2008-2009 Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009, and all information contained in this report rests with the Tribunal's management. These statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, using management's best estimates and judgments where appropriate and gives due consideration to materiality.

Management is responsible for the integrity and objectivity of the information in these financial statements. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Tribunal's financial transactions. Financial information submitted to the Public Accounts of Canada is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Tribunal.

The financial statements of the Tribunal have not been audited.

 

Guy Giguère
Chairperson and Chief Executive Officer
Josée Dubois
Senior Financial Officer

Ottawa, Canada

July 15, 2009

 

Statement of Operations (unaudited)
For the year ended March 31, 2009

(in dollars)
  2009 2008
OPERATING EXPENSES
Salaries and employee benefits (Note 7) 4,137,132 3,486,943
Professional and special services 463,643 438,046
Accommodation 376,542 339,089
Transportation and telecommunications 231,358 275,801
Rentals 170,000 158,377
Repairs and maintenance (67,595) 88,871
Other operating expenses (Note 7) 64,251 41,757
Communication 47,470 56,954
Machinery and equipment 26,537 107,980
Utilities, materials and supplies 21,047 32,818
Amortization of tangible capital assets 9,194 8,602
Total Expenses 5,479,579 5,035,238
 
REVENUES
Miscellaneous Revenues (Note 7) 5 11
Total Revenues 5 11
 
Net cost of operations 5,479,574 5,035,227
 
The accompanying notes form an integral part of these financial statements
Statement of Financial Position (unaudited)
At March 31, 2009

(in dollars)
  2009 2008
ASSETS
 
Financial assets
Receivables from other Federal Government departments and agencies 5,795 128,825
Advances 500 500
Total financial assets 6,295 129,325
 
Non-financial assets
Tangible capital assets (Note 4) 14,722 17,442
Total non-financial assets 14,7225 17,442
 
TOTAL 21,017 146,767
 
LIABILITIES
 
Accounts payable and accrued liabilities    
Other Federal Government departments and agencies 310,756 287,853
Others 269,824 287,201
Vacation pay and compensatory leave 99,769 123,225
Employee severance benefits (Note 5) 671,829 544,173
  1,352,178 1,242,452
 
EQUITY OF CANADA  (1,331,161) (1,095,685)
 
TOTAL  21,017 146,767
 
Contingent liabilities (note 2 (h))
 
The accompanying notes form an integral part of these financial statements
Statement of Equity of Canada (unaudited)
For the year ended March 31, 2009

(in dollars)
  2009 2008
 
Equity of canada beginning of year (1,095,685) (471,971)
 
Net cost of operations (5,479,574) (5,035,227)
 
Current year appropriations used (Note 3) 4,809,727 4,303,941
 
Change in net position in the Consolidated Revenue Fund (Note 3) (128,556) (404,676)
 
Refunds of previous years expenditures (Note 7) (76,411) (15,212)
 
Revenue not available for spending (Note 7) (5) (11)
 
Services provided without charge by other government departments (Note 6) 639,343 527,471
 
Equity of Canada, end of year (1,331,161) (1,095,685)
 
The accompanying notes form an integral part of these financial statements
Statement of Cash Flow (unaudited)
For the year ended March 31, 2009

(in dollars)
  2009 2008
Operating Activities
Net cost of operations 5,479,574 5,035,227
 
Non-cash items:
Amortization of tangible capital assets (9,194) (8,602)
Services provided without charge by other government departments (Note 6) (639,343) (527,471)
 
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (123,030) (100,672)
Increase in liabilities (109,726) (519,040)
Cash used by operating activities 4,598,281 3,879,442
 
Captial Investment Activities
Acquisitions of tangible capital assets 6,474 4,600
Cash used by capital investment activities 6,474 4,600
 
Financing Activities
Net cash provided by Government of Canada (4,604,755) (3,884,042)
 
The accompanying notes form an integral part of these financial statements

PUBLIC SERVICE STAFFING TRIBUNAL
Notes to the Financial Statements (unaudited)
For the year ended March 31, 2009

  1. Authority and Objectives

    The Public Service Staffing Tribunal (PSST) has been established through the new Public Service Employment Act, and was enacted on November 20, 2003 by Order in Council 2003-1808. The PSST's mandate is to consider and dispose of complaints under the revised Public Service Employment Act regarding internal appointments, complaints regarding internal appointments revoked by the Deputy Head or the Public Service Commission (PSC) following a departmental or PSC investigation made at the request of a department or agency, and complaints from employees who have been notified that they will be laid off. The PSST also promotes a non-adversarial resolution of disputes by providing mediation services.

  2. Significant Accounting Policies

    The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

    Siginificant accounting policies are as follows:

    (a)   Parliamentary appropriations - The Tribunal is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Tribunal do not parallel financial reporting according to Canadian generally accepted accounting principles. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

    (b)   Net Cash Provided by Government – The Tribunal operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Tribunal is deposited to the CRF and all cash disbursements made by the Tribunal are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

    (c)   Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Tribunal. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

    (d)   Revenues - Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

    (e)   Expenses - Expenses are recorded on the accrual basis:

           - Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.

           - Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

    (f)   Employee future benefits

           (i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Tribunal's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Tribunal to make contributions for any actuarial deficiencies of the Plan.

           (ii) Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

    (g)   Receivables recorded by the Tribunal are from Other Government Departments. Recovery is considered certain and a provision has not been made.

    (h)   Contingent Liabilities - In the normal course of its operations, the Tribunal may become involved in various legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. The Tribunal has no contingent liabilities as at March 31, 2009.

    (i)   Tangible capital assets - all tangible capital assets plus leasehold improvements having an initial cost of $3,000 or more are recorded at their acquisition cost. The Tribunal does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value. Amortization of capital assets is done on a straight-line basis over the estimated useful life of the capital asset as follows:

    Asset class Amortization Period
    Furniture and equipment 5 years
    Informatics hardware and software 3 years

    (j)   Foreign currency transactions - transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using exchange rates in effect on March 31st. Gains and losses resulting from foreign currency transactions are included in the statement of operations.

    (k)   Measurement uncertainty - The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

  3. Parliamentary Appropriations

    The Tribunal receives its funding through annual Parliamentary appropriations. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Tribunal has different net results 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 current year appropriations used:
          (in dollars)

      2009 2008
     
    Net cost of operations 5,479,574 5,035,227
    Adjustments for items affecting net cost of operations but not affecting appropriations:    
    Add (Less):    
    Service provided without charge (639,343) (527,471)
    Increase in employee severance benefit liability (127,656) (180,254)
    Refunds of previous years expenditures 76,411 15,212
    Increase vacation pay and compensatory leave liability 23,456 (34,782)
    Amortization of tangible capital assets (9,194) (8,602)
    Revenue not available for spending 5 11
      4,803,253 4,299,341
    Adjustments for items not affecting net cost of operations but affecting appropriations:    
    Add (Less):    
    Acquisitions of tangible capital assets 6,474 4,600
     
    Current year appropriations used 4,809,727 4,303,941

    b)   Appropriations provided and used:
          (in dollars)

    From public accounts 2009 2008
    Vote 90 - Program expenditures 4,481,000 4,451,000
    Transfer from Treasury Board Vote 15 121,449 30,000
    Transfer from Treasury Board Vote 22   235,500
    Transfer from Treasury Board Vote 25 222,550  
    Transfer from Treasury Board Vote 30 178,766  
    Contributions to employee benefit plan 485,120 402,257
    Disposal of surplus of Crown assets   11
    Less    
    Lapsed appropriations: Operating (679,158) (814,827)
    Current year appropriations used 4,809,727 4,303,941

    c)   Reconciliation of net cash provided by Government to current year appropriations used:
          (in dollars)

      2009 2008
     
    Net cash provided by Government 4,604,755 3,884,042
     
    Refunds of previous years expenditures 76,411 15,212
    Revenue not available for spending 5 11
    Change in net position in the Consolidated Revenue Fund:    
    Variation in accounts receivable and advances 123,030 100,672
    Variation in accounts payable and accrued liabilities 5,526 304,004
      128,556 404,676
     
    Current year appropriations used 4,809,727 4,303,941

     

  4. Tangible Capital Assets
    (in dollars)
      Cost
    Capital asset class Opening Balance Acquisitions Closing Balance
    Informatics Hardware and Software 17,428 6,474 23,902
    Furniture and equipment 15,879 - 15,879
    Total 33,307 6,474 39,781
      Accumulated amortization
    Capital asset class Opening Balance Acquisitions Closing Balance
    Informatics Hardware and Software 10,572 6,018 16,590
    Furniture and equipment 5,293 3,176 8,469
    Total 15,865 9,194 25,059
      2009 2008
    Capital asset class Net book value Net book value
    Informatics Hardware and Software 7,312 6,856
    Furniture and equipment 7,410 10,586
    Total 14,722 17,442
    Amortization expense for the year ended March 31, 2009 is $9,194 ($8,602 in 2007-08).

     

  5. Employee benefits

    (a) Pension benefits: The Tribunal's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

    Both the employees and the Tribunal contribute to the cost of the Plan. The 2008-09 expense amounts to $350,256 ($293,245 in 2007-08), which represents approximately 2.0 times for 2008-09 (2.1 times in 2007-08) the contributions by employees. The amount reported for 2007-08 in last years notes ($180,254) has been adjusted to reflect the Tribunal's accounts.

    The Tribunal's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

    (b) Severance benefits: The Tribunal provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

      2009 2008
      (in dollars)
    Accrued benefit obligation, beginning of year 544,173 363,919
    Expense for the year 216,223 180,254
    Benefits paid during the year (88,567) -
    Accrued benefit obligation, end of year 671,829 544,173

     

  6. Related party transactions

    The Tribunal is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Tribunal enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Tribunal received services which were obtained without charge from other Government departments as presented below.

    Services provided without charge:

    During the year the Tribunal received without charge from other departments, accommodation and the employer’s contribution to the health and dental insurance plans. These services without charge have been recognized in the Tribunal’s Statement of Operations as follows:

      2009 2008
      (in dollars)
    Accommodation 376,542 339,089
    Employer's contribution to the health and dental insurance plans 262,801 188,382
    Total 639,343 527,471

     

  7. Comparative information

    Comparative figures have been reclassified to conform to the current year's presentation.