Date of Publishing:

Future-Oriented Statement of Operations (Unaudited)

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

	Forecast results 2023–24	Planned results 2024–25
Expenses
National Security and Intelligence Reviews and Complaints Investigations	10,078	8,361
Internal Services	8,709	12,039
Total expenses	18,787	20,400
Revenues
Miscellaneous revenues	–	–
Total revenues	–	–
Net cost of operations after government funding and transfers	18,787	20,400

The accompanying notes form an integral part of these 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 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 National Security and Intelligence Review Agency Secretariat (NSIRA) will continue to experience important growth in the upcoming year.
• Significant recruitment efforts will be made across all business lines to reach 100 full-time equivalents (FTEs).
• The accommodation, infrastructure and systems investments projects will continue in order to support NSIRA’s new expanded mandate and workforce.

These assumptions are made as at December 8, 2024.

2. Variations and changes to the forecast 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 the Future-Oriented Statement of Operations, NSIRA 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:

• the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
• the implementation of new collective agreements; and
• other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, NSIRA will not be updating 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

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 bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

(b) Revenues

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 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 2023–24	Planned results 2024–25
Net cost of operations before government funding and transfers	18,787	20,401
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(315)	(287)
Services provided without charge by other government departments	(1,242)	(1,483)
Increase in vacation pay and compensatory leave	166	(2)
Increase in employee future benefits	0	(4)
Refund of prior years’ expenditures	(82)
Total items affecting net cost of operations but not affecting authorities	(1,407)	(1,776)
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets	2,970	–
Increase in inventory	–	–
Increase in prepaid expenses	(34)	(50)
Total items not affecting net cost of operations but affecting authorities	2,936	(5)
Requested authorities forecasted to be used	20,316	18,575

(b) Authorities provided/requested

(in thousands of dollars)

	Forecast results 2023–24	Planned results 2024–25
Authorities provided/requested:
Vote 1:  Operating Expenditures	21,254	16,810
Statutory amounts	1,755	1,765
Total authorities provided/requested	23,009	18,575
Less:  Estimated unused authorities and other adjustments	2,693	–
Requested authorities forecasted to be used	20,316	18,575