On November 1, 2014, the Public Service Labour Relations and Employment Board (PSLREB) was created. The PSLREB was created when the Public Service Labour Relations Board (PSLRB) and the Public Service Staffing Tribunal (PSST) merged. This PSST website is in the process of being phased out in favour of the new PSLREB website. During a period of transition, this PSST website will continue to provide archived reports, decisions, and transitional information. Please visit the new PSLREB website for the most recent content.
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010, and all information contained in these financial statements rests with the Tribunal’s management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.
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 judgments 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 to the Public Accounts of Canada and included in the Tribunal’s Departmental Performance Report is consistent with these financial statements.
Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Tribunal.
The financial statements of the Tribunal have not been audited.
Guy Giguère Chairperson and Chief Executive Officer |
Josée Dubois Senior Financial Officer |
Ottawa, Canada
August 10, 2010
Statement of Operations (unaudited) For the year ended March 31, 2010 (in dollars) |
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Adjudication and mediation of complaints filed under the Public Service Employment Act | Internal services | 2010 | 2009 | |
OPERATING EXPENSES | ||||
Salaries and employee benefits (Note 7) | 3,012,147 | 1,229,781 | 4,241,928 | 4,137,132 |
Professional and special services | 213,159 | 124,736 | 337,895 | 463,643 |
Accommodation | 274,054 | 102,943 | 376,997 | 376,542 |
Transportation and telecommunications | 190,065 | 33,907 | 223,972 | 231,358 |
Rentals | 106,903 | 62,385 | 169,288 | 170,000 |
Repairs and maintenance | - | 4,775 | 4,775 | (67,595) |
Other operating expenses (Note 7) | - | 196,918 | 64,251 | 41,757 |
Communication | 9,530 | 35,578 | 45,108 | 47,470 |
Machinery and equipment | - | 17,171 | 17,171 | 26,537 |
Utilities, materials and supplies | 2,263 | 26,493 | 28,756 | 21,047 |
Amortization of tangible capital assets | - | 6,687 | 6,867 | 9,194 |
Total Expenses | 3,808,121 | 1,841,554 | 5,649,675 | 5,479,579 |
REVENUES | ||||
Miscellaneous Revenues (Note 7) | - | - | - | 5 |
Total Revenues | - | - | - | 5 |
Net cost of operations | 3,808,121 | 1,841,554 | 5,649,675 | 5,479,574 |
The accompanying notes form an integral part of these financial statements |
Statement of Financial Position (unaudited) At March 31, 2010 (in dollars) |
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2010 | 2009 | |||
ASSETS | ||||
Financial assets | ||||
Receivables from other Federal Government departments and agencies | 3,115 | 5,795 | ||
Advances | 500 | 500 | ||
Total financial assets | 3,615 | 6,295 | ||
Non-financial assets | ||||
Tangible capital assets (Note 4) | 7,855 | 14,722 | ||
Total non-financial assets | 7,855 | 14,722 | ||
TOTAL | 11,470 | 21,017 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | ||||
Other Federal Government departments and agencies | 612,133 | 310,756 | ||
Others | 178,602 | 269,824 | ||
Vacation pay and compensatory leave | 153,453 | 99,769 | ||
Employee severance benefits (Note 5) | 746,133 | 671,829 | ||
1,690,321 | 1,352,178 | |||
EQUITY OF CANADA | (1,678,851) | (1,331,161) | ||
TOTAL | 11,470 | 21,017 | ||
The accompanying notes form an integral part of these financial statements |
Statement of Equity of Canada (unaudited) For the year ended March 31, 2010 (in dollars) |
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2010 | 2009 | |
Equity of canada beginning of year | (1,331,661) | (1,095,685) |
Net cost of operations | (5,649,675) | (5,479,574) |
Current year appropriations used (Note 3) | 4,884,751 | 4,809,727 |
Change in net position in the Consolidated Revenue Fund (Note 3) | (212,835) | (128,556) |
Refunds of previous years expenditures (Note 7) | (27,491) | (76,411) |
Revenue not available for spending (Note 7) | - | (5) |
Services provided without charge by other government departments (Note 6) | 657,560 | 639,343 |
Equity of Canada, end of year | (1,678,851) | (1,331,161) |
The accompanying notes form an integral part of these financial statements |
Statement of Cash Flow (unaudited) For the year ended March 31, 2010 (in dollars) |
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2010 | 2009 | |
Operating Activities | ||
Net cost of operations | 5,649,675 | 5,479,574 |
Non-cash items: | ||
Amortization of tangible capital assets | (6,867) | (9,194) |
Services provided without charge by other government departments (Note 6) | (657,560) | (639,343) |
Variations in Statement of Financial Position: | ||
Decrease in accounts receivable and advances | (2,680) | (123,030) |
Increase in liabilities | (338,143) | (109,726) |
Cash used by operating activities | 4,644,425 | 4,598,281 |
Captial Investment Activities | ||
Acquisitions of tangible capital assets | - | 6,474 |
Cash used by capital investment activities | - | 6,474 |
Financing Activities | ||
Net cash provided by Government of Canada | (4,644,425) | (4,604,755) |
The accompanying notes form an integral part of these financial statements |
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 financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.
Siginificant accounting policies are as follows:
(a) Parliamentary appropriations - The Tribunal is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Tribunal do not parallel financial reporting according to Canadian generally accepted accounting principles. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
(b) 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 federal government.
(c) Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Tribunal. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
(d) Revenues - Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
(e) Expenses - Expenses are recorded on the 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 recorded as operating expenses at their estimated cost.
(f) Employee future benefits
(i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan 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.
(g) Receivables recorded by the Tribunal are from Other Government Departments. Recovery is considered certain and a provision has not been made.
(h) Contingent Liabilities - In the normal course of its operations, the Tribunal may become involved in various legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. The Tribunal has no contingent liabilities as at March 31, 2010.
(i) 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 capital asset as follows:
Asset class | Amortization Period |
Furniture and equipment | 5 years |
Informatics hardware and software | 3 years |
(j) Foreign currency transactions - transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using exchange rates in effect on March 31st. Gains and losses resulting from foreign currency transactions are included in the statement of operations.
(k) Measurement uncertainty - The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector 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 contingent liabilities, the liability for employee severance 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.
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) Reconciliation of net cost of operations to current year appropriations used:
(in dollars)
2010 | 2009 | |
Net cost of operations | 5,649,675 | 5,479,574 |
Adjustments for items affecting net cost of operations but not affecting appropriations: | ||
Add (Less): | ||
Services provided without charge | (657,560) | (639,343) |
Increase in employee severance benefit liability | (74,304) | (127,656) |
Refunds of previous years expenditures | 27,491 | 76,411 |
(Increase) Decrease vacation pay and compensatory leave liability | (53,684) | 23,456 |
Amortization of tangible capital assets | (6,867) | (9,194) |
Revenue not available for spending | - | 5 |
4,884,751 | 4,803,253 | |
Adjustments for items not affecting net cost of operations but affecting appropriations: | ||
Add (Less): | ||
Acquisitions of tangible capital assets | - | 6,474 |
Current year appropriations used | 4,884,751 | 4,809,727 |
b) Appropriations provided and used:
(in dollars)
From public accounts | 2010 | 2009 |
Vote 105 - Program expenditures | 4,850,072 | 4,481,000 |
Transfer from Treasury Board Vote 15 | 72,566 | 121,449 |
Transfer from Treasury Board Vote 25 | 224,050 | 222,550 |
Transfer from Treasury Board Vote30 | 9,238 | 178,766 |
Contributions to employee benefit plan | 558,097 | 485,120 |
Less | ||
Lapsed appropriations: Operating | (829,272) | (679,158) |
Current year appropriations used | 4,644,425 | 4,604,755 |
c) Reconciliation of net cash provided by Government to current year appropriations used:
(in dollars)
2010 | 2009 | |
Net cash provided by Government | 4,644,425 | 4,604,755 |
Refunds of previous years expenditures | 27,491 | 76,411 |
Revenue not available for spending | - | 5 |
Change in net position in the Consolidated Revenue Fund: | ||
Variation in accounts receivable and advances | 2,680 | 123,030 |
Variation in accounts payable and accrued liabilities | 210,155 | 5,526 |
212,835 | 128,556 | |
Current year appropriations used | 4,884,751 | 4,809,727 |
Cost | |||
Capital asset class | Opening Balance | Acquisitions | Closing Balance |
Informatics Hardware and Software | 23,902 | - | 23,902 |
Furniture and equipment | 15,879 | - | 15,879 |
Total | 39,781 | - | 39,781 |
Accumulated amortization | |||
Capital asset class | Opening Balance | Acquisitions | Closing Balance |
Informatics Hardware and Software | 16,590 | 3,691 | 20,281 |
Furniture and equipment | 8,469 | 3,176 | 11,645 |
Total | 25,059 | 6,867 | 31,926 |
2010 | 2009 | |
Capital asset class | Net book value | Net book value |
Informatics Hardware and Software | 3,261 | 7,312 |
Furniture and equipment | 4,234 | 7,410 |
Total | 7,855 | 14,722 |
Amortization expense for the year ended March 31, 2010 is $6,867 ($9,194 in 2008-09). |
(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 2009-10 expense amounts to $402,946 ($350,256 in 2008-09), which represents approximately 1.9 times (2.0 times in 2008-09) 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.
(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, measured as at March 31, is as follows:
2010 | 2009 | |
(in dollars) | ||
Accrued benefit obligation, beginning of year | 671,829 | 544,173 |
Expense for the year | 74,304 | 216,223 |
Benefits paid during the year | - | (88,567) |
Accrued benefit obligation, end of year | 746,133 | 671,829 |
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. Also, during the year, the Tribunal received services which were obtained without charge from other Government departments as presented below.
Services provided without charge:
During the year the Tribunal received 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 Statement of Operations as follows:
2010 | 2009 | |
(in dollars) | ||
Accommodation | 376,997 | 376,542 |
Employer's contribution to the health and dental insurance plans | 280,563 | 262,801 |
Total | 657,560 | 639,343 |
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.
Comparative figures have been reclassified to conform to the current year's presentation.