Copyright Board of Canada (116)

Copyright Board of Canada
Future-Oriented Statement of Operations (Unaudited)
For the year ended March 31

(in dollars)
	Estimated Results 2014-15		Planned Results 2015-16
Expenses
Tarrif Setting and Issuance of Licences	$ 2,880,747		$ 2,875,043
Internal Services	675,731		674,393
Total expenses	3,556,478		3,549,436
Net cost of operations	$ 3,556,478		$ 3,549,436

The accompanying notes form an integral part of these financial statements

Copyright Board of Canada
Notes to the Future-Oriented Statement of Operations (Unaudited)
At March 31

1. Authority and Objectives         

The Copyright Board of Canada is an independent administrative agency which has been conferred department status for purposes of the Financial Administration Act. Its mandate stems from the Copyright Act.

The Copyright Board’s principal mandate is to set royalties which are fair and equitable for both copyright owners and users of copyright-protected works, as well as issuing non-exclusive licences authorizing the use of works when the copyright owner cannot be located.

The Copyright Board has two program activities:

• copyright tariff setting and issues of licences; and
• Internal services.

The Act requires that the Board certify tariffs in the following fields: the public performance or communication of musical works and of sound recordings of musical works, the retransmission of distant television and radio signals, the reproduction of television and radio programs by educational institutions and private copying. In other fields where rights are administered collectively, the Board can be asked by a collective society to set a tariff; if not, the Board can act as an arbitrator if the collective society and a user cannot agree on the terms and conditions of a licence.

The Copyright Board of Canada reports annually to Parliament through the Minister of Industry.

2. Methodology and Significant Assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and departmental plans as described in the Report on Plans and Priorities (RPP).

The main assumptions are as follows:

• The Copyright Board of Canada’s activities will remain substantially the same as for the previous year.
• Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
• Estimated year end information for 2014-15 is used as the opening position for 2015–16 planned results.

These assumptions are adopted as at December 31, 2014.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2014- 15 and for 2015-16, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing the future-oriented statements of operations the Copyright Board of Canada has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include:

1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
2. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the RPP is presented, the Copyright Board of 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 Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared in accordance with the Treasury Board accounting policies in effect for the 2014-15 fiscal year. These accounting policies, stated below, are 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:

1. Parliamentary appropriations
   
   The Copyright Board of Canada is financed by the Government of Canada through Parliamentary appropriations. Financial reporting of authorities provided to the Copyright Board of Canada do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations are not necessarily the same as those provided through authorities from Parliament. Note five provides a high-level reconciliation between the two bases of reporting.
   
   
2. Expenses
   
   Expenses are recorded on an accrual basis. Expenses for Copyright Board of Canada’s operations are recorded when goods are received or services are rendered including services provided without charges for accommodation and employee contributions to health and dental insurance plans which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave as well as severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment.
   
   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.
   
   

5. Parliamentary Authorities

The Copyright Board of Canada receives most of its funding through annual parliamentary authorities. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary appropriations in prior, current or future years. Accordingly, the Copyright Board of 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 the net cost of operations to requested authorities

(in dollars)
	Estimated Results 2014-15		Planned Results 2015-16
Net cost of operations	$ 3,556,478		$ 3,549,436
Adjustments for items affecting net cost of operations but not affecting appropriations
Services provided without charge	(430,186)		(438,249)
Amortization of tangible capital assets	(9,980)		-
Forecast authorities available	$ 3,116,312		$ 3,111,187

b) Authorities requested

(in dollars)
	Estimated Results 2014-15		Planned Results 2015-16
Budgetary authorities
Vote 45 - Operating expenditures	$ 2,829,969		$ 2,825,400
Statuory Amounts	286,343		285,787
Requested authoritites	$ 3,116,312		$ 3,111,187