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Future-oriented statement of operations
For the year ending March 31, 2023 and March 31, 2024

Future Oriented Statement of Operations (Unaudited)

For the year ending March 31

(in thousands of dollars)
  Forecast results
Planned results
Fisheries $1,533,654 $1,103,213
Aquatic ecosystems 504,927 388,837
Marine navigation 324,495 317,593
Marine operations and response 970,570 924,517
Internal services 572,858 553,645
Total expenses 3,906,504 3,287,805
Sales of goods and services 83,159 82,559
Other revenues 6,506 4,785
Revenues earned on behalf of Government (49,654) (47,333)
Total revenues 40,011 40,011
Net cost of operations before government funding and transfers $3,866,493 $3,247,794

The accompanying notes form an integral part of the 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 based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2022-23 is based on actual results as at October 31, 2022, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2023-24.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at October 31, 2022.


2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2022-23 and for 2023-24, 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, Fisheries and Oceans Canada 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, Fisheries and Oceans Canada 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 fiscal year 2022-23, 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

    Expenses are recorded on an accrual basis.

    Expenses for Fisheries and Oceans Canada’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, legal services and workers’ 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 terms of employment.

    Transfer payments are recorded as expenses when the recipients have met all the eligibility criteria and the transfers are authorized by March 31. In the case of transfers that do not form part of an existing program, the transfers are considered to be authorized when the government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.

    Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable, inventory obsolescence or liabilities, including contingent liabilities, environmental liabilities, and asset retirement obligations to the extent the future event is likely to occur and a reasonable estimate can be made.

    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 based on the services provided in the fiscal year.

    Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

    Funds that have been received are recorded as deferred revenue, provided the department has an obligation to other parties for the provision of goods, services or the use of assets in the future.

    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 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 department’s gross revenues.


4. Parliamentary Authorities

The department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department 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 department 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 $3,866,493 $3,247,794
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (339,353) (360,200)
Net loss on disposal of tangible capital assets (13,172) (13,370)
Services provided without charge by other government departments (164,410) (162,759)
Decrease in vacation pay and compensatory leave 8,955 10,450
Increase in environmental liability (4,965) (5,064)
Decrease in contingent liabilities 32,517 0
Decrease in employee future benefits 4,311 3,522
Bad debt expense 273 273
Refunds of previous years’ expenditures 7,610 7,807
Increase in earmarked supplementary fines (36) (29)
Decrease in prepaid expenses (5,367) (8,867)
Accretion expense on asset retirement obligation (12,079) (13,150)
Other 4,788 5,335
Total items affecting net cost of operations but not affecting authorities (480,928) (536,052)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 1,471,650 1,381,611
Increase in inventory 16,685 17,997
Total items not affecting net cost of operations but affecting authorities 1,488,335 1,399,608
Requested authorities $4,873,900 $4,111,350

(b) Authorities requested

(in thousands of dollars)
  Forecast results
Planned results
Authorities requested
Vote 1 – Operating expenditures $2,241,185 $2,010,994
Vote 5 – Capital expenditures 1,471,650 1,381,611
Vote 10 – Grants and contributions 967,405 532,402
Statutory amounts 193,660 186,343
Total authorities requested $4,873,900 $4,111,350

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