Future-oriented Statement of Operations 2014-15

The original version was signed by The original version was signed by
Guy Giguère, Chairperson Josée Dubois, Chief Financial Officer
Ottawa, Canada Ottawa, Canada
February 17, 2014 February 17, 2014

Future-oriented Statement of Operations

Future-oriented Statement of Operations
For the year ended March 31
(in dollars)
Adjudication and mediation of complaints filed under the Public Service Employment Act 4,095,710 4,560,449
Internal services 1,443,054 1,685,676
Total Expenses 5,538,765 6,246,125
Other Revenues
Revenues earned on behalf of Government
Total Revenues
Net cost of operations 5,538,765 6,246,125

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

Notes to the Future-oriented Statements of Operations
For the year ended March 31

  1. Methodology and Significant Assumptions

    The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of the Tribunal as described in the Report on Plans and Priorities.

    The information in the estimated results for fiscal year 2013-14 is based on actual results as at September 30th, 2013 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2014-15 fiscal year.

    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.

    These assumptions are adopted as at January 23rd, 2014.

  2. Variations and Changes to the Forecast Financial Information

    While every attempt has been made to accurately forecast final results for the remainder of 2013-14 and for 2014-15, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

    In preparing this future-oriented statement of operations 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.

  3. Summary of significant accounting policies

    The future-oriented statement of operations has been prepared using Government’s accounting policies that came into effect for the 2013-14 fiscal year 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:

    (a) Expenses

    Expenses are recorded on an accrual basis. Expenses for the Tribunal operations are recorded when goods are received or services are rendered including services provided without charges for accommodation, employee contributions to health and dental insurance plans, legal services and worker’s compensation which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave as well as severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment.

    Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable, provision for valuation on loans, investments and advances and inventory obsolescence or liabilities, including contingent liabilities and environmental liabilities to the extent the future event is likely to occur and a reasonable estimate can be made.

    Expenses also include amortization of tangible capital assets which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

    (b) Revenues

    Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

    Revenues that are non-respendable are not available to discharge the Tribunal's liabilities. While the Deputy Head is expected to maintain accounting control, he or she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross revenues.

  4. 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. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the Tribunal has different net cost 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 requested authorities:
      Estimated 2013–14 Planned 2014–15
      (in dollars)
      Net cost of operations 5,538,765 6,246,125
      Adjustments for items affecting net cost of operations but not affecting authorities:
      Add (Less):
      Services provided without charge by other government departments (667,754) (671,390)
      Decrease in employee future benefits
      Decrease in vacation pay and compensatory leave 7,678
      Amortization of tangible capital assets (4,126) (15,321)
        (664,202) (686,711)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Add (Less):
      Acquisition of tangible capital assets 205,000 161,702
        205,000 161,702
      Requested authorities 5,079,563 5,721,116

    2. Authorities requested
      (in dollars)
      Authorities requested:
      Vote 105 - Program expenditures 5,067,040 5,131,908
      Statutory authorities 611,000 589,208
      Lapsed authorities (598,477)
      Requested authorities 5,079,563 5,721,116