Financial Statements
Statement of Management Responsibility
CANADA INDUSTRIAL RELATIONS BOARD
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2012, and all information contained in these statements rests with the management of the Canada Industrial Relations Board (the CIRB or the Board). 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 Board’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Board’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 Board 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 CIRB is subject to periodic Core Control Audits performed by the Office of the Comptroller General and uses the results of such audits to comply with the Treasury Board Policy on Internal Control.
A Core Control Audit was performed in 2009-2010 by the Office of the Comptroller General of Canada (OCG). The Audit Report and related Management Action Plan are posted on the departmental web site.
The financial statements of the Board have not been audited.
____________________________ | ____________________________ | |
Elizabeth MacPherson, Chairperson Ottawa, Canada |
Ginette Brazeau, Executive Director Ottawa, Canada |
|
24-10-2012 | 23-10-12 | |
____________________________ Date |
____________________________ Date |
Statement of Financial Position (unaudited)
CANADA INDUSTRIAL RELATIONS BOARD
AT MARCH 31 in dollars |
2012 | 2011 |
---|---|---|
Liabilities | ||
Liabilities | ||
Accounts payable and accrued liabilities (Note 4) | 854,382 | 834,893 |
Vacation pay | 367,185 | 428,853 |
Employee future benefits (Note 5) | 766,764 | 1,929,060 |
Total liabilities | 1,988,331 | 3,192,806 |
Assets | ||
Financial assets | ||
Due from Consolidated Revenue Fund | 736,141 | 800,332 |
Accounts receivable and advances (Note 6) | 148,566 | 67,781 |
Total financial assets | 884,707 | 868,113 |
Departmental net debt | 1,103,624 | 2,324,693 |
Non-financial assets | ||
Prepaid expenses | 5,118 | - |
Tangible capital assets (Note 7) | 1,722,562 | 1,921,841 |
Total Non-financial assets | 1,727,680 | 1,921,841 |
Departmental net financial position | 624,056 | (402,852) |
____________________________ | ____________________________ | |
Elizabeth MacPherson, Chairperson Ottawa, Canada |
Ginette Brazeau, Executive Director Ottawa, Canada |
|
24-10-2012 | 23-10-12 | |
____________________________ Date |
____________________________ Date |
Statement of Operations and Departmental Net Financial Position (unaudited)
CANADA INDUSTRIAL RELATIONS BOARD
FOR THE YEAR ENDED MARCH 31 in dollars |
2012 Planned Results |
2012 | 2011 |
---|---|---|---|
Expenses | |||
Adjudicative and Dispute Resolution Program | 12,550,000 | 11,622,688 | 12,006,188 |
Internal Services | 4,966,000 | 4,713,242 | 5,025,071 |
Total Expenses | 17,516,000 | 16,335,930 | 17,031,259 |
Revenues | |||
Miscellaneous revenues | 1,000 | 48 | 936 |
Revenues earned on behalf of Government | (1,000) | (20) | (45) |
Total Revenues | - | 28 | 891 |
Net cost of operations before government funding and transfers | 17,516,000 | 16,335,903 | 17,030,368 |
Government Funding and Transfers | |||
Net cash provided by Government | 13,498,000 | 13,736,325 | 13,167,968 |
Change in due from Consolidated Revenue Fund | 85,000 | (64,191) | 11,297 |
Services provided without charge by other government departments (note 9) | 3,597,000 | 3,690,676 | 3,619,129 |
Total Government funding and transfers | 17,180,000 | 17,362,810 | 16,798,394 |
Net cost of operations after government funding and transfers | 336,000 | (1,026,907) | 231,974 |
Departmental net financial position - Beginning of year | (1,344,000) | (402,852) | (170,877) |
Departmental net financial position - End of year | (1,680,001) | 624,056 | (402,852) |
Segmented information (note 10) |
Statement of Change in Departmental Net Debt / Net Financial Assets of Canada (unaudited)
CANADA INDUSTRIAL RELATIONS BOARD
FOR THE YEAR ENDED MARCH 31 in dollars |
2012 Planned Results |
2012 | 2011 |
---|---|---|---|
Net cost of operations after government funding and transfers | 336,000 | (1,026,907) | 231,974 |
Change due to tangible capital assets | |||
Acquisition of tangible capital assets | 25,000 | 179,711 | 16,693 |
Amortization of tangible capital assets | (369,000) | (378,991) | (377,422) |
Total change due to tangible capital assets | (344,000) | (199,279) | (360,729) |
Change due to prepaid expenses | - | 5,118 | - |
Net increase (decrease) in departmental net debt | (8,000) | (1,221,068) | (128,755) |
Departmental net debt - Beginning of year | 3,241,000 | 2,324,693 | 2,453,448 |
Departmental net debt - End of year | 3,233,000 | 1,103,624 | 2,324,693 |
Statement of Cash Flows (unaudited)
CANADA INDUSTRIAL RELATIONS BOARD
FOR THE YEAR ENDED MARCH 31 in dollars |
2012 | 2011 |
---|---|---|
Operating Activities | ||
Net cost of operations | 16,335,903 | 17,030,368 |
Non-cash items: | ||
Amortization of tangible capital assets | (378,991) | (377,422) |
Services provided without charge by other government departments (Note 9) | (3,690,676) | (3,619,129) |
Increase in prepaid expenses | 5,118 | - |
Loss on disposal/adjustment to capital assets | - | (1) |
Variations in Statement of Financial Position: | ||
Accounts payable and accrued liabilities (Note 4) | (19,489) | (7,145) |
Vacation pay | 61,668 | 67,934 |
Employee future benefits (Note 5) | 1,162,296 | 24,948 |
Increase in accounts receivable and advances | 80,785 | 31,722 |
Cash used in operating activities | 13,556,614 | 13,151,275 |
Capital Investing Activities | ||
Acquisitions of tangible capital assets | 179,711 | 16,693 |
Net cash provided by Government of Canada | 13,736,325 | 13,167,968 |
Notes to the Financial Statements (unaudited)
CANADA INDUSTRIAL RELATIONS BOARD
FOR THE YEAR ENDED MARCH 31, 2012
1. Authority and Objective
The CIRB is an independent, representational, quasi-judicial tribunal responsible for the interpretation and application of the Canada Labour Code (the Code), Part I, Industrial Relations, and certain provisions of Part II, Occupational Health and Safety. It was established in January 1999 through amendments to Part I of the Code. The objective of the Board is to contribute to and to promote effective industrial relations in any work, undertaking or business that falls within the authority of the Parliament of Canada.
According to the approved Program Activity Architecture (PAA), the Statement of Operations was detailed by the following Program Activities (Business Lines):
Adjudicative and Dispute Resolution Program
Through this program, the CIRB resolves labour relations issues by exercising its statutory powers relating to the application and interpretation of Part I (Industrial Relations) and certain provisions of Part II (Occupational Health and Safety) of the Code. Activities include the granting, modification and termination of bargaining rights; the investigation, mediation and adjudication of complaints alleging violation of Part I of the Code; the determination of level of services required to be maintained during a work stoppage; the exercise of ancillary remedial authority; the exercise of cease and desist powers in cases of unlawful strikes or lockouts; the settlement of the terms of a first collective agreement; and the provision of administrative services to support these activities.
Internal Services
Internal Services are groups of activities and resources that are administered to support the operational needs of the Board's Adjudicative and Dispute Resolution Program and other corporate obligations of the CIRB, including Central Agency requirements. These groups are: management and oversight services; human resources services; financial and administrative services (including facilities, materiel and procurement services); information management services; and information technology services.
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:
(a) Parliamentary authorities
The Board is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Board 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 in 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 2011-12 Report on Plans and Priorities. The future-oriented financial statements for 2011-12 have been restated to reflect the revenue net of non-respendable amounts. The restatement resulted in a $1,000 increase in net cost of operations before government funding and transfers. In addition, the future-oriented financial statements have also been reclassified to conform to the current year presentation.
(b) Net cash provided by Government
The Board operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Board is deposited to the CRF, and all cash disbursements made by the Board 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.
(c) Due from the CRF
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 Board is entitled to draw from the CRF without further appropriations to discharge its liabilities.
(d) 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 services and employer contributions to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
(e) Revenues
Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
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 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.
(f) Employee future benefits
- Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Board’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The Board’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.
(g) Accounts Receivable
Most receivables recorded by the Board are from other government departments. Recovery is considered certain and a provision has not been made.
(h) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $7,000 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 asset as follows:
Asset class | Amortization period |
---|---|
Leasehold improvements | Lesser of the remaining term of lease or useful life of the improvement |
Computer Hardware | 3 years |
Computer Software | 3-10 years |
Furniture and equipment | 10 years |
Machinery and equipment | 5 years |
(i) 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 severance benefits and the useful life of tangible capital. 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.
3. Parliamentary Authorities
The Board receives most of its funding through annual Parliamentary authorities. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Board 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 authorities used
in dollars | 2012 | 2011 |
---|---|---|
Net cost of operations before government funding and transfers | 16,335,903 | 17,030,368 |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Services provided without charge by other government departments | (3,690,676) | (3,619,129) |
Refund/reversal of previous year's expenditures | 23,868 | 143,116 |
Amortization of tangible capital assets | (378,991) | (377,422) |
Employee future benefits | 1,162,296 | 24,948 |
(Loss) Gain on disposal/adjustment to capital assets | - | (1) |
Gain on disposal/adjustment to non-capital assets | 28 | 891 |
Change in vacation pay | 61,668 | 67,934 |
(2,821,807) | (3,759,662) | |
Adjustments for items not affecting net cost of operations but affecting authorities: | ||
Add (Less): | ||
Acquisitions of tangible capital assets | 179,711 | 16,693 |
Increase in prepaid expenses | 5,118 | - |
184,829 | 16,693 | |
Current year authorities used | 13,698,924 | 13,287,399 |
(b) Authorities provided and used
in dollars | 2012 | 2011 |
---|---|---|
Authorities Provided: | ||
Operating expenditures–Vote 10 | 11,421,923 | 11,489,699 |
Transfer from TB–Vote 15 | 2,356 | 76,245 |
Transfer from TB–Vote 25 | 497,747 | 372,395 |
Transfer from TB–Vote 30 | 1,131,362 | 172,638 |
Statutory amounts | 1,487,545 | 1,575,819 |
14,540,933 | 13,686,796 | |
Less: | ||
Lapsed: Operating | (842,009) | (399,397) |
Current year authorities used | 13,698,924 | 13,287,399 |
4. Accounts Payable and Accrued Liabilities
The following table presents details of the Department's accounts payable and accrued liabilities:
in dollars | 2012 | 2011 |
---|---|---|
Account payable to other government departments and agencies | 95,930 | 136,888 |
Account payable to external parties | 674,528 | 624,975 |
770,458 | 761,863 | |
Accrued liabilities | 83,924 | 73,030 |
Total | 854,382 | 834,893 |
5. Employee Future Benefits
(a) Pension benefits
The Board'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% 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 Board contribute to the cost of the Plan. The 2011–12 expense amounts to $1,068,884 ($1,106,225 in 2010–11), which represents approximately 1.8 times (1.9 in 2010–11) the contributions by employees.
The Board'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 Board 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, measured as at March 31, is as follows:
in dollars | 2012 | 2011 |
---|---|---|
Accrued benefit obligation, beginning of year | 1,929,060 | 1,954,008 |
Expense for the year | (142,378) | 213,231 |
Benefits paid during the year | (1,019,918) | (238,179) |
Accrued benefit obligation, end of year | 766,764 | 1,929,060 |
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.
6. Accounts Receivable and Advances
The following table presents details of the Board's accounts receivable and advances balances:
in dollars | 2012 | 2011 |
---|---|---|
Receivables from other government departments and agencies | 146,157 | 56,843 |
Receivables from external parties | 409 | 8,338 |
Employee advances | 2,000 | 2,600 |
Total | 148,566 | 67,781 |
7. Tangible Capital Assets
Cost in dollars |
Opening Balance |
Acquisitions | Disposals and write-offs |
Closing Balance |
---|---|---|---|---|
Leasehold improvements | 873,649 | 29,463 | - | 903,112 |
Informatics hardware | 323,002 | 150,248 | (27,705) | 445,546 |
Informatics software | 2,781,491 | - | (8,780) | 2,772,712 |
Furniture and equipment | 371,844 | - | - | 371,844 |
Machinery and equipment | 22,963 | - | - | 22,963 |
4,372,949 | 179,711 | (36,485) | 4,516,177 | |
Accumulated Amortization in dollars |
Opening Balance |
Amortization expense |
Disposals and write-offs |
Closing Balance |
Leasehold improvements | 378,911 | 67,202 | - | 446,113 |
Informatics hardware | 306,310 | 5,564 | (27,705) | 284,169 |
Informatics software | 1,556,688 | 275,462 | (8,780) | 1,823,371 |
Furniture and equipment | 187,806 | 29,193 | - | 216,999 |
Machinery and equipment | 21,393 | 1,570 | - | 22,963 |
2,451,108 | 378,991 | (36,485) | 2,793,615 | |
2011 | 2012 | |||
Net Book Value | 1,921,841 | 1,722,562 |
8. Contractual Obligations
The nature of the Board’s activities can result in some large multi-year contracts and obligations whereby the Board will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
in dollars | 2013 | 2014 | 2015 | 2016 and thereafter |
---|---|---|---|---|
Operating leases | 72,315 | 45,286 | 3,638 | 3,638 |
Services contracts | 4,018 | 4,116 | - | - |
Total | 76,333 | 49,402 | 3,638 | 3,638 |
9. Related Party Transactions
The Board is related as a result of common ownership to all government departments, agencies, and Crown Corporations. The Board enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Board received common services which were obtained without charge from other government departments as disclosed below.
(a) Common services provided without charge by other government departments
During the year, the Board received services without charge from certain common service organizations, related to accommodation, legal services and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Board's Statement of Operations and Departmental Net Financial Position as follows:
in dollars | 2012 | 2011 |
---|---|---|
Accommodation | 2,875,214 | 2,810,812 |
Employer's contribution to the health and dental insurance plans | 814,661 | 795,012 |
Legal services | 801 | 13,305 |
Total | 3,690,676 | 3,619,129 |
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 Board's Statement of Operations and Departmental Net Financial Position.
(b) Other transactions with related parties
in dollars | 2012 | 2011 |
---|---|---|
Accounts receivable with other government departments and agencies | 146,157 | 56,843 |
Accounts payable to other government departments and agencies | 95,930 | 136,888 |
Expenses - Other Government departments and agencies | 2,213,343 | 2,247,148 |
Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).
10. Segmented Information
Presentation by segment is based on the Board'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 expense and by major type of revenue. The segment results for the period are as follows:
in dollars | Adjudicative and Dispute Resolution Program |
Internal Services | 2012 Total |
2011 Total |
---|---|---|---|---|
Operating expenses | ||||
Salaries and employee benefits | 8,246,475 | 2,413,450 | 10,659,924 | 11,659,347 |
Accommodation | 2,165,036 | 710,178 | 2,875,214 | 2,810,813 |
Professional and special services | 477,646 | 329,374 | 807,020 | 747,072 |
Travel and relocation | 602,850 | 38,273 | 641,123 | 528,122 |
Amortization of tangible capital assets | - | 378,991 | 378,991 | 377,422 |
Communication | 56,051 | 236,056 | 292,107 | 286,101 |
Utilities, materials and supplies | 3,719 | 142,346 | 146,065 | 176,232 |
Equipment | 9,732 | 214,628 | 224,360 | 146,345 |
Equipment rentals | 27,074 | 133,153 | 160,227 | 145,837 |
Repairs and maintenance | 6,560 | 101,486 | 108,046 | 116,653 |
Information | 1,214 | 15,011 | 16,225 | 15,563 |
Other | 26,331 | 297 | 26,629 | 21,752 |
Total expenses | 11,622,688 | 4,713,242 | 16,335,930 | 17,031,259 |
Miscellaneous revenues | 48 | - | 48 | 936 |
Revenues earned on behalf of Government | (20) | - | (20) | (45) |
Total revenues | 28 | - | 28 | 891 |
Net cost of operations after government funding and transfers | 11,622,660 | 4,713,242 | 16,335,903 | 17,030,368 |
11. Accounting Changes
During 2011, amendments were made to Treasury Board Accounting Standard 1.2––Departmental and Agency Financial Statements to improve financial reporting by government departments and agencies. The amendments are effective for financial reporting of fiscal years ending March 31, 2012, and later. The significant changes to the Bard’s financial statements are described below. These changes have been applied retroactively, and comparative information for 2010-11 has been restated.
Net debt (calculated as liabilities less financial assets) is now presented in the Statement of Financial Position. Accompanying this change, the CIRB now presents a Statement of Change in Net Debt and no longer presents a Statement of Equity.
Revenue and related accounts receivable are now presented net of non-respendable amounts in the Statement of Operations and Departmental Net Financial Position and Statement of Financial Position. The effect of this change was to increase the net cost of operations after government funding and transfers by $20 for 2012 ($45 for 2011) and decrease total financial assets by $0 for 2012 ($0 for 2011).
Government funding and transfers, as well as the credit related to services provided without charge by other government departments, are now recognized in the Statement of Operations and Departmental Net Financial Position below “Net cost of operations before government funding and transfers.” In previous years, the CIRB recognized these transactions directly in the Statement of Equity of Canada. The effect of this change was to decrease the net cost of operations after government funding and transfers by $17,362,810 for 2012 ($16,798,394 for 2011).
2011 As previously stated |
Effect of change | 2011 Restated |
|
---|---|---|---|
Statement of Financial Position | |||
Liabilities held on behalf of Government | - | - | - |
Assets held on behalf of Government | - | - | - |
Departmental financial position | 2,324,693 | - | 2,324,693 |
Statement of Operations and Departmental Net Financial Position | |||
Revenues | 936 | (45) | 891 |
Expenses | - | - | - |
Government funding and transfers | |||
Net cash provided by Government | 13,167,923 | 45 | 13,167,968 |
Change in due from Consolidated Revenue Fund | 11,297 | - | 11,297 |
Services provided without charge by other government departments | - | - | - |
Transfer of assets and liabilities from (to) other government departments | - | - | - |
12. Comparative information
Comparative figures have been reclassified to conform to the current year’s presentation.
- Date modified: