Future-Oriented Statement of Operations (Unaudited) 2014-2015

Canadian Space Agency

For the Year Ending March 31
(in thousands of dollars)
Estimated
2014
$
Planned
2015
$
Expenses
Space Exploration 142,864 147,149
Space Data, Information and Services 82,535 82,985
Future Canadian Space Capacity 54,988 61,504
Internal Services 49,791 50,215
Total Expenses 330,178 341,853
Revenues
Sale of goods and services 2,000 2,600
Sale of rights and privileges 437 -
Location and use of public property 340 349
Other revenues 16 -
Revenues earned on behalf of Government (2,793) (2,949)
Total Revenues - -
Net cost of operations 330,178 341,853

The accompanying notes are an integral part of these future-oriented financial statements.

Notes to the Future-Oriented Statement of Operations (Unaudited)

1. Methodology and Significant Assumptions

The Future-oriented Statement of Operations has been prepared on the basis of the government priorities and the plans of the Canadian Space Agency "Agency" as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2013-2014 is based on actual results as at October 31, 2013 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2013-2014 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The Agency's activities will remain substantially the same as for the previous year but are adjusted to reflect the funding level;
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue;

These assumptions are adopted as at December 13, 2013.

2. Variations and Changes to Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2013-2014 and for 2014-2015, 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 Canadian Space Agency has made estimates and assumptions concerning 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:

  • The timing and amounts of acquisitions and disposals of capital assets may affect gains/losses on disposal of assets and amortization expense.
  • Implementation of new collective agreements.
  • Economic conditions may affect both the amount of revenue earned and the collectability of external accounts receivable.
  • Further changes to the operating budget through additional new initiatives or technical adjustments in the year.

Once the Report on Plans and Priorities is presented, the Canadian Space Agency will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates.

3. Summary of Significant Accounting Policies

The Future-oriented Statement of Operations has been prepared using the Government's accounting policies that came into effect for the 2011-2012 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 standards.

Significant accounting policies are as follows:

(a) Expenses

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

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement or, in the case of transactions which do not form part of an existing program, 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 statement. Transfer payments that become repayable as a result of conditions specified in the contribution agreement are recorded as a reduction to transfer payment expense and as a receivable.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts 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.

(b) Revenues

Revenues from regulatory fees are recognized based on the services provided in the year.

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

Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the deputy head 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 in reduction of the entity's gross revenues.

4. Parliamentary Authorities

The Agency is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Agency do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based 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 Agency 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) Estimated
2014
$
Planned
2015
$
Net cost of operations 330,178 341,853
Adjustments for items affecting net cost of operations but not affecting authorities
Amortization of tangible capital assets (76,623) (77,703)
Services provided without charge by other government departments (5,812) (5,510)
Refund of previous years' expenditures 596 596
Increase (decrease) in accrued liabilities not charged to authorities 2 (5)
Decrease in severance benefits 286 923
Decrease in vacation pay and compensatory leave 828 239
Loss on disposal and write-offs of tangible capital assets (261) (100)
Change in non-monetary exchange CSA/NASA (2,000) (3,100)
247,194 257,193
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets 210,329 263,965
Decrease in prepaid expenses (44,979) (45,000)
165,350 218,965
Requested authorities 412,544 476,158

(b) Requested authorities

(in thousands of dollars) Estimated
2014
$
Planned
2015
$
Requested Authorities
Vote 25 - Operating expenditures 163,704 162,967
Vote 30 - Capital expenditures 205,407 263,965
Vote 35 - Grants and contributions 32,685 39,307
Statutory amounts 10,748 9,919
Requested Authorities 412,544 476,158

The requested authorities planned for 2015 reflect main estimates as shown in the Report on Plans and Priorities ($462.4 million) combined with expected estimates to be allocated from Treasury Board central votes.