Crown-Indigenous Relations and Northern Affairs - Future-Oriented Statement of Operations (Unaudited) for the year ended March 31, 2025
Table of contents
Future-Oriented Statement of Operations (Unaudited)
| (in thousands of dollars) | Forecast Results 2023-24 |
Planned Results 2024-25 |
|---|---|---|
| Expenses | ||
Crown-Indigenous Relations |
4,186,952 | 4,338,312 |
Northern Affairs |
563,696 | 726,752 |
Internal Services |
279,064 | 225,014 |
Expenses incurred on behalf of Government |
580 | 14,205 |
| Total expenses | 5,030,292 | 5,304,283 |
| Revenues | ||
Human resources and administrative services |
38,124 | 20,219 |
Resource royalties |
1,800 | 658 |
Leases and rentals |
1,384 | 1,356 |
Interest on loans |
4 | 4 |
Miscellaneous |
9,224 | 9,370 |
Revenues earned on behalf of Government |
(12,411) | (11,388) |
| Total revenues | 38,125 | 20,219 |
| Net cost of operations before government funding and transfers | 4,992,167 | 5,284,064 |
| 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 departmental plans as described in the Departmental Plan..
The information in the forecast results for fiscal year 2023-24 is based on actual results as at November 30, 2023 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2024-25.
The main assumptions underlying the forecasts are as follows:
- The department's activities will remain substantially the same as in the previous year.
- Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
These assumptions are made as at November 30, 2023.
2. Variations and changes to the forecasted financial information
Although every attempt has been made to forecast final results for the remainder of 2023-24 and for 2024-25, 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, Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) 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:
- the timing and progress of negotiation and settlement of claims;
- assessments of remediation costs for contaminated sites in the North, as well as actual interest and inflation rates used to determine the net present value of the environmental liability;
- Government decisions and enabling legislation leading to additional transfer payments;
- other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.
- revenues may fluctuate based the Department’s evolving shared services model.
After the Departmental Plan is tabled in Parliament, CIRNAC 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 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 as follows:
a) Expenses
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 amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for contingent liabilities, environmental liabilities, bad debts, loans and advances, as well as prepaid expenses are also included in other expenses.
b) 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.
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 or she 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 for 2023-24 |
Planned Results for 2024-25 |
|---|---|---|
| Net cost of operations before government funding and transfers | 4,992,167 | 5,284,064 |
| Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Amortization of tangible capital assets |
(816) | (790) |
Decrease (increase) in provision for claims and litigation |
(4,342,100) | (5,341,888) |
Decrease (increase) in environmental liabilities |
56,682 | (246,344) |
Services provided without charge by other government departments |
(34,313) | (33,548) |
Decrease (increase) in vacation pay and compensatory leave |
(55,471) | (53,889) |
Decrease (increase) in employee future benefits |
(723) | 2,050 |
Bad debt expense |
(891) | (14,545) |
Decrease (increase) in other accruals |
11,011 | 3,530 |
Refunds/adjustments of previous years' expenditures |
2,545 | 2,541 |
| Total items affecting net cost of operations but not affecting authorities | (4,364,076) | (5,682,883) |
| Adjustments for items not affecting net cost of operations but affecting authorities: | ||
Expenditures related to claims and litigation |
12,807,380 | 10,678,170 |
Expenditures reducing environmental liabilities |
454,959 | 629,699 |
Expenditures related to settled claims |
4,126 | 4,126 |
Acquisition of tangible capital assets |
397 | 75 |
| Total items not affecting net cost of operations but affecting authorities | 13,266,862 | 11,312,070 |
| Requested authorities forecasted to be used | 13,894,953 | 10,913,251 |
b) Authorities requested
| (in thousands of dollars) | Forecast Results 2023-24 |
Planned Results 2024-25 |
|---|---|---|
| Authorities provided/requested | ||
Vote 1: Operating expenditures |
10,704,914 | 1,972,348 |
Vote 5: Capital expenditures |
397 | 75 |
Vote 10: Grants and Contributions |
7,037,620 | 8,908,437 |
Statutory amounts |
37,356 | 32,391 |
| Total authorities requested | 17,780,287 | 10,913,251 |
| Less: Estimated unused authorities and other adjustments | 3,885,334 | 0 |
| Requested authorities forecasted to be used | 13,894,953 | 10,913,251 |