Future-Oriented Statement of Operations for the Years Ending March 31, 2021 and March 31, 2022

Table of contents

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

  Forecast Results 2020- 21 Planned Results 2021- 22
 Independent regulatory and dispute-resolution services for transportation providers and users 34,086,676 27,257,334
  Internal Services 12,984,255 11,461,446
Total expenses 47,070,931 38,718,780
  Revenues from fines 11,750 131,150
  Sales of goods and services 6,486 -
  Other revenues 20 60
  Revenues earned on behalf of Government (18,256) (131,210)
Total revenues - -
Net cost of operations before government funding and transfers $ 47,070,931 $ 38,718,780

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


Notes to the Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31

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 2020-21 is based on actual results as at November 30, 2020 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2021-22.

The main assumptions underlying the forecasts are as follows:

  1. The CTA's mandate and activities will remain substantially the same as in the previous year.
  2. 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 with the exception of administrative monetary penalties (AMPs). It is not possible to accurately forecast revenues related to AMPs associated with enforcement activities.
  3. Based on resources provided, the CTA will deliver the expected results specified in the Departmental Plan.
  4. Estimated information is based on the parliamentary appropriations granted to the CTA through its 2020-21 Main Estimates.

These assumptions are made as at November 30, 2020.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2020-21 and for 2021-22, 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 CTA has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. They are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

  1. further changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year;
  2. the timing and amount of acquisitions and disposals of equipment, which may affect gains, losses and amortization expense;
  3. the implementation of new collective agreements; and
  4. economic conditions, which may affect both the amount of revenue earned and the collectability of receivables.

After the Departmental Plan is tabled in Parliament, the CTA 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 Government of Canada’s accounting policies in effect for fiscal year 2020-21, 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

The CTA records expenses on an accrual basis.

Expenses for the CTA’s operations are 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. Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, legal services and workers' compensation are recorded as operating expenses at their estimated cost. Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable and inventory obsolescence, or liabilities, including contingent liabilities, to the extent the future event is likely to occur and a reasonable estimate can be made.

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.

b) Revenues

All revenues, including AMPs, miscellaneous non tax revenue (e.g. access to information fees), and gain on disposal of assets, 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 CTA's liabilities. Although the Chair and CEO 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 in reduction of the CTA's gross revenues.

4. Parliamentary Authorities

The CTA is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the CTA differs from financial reporting according to generally accepted accounting principles because authorities are primarily based 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 CTA 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 dollars)

  Forecast Results 2020- 21 Planned Results 2021- 22
Net cost of operations before government funding and transfers $ 47,070,931 $ 38,718,780
Adjustments for items affecting net cost of operations, but not affecting authorities:
  Amortization of tangible capital assets (226,152) (277,969)
  Gain (loss) on disposal of tangible capital assets 6,486 2,474
  Services provided without charge by other government departments (4,686,286) (4,403,218)
  Decrease (increase) in vacation pay and compensatory leave (513,895) (642,985)
  Decrease (increase) in employee future benefits 241,550 (371,168)
  Refunds of previous years' expenditures 678 3,118
Total items affecting net cost of operations but not affecting authorities (5,177,619) (5,689,748)
Adjustment for items not affecting net cost of operations but affecting authorities:
  Acquisitions of tangible capital assets 189,972 365,206
  Increase (decrease) in inventory 892 3,734
  Increase (decrease) in prepaid expenses 40,940 18,738
Total items not affecting net cost of operations but affecting authorities 231,804 387,678
Requested authorities $ 42,125,116 $ 33,416,710

b) Authorities requested (in dollars)

  Forecast Results 2020-21 Planned Results 2021-22
Authorities requested
  Vote 1 - Operating expenditures $ 37,093,135 $ 30,665,444
  Statutory amounts 5,031,981 2,751,266
Total authorities requested $ 42,125,116 $ 33,416,710
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