Future-oriented Financial Statements 2013-2014

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 January 23, 2013 and reflect the plans described in the Report on Plans and Priorities.


The original version was signed by The original version was signed by
Guy Giguère, Chairperson Josée Dubois, Chief Financial Officer
Ottawa, Canada Ottawa, Canada
January 23, 2013 January 23, 2013


Future-oriented Statement of Financial Position

Future-oriented Statement of Financial Position
As at March 31
(in thousands of dollars)
Planned
Results
2014
Estimated
Results
2013
 
Liabilities
Accounts payable and accrued liabilities (Note 6) 232 218
Vacation pay and compensatory leave 206 203
Employee future benefits (Note 7) 328 332
Total liabilities 766 752
 
Financial assets
Due from Consolidated Revenue Fund 180 165
Accountable advances 1 1
Receivables from other government departments and agencies 40 40
Total financial assets 220 205
 
Net Debt 546 547
 
Non-financial assets
Prepaid expenses 32 32
Tangible capital assets (Note 8) 414 223
Total non-financial assets 445 255
 
Net financial position (101) (292)

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

The original version was signed by The original version was signed by
Guy Giguère, Chairperson Josée Dubois, Chief Financial Officer
Ottawa, Canada Ottawa, Canada
January 23, 2013 January 23, 2013


Future-oriented Statement of Operations and Departmental Net Financial Position

Future-oriented Statement of Operations and Departmental Net Financial Position
For the year ended March 31
(in thousands of dollars)
Planned
Results
2014
Estimated
Results
2013
Expenses
Adjudication and mediation of complaints filed under the Public Service Employment Act 4,478 4,264
Internal services 1,697 1,555
Total Expenses 6,175 5,819
 
Revenues
Other Revenues - -
Revenues earned on behalf of Government - -
Total Revenues - -
 
Net cost of operations before government funding 6,175 5,819
 
Government funding and transfers
Net cash provided by Government 5,685 5,539
Change in due from Consolidated Revenue Fund 15 (195)
Services provided without charge by other government departments (note 9) 666 695
Net cost of operations after government funding and transfers (192) (219)
Net financial position - Beginning of year (292) (512)
Net financial position - End of year (101) (292)

Segmented information (Note 10)

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


Future-oriented Statement of Change in Net Debt

Future-oriented Statement of Change in Net Debt
For the year ended March 31
(in thousands of dollars)
Planned
Results
2014
Estimated
Results
2013
 
Net cost of operations after government funding (192) (219)
 
Change due to tangible capital assets
Acquisition of tangible capital assets 260 220
Amortization of tangible capital assets (70) (3)
Proceeds from disposal of tangible capital assets - -
Gain on disposal of tangible capital assets - -
Total change due to tangible capital assets 190 217
Change due to prepaid expenses - (3)
 
Decrease in net debt (1) (6)
Net debt - Beginning of year 547 553
 
Net debt - End of year 546 547

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


Future-oriented Statement of Cash Flow

Future-oriented Statement of Cash Flow
For the Year Ending March 31
(in thousands of dollars)
Planned
Results
2014
Estimated
Results
2013
Operating activities
Net cost of operations before government funding 6,175 5,819
 
Non-cash items:
Amortization of tangible capital assets (note 8) (70) (3)
Services provided without charge by other government departments (note 9) (666) (695)
Gain on disposal of tangible capital assets - -
 
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances - (11)
Increase (decrease) in prepaid expenses - (3)
Decrease (increase) in accounts payable and accrued liabilities (14) 200
Increase in vacation pay and compensatory leave (3) (11)
Decrease in future employee benefits 4 22
Cash used in operating activities 5,425 5,319
 
Capital investing activities
Acquisitions of tangible capital assets (note 8) 260 220
Cash used by capital investing activities 260 220
 
Net cash provided by Government of Canada 5,685 5,539

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

PUBLIC SERVICE STAFFING TRIBUNAL
Notes to the Future-oriented Financial Statements

  1. Authority and objectives

    The Public Service Staffing Tribunal (the 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. 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 underlying the forecasts 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 2012-2013 is used as the opening position for the 2013-2014 forecasts.

    These assumptions are adopted as at January 23, 2013.

  3. Variations and Changes to the Forecast Financial Information

    While every attempt has been made to accurately forecast final results for the remainder of 2012-2013 and for 2013-2014, 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 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 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

    These future-oriented financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

    Significant accounting policies are as follows:

    1. Parliamentary authorities

      The Tribunal is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Tribunal 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 Departmental Net Financial Position 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 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 or 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 Tribunal is entitled to draw from the CRF without further authorities to discharge its liabilities.

    4. 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.

    5. 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 represent the total departmental obligation to the Plan. 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.
      • Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. 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. Accounts receivables

      Receivables recorded by the Tribunal are from other government departments. Recovery is considered certain and a provision has not been made.

    7. 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:

    8. Asset Class Amortization Period
      Informatics hardware and software 3 years
      Furniture and equipment 5 years

  5. Parliamentary Authorities

    The Tribunal receives most of its funding through annual parliamentary authorities. Items recognized in the Future-oriented Statement of Operations and Departmental Net Financial Position and the Future-oriented 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 request authorities:
      Planned Results 2014 Estimated Results 2013
      (in thousands of dollars)
      Net cost of operations before government funding 6,175 5,819
       
      Adjustments for items affecting net cost of operations but not affecting authorities:
      Add (Less):
      Services provided without charge by other government departments (666) (695)
      Decrease in employee future benefits 4 22
      Increase in vacation pay and compensatory leave (3) (11)
      Refund of previous year expenditure - -
      Amortization of tangible capital assets (70) (3)
      Gain on disposal of tangible capital assets - -
      Other - -
      (736) (687)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Add (Less):
      Acquisition of tangible capital assets (note 5) 260 220
      Increase (Decrease) in prepaid expenses - (3)
      260 217
       
      Current year authorities used 5,699 5,349

    2. Authorities provided and used
      Planned Results 2014 Estimated Results 2013
      (in thousands of dollars)
      Authorities provided:
      Vote 105 - Program expenditures 5,088 5,130
      Statutory authorities 611 614
      Less:
      Lapsed authorities - (395)
      Current year authorities used 5,699 5,349
  6. Accounts payable and accrued liabilities

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

    Planned Results 2014 Estimated Results 2013
    (in thousands of dollars)
    Accounts payable - other government departments and agencies 15 15
    Accounts payable - external parties 115 115
    130 130
    Accrued liabilities 102 88
    232 218
  7. 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 2013-14 expense amounts to $436,254 ($438,254 in 2012-13), which represents approximately 1.8 times (1.8 times in 2012-13) 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 salary at termination of employment. 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:

      As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

      Planned Results 2014 Estimated Results 2013
      (in thousands of dollars)
      Accrued benefit obligation, beginning of year 332 354
      Expense for the year (4) (22)
      Benefits paid during the year - -
      Accrued benefit obligation, end of year 328 332

  8. Tangible Capital Assets

    Cost Opening Balance Acquisitions Adjustments, Disposals and Write-Offs Closing Balance
    (in thousands of dollars)
    Informatics hardware and software 229 260 - 489
    Furniture and equipment 16 - - 16
    245 260 - 505
  9. Accumulated amortization Opening Balance Acquisitions Adjustments, Disposals and Write-Offs Closing Balance
    (in thousands of dollars)
    Informatics hardware and software 6 70 - 75
    Furniture and equipment 16 - - 16
    21 70 - 91
    Net book value 2013     2014
    (in thousands of dollars)
    Informatics hardware and software 223     414
    Furniture and equipment -     -
    223     414
  10. 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 Future-oriented Statement of Operations and Departmental Net Financial Position as follows:

      Planned Results 2014 Estimated Results 2013
      (in thousands of dollars)
      Accommodation 375 381
      Employer's contribution to the health and dental insurance plans 291 314
      666 695
    2. Other transactions with related parties

      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 and Departmental Net Financial Position.

      Planned Results 2014 Estimated Results 2013
      (in thousands of dollars)
      Accounts receivable from other government departments and agencies 40 40
      Accounts payable to other government departments and agencies 15 15
      Expenses - Other Government departments and agencies 913 936
  11. 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 4. 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:

    Adjudication and mediation of
    complaints filed under the
    Public Service Employment Act
    Internal Services 2014 2013
    (in thousands of dollars)
    Operating Expenses
    Salaries and employee benefits 3,487 943 4,429 4,447
    Professional and special services 312 248 559 548
    Accommodation 296 79 375 381
    Transportation and telecommunications 197 116 312 162
    Rentals 155 95 250 170
    Communication 20 58 78 66
    Amortization of tangible capital assets - 70 70 3
    Machinery and equipment 6 41 47 17
    Utilities, materials and supplies 1 31 31 20
    Other operating expenses 2 13 16 -
    Repair and maintenance 2 5 8 6
    Total Operating Expenses 4,478 1,697 6,175 5,819
    Revenues
    Other Revenues - - - -
    Revenues earned on behalf of Government - - - -
    Total Revenues - - - -
    Net cost of operations 4,478 1,697 6,175 5,819