2013-14 Future-oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2013 rests with CCOHS management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and will be used in the department's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material.

Steve Horvath,
President and Chief Executive Officer,
Hamilton, Canada,
February 8, 2013
Bonnie Easterbrook,
CGA, Chief Financial Officer
Hamilton, Canada,
February 8, 2013

Future-Oriented Statement of Financial Position

At March 31 2013
Estimated Results
$
2014
Planned Results
$
Liabilities
Accounts payable and accrued liabilities 446,757 446,757
Deferred revenues – web based subscriptions 878,666 878,666
Vacation pay and compensated leave 410,000 410,000
Employee severance benefits (note 7) 1,277,142 1,177,142
Deferred revenues - donations (note 6) 100,901 100,901
Deferred revenues - contributions to inquiries service 42,500 42,500
Total Liabilities 3,155,966 3,055,966
Financial assets
Due from the Consolidated Revenue Fund 540,158 540,158
Accounts receivable 310,572 310,572
Total Financial assets 850,730 850,730
Net Debt (note 3) (2,305,236) (2,205,236)
Non-financial assets:
Inventory for resale 51,838 51,838
Tangible capital assets 246,015 313,623
Total non-financial assets 297,853 365,461
Net Financial Position (2,007,383) (1,839,775)

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

Future-Oriented Statement of Operations and Net Financial Position

For the year ended March 31 2013
Estimated Results
$
2014
Planned Results
$
Expenses
Operations
Salaries and employee benefits 7,784,917 7,829,292
Professional and special services 1,081,376 1,122,500
Accommodation 713,537 676,937
Transportation and communications 99,687 115,000
Purchased repair and upkeep 118,510 145,000
Utilities, materials and supplies 60,124 100,000
Information 82,175 82,000
Rentals 51,379 25,000
  9,991,705 10,095,729
Administration
Salaries and employee benefits 251,281 260,000
Governors and committees 7,906 8,000
Travel 22,927 35,000
Professional and special services 500 500
Utilities, materials and supplies 50 -
  282,664 303,500
Other expenses
Amortization of tangible capital assets 82,392 82,392
  82,392 82,392
Total expenses 10,356,761 10,481,621
Revenues (note 5)
Proceeds from sales 3,033,480 3,300,000
Projects and collaborative agreements 800,000 1,000,000
Total revenues 3,833,480 4,300,000
Net cost of operations before government funding (6,523,281) (6,181,621)
Government Funding
Net cash provided by government 5,838,400 5,071,152
Change in due from the Consolidated Revenue Fund 89,266 -
Services provided without charge from other government departments 1,297,547 1,278,077
Net cost of Operations after government funding 701,932 167,608
Net Financial Position at Beginning of Year (2,709,315) (2,007,383)
Net Financial Position at End of year (2,007,383) (1,839,775)

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

Future-Oriented Statement of Cash Flow

For the year ended March 31 (in dollars) 2013
Estimated Results
$
2014
Planned Results
$
Operating Activities
Net cost of operations before government funding 6,523,281 6,181,621
Non-cash items:
Amortization of tangible capital assets (82,392) (82,392)
Services received without charge from other government departments (Note 8) (1,297,547) (1,278,077)
Variations in Statement of Financial Position:
Decrease in accounts payable and deferred revenues (37,876) -
Decrease (increase) in liability for vacation pay and compensatory leave (869) -
(Increase) decrease in liability for employee severance benefits 614,414 100,000
(Increase) in deferred revenue – donations (1,594) -
(Increase) decrease in contributions to inquiries service - -
(Decrease) increase in accounts receivable (29,159) -
(Decrease) in inventory - -
Cash used in operating activities 5,688,258 4,921,152
Capital investing activities
Acquisitions of tangible capital assets 150,142 150,000
Net cash provided by Government of Canada 5,838,400 5,071,152

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

Notes to the Future oriented Financial Statements

 

March 31, 2013

 

1. Authority and Objectives

The Canadian Centre for Occupational Health and Safety (CCOHS) was established in 1978 under the Canadian Centre for Occupational Health and Safety Act and is a departmental corporation named in Schedule II to the Financial Administration Act. The objectives of CCOHS are to promote the right of Canadians to a healthy and safe working environment and to enhance the physical and mental health of workers. CCOHS' operating expenditures are funded in part by its operating revenue and by a budgetary lapsing appropriation.

CCOHS has one program activity for reporting purposes, in addition to internal services. The activity is occupational health and safety information development, delivery services and tripartite collaboration.

The goal of this program is to provide free information on occupational health and safety to support Canadians in their efforts to improve workplace safety and health. Citizens are provided information through a free and impartial personalized service via telephone, e-mail, person-to-person, fax or mail. Alternatively, they can independently access a broad range of electronic and print resources developed to support safety and health information needs of Canadians. This may include cost recovery products and services and is supported financially by contributions from various stakeholders.

Through health and safety information development, CCOHS collects, processes, analyzes, evaluates, creates and publishes authoritative information resources on occupational health and safety for the benefit of all working Canadians. This information is used for education and training, research, policy development, development of best practices, improvement of health and safety programs, achieving compliance, and for personal use. When the product or service provided by CCOHS is to identifiable external recipients with benefits beyond those enjoyed by the general taxpayer, a user fee is charged.

CCOHS promotes and facilitates consultation and cooperation among federal, provincial and territorial jurisdictions and participation by labour, management and other stakeholders in the establishment and maintenance of high standards and occupational health and safety initiatives for the Canadian context. The sharing of resources results in the coordinated and mutually beneficial development of unique programs, products and services. Collaborative projects are usually supported with a combination of financial and non- financial contributions to the programs by partners and stakeholders and result in advancement of the health and safety initiatives.

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; Material Services; Acquisition Services; and Travel and Other Administrative Services. Internal Canadian Centre for Occupational Health and Safety

Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.


2. Underlying Assumptions

These future-oriented statements have been prepared:

  • As at December 31, 2012.
  • On the basis of government policies, government priorities and external environment at the time the future-oriented financial information was finalized
  • According to the requirements of the Treasury Board Accounting policies which are based on Canadian generally accepted accounting principles for the public sector.
  • On the basis that the resources provided will enable CCOHS to deliver the expected results specified in the Report on Plans and Priorities
  • On the basis of historical costs.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results from 2012/13 to 2013/14, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, CCOHS 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. Significant Accounting Policies

These 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 and year-end instructions issued by the Office of the Comptroller General. Significant accounting policies are as follows:

  • Parliamentary appropriations

    CCOHS is financed in part by the Government of Canada through Parliamentary appropriations. Appropriations provided to CCOHS 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 6 provides a high-level reconciliation between the bases of reporting.

  • Due from the Consolidated Revenue Fund and net cash provided by government

    CCOHS operates within the Consolidated Revenue Fund (CRF). The CRF is administered by the Receiver General for Canada. All cash received by CCOHS is deposited to the CRF and all cash disbursements made by CCOHS are paid from the CRF. Due from the CRF represents the amount of cash that CCOHS is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities. Net cash provided by government is the difference between all cash receipts and all cash disbursements including transactions with departments of the federal government.

  • Forecasted Revenues

    Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. Subscriptions revenues are recognized in the period when the initial shipment is made for all physical goods, such as CD-ROM, and DVD. Revenues for subscriptions of internet based products are recognized over the term of the subscription.

    Subscriptions are based upon the right to use the information for a specified period. Information may be updated during the subscription period.

    Contributions to inquiries service received in advance are recognized in the next fiscal year as this relates to the service period for the contribution.

    Cash that have been received but not yet earned is recorded as deferred revenue. The deferred revenue represents cash received in advance of initial and ongoing product delivery or granting of website - access.

  • Forecasted 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 audit services are recorded as operating expenses at their estimated cost.

  • Employee future benefits

    • Pension benefits: Eligible employees contribute to the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. CCOHS' contributions to the Plan are charged to expenses in the year incurred and represent CCOHS' total obligation to the Plan. Current legislation does not require CCOHS to make contributions for any actuarial deficiencies of the Plan.
    • 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 and are estimated based on employees' salaries, duration of service and age.
    • Accumulated sick leave: employees are entitled to sick leave benefits that accumulate but do not vest. No amount has been recorded in the financial statements in respect of these benefits as they are not significant.

  • Accounts receivable

    Accounts receivable are stated at amounts expected to be ultimately realized. An allowance is made for receivables from external parties where recovery is considered uncertain.

  • Contingent liabilities

    Contingent liabilities are potential liabilities that 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 the 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.

  • 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 using the rate of exchange in effect on March 31st. Gains and losses resulting from foreign currency transactions are included in the statement of operations according to the activities to which they relate.

  • Inventories for resale

    Inventories are valued at the lower of cost and net realizable value. Inventories are primarily print materials held for resale.

  • Tangible capital assets

    All tangible capital assets and leasehold improvements with an acquisition cost of $1,000 or more are capitalized at cost. Tangible capital assets are amortized over their estimated useful life on a straight-line basis, as follows:

    Asset Class Amortization Period
    Computer equipment 5 years
    Furniture and equipment 5 years
    Software 1-5 years
    Leasehold improvements 5 years
    Measuring equipment 5 years

  • 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 and year-end instructions issued by the Office of the Comptroller General 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 liability for employee future benefits and the estimated useful life of tangible capital assets are the most significant items where estimates are used. Actual results could differ significantly 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.

5. Net Debt

The net debt is calculated as the difference between liabilities and financial assets. Post-employment benefits and vacation pay obligations represent the most significant components of net debt as these obligations are paid from future parliamentary authorities.


6. Parliamentary Appropriations

CCOHS receives its funding through annual Parliamentary authorities and external revenues. Items recognized in the Statement of Operations and Net Financial Position and the Statement Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, CCOHS' has different net results of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled as follows.

  • Reconciliation of net cost of operations to current year authorities used:

      2013
    Estimated Results
    $
    2014
    Planned Results
    $
    Net cost of operations before Government funding 6,523,281 6,181,621
    Non-cash items:
    Amortization of tangible capital assets (82,392) (82,392)
    Services received without charge from other government departments (1,297,547) (1,278,077)
    Decrease (Increase) in employee severance benefits 614,414 100,000
    (Increase) in vacation pay and compensatory leave (869) -
      5,756,887 4,921,152
    Adjustments for items not affecting net cost of operations
    but affecting authorities:
    Add (Less)
    Respendable revenue not yet collected (151,269) 40,000
    Acquisition of tangible capital assets 150,142 150,000
    Total items not affecting net cost of operations
    but affecting authorities
    (1,127) 190,000
    Current year authorities used 5,755,760 5,111,152

  • Authorities provided and used:

      2013
    Estimated Results
    $
    2014
    Planned Results
    $
    Human Resources Social Development Canada – Vote 25 3,853,172 3,853,172
    Human Resources Social Development Canada – statutory 1,130,830 1,117,980
    Human Resources Social Development Canada – Vote 25A 142,463 57,868
    Treasury Board – Vote 15 – collective agreements - -
    Treasury Board – Vote 30 – paylist shortfalls 687,163 100,000
    Current year authorities provided 5,813,628 5,129,020
    Less:
    Lapsed authorities – operating (57,868) (17,868)
    Current year authorities used 5,755,760 5,111,152

7. Deferred Revenue - Donations

CCOHS, by virtue of subsection 6(3) of its Act, may acquire money or other property by gift or otherwise and expend or dispose of those donations subject to their terms, if any. We estimate CCOHS will receive NIL in donations in 2012/2013 (2011/2012 - $NIL). The balance at March 31, 2014 is estimated at $100,901.


8. Employee Benefits

  • Pension Benefits
    CCOHS 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/Quebec Pension Plans benefits and they are indexed to inflation.

    Both the employees and CCOHS contribute to the cost of the Plan. The 2013/2014 expenses are estimated at $798,238 (2012/2013 - $807,413), which represents approximately 1.8 times the contributions by employees.

    CCOHS' 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.

  • Employee Severance Benefits

    CCOHS 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. In future years, it is estimated that the amounts will decrease as many employees retire and receive payment. In addition, due to recent changes to the collective agreement, no further benefits will accrue. Employees are entitled to an immediate payment or they may elect to receive the funds upon retirement. Information about the severance benefits, estimated at March 31, is as follows:

      2013
    Estimated Results
    $
    2014
    Planned Results
    $
    Accrued benefit obligation, beginning of year 1,891,556 1,277,142
    Expense for the year - -
    Benefits paid during the year (614,414) (100,000)
    Accrued benefit obligation, end of year 1,277,142 1,177,142

9. Related Party Transactions

The department is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. The Department enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, CCOHS received common services which were obtained without charge from other Government departments as disclosed below.

During the year, CCOHS received services without charge from certain common service organizations, related to accommodation, legal services, the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Statement of Operations as follows:

  2013
Estimated Results
$
2014
Planned Results
$
Employer's contribution to health and dental insurance plans 529,010 546,140
Accommodation 713,537 676,937
Audit services 55,000 55,000
Total 1,297,547 1,278,077

The Government has centralized 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 in CCOHS' Statement of Operations.