Future-Oriented Statement of Operations
Canada Border Services Agency (Agency Activities)
Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31

(in thousands of dollars)
  Forecast Results 2019 Planned Results 2020
Expenses
Border Management 1,622,853 1,508,324
Internal Services 383,398 398,485
Border Enforcement 241,002 218,589
Total expenses 2,247,253 2,125,398
Revenues
Sales of goods and services 21,578 21,578
Other 2,118 2,118
Revenues earned on behalf of government (5,266) (5,266)
Total revenues 18,430 18,430
Net cost of operations before government funding and transfers 2,228,823 2,106,968
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 Departmental Plan.

The information in the forecast results for fiscal year 2018-2019 is based on actual results as at December 6, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the fiscal year 2019-2020.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at December 6, 2018.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2018-2019 and for 2019-2020, 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 CBSA 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:

After the Departmental Plan is tabled in Parliament, the CBSA 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 fiscal year 2018-2019, 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 CBSA records expenses on an accrual basis.

Other expenses are generally recorded when goods are received or services are rendered and include 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 provision for bad debts and other are also included in other expenses.

b) Revenues

Revenues reported in the Future-Oriented Statement of Operations include regulatory fees collected on behalf of the Government of Canada under legislation such as the Immigration and Refugee Protection Act and the Canadian Food Inspection Agency Act.

These revenues are recognized in the period in which the related expenses are incurred.

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 CBSA’s liabilities. Although the president of the CBSA is expected to maintain accounting control, he has no authority over 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 CBSA’s gross revenues.

4. Parliamentary Authorities

The CBSA is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the CBSA 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 CBSA 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 2019 Planned Results 2020
Net cost of operations before government funding and transfers 2,228,823 2,106,968
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (72,964) (75,600)
Gain (loss) on disposal of tangible capital assets 23 (522)
Services provided without charge by other government departments (159,508) (162,946)
Increase in vacation pay and compensatory leave (1,886) (1,886)
Decrease in employee future benefits 3,917 3,917
Bad debt expense (437) (437)
Refunds of previous years' expenditures 4,588 4,588
Total items affecting net cost of operations but not affecting authorities (226,267) (232,886)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 157,512 140,874
Proceeds from disposal of tangible capital assets (37) (49)
Total items not affecting net cost of operations but affecting authorities 157,475 140,825
Requested authorities 2,160,031 2,014,907

b) Authorities requested

(in thousands of dollars)
  Forecast Results 2019 Planned Results 2020
Authorities requested
Vote 1 – Operating expenditures 2,042,767 1,773,158
Vote 5 – Capital expenditures 264,389 176,092
Statutory amounts 192,441 190,455
Total 2,499,597 2,139,705
Total authorities available for future year (274,308) (124,798)
Authorities to transfer or lapse (65,258) -
Total (339,566) (124,798)
Requested authorities 2,160,031 2,014,907
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