Future-Oriented Financial Statements of
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

For the Year 2011-12

Unaudited

Statement of Management Responsibility

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at December 31st, 2010 and reflect the plans described in the Report on Plans and Priorities.

The transactions and financial statements of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) have not been audited.

___________________
Jeanne M. Flemming
Director
FINTRAC
Ottawa, Canada

___________________
Date
___________________
Margaret Baxter
Chief Financial Officer
FINTRAC
Ottawa, Canada

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Date

FUTURE-ORIENTED STATEMENT OF OPERATIONS (Unaudited)
For the Year (Ended March 31)

(In thousands of dollars) Estimated
Results
2011 1		 Forecast
2012
TRANSFER PAYMENTS
Egmont Group Secretariat $800 $-
Total Transfer Payments $800 $-
 
OPERATING EXPENSES
Salaries and employee benefits $34,293 $34,590
Amortization of tangible capital assets 5,340 5,874
Accommodations 3,425 5,590
Repairs and maintenance 3,415 4,659
Professional and special services 3,411 4,687
Travel and relocation 1,177 1,386
Telecommunication services 615 772
Utilities, materials and supplies 347 435
Machinery and equipment 260 326
Communication services 123 154
Other expenditures 101 127
Total Operating Expenses $53,307 $58,600
 
REVENUES
Revenues not available for spending $200 $-
Total Revenues $200 $-
 

NET COST OF OPERATIONS

$53,107

$58,600

1. Information for the year ended March 31, 2011 includes actual amounts from April 1st, 2010 to December 31st, 2010.

The accompanying notes form an integral part of these future-oriented financial statements.

Notes to Future-oriented Financial Statements (Unaudited)

  1. Authority and Objectives

    The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) was established through the Proceeds of Crime (Money Laundering) Act in July 2000 as part of the National Initiative to Combat Money Laundering. This legislation established FINTRAC as a government agency and separate employer, named in Schedule 1.1 of the Financial Administration Act. Originally, the key objectives for FINTRAC were the detection and deterrence of laundering of proceeds of crime. However, with the enactment of the Anti-terrorism Act in December 2001, FINTRAC was given additional responsibilities and government funding to detect the financing of terrorist activities. With the Royal Assent of Bill C-25 – An Act to amend the PCMLTFA and the Income Tax Act and to make a consequential amendment to another Act, the Centre's mandate has been changed and enhanced, namely through the addition of a registry for money services businesses and the expansion of other compliance measures, as well as disclosure authorities. In 2007-08, FINTRAC's mandate was further enhanced to include the National Anti-Drug Strategy.

    FINTRAC fulfills its responsibilities by collecting, analyzing, assessing financial information and, where appropriate, disclosing information relevant to the investigation and prosecution of money laundering offences and the financing of terrorist activities.

    FINTRAC's strategic outcome is "Financial Intelligence that contributes to the detection and deterrence of money laundering and terrorist activity financing in Canada and abroad" with one program being "Collection, Analysis and Dissemination of Financial Information".

  2. Significant assumptions

    The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.

    The main assumptions are as follows:

    1. The department's activities will remain substantially the same as for the previous year.
    2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

    These assumptions are adopted as at December 31, 2010.

  3. Variations and Changes to the Forecast Financial Information

    While every attempt has been made to accurately forecast final results for the remainder of 2010-11 and for 2011-12, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material. In preparing these financial statements the Financial Transactions and Reporting Analysis Centre of Canada has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements 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 financial statements and the historical financial statements include:

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

    Once the Report on Plans and Priorities is presented, the Financial Transactions and Reports Analysis Centre 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.