Future-Oriented Statement of Operations (Unaudited) - For the year ending March 31, 2023

Infrastructure Canada Future-Oriented Statement of Operations (unaudited)
for the year ending March 31
(in thousands of dollars)
N/A Forecast results
Planned results
Public Infrastructure, Communities and Rural Economic Development Policy 38,624 59,753

Public Infrastructure and Communities Investments

22,528 40,448
Public Infrastructure and Communities Investment Oversight and Delivery 6,812,182 9,248,687
Internal Services 57,914 61,979
Total expenses 6,931,258 9,410,867
Other Revenues 2,308 2,470
Revenues earned on behalf of government (2,308) (2,470)
Total revenues - -
Net cost of operations before government funding and transfers 6,931,258 9,410,867

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

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 Department Plan.

The information in the forecast results for fiscal year 2021-22 is based on actual results as at November 30, 2021, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2022-23.

The main assumptions underlying the forecasts are as follows:

  • The department’s activities will remain substantially the same as in the previous year.
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.
  • Forecast results for 2021-22 are based on anticipated cash flow requirements of contribution program recipients.

These assumptions are made as at January 20, 2022.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, 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, INFC has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on 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 historical statement of operations include:

  • the timing and amounts of acquisitions and disposals of capital assets may affect gains/losses and amortization expense;
  • the implementation of new collective agreements;
  • the timing at which recipients submit claims for reimbursement under INFC’s various transfer payment programs; and
  • other changes to contributions (and operating budgets) through approval of additional new infrastructure initiatives or technical adjustments later in the year.

After the Departmental Plan is tabled in Parliament, INFC 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 2021-22 fiscal year, 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:

  1. Expenses
  2. 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 including 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.

  3. Revenues
  4. Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

    Other revenues are recognized in the period the event giving rise to the revenues occurred. 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 earned on behalf of the Government of Canada and are therefore presented as a reduction of the department’s gross revenues

4. Parliamentary Authorities

INFC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to INFC 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, INFC 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 thousands of dollars)
N/A Forecast results
Planned results
Net cost of operations before government funding and transfers 6,931,258 9,410,867
Adjustment for items affecting net cost of operations but not affecting authorities:
 Amortization of tangible capital assets (54,975) (56,458)
 Services provided without charge by other government departments (11,783) (15,130)
 Increase in employee future benefits (2,020) (1,700)
 Decrease in vacation pay and compensatory leave 541 (1,986)
 Refunds of previous years' expenditures 7,918 7,632
 Decrease of year-end accrual related to Budget Implementation Act 2,170,316 -
Total items affecting net cost of operations but not affecting authorities 2,109,997 (67,642)
Adjustment for items not affecting net cost of operations but affecting authorities:
 Acquisition of tangible capital assets 20,332 6,649
 Change in salary overpayments 476 -
Total items not affecting net cost of operations but affecting authorities 20,808 6,649
Requested authorities forecasted to be used 9,062,063 9,349,874

b) Authorities requested
(in thousands of dollars)
N/A Forecast Results
Planned Results
Authorities requested:
  • Vote 1: Operating expenditures
197,630 242,735
  • Vote 5: Capital expenditures
102,068 13,804
  • Vote 10: Contributions
4,259,214 6,805,354
  • Statutory amounts:
    • Employee Benefit Plan
12,976 18,829
    • Canada Community Building Fund
4,490,082 2,268,967
    • Minister's Salary and Motor Car Allowance
93 185
Total authorities requested 9,062,063 9,349,874