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Future-Oriented Statement of Operations for the Year Ending March 31, 2024

Future-Oriented Statement of Operations for the year ending March 31, 2024 (PDF, 7 pages, 284 KB)

Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31 (in thousands of dollars)
Forecast results 2022-23 Planned results 2023-24
Salaries and employee benefits
$ 131,332 $ 138,856
Professional and special services
21,033 21,336
8,644 7,519
Travel and relocation
5,550 6,000
2,079 2,076
Furniture, repairs and rentals
3,709 3,139
Grants and contributions
3,954 5,630
Communication and information
1,000 1,050
Utilities, materials and supplies
400 400
200 200
Total expenses
177,901 186,206
Licence fees
120,638 126,705
Special projects
4,344 5,500
Total revenues
124,982 132,205
Net cost of operations $ 52,919 $ 54,001

The accompanying notes form an integral part of this 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 (FOSO) has been prepared on the basis of government priorities and Canadian Nuclear Safety Commission (CNSC) departmental plans as described in the 2023–24 Departmental Plan.

The information in the forecast results for fiscal year 2022–23 is based on actual results as of December 31, 2022, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2023–24.

The main assumptions underlying the forecasts are as follows:

  • The CNSC’s activities will remain substantially the same as in the previous year, with the exception of funding received to expand the CNSC’s technical ability, capacity and competency to regulate small modular reactors as well as the implementation of activities arising from funding received through the Impact Assessment Renewal Initiative, including the establishment of a new grants and contributions program, the Indigenous and Stakeholder Capacity Fund, and an increase in the funding envelope for the existing Participant Funding Program.
  • 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.
  • Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
  • Estimated year-end information for 2022–23 is used as the opening position for the fiscal year planned results.

These assumptions are made as at December 31, 2022.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2022–23 and for 2023–24, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this FOSO, the CNSC 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 FOSO and the historical statement of operations include:

  • the timing and the amount of capital asset acquisitions and disposals, which may affect gains, losses and amortization expense
  • the implementation of new collective agreements
  • economic conditions, which may affect both the amount of revenue earned and the collectability of receivables
  • 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, the CNSC 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 FOSO has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2022–23 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 CNSC 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 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, are also included in other expenses.

(b) Revenue

Revenue is recognized in the period in which the underlying transaction or event that gave rise to the revenue takes place. Licence fee revenue is recognized on a straight-line basis over the period to which the fee payment pertains (normally 3 months or 1 year). Licence fees received for future year licence periods are recorded as deferred revenue.

4. Parliamentary authorities

The CNSC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the CNSC 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 CNSC has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Forecast results 2022-23 Planned results 2023-24
Net cost of operations before government funding $ 52,919 $ 54,001
Adjustment for items affecting net cost of operations but not affecting authorities:
Add (Less):
Services provided without charge by other government departments
(17,648) (18,342)
Amortization of tangible capital assets
(2,079) (2,076)
Revenues pursuant to subsection 21(3) of the Nuclear Safety and Control Act
124,982 132,205
Decrease in employee future benefits
326 300
Decrease in vacation pay, compensatory leave and accrued liabilities not charged to authorities
(2,383) 1,376
103,198 113,463
Adjustment for items affecting net cost of operations but not affecting authorities:
Add (Less):
Acquisitions of tangible capital assets
1,208 3,000
1,208 3,000
Requested authorities $ 157,325 $ 170,464
(b) Authorities requested (in thousands of dollars)
Forecast results 2022-23 Planned results 2023-24
Authorities requested
Vote 1
$ 51,844 $ 51,986
Statutory amounts:
Expenditures pursuant to subsection 21(3) of the Nuclear Safety and Control Act
105,232 105,706
Contribution to employee benefit plan
15,600 17,158
Authorities requested
172,676 174,850
Lapsed Vote 1 - Program expenditures
10,965 -
Authorities available for use in the subsequent year
4,386 4,386
Total authorities requested $ 157,325 $ 170,464

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