388	116,744
Revenues
Excess contributions and donations	327	158
Fines and court awards	2	-
Miscellaneous revenues	26	25
Revenues earned on behalf of government	(355)	(183)
Total revenues	-	-
Net cost of operations before government funding and transfers	$116,388	$116,744

The accompanying notes form an integral part of the future-oriented statement of operations.

Notes to Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31, 2018

1. Methodology and Significant Assumptions

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

The information in the forecast results for fiscal year 2016–17 is based on actual results as at October 31, 2016, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2017–18 fiscal year.

The main assumptions underlying the forecasts are as follows:

Assumptions are made according to the requirements of government accounting policies which are based on Canadian public sector accounting standards.
Expenses and revenues, including the determination of amounts internal and external to the government, are based on the historical trend. The general historical pattern is expected to continue taking into account the electoral cycle. Forecast results for 2016–17 include post-election activities following the 2015 general election as well as initial investments in asset renewal and modernization of electoral services. The planned results for 2017–18 increase slightly as the planned investment in renewing the assets and modernizing electoral services intensifies toward the 2019 general election.

These assumptions are adopted as at October 31, 2016.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast the final results for the remainder of 2016–17 and for 2017–18, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the Office 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 historical 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 timing and the amounts of acquisitions and disposals of tangible capital assets, which may affect gains, losses and amortization expenses;
The timing and costs of by-elections, general elections, referendums and event readiness;
The implementation of new collective agreements;
The adoption and implementation of electoral reform; 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, the Office 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 the 2016–2017 fiscal year and 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:

Expenses – Expenses are recorded on an accrual basis.

Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, audit services and workers' compensation coverage are recorded as operating expenses, at their estimated cost, in the Future-Oriented Statement of Operations.

Vacation pay, compensatory leave and severance benefits are accrued, and expenses are recorded as the benefits are earned by employees under their respective terms of employment.

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria or the entitlements established in the political financing provisions of the Canada Elections Act and when authorization for the payment exists. Transfer payments that become repayable as a result of conditions specified in the Act that have come into being are recorded as a reduction to the transfer payment expense and as a receivable.

Expenses include provisions to reflect changes in the value of assets, such as provisions for bad debt on accounts receivable, inventory obsolescence or liabilities. The latter includes contingent liabilities to the extent that 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.
Revenues – Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.

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 Office's liabilities. While the Chief Electoral Officer is expected to maintain accounting control, he has no authority regarding 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 entity's gross revenues.

4. Parliamentary Authorities

The Office receives most of its funding through annual parliamentary authorities and the statutory authorities contained in the electoral legislation. 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 Office has a 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
Adjustments for items affecting net cost of operations but not affecting authorities Add (less):
	(in thousands of dollars)
	Forecast Results 2016–17	Planned Results 2017–18
Net cost of operations before government funding and transfers	$116,388	$116,744
Amortization of tangible capital assets	(5,434 )	(4,145)
Services provided without charge by other government departments	(10,358)	(10,090)
Change in employee severance benefits liability	119	136
Change in provision for vacation leave and other benefits	414	216
Consumable supplies	968	232
Prepaid expenses	(2,006)	(2,282)
Total items affecting net cost of operations but not affecting authorities	(16,297)	(15,933)
Adjustments for items not affecting net cost of operations but affecting authorities Add (less):
Acquisition of tangible capital assets (excluding capital leases)	4,481	8,908
Prepaid expenses	1,502	2,489
Total items not affecting net cost of operations but affecting authorities	5,983	11,397
Requested authorities	$106,997	$112,208

(b) Authorities requested
Authorities requested:
	(in thousands of dollars)
	Forecast Results 2016–17	Planned Results 2017–18
Program expenditures – Vote 1	$30,714	$29,253
Electoral and other statutory expenditures	71,949	76,215
Statutory contributions to employee benefit plans	7,036	6,740
	109,699	112,208
Less:
Forecasted current year lapse – Program expenditures	(2,702)	-
Requested authorities	$106,997	$112,208

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