2010-2011 Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011, and all information contained in these financial statements rests with the management of the Tribunal. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are based on 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 judgment, 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 in the preparation of the Public Accounts of Canada and included in the Tribunal’s Departmental Performance Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff, through organizational arrangements that provide appropriate divisions of responsibility, through 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
_______________
Josée Dubois
Chief Financial Officer

Ottawa, Canada
August 31, 2011


Statement of Financial Position (unaudited)

Statement of Financial Position (unaudited)
At March 31, 2011

(in dollars)
2011 Restated (Note 9) 2010
ASSETS
Financial assets
Due from the Consolidated Revenue Fund 262,199 788,202
Accountable advances 500 500
Receivables from other Federal Government departments and agencies 23,895 3,115
Receivables from external parties 89 -
Total financial assets 286,683 791,817
Non-financial assets
Prepaid expenses 22,513 -
Tangible capital assets (Note 4) 9,082 7,855
Total non-financial assets 31,595 7,855
TOTAL ASSETS 318,278 799,672
LIABILITIES
Accounts payable and accrued liabilities (Note 5) 285,356 790,735
Vacation pay and compensatory leave 168,213 153,453
Employee future benefits (Note 6) 717,198 746,133
TOTAL LIABILITIES 1,170,767 1,690,321
EQUITY OF CANADA (852,489) (890,649)
TOTAL LIABILITIES AND EQUITY OF CANADA 318,278 799,672
The accompanying notes form an integral part of these financial statements

 

_______________
Guy Giguère
Chairperson
_______________
Josée Dubois
Chief Financial Officer

Ottawa, Canada
August 31, 2011


Statement of Operations (unaudited)

Statement of Operations (unaudited)
For the year ended March 31, 2011

(in dollars)
2011 2010
EXPENSES
Adjudication and mediation of complaints filed under the Public Service Employment Act 3,926,682 3,808,121
Internal services 1,420,280 1,841,554
Total Expenses 5,346,962 5,649,675
REVENUES
Internal Services 5 -
Total Revenues 5 -
NET COST OF OPERATIONS 5,346,957 5,649,675
Segmented information (Note 8)
The accompanying notes form an integral part of the financial statements.

Statement of Equity of Canada (unaudited)

Statement of Equity of Canada (unaudited)
For the year ended March 31, 2011

(in dollars)
2011 Restated (Note 9) 2010
Equity of Canada, beginning of year (890,649) (757,628)
Net cost of operations (5,346,957) (5,649,675)
Net cash provided by Government 5,237,021 4,644,425
Change in due from the Consolidated Revenue Fund (526,003) 214,669
Services provided without charge by other government departments (note 7) 674,099 657,560
Equity of Canada, end of year (852,489) (890,649)
The accompanying notes form an integral part of the financial statements.

Statement of Cash Flow (unaudited)

Statement of Cash Flow (unaudited)
For the year ended March 31, 2011

(in dollars)
2011 2010
Operating Activities
Net cost of operations 5,346,957 5,649,675
Non-cash items:
Amortization of tangible capital assets (Note 4) (4,637) (6,867)
Services provided without charge by other government departments (Note 7) (674,099) (657,560)
Gain (Loss) on disposal of tangible capital assets (2,159) -
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 20,869 (2,680)
Increase in prepaid expenses 22,513 -
Decrease (increase) in accounts payable and accrued liabilities 505,379 (210,155)
Increase in vacation pay and compensatory leave (14,760) (53,684)
Decrease (increase) in future employee benefits 28,935 (74,304)
Cash used by operating activities 5,228,998 4,644,425
Capital Investing Activities
Acquisitions of tangible capital assets (Note 4) 8,023 -
Cash used by capital investing activities 8,023 -
Net cash provided by Government of Canada 5,237,021 4,644,425
The accompanying notes form an integral part of the financial statements.



PUBLIC SERVICE STAFFING TRIBUNAL
Notes to the Financial Statements (unaudited)
For the year ended March 31, 2011

  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.

    The Tribunal's strategic outcome is the fair and impartial resolution of disputes related to internal appointments and lay-offs in the Government of Canada.

    The Tribunal has two program activities:

    • Adjudication and mediation of complaints filed under the Public Service Employment Act
    • Internal Services

    Pursuant to the new Public Service Employment Act, the mandate of the Tribunal is to consider and dispose of complaints stemming from an internal appointment, the implementation of a corrective measure ordered by the Tribunal, the revocation of an appointment or a lay-off. In considering whether a complaint relating to an internal appointment or a lay-off is substantiated, the Tribunal may interpret and apply the Canadian Human Rights Act. If the Tribunal finds that the complaint is founded, it may order that compensation be paid. The Tribunal may also provide mediation services at any stage of a proceeding in order to resolve a complaint.

    Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

  2. Summary of significant accounting policies

    These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

    Siginificant accounting policies are as follows:

    1. Parliamentary authorities - 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.
    2. 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 Government.
    3. Due from the CRF - Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Tribunal is entitled to draw from the CRF without further appropriations to discharge its liabilities.
    4. Revenues - Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
    5. Expenses - Expenses are recorded on the accrual basis:
      • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
      • Services provided without charge by other government departments for accommodation, legal fees and the employer contributions to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
    6. Employee future benefits
      • Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Tribunal's contributions to the Plan are charged to expenses in the year incurred and represents the Tribunal's total obligation to the Plan. Current legislation does not require the Tribunal to make contributions for any actuarial deficiencies of the Plan.
      • 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.
    7. Accounts receivables - Receivables recorded by the Tribunal are from other government departments. Recovery is considered certain and a provision has not been made.
    8. 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 capital assets as follows:
      Asset class Amortization Period
      Informatics hardware and software 3 years
      Furniture and equipment 5 years
    9. Measurement uncertainty - The preparation of these financial statements 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 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 Authorities

    The Tribunal receives its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary authorities 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:

    1. Reconciliation of net cost of operations to current year authorities used
      (in dollars) 2011 2010
      Net cost of operations 5,346,957 5,649,675
      Adjustments for items affecting net cost of operations but not affecting authorities:
      Add (Less):
      Services provided without charge by other government departments (674,099) (657,560)
      (Increase) Decrease in employee future benefits 28,935 (74,304)
      Increase in vacation pay and compensatory leave (14,760) (53,684)
      Refund of previous year expenditure 35,970 27,491
      Amortization of tangible capital assets (4,637) (6,867)
      Gain (Loss) on disposal of tangible capital assets (2,159) -
      Revenue not available for spending 5 -
      Other 89 -
      (630,656) (764,924)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Add (Less):
      Acquisition of tangible capital assets (Note 4) 8,023 -
      Increase in prepaid expenses 22,513 -
      30,536 -
      Current year authorities used 4,746,837 4,884,751

    2. Authorities provided and used
      (in dollars) 2011 2010
      Authorities provided:
      Vote 115 - Program expenditures 5,043,039 5,155,926
      Statutory authorities 554,721 558,097
      Less:
      Lapsed authorities (850,923) (829,272)
      Current year authorities used 4,746,837 4,884,751

  4. Tangible Capital Assets
    (in dollars)
    Cost Opening Balance Acquisitions Adjustments, Disposals and Write-Offs Closing Balance
    Informatics Hardware and Software 23,902 8,023 (23,902) 8,023
    Furniture and equipment 15,879 - - 15,879
    Total 39,781 8,023 (23,902) 23,902

    Accumulated amortization Opening Balance Amortization Adjustments, Disposals and Write-Offs Closing Balance
    Informatics Hardware and Software 20,281 1,462 (21,743) -
    Furniture and equipment 11,645 3,175 - 14,820
    Total 31,926 4,637 (21,743) 14,820

    Net book value Opening Balance Closing Balance
    Informatics hardware and software 3,621 8,023
    Furniture and equipment 4,234 1,059
    Total 7,855 9,082

  5. Accounts payable and accrued liabilities
    (in dollars)

    The following table presents details of the Tribunal's accounts payable and accrued liabilities:

    (in dollars) 2011 2010
    Accounts payable - other government departments and agencies 19,776 612,133
    Accounts payable - external parties 139,408 87,878
    159,184 700,011
    Accrued liabilities 126,172 90,724
    Total 285,356 790,735

  6. Employee future benefits
    1. Pension benefits:

      The Tribunal's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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 2010-11 expense amounts to $389,414 ($402,946 in 2009-10), which represents approximately 1.9 times (1.9 times in 2009-10) 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.

    2. 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 authorities. Information about the severance benefits, measured as at March 31, is as follows:

      (in dollars) 2011 2010
      Accrued benefit obligation, beginning of year 746,133 671,829
      Expense for the year (23,672) 74,304
      Benefits paid during the year (5,263) -
      Accrued benefit obligation, end of year 717,198 746,133

  7. Related party transactions

    The Tribunal is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. The Tribunal enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, the Tribunal has an agreement with the Public Service Labour Relations Board related to the provision of finance and administration services. During the year, the Tribunal received common services which were obtained without charge form other Government departments as disclosed below.

    1. Common services provided without charge by other government departments

      During the year the Tribunal received services without charge from certain common service organizations, related to accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Tribunal's Statement of Operations as follows:

      (in dollars) 2011 2010
      Accommodation 378,814 376,997
      Employer's contribution to the health and dental insurance plans 283,301 280,563
      Legal Services 11,984 -
      674,099 657,560
      The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada are not included in the Tribunal's Statement of Operations.

    2. Other transactions with related parties
      (in dollars) 2011 2010
      Accounts receivable from other government departments and agencies 23,895 3,115
      Accounts payable to other government departments and agencies 19,776 612,133
      Expenses - Other Government departments and agencies 917,670 984,480

  8. Segmented Information

    Presentation by segment is based on the Tribunal's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

    (in dollars) Adjudication and mediation of complaints filed under the Public Service Employment Act Internal Services 2011 2010
    OPERATING EXPENSES
    Salaries and employee benefits 3,236,228 891,013 4,127,241 4,241,928
    Accommodation 298,808 80,006 378,814 376,997
    Professional and special services 150,292 73,102 223,394 337,895
    Rentals 90,252 80,948 171,200 169,288
    Transportation and telecommunications 137,573 21,807 159,380 223,972
    Other operating expenses 4,677 133,203 137,880 196,918
    Machinery and equipment 250 79,783 80,033 17,171
    Communication 7,993 32,486 40,479 45,108
    Utilities, materials and supplies 609 22,725 23,334 28,756
    Amortization of tangible capital assets - 4,638 4,638 6,867
    Repair and maintenance - 569 569 4,775
    Total Operating Expenses 3,926,682 1,420,280 5,346,962 5,649,675
    REVENUES
    Other Revenues - 5 5 -
    Total Revenues - 5 5 -
    Net cost of operations 3,926,682 1,420,275 5,346,957 5,649,675

  9. Adoption of new accounting policies

    During the year, the Tribunal adopted the revised Treasury Board accounting policy TBAS 1.2: Departmental and Agency Financial Statements which is effective for the Tribunal for the 2010-11 fiscal year. The major change in the accounting policies of the Tribunal required by the adoption of the revised TBAS 1.2 is the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position.

    The adoption of the new Treasury Board accounting policies have been accounted for retroactively with the following impact on the comparatives for 2009-10:

    (in dollars) 2010 As previously stated Effect of the adjustment 2010 Revised amount
    Statement of Financial Position
    Assets 11,470 788,202 799,672
    Equity of Canada (1,678,851) 788,202 (890,649)