Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009, and all information contained in these statements rests with the Canada Industrial Relations Board's (the CIRB or the Board) 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 judgment and gives due consideration to materiality. To fulfil 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 to the Public Accounts of Canada and included in the Board'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 Board.
The financial statements of the Board have not been audited.
| For the Year Ended March 31 | 2009 |
2008 |
| (in dollars) Expenses Salaries and employee benefits Accommodation Travel and relocation Professional and special services Communication Amortization Equipment Equipment rentals Utilities, materials and supplies Repairs and maintenance Information Miscellaneous Total Expenses Revenues Miscellaneous revenues Total Revenues |
11,839,438
2,604,805
765,027
726,721
329,731
320,758
282,083
152,832
93,722
113,972
19,867
17,095
17,266,051 1,475
1,475 |
10,107,479
2,277,000
950,562
657,316
359,484
428,031
275,231
167,429
146,278
118,460
16,513
20,919
15,524,702 1,143
1,143 |
| Net Cost of Operations | 17,264,576 |
15,523,599 |
The accompanying notes form an integral part of these financial statements.
| At March 31 | 2009 |
2008 |
| (in dollars) Assets Financial Assets Accounts receivable (Note 4) Advances Total Financial Assets Non-financial Assets Tangible capital assets (Note 5) Total Liabilities and Equity of Canada Liabilites Accounts payable and accrued liabilities Vacation pay and compensatory leave Employee severance benefits (Note 6) Equity of Canada |
129,044
3,400
132,444 2,666,890 2,799,334 1,354,875
436,577
2,091,565
3,883,017 (1,083,683) |
232,555
4,400
236,955 2,342,713 2,579,668 1,239,206
441,390
1,519,106
3,199,702 (620,034) |
| Total | 2,799,334 |
2,579,668 |
The accompanying notes form an integral part of these financial statements.
| For the Year Ended March 31 | 2009 |
2008 |
| (in dollars) Equity of Canada, beginning of year Net cost of operation Current year appropriations used (Note 3) Revenue not available for spending Change in net position in the Consolidated Revenue Fund (Note 3) Services provided without charge from other government departments (Note 7) |
(620,034)
(17,264,576)
13,722,769
(1,475)
(256,230)
3,335,863
|
(56,533)
(15,523,559)
12,516,149
(1,143)
(412,948)
2,858,000
|
| Equity of Canada, end of year | (1,083,683) |
(620,034) |
The accompanying notes form an integral part of these financial statements.
| For the Year Ended March 31 | 2009 |
2008 |
| (in dollars) Operating Activities Net cost of operations Non-cash items: Amortization of tangible capital assets Services received without charge Adjusted to capital assets Variations in Statement of Financial Position Increase in liabilities Decrease) in accounts receivable and advances Cash used by operating activities Capital Investment Activities Acquisitions of tangible capital assets (Note 3) Proceeds on disposal of capital assets Cash used by capital investment activities Financing Activities Net cash provided by Government of Canada Cash used by financing activities |
17,264,576
(320,758)
(3,335,863)
56,555
(683,315)
(104,511)
12,876,684
588,380
0
588,380
(13,465,064)
(13,465,064)
|
15,523,559
(428,031)
(2,858,000)
0
(108,517)
(142,870)
11,986,141
115,917
0
115,917
(12,102,058)
(12,102,058)
|
The accompanying notes form an integral part of these financial statements.
The CIRB 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 Canada Labour 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.
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.
Significant accounting policies are as follows:
(a) Parliamentary appropriations
The Board is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Board do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. 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 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 federal government.
(c) Change in net position in the CRF
The change in net position in the CRF 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 Board. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
(d) Expenses
Expenses are recorded on the accrual basis:
(e) Employee future benefits
(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:
Asset Class Leasehold improvements Informatics hardware Informatics software Furniture and equipment Machinery and equipment Assets under construction |
Amortization Period
Lesser of the remaining term of the
lease or useful life of the improvement
3 years
3–10 years
10 years
5 years
Once in service, in accordance
with asset type
|
(h) 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 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.
(a) Reconciliation of net cost of operations to current year appropriations used
2009 |
2008 |
|
| (in dollars) Net Cost of Operations Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less): Services provided without charge Refund/reversal of previous year’s expenses Amortization of tangible capital assets Employee severance benefits Adjustments to capital assets Vacation pay Revenue not available for spending Other Adjustments for items not affecting net cost of operations but affecting appropriations: Add (Less): Acquisitions of tangible capital assets Current Year Appropriations Used |
17,264,576
(3,335,863)
36,050
(320,758)
(572,459)
56,555
4,814
1,475
(1)
4,130,187
588,380
13,722,769 |
15,523,559
(2,858,000)
23,599
(428,031)
134,275
0
2,855
1,143
832
(3,123,327)
115,917
12,516,149
|
(b) Appropriations provided and used
Appropriations provided |
||
2009 |
2008 |
|
| (in dollars) Operating expenditures–Vote 10 Supplementary Votes Transfer from TB–Vote 15 Transfer from TB–Vote 25 Transfer from TB–Vote 30 Less: Lapsed appropriations Add: Contributions to employee benefits plan Current Year Appropriations Used |
11,018,000
220,001
605,938
536,650
278,105
12,658,694
(362,384)
12,296,310
1,426,459
13,722,769
|
10,887,000
0
131,000
533,400
371,520
11,922,920
(784,909)
11,138,011
1,378,138
12,516,149 |
(c) Reconciliation of net cash provided by Government to current year appropriations used
2009 |
2008 |
|
| (in dollars) Net cash provided by Government Revenue not available for spending Change in net position in the CRF Refund/reversal of previous year’s expenses Variation in accounts receivable Variation in accounts payable and accrued liabilities Other adjustments Current Year Appropriations Used |
13,465,064
1,475
36,050
103,511
115,669
1,000
256,230
13,722,769 |
12,102,058
1,143
23,599
142,370
245,647
1,332
412,948
12,516,149
|
2009 |
2008 |
|
| (in dollars) Receivables from other Federal government departments and agencies Receivables from external parties Total |
124,092
4,952
129,044 |
218,061
14,494
232,555 |
| Cost | Opening Balance |
Acquisitions |
Adjustments/Disposals |
Closing Balance |
| (in dollars) Leasehold improvements Informatics hardware Informatics software Furniture and equipment Machinery and equipment Assets under construction |
263,333
492,561
2,781,491
240,134
35,735
115,917 |
0
0
0
75,155
0
513,225 |
629,142
0
0
56,555
0
(629,142) |
892,475
492,561
2,781,491
371,844
35,735
0 |
|
3,929,171 |
588,380 |
56,555 |
4,574,106 |
| Accumulated Amortization | Opening Balance |
Acquisition Expense |
Adjustments/Disposals |
Closing Balance |
| (in dollars) Leasehold improvements Informatics hardware Informatics software Furniture and equipment Machinery and equipment |
251,064
492,561
730,302
89,032
23,499 |
12,269
0
275,462
28,402
4,625 |
0
0
0
0
0 |
263,333
492,561
1,005,764
117,434
28,124 |
1,586,458 |
320,758 |
0 |
1,907,216 |
|
2008 |
2009 |
|||
| Net Book Value | 2,342,713 |
2,666,890 |
(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 2009 expense amounts to $1,029,904 ($1,004,662 in 2008), which represents approximately 2.0 times (2.1 in 2007-08) 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 prefunded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
2009 |
2008 |
|
| (in dollars) Accrued benefit obligation, beginning of year Expense for the year Benefits paid during the year Accrued benefit obligation, end of year |
1,519,106
753,529
(181,070)
2,091,565 |
1,653,381
85,257
(219,532)
1,519,106 |
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 services that were obtained without charge from other government departments as presented in part (a).
(a) Services provided without charge
During the year the Board 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 Board's Statement of Operations as follows:
2009 |
2008 |
|
| (in dollars) Accommodation Employer’s contribution to the health and dental insurance plans Total |
2,604,805
731,058
3,335,863 |
2,277,000
581,000
2,858,000 |
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 Board's Statement of Operations.
(b) Payables and receivables outstanding at year-end with related parties
2009 |
2008 |
|
| (in dollars) Accounts receivable with other government departments and agencies Accounts payable to other government departments and agencies |
124,092
168,836 |
218,061
263,438 |
Comparative figures have been reclassified to conform to the current year's presentation.