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Royal Canadian Mounted Police

Future-Oriented Statement of Operations (Unaudited) of Royal Canadian Mounted Police for the year ending March 31, 2025

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RCMP
Royal Canadian Mounted Police

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Royal Canadian Mounted Police Future-Oriented Statement of Operations (unaudited) for the year ending March 31, 2025

Table 1: Royal Canadian Mounted Police
Future-Oriented Statement of Operations (unaudited)
for the year ending March 31, 2025
(in thousands of dollars)
Forecast results 2023‑24 Planned reults 2024‑25
Expenses
Contract and Indigenous Policing
4,742,986 4,567,039
Federal Policing
1,289,048 1,233,727
Specialized Policing Services
902,572 769,228
Internal Services
864,755 768,732
Expenses incurred on behalf of Government
(97) (453)
Total expenses 7,799,264 7,338,273
Revenues
Policing services
3,056,654 3,139,782
Firearms licence fees
34,650 36,275
Other revenues
47,844 51,750
Revenues earned on behalf of Government
(999,691) (1,035,398)
Total revenues 2,139,457 2,192,409
Net cost of operations before government funding and transfers 5,659,807 5,145,864

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, 2025

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared based on 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 October 31, 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 activities of the Royal Canadian Mounted Police (RCMP) 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 and known changes to future conditions

These assumptions are made as at February 1, 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 this Future-Oriented Statement of Operations, the RCMP 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 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 the amount of revenue earned
  • 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 RCMP 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 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

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 and inventory obsolescence, as well as utilization of inventories are also included in other expenses.

(b) Revenues

Revenues from regulatory fees are recognized based on the services provided in the fiscal year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

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 RCMP’s liabilities. Although the Commissioner is expected to maintain accounting control, he 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 RCMP’s gross revenues.

4. Parliamentary authorities

The RCMP is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the RCMP 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 RCMP has a 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:

Table 2: Reconciliation of net cost of operations to requested authorities
(in thousands of dollars)
Forecast results 2023‑24 Planned reults 2024‑25
Net cost of operations before government funding and transfers 5,659,807 5,145,864
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets
(208,182) (231,712)
Loss on disposal and write-off of tangible capital assets
(4,280) (4,280)
Services provided without charge by other government departments
(475,882) (451,995)
Increase in vacation pay and compensatory leave
(19,684) (5,347)
Increase in employee future benefits
(30,737) (15,595)
Bad debt expense
(2,577) (66)
Increase in respendable accounts receivable
107,093 129,886
Total items affecting net cost of operations but not affecting authorities
(634,249) (579,109)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets (excluding assets under capital leases)
452,649 262,585
Lease payments for tangible capital assets
658 696
Increase in inventory
(4,369) (4,880)
Total items not affecting net cost of operations but affecting authorities
448,938 258,401
Requested authorities forecasted to be used 5,474,496 4,825,156
Table 3: Authorities requested
(in thousands of dollars)
Forecast results 2023‑24 Planned reults 2024‑25
Authorities requested
Vote 1 - Operating expenditures
3,671,029 2,992,139
Vote 5 - Capital expenditures
452,649 262,585
Vote 10 - Grants and Contributions
765,969 29,845
Vote 15 - Payments in respect of disability and health benefits for members of the Royal Canadian Mounted Police
- 952,070
Statutory amounts
584,849 588,517
Total authorities requested 5,474,496 4,825,156
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