Future-oriented Statement of Operations 2015

For the Year Ended March 31 (in thousands of dollars)
  Estimated Results
2014-15
Planned Results
2015-16
Expenses
Air occurrence investigations 15,271 14,921
Marine occurrence investigations 5,694 5,834
Rail occurrence investigations 6,004 6,346
Pipeline occurrence investigations 650 715
Internal services 7,251 7,566
Total expenses 34,870 35,382
Revenues
Miscellaneous revenues 30 35
Total revenues 30 35
Net cost of operations 34,840 35,347

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

Notes to 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 Report on Plans and Priorities.

The information in the estimated results for 2014-15 is based on actual and forecasted amounts for the fiscal year. The forecasting of planned results for 2015-16 future information is compiled on the basis of historical costs and trends.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for 2014-15 and 2015-16, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

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 as a result of significant transportation accidents or budget adjustments in either year.

Once the Report on Plans and Priorities is presented, TSB will not be updating the forecasts for any changes to appropriations or forecast financial information 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 2014-15 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 principles.

Significant accounting policies are as follows:

(a) Expenses

Expenses are recorded on an accrual basis. Expenses for the department's operations are recorded when goods are received or services are rendered including services provided without charge for accommodation, employer's contributions to health and dental insurance plans 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.

(b) Revenues

Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenue takes place.

4. Parliamentary Authorities

The TSB receives its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the TSB has different net results 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)
  Estimated Results
2014-15
Planned Results
2015-16
Net cost of operations 34,840 35,347
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (3,922) (3,921)
Amortization of tangible capital assets (1,022) (1,108)
Decrease (Increase) in employee future benefits 747 (25)
Increase in vacation pay and compensatory leave (23) (24)
Accrual for unratified collective agreements (226) (342)
Revenues 30 35
Total items affecting net cost of operations but not affecting authorities (4,416) (5,385)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 1,348 366
Transition payment 723 0
Total items not affecting net cost of operations but affecting authorities 2,071 366
Forecasted authorities available 32,495 30,328
(b) Authorities requested: (in thousands of dollars)
  Estimated Results
2014-15
Planned Results
2015-16
Operating expenditures - Vote 1 26,038 26,290
Transfer from TB - Vote 15 - Compensation adjustments 784 220
Transfer from TB - Vote 25 - Operating Budget Carry Forward 657 300
Transfer from TB - Vote 30 - Paylist requirements 1,806 -
Statutory contributions to employee benefit plans 3,480 3,483
Spending of revenues as per Financial Administration Act Section 29.1 17 21
Statutory spending of proceeds from the disposal of surplus crown assets 13 14
  32,795 30,328
Less:
Forecasted current year lapse (300) -
Forecasted authorities available 32,495 30,328

Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board Central votes.