2009-2010 Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010, and all information contained in these financial statements rests with the Tribunal’s management. These financial 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.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgments and gives due consideration to materiality. 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 and included in the Tribunal’s Departmental Performance Report 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

August 10, 2010


Statement of Operations (unaudited)
For the year ended March 31, 2010

(in dollars)
Adjudication and mediation of complaints filed under the Public Service Employment Act Internal services 2010 2009
OPERATING EXPENSES
Salaries and employee benefits (Note 7) 3,012,147 1,229,781 4,241,928 4,137,132
Professional and special services 213,159 124,736 337,895 463,643
Accommodation 274,054 102,943 376,997 376,542
Transportation and telecommunications 190,065 33,907 223,972 231,358
Rentals 106,903 62,385 169,288 170,000
Repairs and maintenance - 4,775 4,775 (67,595)
Other operating expenses (Note 7) - 196,918 64,251 41,757
Communication 9,530 35,578 45,108 47,470
Machinery and equipment - 17,171 17,171 26,537
Utilities, materials and supplies 2,263 26,493 28,756 21,047
Amortization of tangible capital assets - 6,687 6,867 9,194
Total Expenses 3,808,121 1,841,554 5,649,675 5,479,579
REVENUES
Miscellaneous Revenues (Note 7) - - - 5
Total Revenues - - - 5
Net cost of operations 3,808,121 1,841,554 5,649,675 5,479,574
The accompanying notes form an integral part of these financial statements
Statement of Financial Position (unaudited)
At March 31, 2010

(in dollars)
2010 2009
ASSETS
Financial assets
Receivables from other Federal Government departments and agencies 3,115 5,795
Advances 500 500
Total financial assets 3,615 6,295
Non-financial assets
Tangible capital assets (Note 4) 7,855 14,722
Total non-financial assets 7,855 14,722
TOTAL 11,470 21,017
LIABILITIES
Accounts payable and accrued liabilities
Other Federal Government departments and agencies 612,133 310,756
Others 178,602 269,824
Vacation pay and compensatory leave 153,453 99,769
Employee severance benefits (Note 5) 746,133 671,829
1,690,321 1,352,178
EQUITY OF CANADA (1,678,851) (1,331,161)
TOTAL 11,470 21,017
The accompanying notes form an integral part of these financial statements
Statement of Equity of Canada (unaudited)
For the year ended March 31, 2010

(in dollars)
2010 2009
Equity of canada beginning of year (1,331,661) (1,095,685)
Net cost of operations (5,649,675) (5,479,574)
Current year appropriations used (Note 3) 4,884,751 4,809,727
Change in net position in the Consolidated Revenue Fund (Note 3) (212,835) (128,556)
Refunds of previous years expenditures (Note 7) (27,491) (76,411)
Revenue not available for spending (Note 7) - (5)
Services provided without charge by other government departments (Note 6) 657,560 639,343
Equity of Canada, end of year (1,678,851) (1,331,161)
The accompanying notes form an integral part of these financial statements
Statement of Cash Flow (unaudited)
For the year ended March 31, 2010

(in dollars)
2010 2009
Operating Activities
Net cost of operations 5,649,675 5,479,574
Non-cash items:
Amortization of tangible capital assets (6,867) (9,194)
Services provided without charge by other government departments (Note 6) (657,560) (639,343)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances (2,680) (123,030)
Increase in liabilities (338,143) (109,726)
Cash used by operating activities 4,644,425 4,598,281
Captial Investment Activities
Acquisitions of tangible capital assets - 6,474
Cash used by capital investment activities - 6,474
Financing Activities
Net cash provided by Government of Canada (4,644,425) (4,604,755)
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, 2010

  1. Authority and Objectives

    The Public Service Staffing Tribunal was established with the coming-into-force of the new Public Service Employment Act on December 31, 2005 as part of the new arrangements for staffing recourse. The legislative mandate of the Tribunal is to consider and dispose of complaints dealing with internal appointments, lay-offs, revocation of appointments, and the failure of corrective action ordered by the Tribunal. Under the Act, the Tribunal is also authorized to provide mediation services at any stage of a proceeding. The PSST's core services are supported by its internal services activities.

  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, 2010.

    (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)

    2010 2009
    Net cost of operations 5,649,675 5,479,574
    Adjustments for items affecting net cost of operations but not affecting appropriations:
    Add (Less):
    Services provided without charge (657,560) (639,343)
    Increase in employee severance benefit liability (74,304) (127,656)
    Refunds of previous years expenditures 27,491 76,411
    (Increase) Decrease vacation pay and compensatory leave liability (53,684) 23,456
    Amortization of tangible capital assets (6,867) (9,194)
    Revenue not available for spending - 5
    4,884,751 4,803,253
    Adjustments for items not affecting net cost of operations but affecting appropriations:
    Add (Less):
    Acquisitions of tangible capital assets - 6,474
    Current year appropriations used 4,884,751 4,809,727

    b) Appropriations provided and used:
    (in dollars)

    From public accounts 2010 2009
    Vote 105 - Program expenditures 4,850,072 4,481,000
    Transfer from Treasury Board Vote 15 72,566 121,449
    Transfer from Treasury Board Vote 25 224,050 222,550
    Transfer from Treasury Board Vote30 9,238 178,766
    Contributions to employee benefit plan 558,097 485,120
    Less
    Lapsed appropriations: Operating (829,272) (679,158)
    Current year appropriations used 4,644,425 4,604,755

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

    2010 2009
    Net cash provided by Government 4,644,425 4,604,755
    Refunds of previous years expenditures 27,491 76,411
    Revenue not available for spending - 5
    Change in net position in the Consolidated Revenue Fund:
    Variation in accounts receivable and advances 2,680 123,030
    Variation in accounts payable and accrued liabilities 210,155 5,526
    212,835 128,556
    Current year appropriations used 4,884,751 4,809,727

  4. Tangible Capital Assets
    (in dollars)
    Cost
    Capital asset class Opening Balance Acquisitions Closing Balance
    Informatics Hardware and Software 23,902 - 23,902
    Furniture and equipment 15,879 - 15,879
    Total 39,781 - 39,781
    Accumulated amortization
    Capital asset class Opening Balance Acquisitions Closing Balance
    Informatics Hardware and Software 16,590 3,691 20,281
    Furniture and equipment 8,469 3,176 11,645
    Total 25,059 6,867 31,926
    2010 2009
    Capital asset class Net book value Net book value
    Informatics Hardware and Software 3,261 7,312
    Furniture and equipment 4,234 7,410
    Total 7,855 14,722
    Amortization expense for the year ended March 31, 2010 is $6,867 ($9,194 in 2008-09).

  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 2009-10 expense amounts to $402,946 ($350,256 in 2008-09), which represents approximately 1.9 times (2.0 times in 2008-09) the contributions by employees.

    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:

    2010 2009
    (in dollars)
    Accrued benefit obligation, beginning of year 671,829 544,173
    Expense for the year 74,304 216,223
    Benefits paid during the year - (88,567)
    Accrued benefit obligation, end of year 746,133 671,829

  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:

    2010 2009
    (in dollars)
    Accommodation 376,997 376,542
    Employer's contribution to the health and dental insurance plans 280,563 262,801
    Total 657,560 639,343

    The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Tribunal’s Statement of Operations.

  7. Comparative information

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