Future-oriented Financial Statements

Statement of Management Responsibility

CANADA INDUSTRIAL RELATIONS BOARD

The Canada Industrial Relations Board's 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 March 23, 2012, and reflect the plans described in the Report on Plans and Priorities.

Ginette Brazeau, Chief Financial Officer
Ottawa, Canada
March 23, 2012

Elizabeth MacPherson, Chairperson
Ottawa, Canada
March 23, 2012

Future-oriented Statement of Financial Position (Unaudited)

CANADA INDUSTRIAL RELATIONS BOARD

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to January 31, 2012.

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

Future-oriented Statement of Operations (Unaudited)

CANADA INDUSTRIAL RELATIONS BOARD

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to January 31, 2012.

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

Future-oriented Statement of Equity of Canada (Unaudited)

CANADA INDUSTRIAL RELATIONS BOARD

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011 to January 31, 2012.

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

Future-oriented Statement of Cash Flow (Unaudited)

CANADA INDUSTRIAL RELATIONS BOARD

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to January 31, 2012.

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

Notes to Future-oriented Financial Statements (unaudited)

CANADA INDUSTRIAL RELATIONS BOARD

1. Authority and Objective

The Canada Industrial Relations Board (CIRB or the Board) is an independent, representational, quasi-judicial tribunal responsible for the interpretation and application of the Canada Labour 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.

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, material and procurement services); information management (IM) services; and information technology (IT) services.

2. Significant Assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the CIRB as described in the Report on Plans and Priorities.

The main assumptions are as follows:

(a) The department's activities will remain substantially the same as for the previous year.

(b) 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.

(c) Estimated year end information for 2011–12 is used as the opening position for the 2012–13 planned results.

These assumptions are adopted as at March 23, 2012.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2011–12 and for 2012–13, 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 CIRB 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:

(a) The timing and amounts of acquisitions and disposals of equipment may affect gains/losses and amortization expense.

(b) Implementation of new collective agreements.

(c) Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

(d) Changes in standard rate used by the Treasury Board to calculate employee benefits.

Once the Report on Plans and Priorities is presented, the CIRB 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

The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2011–2012 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Parliamentary authorities
The CIRB is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the department 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 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.

(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 department 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) Change in net position in the Consolidated Revenue Fund
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 - 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.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 the employer's contribution to the health and dental insurance plans, legal and other services are recorded as operating expenses at their estimated cost.

(e) 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 Board's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan for the Board. Current legislation does not require the Board 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.

(f) Accounts Receivable
Most receivables recorded by the Board are from other government departments. Recovery is considered certain and a provision has not been made.

(g) 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:

5. Parliamentary Authorities

The CIRB receives most of its funding through annual Parliamentary authorities. Items recognized in the Future-oriented Statement of Operations and Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the CIRB 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) Authorities requested:

Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

(b) Reconciliation of net cost of operations to requested authorities:

6. Accounts Receivable and Advances

The following table presents details of the CIRB's accounts receivable and advances balances:

7. Accounts Payable and Accrued Liabilities

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

8. Tangible Capital Assets

9. Employee 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 department contribute to the cost of the Plan. The forecast expenses are $1,101 in 2011–12 and $1,127 in 2012–13, which represents approximately 1.9 times the contributions of 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:

10. Contractual Obligations

The nature of the CIRB's activities can result in some large multi-year contracts and obligations whereby the CIRB will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

11. Related Party Transactions

The Board is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Board enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Board received common services which were obtained without charge from other Government departments as disclosed in part (a).

(a) Common services provided without charge by other government departments:
During the year the Board received 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 as follows:

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 and audit services provided by the Office of the Auditor General are not included in the CIRB's Future-oriented Statement of Operations.

(b) Other transactions with related parties:

Date modified:

2013-08-16