Future-oriented Financial Statements 2012-2013

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 23, 2012 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 23, 2012 February 23, 2012


Future-oriented Statement of Financial Position

Future-oriented Statement of Financial Position
As at March 31, 2012
(in thousands of dollars)
  Estimated
Results
2012
Planned Results
2013
ASSETS
 
Financial assets
Due from Consolidated Revenue Fund $ 340 $ 336
Accounts Receivable and advances (Note 6) 25 27
Total financial assets 365 363
 
Non-financial assets
Prepaid expenses 13 13
Tangible capital assets (Note 7) 6 107
Total non-financial assets 19 120
 
  $ 384 $ 483
 
LIABILITIES AND EQUITY OF CANADA
 
Liabilities
Accounts payable and accrued liabilities (Note 8) $ 364 $ 361
Vacation pay and compensatory leave 193 203
Employee future benefits (Note 9) 470 477
 
  $ 1,027 $ 1,041
 
Equity of Canada (643) (558)
 
  $ 384 $ 483

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

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


Future-oriented Statement of Operations

Future-oriented Statement of Operations
For the Year Ending March 31, 2012
(in thousands of dollars)
  Estimated
Results
2012
Planned Results
2013
Expenses
Adjudication and mediation of complaints filed under the Public Service Employment Act $ 4,245 $ 4,374
Internal services 1,546 1,879
Total Expenses 5,791 6,253
 
Net cost of operations $ 5,791 $ 6,253

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

Segmented information (Note 11)

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


Future-oriented Statement of Equity of Canada

Future-oriented Statement of Equity of Canada
For the Year Ending March 31, 2012
(in thousands of dollars)
  Estimated
Results
2012
Planned Results
2013
     
Equity of Canada, beginning of year $ (852) $ (643)
Net cost of operations (5,791) (6,253)
Net cash provided by Government 5,248 5,650
Change in due to/from the Consolidated Revenue Fund 78 (4)
Services provided without charge by other government departments (Note 10) 674 692
Equity of Canada, end of year $ (643) $ (558)

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

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


Future-oriented Statement of Cash Flow

Future-oriented Statement of Cash Flow
For the Year Ending March 31, 2012
(in thousands of dollars)
  Estimated
Results
2012
Planned Results
2013
Operating activities
Net cost of operations $ 5,791 $ 6,253
Non-cash items:
Amortization of tangible capital assets (4) (49)
Services provided without charge by other government departments (Note 10) (674) (692)
 
Variations in Future-oriented Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 1 2
Increase (decrease) in prepaid expenses (10) -
Decrease (increase) in accounts payable and accrued liabilities (79) 3
Decrease (increase) in vacation pay and compensatory leave (25) (10)
Decrease (increase) in future employee benefits 247 (7)
Cash used by operating activities 5,247 5,500
     
Capital investing activities
Acquisitions of tangible capital assets 1 150
Cash used by capital investing activities 1 150
     
Net cash provided by Government of Canada $ 5,248 $ 5,650

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

The accompanying notes form an integral part of these financial 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.

    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.

  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.
    3. Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
    4. Estimated year end information for 2011-2012 is used as the opening position for the 2012-2013 planned results.

    These assumptions are adopted as at February 23, 2012.

  3. Variations and Changes to the Forecast Financial Information

    While every attempt has been made to forecast final results for the remainder of 2011-12 and for 2012-13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

    In preparing these future-oriented financial statements the Public Service Staffing Tribunal has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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, plant and equipment may affect gains/losses and amortization expense.
    2. Implementation of new collective agreements.
    3. 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 in effect for the 2012-2013 fiscal year. These accounting policies, stated below, 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.

    Significant accounting policies are as follows:

    1. Parliamentary authorities - the Department is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting.
    2. Net Cash Provided by Government – The department operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by the department is deposited to the CRF and all cash disbursements made by the department 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. Amounts due from/to 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 Department is entitled to draw from the CRF without further parliamentary expenditure authorities to discharge its liabilities.
    4. Expenses – are recorded on an accrual basis:

      Vacation pay and compensatory leave are accrued as the benefits are earned under the 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.

    5. Employee future benefits
      1. 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.
      2. 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.
    6. Tangible capital assets - All tangible capital assets and leasehold improvements having an initial cost of $3,000 or more are recorded at their acquisition cost.

      Amortization of tangible 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 most of its funding through expenditure authorities provided by Parliament. Items recognized in the Future-oriented Statements of Operations and Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Department 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. Authorities requested
        Estimated 2012 Planned 2013
        (in thousands of dollars)
      Authorities requested    
      Vote 110 - Program expenditures $ 4,905 $ 4,812
      Transfer from Treasury Board Vote 25 215 214
      Transfer from Treasury Board Vote 30 379 5
      Contributions to employee benefit plan 615 614
       
      Forecast authorities available $ 6,114 $ 5,645

      Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

    2. Reconciliation of net cost of operations to request authorities:
        Estimated 2012 Planned 2013
        (in thousands of dollars)
       
      Net cost of operations $ 5,791 $ 6,253
           
      Adjustments for items affecting net cost of operations but not affecting authorities:
      Services provided without charge by other government departments (674) (692)
      Amortization of tangible capital assets (4) (49)
      Increase in vacation pay and compensatory leave (25) (10)
      Increase in employee future benefits 247 (7)
        $ 5,335 $ 5,495
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Acquisitions of tangible capital assets 1 150
      Increase (decrease) in prepaid expenses (10) -
        (9) 150
      Forecast current year lapse 788 -
      Forecast authorities available $ 6,114 $ 5,645


  6. Accounts receivable and advances

    The following table presents details of the Department’s accounts receivable and advances balances:

      Estimated Results 2012 Planned 2013
      (in thousands of dollars)
    Receivables from other government departments and agencies $ 24 $ 26
    Employee advances 1 1
      $ 25 $ 27

  7. Tangible Capital Assets
    (In thous-ands of dollars) Cost Accumulated amortization Net Book Value
    Capital asset class Open-ing Balance Acqui-sitions Dispos-als and
    write-offs
    Closing Balance Open-ing Balance Amor-ization Dispos-als and
    write-offs
    Clos-ing Balance 2012 2013
    Computer Hardware 5 - - 5 1 2 - 3 4 2
    Computer Software 4 150 - 154 2 47 - 49 2 105
    Furniture and equipment 16 - - 16 16 - - 16 - -
    Total 25 150 - 175 19 49 - 68 6 107
  8. Accounts payable and accrued liabilities

    The following table presents details of the Department’s accounts payable and accrued liabilities:

      Estimated Results 2012 Planned 2013
      (in thousands of dollars)
    Accounts payable to other government departments and agencies $ 48 $ 26
    Accounts payable to external parties 155 165
      203 191
         
    Accrued liabilities 161 170
      $ 364 $ 361
  9. Employee 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 forecast expenses are $ 414,804 in 2011-2012 and $ 441,690 in 2012-2013, 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.

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

        Estimated Results 2012 Planned 2013
        (thousands of dollars)
      Accrued benefit obligation, beginning of year $ 717 $ 470
      Expense for the year 132 7
      Expected benefits payments during the year (379) -
      Accrued benefit obligation, end of year $ 470 $ 477

  10. 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.

    1. Common services provided without charge by other government departments

      During the year the Tribunal is forecasted to receive without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Tribunal’s future-oriented Statement of Operations as follows:

        Estimated Results 2012 Planned 2013
        (thousands of dollars)
      Accommodation $ 379 $ 381
      Employer’s contribution to the health and dental insurance plans 295 311
      Total $ 674 $ 692

      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 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 Future-oriented Statement of Operations.

  11. Segmented information

    Presentation by segment is based on the Department'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 4. The following table presents the forecasted expenses incurred and forecasted 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:


      2012 2013
      Total Adjudication and mediation of complaints filed under the Public Service Employment Act Internal services Total
    Operating Expenses
    Salaries and employee benefits $ 4,378 $ 3,506 $ 932 $ 4,438
    Professional and special services 366 198 190 388
    Accommodation 379 301 80 381
    Transportation and telecommunications 183 209 123 332
    Rentals 206 149 156 305
    Other 174 - 152 152
    Machinery and equipment 16 - 83 83
    Communication 59 7 62 69
    Amortization 4 - 49 49
    Utilities, materials and supplies 20 1 41 42
    Repairs and maintenance 6 3 11 14
    Total Expenses 5,791 4,374 1,879 6,253
    Net cost of operations $ 5,791 $ 4,374 $ 1,879 $ 6,253