Language selection

Search

Archived information

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Future-Oriented Statement of Operations and Notes 2022-2023

Table of Contents

Future-Oriented Statement of Operations (Unaudited)

Future-Oriented Statement of Operations

For the year ending March 31 (in thousands of dollars)Forecast Results 2021-2022Planned Results 2022-2023
Expenses
International Advocacy and Diplomacy900,959920,350
Trade and Investment386,322403,239
Development, Peace and Security Programming4,917,4814,588,216
Help for Canadians Abroad58,43663,534
Support for Canada's Presence Abroad1,111,0871,129,999
Internal Services310,081300,794
Expenses incurred on behalf of Government(358,824)(317,693)
Total expenses7,325,542 7,088,439
Revenues
Net gain on disposal of tangible capital assets6,3343,337
Sales of goods and services96,138120,822
Amortization of discount on loans40,10242,388
Foreign exchange unrealized gain56,38662,143
Miscellaneous revenues21,61226,156
Revenues earned on behalf of Government(172,534)(209,298)
Total revenues48,03845,548
Net cost of operations before government funding and transfers7,277,5047,042,891

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 based on government priorities and departmental plans as described in the Departmental Plan.

The forecasts presented in the Future-Oriented Statement of Operations are based on reasonable and supportable assumptions that are based on an analysis of the past performance of Global Affairs Canada. The main assumptions underlying the forecasts are as follows:

These assumptions are adopted as at January 10, 2022.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, 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, Global Affairs 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 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 also include:

Once the Departmental Plan is tabled in Parliament, Global Affairs Canada will not be updating the forecasts for any changes to appropriations or forecast financial information 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 2021-22 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

Expenses are recorded on an accrual basis. Expenses for Global Affairs 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 are accrued and expenses are recorded as employees under their respective terms of employment earn the benefits.

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. Unconditionally Repayable transfer payments and transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being 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 and provision for valuation on loans, investments and advances, or liabilities, including contingent liabilities, to the extent that the future event is likely to occur and a reasonable estimate can be made at the time of the preparation of the Future-Oriented Statement of Operations.

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.

Expenses related to assets that are not available to discharge Global Affairs Canada's liabilities are considered to be incurred on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross expenses.

(b) Revenues

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

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

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

Revenues that are non-respendable are not available to discharge Global Affairs Canada's liabilities. While the Deputy Head is expected to maintain accounting control, the person in this position 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 department's gross revenues.

4. Parliamentary Authorities

Global Affairs Canada is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Items recognized in Global Affairs Canada's Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, Global Affairs 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 2021-2022Planned Results 2022-2023
Net cost of operations before government funding and transfers7,277,5047,042,891
Adjustments for items affecting net cost of operations but not affecting authorities:
Add (Less):
Services provided without charge by other government departments(124,960)(122,003)
Amortization of tangible capital assets(95,127)(96,515)
Refunds of prior years' expenditures11,54719,336
Refund of Payments related to Public Health Events of National Concern and
income support10,5742,397
Loss on disposal and write-off of tangible capital assets(1,172)(4,922)
Bad debt expense(92)(2,263)
Increase in vacation pay and compensatory leave(9,694)(11,112)
Increase in employee future benefits(10,817)(11,941)
Total items affecting net cost of operations but not affecting authorities(219,741)(227,023)
Adjustments for items not affecting net cost of operations but affecting authorities:
Add (Less):
Acquisitions of tangible capital assets100,599200,867
Decrease in prepaid expenses(3,589)(3,844)
Transfer payments to IFI issued on behalf of Government257,018256,748
Uncondionally Repayable Contributions issued on behalf of Government643,000202,500
Debt forgiveness on behalf of Government020,162
Loss on foreign exchange on behalf of Government56,38662,143
Total items not affecting net cost of operations but affecting authorities1,053,414 738,576
Estimated lapses and other adjustments401,235 0
Requested authorities8,512,412 7,554,444
b) Authorities requested (in thousands of dollars)Forecast Results 2021-2022Planned Results 2022-2023
Vote 1 - Operating expenditures2,042,5751,893,258
Vote 5 - Capital expenditures149,849200,867
Vote 10 - Grants & contributions5,796,0444,904,813
Vote 15 - Payments, in respect of pension, insurance and social security
programs or other arrangements for Locally-Engaged Staff85,47391,817
Statutory amounts438,471443,527
Authorities available from previous years
Debt forgiveness20,16220,162
Authorities available for future years
Debt forgiveness(20,162)0
Requested authorities8,512,412 7,554,444
Date Modified: