Language selection

Search

Content page

From [Institution name]

2025-26 Departmental Plan – Atlantic Canada Opportunities Agency

Future-Oriented Statement of Operations (unaudited)

For the Year Ending March 31
(in thousands of dollars)

  Forecast results  2024-25 Planned results  2025-26
Expenses    
     Economic development in Atlantic Canada 243,271 209,024
     Internal Services 34,073 34,045
     Expenses incurred on behalf of Government -3,970 -4,382
Total expenses 273,374 238,687
Revenues    
     Revenue from amortization of discount on assistance loans 17,450 13,115
     Interest on overdue loans 236 226
     Gain on disposal of tangible capital and non-capital assets 20 31
     Miscellaneous revenues 3 7
     Revenues earned on behalf of Government -17,689 -13,348
Total revenues 20 31
Net cost of operations before government funding and transfers 273,354 238,656
     

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

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 government priorities and the Atlantic Canada Opportunities Agency’s plans as described in the Departmental Plan.

The information in the forecasted results for fiscal year 2024-25 is based on actual results as at September 30, 2024, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2025-26 fiscal year.

The main assumptions underlying the forecasts are as follows:

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2024-25 and for 2025-26, 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 Atlantic Canada Opportunities Agency (ACOA) 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 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, ACOA 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 as of fiscal year 2023-24, 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 outlined below:

(a) Expenses

The Agency records expenses on an accrual basis.

Transfer payments are recorded as an expense in the year the transfer is authorized, and all eligibility criteria have been met by the recipient.

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 the amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments, advances and inventory obsolescence, as well as the utilization of inventories and prepaid expenses, and other are also included in other expenses.

(b) Revenues

Revenues from regulatory fees are recognized in the accounts 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.

Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

Revenues that are non-respendable are not available to discharge the Agency’s liabilities. Although the deputy head is expected to maintain accounting control, they have 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 Agency’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 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 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)

  Forecast results 2024-25 Planned results 2025-26
Net cost of operations before government funding and transfers 273,354 238,656
Adjustments for items affecting net cost of operations but not affecting authorities:    
     Amortization of tangible capital assets -1,366 -1,418
     Gain on disposal of tangible capital assets 20 31
     Services provided without charge by other government departments -10,434 -10,877
     Decrease in vacation pay and compensatory leave -360 -60
     Increase in employee future benefits 62 -18
     Conditions met on contributions 31,259 27,384
     Total items affecting net cost of operations but not affecting authorities 19,181 15,042
Adjustments for items not affecting net cost of operations but affecting authorities:    
     Acquisition of tangible capital assets 512 396
     Assistance loans issued on behalf of government 100,863 110,781
     Total items not affecting net cost of operations but affecting authorities 101,375 111,177
     Forecast current year lapse 7,065 -
Forecast authorities available 400,975 364,875

(b) Authorities requested (in thousands of dollars)

   Forecast results   2024-25  Planned results 2025-26
Authorities requested:    
     Vote 1 – Operating expenditures 74,103 73,125
     Vote 5 – Grants and contributions 318,242 282,252
     Statutory amounts – Employee benefit plans 8,630 9,498
     Statutory amounts - Others - -
Forecast authorities available 400,975 364,875