2012–2013 Financial Statements

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2013, and all information contained in these statements rests with the management of the Tribunal. These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

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 (ICFR) 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 and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The Tribunal will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Internal Control.

In the interim, the Tribunal has undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2013, in accordance with the Treasury Board Policy on Internal Control, and the action plan are summarized in the annex.

The financial statements of the Tribunal have not been audited.

_______________ Guy Giguère Chairperson

_______________ Josée Dubois Chief Financial Officer

Ottawa, Canada
August 31, 2013

Statement of Financial Position (unaudited)

Statement of Financial Position (unaudited) As at March 31 (in dollars)
	2013	2012
Liabilities
Accounts payable and accrued liabilities (note 4)	434,673	417,768
Vacation pay and compensatory leave	157,403	191,676
Employee future benefits (note 5)	445,196	353,913
Total liabilities	1,037,272	963,357
Financial assets
Due from the Consolidated Revenue Fund	359,959	359,552
Accounts receivables and advances (note 6)	75,389	51,008
Total financial assets	435,348	410,560
Departmental net debt	601,924	552,797
Non-financial assets
Prepaid expenses	34,464	34,832
Tangible capital assets (note 7)	202,783	6,415
Total non-financial assets	237,247	41,247
Departmental net financial position	(364,677)	(511,550)
The accompanying notes form an integral part of the financial statements.

 

_______________ Guy Giguère Chairperson

_______________ Josée Dubois Chief Financial Officer

Ottawa, Canada
August 31, 2013

Statement of Operations (unaudited)

Statement of Operations and Departmental Net Financial Position (unaudited) For the year ended March 31 (in dollars)
	Planned Results 2013	2013	2012
Expenses
Adjudication and mediation of complaints filed under the Public Service Employment Act	4,374,000	4,136,498	3,901,750
Internal services	1,879,000	1,535,154	1,365,489
Total Expenses	6,253,000	5,671,652	5,267,239
Revenues
Other Revenues	-	15	-
Revenues earned on behalf of Government	-	(15)	-
Total Revenues	-	-	-
Net cost of operations before government funding	6,253,000	5,671,652	5,267,239
Government funding and transfers
Net cash provided by Government	5,650,000	5,111,224	4,824,211
Change in due from Consolidated Revenue Fund	(4,000)	407	97,353
Services provided without charge by other government departments (note 8)	692,000	706,894	686,614
Net cost of operations after government funding and transfers	(85,000)	(146,873)	(340,939)
Departmental net financial position - Beginning of year	(643,000)	(511,550)	(852,489)
Departmental net financial position - End of year	(558,000)	(364,677)	(511,550)
Segmented information (note 9)
The accompanying notes form an integral part of the financial statements.

Statement of Change in Net Debt (unaudited)

Statement of Change in Net Debt (unaudited) For the year ended March 31 (in dollars)
	2013	2012
Net cost of operations after government funding	(146,873)	(340,939)
Change due to tangible capital assets
Acquisition of tangible capital assets	199,369	980
Amortization of tangible capital assets	(3,001)	(3,647)
Total change due to tangible capital assets	196,368	(2,667)
Change due to prepaid expenses	(368)	12,319
Increase (decrease) in departmental net debt	49,127	(331,287)
Departmental net debt - Beginning of year	552,797	884,084
Departmental net debt - End of year	601,924	552,797
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 (in dollars)
	2013	2012
Operating activities
Net cost of operations before government funding	5,671,652	5,267,239
Non-cash items:
Amortization of tangible capital assets	(3,001)	(3,647)
Services provided without charge by other government departments (note 8)	(706,894)	(686,614)
Variations in Statement of Financial Position:
Increase in accounts receivable and advances	24,381	26,524
Increase (decrease) in prepaid expenses	(368)	12,319
Increase in accounts payable and accrued liabilities	(16,905)	(132,412)
Decrease (increase) in vacation pay and compensatory leave	34,273	(23,463)
Decrease (increase) in future employee benefits	(91,283)	363,285
Cash used in operating activities	4,911,855	4,823,231
Capital investing activities
Acquisitions of tangible capital assets	199,369	980
Cash used in capital investing activities	199,369	980
Net cash provided by Government of Canada	5,111,224	4,824,211
The accompanying notes form an integral part of the financial statements.

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

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.

   
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2. Summary of significant accounting policies
   

   These 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 Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2012–13 Report on Plans and Priorities.
   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. 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 Department's liabilities. While the DH 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.
   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 and 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 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.
   7. Accounts receivables
      Accounts and loans receivable are stated at the lower of cost and net recoverable value. Most 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

      Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
   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 future 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.
      
   
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3. Parliamentary Authorities
   

   The Tribunal receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position 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)	2013	2012
      Net cost of operations before government funding	5,671,652	5,267,239
      Adjustments for items affecting net cost of operations but not affecting authorities:
      Add (Less):
      Services provided without charge by other government departments	(706,894)	(686,614)
      (Increase) Decrease in employee future benefits	(91,283)	363,285
      (Increase) Decrease in vacation pay and compensatory leave	34,273	(23,463)
      Refund of previous year expenditure	1,270	5,527
      Amortization of tangible capital assets	(3,001)	(3,647)
      Other	3,789	450
      	(761,846)	(344,462)
      Adjustments for items not affecting net cost of operations but affecting authorities:
      Add (Less):
      Acquisition of tangible capital assets (note 7)	199,369	980
      Increase (Decrease) in prepaid expenses	(368)	12,319
      	199,001	13,299
      Current year authorities used	5,108,807	4,936,076

      
      
   2. Authorities provided and used

      (in dollars)	2013	2012
      Authorities provided:
      Vote 110 - Program expenditures	5,260,052	5,438,979
      Statutory authorities	565,542	548,695
      Less:
      Lapsed authorities	(716,787)	(1,051,598)
      Current year authorities used	5,108,807	4,936,076

      
      
   
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4. Accounts payable and accrued liabilities
   

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

   (in dollars)	2013	2012
   Accounts payable - other government departments and agencies	81,807	116,971
   Accounts payable - external parties	149,369	107,331
   	231,176	224,302
   Accrued liabilities	203,497	193,466
   Total accounts payable and accrued liabilities	434,673	417,768

   
   
   
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5. 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 2012–13 expense amounts to $403,797 ($394,512 in 2011–12), which represents approximately 1.7 times (1.8 times in 2011–12) 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.

      (in dollars)	2013	2012
      Accrued benefit obligation, beginning of year	353,913	717,198
      Expense for the year	242,524	(363,285)
      Benefits paid during the year	(151,241)	-
      Accrued benefit obligation, end of year	445,196	353,913

      
      
   
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6. Accounts receivable and advances
   
   The following table presents details of the Tribunal's accounts receivable and advances balances:
   

   (in dollars)	2013	2012
   Receivables - other government departments and agencies	73,871	50,508
   Receivable - external parties	1,018	-
   Employee advances	500	500
   Net accounts receivable	75,389	51,008

   
   
   
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7. Tangible Capital Assets
   (in dollars)
   

   Cost	Opening Balance	Acquisitions	Disposals and Write-Offs	Closing Balance
   Informatics hardware and software	9,003	-	-	9,003
   Furniture and equipment	15,879	-	-	15,879
   Assets under construction	-	199,369	-	199,369
   	24,882	199,369	-	224,251

   
   

   Accumulated Amortization	Opening Balance	Amortization	Disposals and Write-Offs	Closing Balance
   Informatics hardware and software	2,588	3,001	-	5,589
   Furniture and equipment	15,879	-	-	15,879
   	18,467	3,001	-	21,468

   
   

   Net book value	2012	2013
   Informatics hardware and software	6,415	3,414
   Furniture and equipment	-	-
   Asset under construction	-	199,369
   Total	6,415	202,783

   
   
   
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8. 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 and 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 and Departmental Net Financial Position as follows:

      (in dollars)	2013	2012
      Accommodation	387,365	382,448
      Employer's contribution to the health and dental insurance plans	319,529	304,166
      	706,894	686,614
      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 and Departmental Net Financial Position.

      
      
   2. Other transactions with related parties

      (in dollars)	2013	2012
      Expenses - Other Government departments and agencies	910,298	885,529
      Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

      
      
   
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9. 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	2013	2012
   Operating expenses
   Salaries and employee benefits	3,431,574	1,100,716	4,532,290	4,085,911
   Accommodation	302,479	84,886	387,365	382,448
   Professional and special services	196,195	178,835	375,030	345,541
   Rentals	64,712	105,957	170,669	138,083
   Transportation and telecommunications	124,356	15,878	140,234	226,905
   Communication	17,175	26,437	43,612	50,968
   Utilities, materials and supplies	-	14,014	14,014	18,248
   Machinery and equipment	-	4,732	4,732	9,933
   Amortization of tangible capital assets	-	3,001	3,001	3,647
   Repair and maintenance	-	632	632	5,223
   Other operating expenses	7	66	73	331
   Total Operating expenses	4,136,498	1,535,154	5,671,652	5,267,239
   Revenues
   Other Revenues	-	15	15	-
   Revenues earned on behalf of Government	-	(15)	(15)	-
   Total Revenues	-	-	-	-
   Net cost of operations before government funding	4,136,498	1,535,154	5,671,652	5,267,239

   
   
   
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10. Comparative information

    Comparative figures have been reclassified to conform to the current year's presentation.