Infrastructure Canada Future-Oriented Statement of Operations (unaudited)
for the year ending March 31
(in thousands of dollars)

N/A	Forecast results 2020-21	Planned results 2021-22
Expenses
Public Infrastructure	5,196,024	-
Public Infrastructure, Communities and Rural Economic Development Policy	-	29,701
Public Infrastructure and Communities Investments	-	16,446
Public Infrastructure and Communities Investment Oversight and Delivery	-	6,748,725
Internal Services	66,423	46,942
Total expenses	5,262,447	6,841,814
Revenues
Other Revenues	2,295	2,308
Revenues earned on behalf of government	(2,295)	(2,308)
Total revenues	-	-
Net cost of operations before government funding and transfers	5,262,447	6,841,814

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

1. Authority and Objectives

The Office of Infrastructure of Canada (INFC) was created in 2002 as a separate organization under Schedule I.1 of the Financial Administration Act. The applied name for this organization is Infrastructure Canada. INFC is funded through annual and statutory appropriations received from the Parliament of Canada and is not taxable under the provisions of the Income Tax Act. As per the Financial Administration Act, the Minister of Infrastructure and Communities is accountable and responsible to Parliament for INFC.

Infrastructure Canada works closely with all orders of government and other partners to enable investments in social, green, public transit and other core public infrastructure, as well as trade and transportation infrastructure.

Starting in fiscal year 2021-22, INFC will be reporting on its mandate under three core responsibilities and internal services, as indicated and described below:

Public Infrastructure, Communities and Rural Economic Development Policy: Set policies for both public infrastructure and rural economic development that target the needs of Canadians and stakeholders (public/private partners) while considering finite resources.

• Rural Economic Development Policy
• Major Bridges Policy
• Public Infrastructure and Communities Policy
• Alternative Financing Policy

Public Infrastructure and Communities Investments: Identify investment opportunities across a range of funding mechanisms aim to maximize value-for-money as the federal Government directs investment into infrastructure.

• Alternative Financing Investment
• Public Infrastructure and Communities Investment
• Major Bridges Investment

Public Infrastructure and Communities Investment Oversight and Delivery: Conduct oversight to ensure recipients comply with project requirements and projects are delivered according to agreements.

• Allocation- and Merit-Based Funding Oversight
• Major Bridges Oversight
• Alternative Financing Oversight

Internal Services: Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct services that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Management Services; Materiel Management Services; and Acquisition Management Services.

2. 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 Department 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:

• 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 experience. The general historical pattern is expected to continue.
• Forecast results for 2020-21 are based on anticipated cash flow requirements of contribution program recipients;

These assumptions are adopted as at January 12, 2021.

3. 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, INFC 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;
• economic conditions, which may affect both the amount of revenues earned and the collectability of loan receivables;
• the timing at which recipients submit claims for reimbursement under INFC's various transfer payment programs; and
• further changes to contributions (and operating budgets) through approval of additional new infrastructure initiatives or technical adjustments later in the year.

After the Departmental Plan is tabled in Parliament, INFC 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.

4. 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 the 2020-21 fiscal year, 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 including 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

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 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

5. Parliamentary Authorities

INFC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to INFC 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, INFC 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)

N/A	Forecast results 2020-21	Planned results 2021-22
Net cost of operations before government funding and transfers	5,262,447	6,841,814
Adjustment for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(55,539)	(56,423)
Services provided without charge by other government departments	(8,712)	(9,907)
Increase in vacation pay and compensatory leave	(2,717)	(2,956)
Increase in employee future benefits	(813)	(609)
Refunds of previous years' expenditures	2,916	2,661
Total items affecting net cost of operations but not affecting authorities	(64,865)	(67,234)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	63,706	66,233
Change in salary overpayments	284	-
Total items not affecting net cost of operations but affecting authorities	63,990	66,233
Requested authorities forecasted to be used	5,261,572	6,840,813

b) Authorities requested
(in thousands of dollars)

N/A	Forecast Results 2020-21	Planned Results 2021-22
Authorities requested:
Vote 1: Operating expenditures	134,566	156,413
Vote 5: Capital expenditures	63,706	66,233
Vote 10: Contributions	2,884,457	4,338,537
Statutory amounts:
Employee Benefit Plan	8,438	10,573
Gas Tax Fund	2,170,316	2,268,967
Minister's Salary and Motor Car Allowance	89	90
Total authorities requested	5,261,572	6,840,813