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2019-20 Departmental Plan

Future-Oriented Statement of Operations (Unaudited)
Office of the Chief Electoral Officer
For the year ending March 31, 2020

Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31
(in thousands of dollars)
Forecast Results
2018-19
Planned Results
2019-20
Expenses
Voting Services Delivery and Field Management $83,675 $319,201
National Register of Electors and Electoral Geography 13,678 10,379
Electoral Integrity and Regulatory Compliance 15,859 98,845
Electoral Information and Awareness 20,310 34,332
Internal Services 73,850 53,038
Total expenses 207,372 515,795
Revenues
Excess contributions and donations 40 165
Fines and court awards 1 -
Miscellaneous revenues 38 55
Revenues earned on behalf of government (79) (220)
Total revenues - -
Net cost of operations before government funding and transfers $207,372 $515,795

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, 2020

1. Methodology and Significant Assumptions

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

The information in the forecast results for fiscal year 2018-19 is based on actual results as at September 30th, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2019-20 fiscal year.

The main assumptions underlying the forecasts are as follows:

  1. Assumptions are made according to the requirements of government accounting policies which are based on Canadian public sector accounting standards;
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on the historical trend and forecasted requirements. The general historical pattern is expected to continue taking into account the electoral cycle and the priorities of the Office. Forecast results for 2018-19 include election readiness activities, by-elections and investments in asset renewal and modernization of electoral services. The planned results for 2019-20 include the completion of the event readiness activities and the conduct of the October 2019 general election.

These assumptions are adopted as at September 30th, 2018.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast the final results for the remainder of 2018-19 and for 2019-20, 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:

  1. The timing and the amounts of acquisitions and disposals of tangible capital assets, which may affect gains, losses and amortization expenses;
  2. The timing, duration and costs of by-elections, general elections, referendum and event readiness;
  3. The implementation of new collective agreements;
  4. The implementation of legislative changes;
  5. 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 2018-2019 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:

  1. 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 worker's 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 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.

  2. 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 is funded by an annual appropriation and the statutory authorities contained in the Canada Elections Act, the Referendum Act and the Electoral Boundaries Readjustment Act. 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 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)
Forecast Results
2018-19
Planned Results
2019-20
Net cost of operations before government funding and transfers $207,372 $515,795
Adjustments for items affecting net cost of operations but not affecting authorities
Amortization of tangible capital assets (5,173) (5,269)
Services provided without charge by other government departments (12,022) (14,304)
Decrease in employee severance benefits liability 188 188
Increase in provision for vacation leave and other benefits (529) (859)
Consumable supplies 2,875 (3,638)
Prepaid expenses (2,349) (2,090)
Total items affecting net cost of operations but not affecting authorities (17,010) (25,972)
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets (excluding capital leases) 7,680 1,555
Prepaid expenses 2,694 1,858
Total items not affecting net cost of operations but affecting authorities 10,374 3,413
Requested authorities $200,736 $493,236


(b) Authorities requested
(in thousands of dollars)
Forecast Results
2018-19
Planned Results
2019-20
Authorities requested:
Program expenditures Vote 1 $33,787 $39,218
Electoral and other statutory expenditures 158,434 441,395
Statutory contributions to employee benefit plans 9,924 12,623
202,145 493,236
Less:
Forecasted current year lapse Program expenditures (1,409) -
Requested authorities $200,736 $493,236