Future-Oriented Statement of Operations (Unaudited) for the year ending March 31, 2015

Future-Oriented Statement of Operations (Unaudited) for the Year Ending March 31 (in dollars)
Expenses Estimated Results 2013-2014 Planned  Results 2014-2015
Review and Appeal Hearings $1,331,472 $1,312,419
Internal Services 410,750 382,956
Total expenses 1,742,222 1,695,375
Net cost of operations $1,742,222 $1,695,375

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

Notes to the Future-Oriented Statement of Operations (Unaudited) for the Year Ending March 31, 2015

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 estimated results for fiscal year 2013-2014 is based on actual results as at December 31, 2013 and on forecasts for the remainder of the fiscal year.  Forecasts have been made for the planned results for the 2014-2015 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The Transportation Appeal Tribunal of Canada's (TATC) activities will remain substantially the same as for the previous year;
  • Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

These assumptions are adopted as at December 31, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2013-2014 and for 2014-2015, 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, TATC 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 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 amount of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense. 
  • Implementation of new collective agreements.
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, TATC 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 2013-2014 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:

Expenses

Expenses are recorded on the accrual basis. Expenses for the Department operations are recorded when goods are received or services are rendered including services provided without charge for accommodation, employee contributions to health and dental insurance plans, legal services and worker's 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 respective terms of employment.

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

TATC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to TATC do not parallel financial reporting according to generally accepted accounting principles since 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, TATC 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 

  Estimated 2013-2014 (in dollars) Planned 2014-2015
Net cost of operation  $1,742,222 $1,695,375
Adjustment for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (3,465) (5,465)
Services provided without charge by other government departments (263,777) (270,039)
Decrease in employee future benefits 12,713 -
Other expenditures not affecting authorities (10,781) -
Total items affecting net cost of operations but not affecting authorities (265,310) (275,504)
Adjustment for items not affecting net cost of operations but affecting  appropriations:
Acquisition of tangible capital assets 12,000 -
Total items not affecting net cost of operations but  affecting authorities 12,000 -
Requested authorities $1,488,912 $1,419,871

(b) Authorities requested

  Estimated 2013-2014 (in dollars) Planned 2014-2015
Authorities requested 1,371,571 1,293,021
Vote 55 – Operating expenditures  
Statutory amounts 126,850 126,850
Less:  
Authorities available for future years (9,509) -
Requested authorities 1,488,912 1,419,871