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2020-2021 Consolidated Future-Oriented Statement of Operations (Unaudited)

For the years ending March 31, 2020 and 2021

2020-2021 Consolidated Future-Oriented Statement of Operations (Unaudited) for the years ending March 31, 2020 and 2021 (PDF Version 418 KB)

Consolidated Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31
(in thousands of dollars)
Forecast Results
2019-20
Planned Results
2020-21
Expenses
Sector Risk $1,246,931 $1,524,984
Domestic and International Markets 617,720 259,058
Science and Innovation 570,616 593,495
Internal Services 284,635 263,486
Total expenses 2,719,902 2,641,023
Revenues
Sale of goods and services 62,357 66,030
Interest 17,191 17,813
Gain on disposal of assets 11,302 1,026
Joint project and cost sharing agreements 9,468 11,002
Crop Re-insurance Fund 500 740
Revenues earned on behalf of Government (36,215) (32,102)
Total revenues 64,603 64,509
Net cost of operations before government funding and transfers $2,655,299 $2,576,514

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

Notes to the Consolidated Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31

1. Methodology and significant assumptions

The Consolidated 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 2019–20 is based on actual results as at November 30, 2019 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2020-21.

The main assumptions underlying the forecasts are as follows:

These assumptions are made as at December 2, 2019.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2019-20 and for 2020-21, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Consolidated Future-Oriented Statement of Operations, Agriculture and Agri-Food 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 Consolidated Future-Oriented Statement of Operations and the historical statement of operations include:

After the Departmental Plan is tabled in Parliament, Agriculture and Agri-Food 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 Consolidated Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for fiscal year 2019-20, 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:

4. Parliamentary authorities

Agriculture and Agri-Food Canada 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 since authorities are based mainly on cash flow requirements. Items recognized in the Consolidated Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, Agriculture and Agri-Food Canada 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
2019-20
Planned Results
2020-21
Net cost of operations before government funding and transfers $2,655,299 $2,576,514
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (40,653) (40,750)
Gain (Loss) on disposal of tangible capital assets 7,193 (3,115)
Services provided without charge by other government departments (52,699) (52,624)
Increase (decrease) in prepaid expenses and inventory (154) (119)
Increase (decrease) in restricted accounts 5,510 -
Decrease (increase) in vacation pay and compensatory leave (4,636) (423)
Decrease (increase) in accrued liabilities not charged to authorities (8,569) 147
Decrease (increase) in environmental liabilities 110 -
Decrease (increase) in employee future benefits 1,672 2,835
Decrease (increase) in allowances for bad debt expenses (8,018) (10,144)
Refund and adjustment of prior years' expenditures 8,594 9,280
Respendable revenue 4,400 5,118
Other 3,192 (2,173)
Total items affecting net cost of operations but not affecting authorities (84,058) (91,968)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 51,324 39,930
Proceeds from disposal of tangible capital assets (11,357) (1,042)
Increase (decrease) in loan receivables 17,471 15,841
Increase (decrease) in inventory 137 137
Total items not affecting net cost of operations but affecting authorities 57,575 54,866
Requested authorities forecast to be used $2,628,816 $2,539,412
- represents zero
b) Parliamentary Authorities - Authorities provided/requested (in thousands of dollars)
Forecast Results
2019-20
Planned Results
2020-21
Authorities provided/requested
Vote 1 - Operating expenditures $610,490 $593,830
Vote 5 - Capital expenditures 63,036 39,930
Vote 10 - Transfer payments 477,341 431,713
Vote 15 - Compensation Adjustments 17,486 -
Statutory amounts 1,816,407 1,473,939
Total authorities provided/requested 2,984,760 2,539,412
Less: Estimated unused authorities and other adjustments 355,944 -
Requested authorities forecast to be used $2,628,816 $2,539,412
- represents zero
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