Future-oriented Financial Statements 2011-2012

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 February 10, 2011 and reflect the plans described in the Report on Plans and Priorities.


_________________________________ _________________________________
Josée Dubois, Chief Financial Officer Guy Giguère, Chairperson
Ottawa, Canada Ottawa, Canada
February 10, 2011 February 10, 2011


Statement of Operations

Future-oriented Statement of Operations
For the Year Ending March 31, 2011
(in thousands of dollars)
Estimated
Results
2011
Forecast
2012
EXPENSES
Adjudication and mediation of complaints filed under the Public Service Employment Act $ 4,251 $ 4,599
Internal services 1,518 1,716
Total Expenses 5,769 6,315
REVENUES
Adjudication and mediation of complaints filed under the Public Service Employment Act    
Internal services    
Total Revenues - -
Net cost of operations $ 5,769 $ 6,315

Information for the year ended March 31, 2011 includes actual amounts from April 1, 2010 to November 30, 2010.

Segmented information (Note 9)

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


PUBLIC SERVICE STAFFING TRIBUNAL
Notes to the Future-oriented Statements

  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 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:

    (a) The department's activities will remain substantially the same as for the previous year.

    (b) 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.

    (c) Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.

    (d) Estimated year end information for 2010-2011 is used as the opening position for the 2011-2012 forecasts.

    These assumptions are adopted as at February 10, 2011.

  3. Variations and Changes to the Forecast Financial Information

    While every attempt has been made to accurately forecast final results for the remainder of 2010-2011 and for 2011-2012, 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 Public Service Staffing Tribunal 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:

    (a) The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and

    (b) Further 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 Public Service Staffing Tribunal 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.

  4. Summary of Significant Accounting Policies

    The future-oriented 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:

    (a) Parliamentary appropriations - the Public Service Staffing Tribunal is financed by the Government of Canada through Parliamentary appropriations. The cash accounting basis is used to recognize transactions affecting parliamentary appropriations. The future-oriented financial statements are based on accrual accounting. Consequently, items presented in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 5 provides a reconciliation between the bases of reporting.

    (b) Expenses - are presented on an 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 reported as operating expenses at their estimated cost.

    (c) Employee future benefits

    (i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer 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.

    (d) 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 tangible capital asset as follows:

    Asset Class Amortization Period
    Furniture and equipment 5 years
    Informatics hardware and software 3 years
  5. 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) Authorities requested

      Estimated 2011 Forecast 2012
      (in thousands of dollars)
    Authorities requested    
    Vote 115 - Program expenditures $ 4,897 $ 4,905
    Transfer from Treasury Board Vote 15 28 -
    Transfer from Treasury Board Vote 25 47 246
    Transfer from Treasury Board Vote 30 51 -
    Contributions to employee benefit plan 547 577
    Forecast authorities available $ 5,570 $ 5,728

    Forecast authorities requested for the year ending March 31, 2012 are the planned spending amounts presented in the 2011-12 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31 2011 include amounts presented in the 2010-2011 Main Estimates and Supplementary Estimates (A), (B), and (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

    b) Reconciliation of net cost of operations to request authorities:

    Estimated 2011 Forecast 2012
    (in thousands of dollars)
    Net cost of operations $ 5,769 $ 6,315
    Adjustments for items affecting net cost of operations but not affecting authorities:
    Services provided without charge by other government departments (650) (649)
    Amortization of tangible capital assets (7) (16)
    Loss) gain on disposal and write-down of tangible capital assets (2)
    Increase in vacation pay and compensatory leave (31) (37)
    Increase in employee future benefits (90) 65
      $ 4,989 $ 5,678
    Adjustments for items not affecting net cost of operations but affecting appropriations:
    Add (Less):    
    Acquisitions of tangible capital assets - 50
      - 50
    Forecast current year lapse 581 -
    Forecast authorities available $ 5,570 $ 5,728
  6. Tangible Capital Assets
    (In thousands of dollars) Cost Accumulated amortization Net Book Value
    Capital asset class Opening Balance Acquis-itions Disposals and write-offs Closing Balance Opening Balance Amoriz-ation Disposals and write-offs Closing Balance 2011 2012
    Informatics Hardware and Software - 50 - 50 - 15 - 15 - 35
    Furniture and equipment 16 - - 16 15 1 - 16 1 -
    Total 16 50 - 66 15 16 - 31 1 35
  7. 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 forecast expenses are $ 383,859 in 2010-2011 and $ 404,996 in 2011-2012, representing approximately 1.9 times.

    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, estimated as at the date of these statements, is as follows:

      Estimated Results 2011 Forecast 2012
      (in thousands of dollars)
    Accrued benefit obligation, beginning of year $ 746 $ 836
    Expense for the year 90 (65)
    Expected benefits payments during the year - -
    Accrued benefit obligation, end of year $ 836 $ 771
  8. 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. 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 from other Government departments as disclosed below

    a) Common services provided without charge by other government departments

    During the year the Tribunal is forecasted to receive 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 future-oriented Statement of Operations as follows:

      Estimated Results 2011 Forecast 2012
      (thousands of dollars)
    Accommodation $ 377 $ 377
    Employer's contribution to the health and dental insurance plans 273 272
    Total $ 650 $ 649

    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.

  9. Segmented information
      2011 2012
      Total Adjudication and mediation of complaints filed under the Public Service Employment Act Internal services Total
    Operating Expenses
    Salaries and employee benefits $ 4,417 $ 3,221 $ 805 $ 4,026
    Accommodation 377 302 75 377
    Professional and special services 292 421 280 701
    Transportation and telecommunications 171 420 105 525
    Other operating expenses 251 - - -
    Rentals 183 209 200 409
    Communication 43 22 75 97
    Utilities, materials and supplies 20 4 74 78
    Machinery and equipment 4 - 67 67
    Amortization of tangible capital assets 7 - 16 16
    Repairs and maintenance 4 - 19 19
    Total Expenses 5,769 4,599 1,716 6,315
     
     
    Net cost of operations $ 5,769 $ 4,599 $ 1,716 $ 6,315