Future-oriented Statement of Operations 2018–19 (unaudited)

For the year ended March 31 (in thousands of dollars)
  Forecast results
Planned results
Independent safety investigations and communication of risks in the transportation system 30,785 28,167
Internal services 7,696 7,042
Total expenses 38,481 35,209
Miscellaneous revenues 46 35
Total revenues 46 35
Net cost of operations before government funding and transfers 38,435 35,174

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 Departmental Plan.

The information in the forecast results for fiscal year 2017-18 is based on actual results as at February 1, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2018-19.

The main assumptions underlying the forecasts are as follows:

  • The Transportation Safety Board of Canada (TSB)'s activities will remain substantially the same as in the previous year. In particular, there are no major occurrences for which the TSB will need to seek additional vote funding in order to fulfill its mandate.
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
  • The estimated expense relating to three years of retroactive payments for expired collective agreements has been included in part in 2017-18 forecasted results, with the remainder in 2018-19 planned results.

These assumptions are made as at February 1, 2018.

2. Variations and changes to the forecast financial information

Although every attempt has been made to accurately forecast final results for the remainder of 2017-18 and 2018-19, 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, the TSB 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 past 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 the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
  • the implementation of new collective agreements; and
  • other changes to the operating budget, such as new initiatives or technical adjustments in either fiscal year or significant transportation occurrences.

After the Departmental Plan is tabled in Parliament, the TSB 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's accounting policies in effect for fiscal year 2017-18, 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:

(a) Expenses

The TSB records expenses 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 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.

4. Parliamentary authorities

The TSB is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the TSB 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, the TSB 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
Planned results
Net cost of operations before government funding and transfers 38,435 35,174
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (4,084) (4,108)
Amortization of tangible capital assets (1,128) (1,153)
Decrease in employee future benefits 82 82
Increase in vacation pay and compensatory leave (333) (341)
Accrual for unratified collective agreements (95) -
Revenues 46 35
Total items affecting net cost of operations but not affecting authorities (5,512) (5,485)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 616 500
Total items not affecting net cost of operations but affecting authorities 616 500
Requested authorities 33,539 30,189
(b) Authorities requested: (in thousands of dollars)
  Forecast results
Planned results
Vote 1 – Operating Expenditures 27,740 26,962
Transfer from TB - Vote 15 - Compensation adjustments 1,220 -
Transfer from TB - Vote 25 - Operating Budget Carry Forward 1,309 -
Transfer from TB - Vote 30 - Paylist requirements 202 -
Statutory contributions to employee benefit plans 3,522 3,227
Spending of revenues as per Financial Administration Act Section 29.1 16 -
Statutory spending of proceeds from the disposal of surplus crown assets 30 -
  34,039 30,189
Forecasted current year lapse (500) -
Total  authorities requested 33,539 30,189

Authorities presented for 2017-18 forecast results 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. In accordance with direction from the Treasury Board Secretariat, authorities for planned results for 2018-19 consist of Main Estimates amounts only.

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