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SECTION III - SUPPLEMENTARY INFORMATION

3.1 Organizational Information

3.1.1 Mandate, Role and Responsibilities

The Constitution Act, 1867, provides that provincial jurisdiction extends over "Property and Civil Rights," meaning that the negotiation of collective agreements containing terms and conditions of employment for employees is regulated by the provinces. The Constitution, however, assigns exclusive jurisdiction to Parliament over specific sectors of the economy, and as such, it has seen fit to enact laws regulating employment matters within those sectors that have constitutionally been reserved to it. Laws governing the federal jurisdiction are contained in the Code, which is divided into three parts:

Part I - Industrial Relations
Part II - Occupational Health and Safety
Part III - Labour Standards

Part I of the Code sets out the terms under which trade unions may acquire the legal right to represent employees in the negotiation of collective agreements with their employer. It also delineates the process under which collective bargaining takes place and provides remedies to counter infractions committed by any party subject to the Code's provisions.

Part I of the Code had remained virtually unchanged since 1972. However, with the coming into force on January 1, 1999, of Bill C-19, an Act to amend the Canada Labour Code (Part I), R.S. 1998, c. 26, significant changes were made to the Code in an effort to modernize it and improve the collective bargaining process for federally regulated industries. The Act replaced the Canada Labour Relations Board with the Canada Industrial Relations Board as an independent, representational, quasi-judicial tribunal responsible for the interpretation and application of Part I, Industrial Relations, and certain provisions of Part II, Occupational Health and Safety, of the Canada Labour Code.

The Canada Industrial Relations Board's mandate 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.

In support of its mandate, the Board established the following vision and values:

decisions on applications and complaints provided in a fair, expeditious and economical manner; successful resolution of cases through appropriate dispute resolution mechanisms; an involved and well-informed labour relations community; effective Regulations and practices developed through consultation with clients. In the discharge of its mandate and the exercise of its powers, the Board aims to be progressive and innovative, efficient and effective, open and accountable. The working environment at the Board promotes learning and development, harmony, teamwork and respect.

The Board's role is to exercise its powers in accordance with the Preamble and provisions of the Code, which state that Parliament considers "the development of good industrial relations to be in the best interests of Canada in ensuring a just share of the fruits of progress to all." To that end, the Board aims to be responsive to the needs of the industrial relations community across Canada.

3.1.2 Departmental Organization

The Board, as provided for in the Code, is composed of the Chairperson, two or more full time Vice-Chairpersons, not more than six full-time Members (of which not more than three represent employers and not more than three represent employees) and any other part-time Members (representing, in equal numbers, employees and employers) necessary to discharge the responsibilities of the Board. All are appointed by the GIC: the Chairperson and the Vice-Chairpersons for terms not to exceed five years, the Members for terms not to exceed three years. (Information on Board Members can be found at www.cirb-ccri.gc.ca/about/members/index_e.asp.)

The Chairperson is the chief executive officer of the Board. The provisions of the Code assign to the Chairperson supervision over, and direction of, the work of the Board, including:

• the assignment and reassignment to panels of matters that the Board is seized of;
• the composition of panels and the assignment of Vice-Chairpersons to preside over panels;
• the determination of the date, time and place of hearing;
• the conduct of the Board's work;
• the management of the Board's internal affairs;
• the duties of the staff of the Board.

The Board's headquarters are located in the National Capital Region. Support to the Board is provided by the Executive Director, reporting directly to the Chairperson. The Executive Director is responsible for regional operations, case management, client and corporate services, financial services and human resources. The Legal Services Branch provides legal assistance as required by the Board and its units and the General Counsel also reports directly to the Chairperson of the Board.

The Board also has five regional offices in Dartmouth, Montreal, Ottawa, Toronto and Vancouver, with a satellite office in Winnipeg. These offices are staffed by labour relations professionals and case management teams. Each regional office is headed by a regional director, who reports to the Executive Director in Ottawa.

3.1.3 Contact the Board

Toll-free: 1-800-575-9696

People who use TTY should place calls with the assistance of a Bell Relay Service operator at: 1-800-855-0511

E-mail: info@cirb-ccri.gc.ca

Web site: http://www.cirb-ccri.gc.ca

Further information on how to contact the regional offices can be found at http://www.cirb-ccri.gc.ca/contact/index_e.asp.

3.2 Financial Performance Summary and Summary Tables

Financial Summary Tables

The following tables are applicable to the Board:
Table 1 - Comparison of Planned to Actual Spending (including FTEs)
Table 2 - Resources by Program Activity
Table 3 - Voted and Statutory Items
Table 4 - Services Received Without Charge
Table 5 - Financial Statements
Table 6 - Response to Parliamentary Committees, and Audits and Evaluations for Fiscal Year 2006-07
Table 7 - Travel Policies

Table 1 - Comparison of Planned to Actual Spending (including FTEs)

This table offers a comparison of the Main Estimates, Planned Spending, Total Authorities, and Actual Spending for the most recently completed fiscal year, as well as historical figures for Actual Spending. The Total Authorities granted to the Board were approximately $299,000 more than originally planned. The additional authorities consisted mainly of:

• $480,000 carried over from previous fiscal years;
• $30,000 procurement savings;
• $97,000 to offset employee salary increases as a result of collective bargaining;
• A reduction of $308,000 in the allowance for the contribution to employee benefits.

Actual spending represented 92% of authorized amounts.

($ thousands)	2004-05 Actual	2005-06 Actual	2006-07
			Main Estimates	Planned Spending	Total Authorities	Total Actuals
Administration and interpretation of Part I (Industrial Relations) and certain provisions of Part II (Occupational Health and Safety) of the Canada Labour Code	12,439.3	12,286.9	12,396.0	12,366.0	12,665.2	11,658.2
Total	12,439.3	12,286.9	12,396.0	12,366.0	12,665.2	11,658.2
Less: Non respendable revenue*	-0.9	-1.1	N/A	0.0	N/A	-0.9
Plus: Cost of services received without charge	2,462.4	2,785.9	N/A	2,941.0	N/A	2,822.4
Total for the Board Spending	14,900.9	15,071.7	N/A	15,307.0	N/A	14,479.7
Full-time Equivalents	105	104	N/A	117	N/A	103

* The non-respendable revenue consists essentially of fees collected for access to information requests and parking fee reimbursements.

Table 2 - Resources by Program Activity

The following table provides information on how resources are used for the most recently completed fiscal year.

	2006-07
($ thousands)	Budgetary
Program Activity	Operating	Total: Gross Budgetary Expenditures	Less: Respendable Revenue	Total: Net Budgetary Expenditures
Administration and interpretation of Part I (Industrial Relations) and certain provisions of Part II (Occupational Health and Safety) of the Canada Labour Code
Main Estimates	12,396.0	12,396.0	0.0	12,396.0
Planned Spending	12,366.0	12,366.0	0.0	12,366.0
Total Authorities	12,665.2	12,665.2	0.6	12,664.9
Actual Spending	11,658.2	11,658.2	0.0	11,658.2

Table 3 - Voted and Statutory Items

This table explains the way Parliament votes resources to the CIRB and basically replicates the summary table listed in the Main Estimates. Resources are presented to Parliament in this format. Parliament approves the votes funding and the statutory information is provided for information purposes.

($ thousands)		2006-07
Vote or Statutory Item	Truncated Vote or Statutory Wording	Main Estimates	Planned Spending	Total Authorities	Total Actuals
10	Operating Expenditures	10,822.0	10,792.0	11,398.5	10,391.8
(S)	Contributions to Employee Benefit Plans	1,574.0	1,574.0	1,266.4	1,266.4
(S)	Crown Assets Surplus	0.0	0.0	0.3	0.0
	Total	12,396.0	12,366.0	12,665.2	11,658.2

Table 4 - Services Received Without Charge

($ thousands)	2006-07
Accommodation provided by Public Works and Government Services Canada	2,205.7
Contributions covering employers' share of employees' insurance premiums and expenditures paid by Treasury Board of Canada Secretariat (excluding revolving funds). Employers' contribution to employees' insured benefits plans and associated expenditures paid by TBS	616.7
Salary and associated expenditures of legal services provided by the Department of Justice Canada	0.0
Total 2006-07 Services Received Without Charge	2,822.4

Table 5 - Financial Statements

Canada Industrial Relations Board
Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007, and all information contained in these statements rests with the Board'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 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.

Canada Industrial Relations Board

Statement of Operations (unaudited)

For the Year Ended March 31		2007	2006
(in dollars)
Expenses
	Salaries and employee benefits	9,716,573	9,504,892
	Accommodation	2,206,000	2,167,453
	Professional and special services	884,921	957,776
	Travel and relocation	681,556	609,273
	Communication	416,349	381,670
	Equipment	124,528	293,863
	Equipment rentals	170,912	172,830
	Amortization	454,078	155,982
	Repairs and maintenance	139,146	125,252
	Utilities, materials and supplies	151,872	141,762
	Information	11,905	15,462
	Miscellaneous	132	433
	Total Expenses	14,957,972	14,526,648
Revenues
	Miscellaneous revenues	965	1,066
Total Revenues		965	1,066
Net Cost of Operations		14,957,007	14,525,582

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

Canada Industrial Relations Board
Statement of Financial Position (unaudited)

At March 31			2007	2006
(in dollars)
Assets
	Financial Assets
		Accounts receivable (Note 4)	374,925	247,994
		Advances	4,900	6,900
	Total Financial Assets		379,825	254,894
	Non-financial Assets
		Tangible capital assets (Note 5)	2,654,827	3,024,205
Total			3,034,652	3,279,099
Liabilities and Equity of Canada
	Liabilites
		Accounts payable and accrued liabilities	993,559	1,057,618
		Vacation pay and compensatory leave	444,245	428,880
		Lease obligation for tangible capital assets (Note 6)	0	2,036
		Employee severance benefits (Note 7)	1,653,381	1,484,295
			3,091,185	2,972,829
Equity of Canada			(56,533)	306,270
Total			3,034,652	3,279,099

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

Canada Industrial Relations Board
Statement of Equity of Canada (unaudited)

For the Year Ended March 31	2007	2006
(in dollars)
Equity of Canada, beginning of year	306,270	(725,283)
Net cost of operation	(14,957,007)	(14,525,582)
Current year appropriations used (Note 3)	11,658,196	12,286,944
Revenue not available for spending	(965)	(1,066)
Change in net position in the Consolidated Revenue Fund (Note 3)	114,281	485,414
Services provided without charge from other government departments (Note 8)	2,822,692	2,785,843
Equity of Canada, end of year	(56,533)	306,270

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

Canada Industrial Relations Board
Statement of Cash Flow (unaudited)

For the Year Ended March 31		2007	2006
(in dollars)
Operating Activities
Net cost of operations		14,957,007	14,525,582
Non-cash items:
	Amortization of tangible capital assets	(454,078)	(155,982)
	Services received without charge	(2,822,692)	(2,785,843)
Variations in Statement of Financial Position
	Decrease (increase) in liabilities	(118,356)	832,712
	Increase (decrease) in accounts receivable and advances	124,931	(213,426)
Cash used by operating activities		11,686,812	12,203,043
Capital Investment Activities
	Acquisitions of tangible capital assets (Note 3)	84,700	568,249
Cash used by capital investment activities		84,700	568,249
Financing Activities
	Net cash provided by Government of Canada	(11,771,512)	(12,771,292)
Cash used by financing activities		(11,771,512)	(12,771,292)
Net Cash Used		0	0
Cash, beginning of year		0	0
Cash, end of year		0	0

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

Canada Industrial Relations Board
Notes to the Financial Statements (unaudited)

1. Authority and Objectives

The Canada Industrial Relations Board (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.

2. Significant Accounting Policies

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 Consolidated Revenue Fund
The 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 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:

• 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.

(e) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer 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.
• 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:

Asset Class	Amortization Period
Informatics hardware	3 years
Informatics software	3-10 years
Furniture and equipment	10 years
Machinery and equipment	5 years
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement
Leased tangible capital assets (machinery and equipment)	5 years

 

(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.

3. Parliamentary Appropriations

(a) Reconciliation of net cost of operations to current year appropriations used

		2007	2006
(in dollars)
Net Cost of Operations		14,957,007	14,525,582
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
	Services provided without charge	(2,822,692)	(2,785,843)
	Refund/reversal of previous year's expenses	86,399	167,092
	Amortization of tangible capital assets	(454,078)	(155,982)
	Employee severance benefits	(169,086)	(25,049)
	Adjustments to capital assets	0	(17,957)
	Vacation pay	(15,365)	7,164
	Revenue not available for spending	965	1,066
	GST refundable	0	(15)
	Other	(11,690)	0
		(3,385,547)	(2,809,524)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):		84,700	568,249
	Acquisitions of tangible capital assets	2,036	2,637
	Reduction of capital lease obligation	86,736	570,886
Current Year Appropriations Used		11,658,196	12,286,944

(b) Appropriations provided and used

	Appropriations provided
	2007	2006
(in dollars) Operating expenditures - Vote 10 Supplementary - Vote - 10a Governor General's special warrants Transfer from TB - Vote 15 Less: Lapsed appropriations Add: Contributions to employee benefits plan Current Year Appropriations Used	10,822,000 479,500 0 97,000 11,398,500 (1,006,686) 10,391,814 1,266,382 11,658,196	10,344,000 0 690,000 0 11,034,000 (132,790) 10,901,210 1,385,734 12,286,944

(c) Reconciliation of net cash provided by Government to current year appropriations used

	2007	2006
(in dollars) Net cash provided by Government Revenue not available for spending Change in net position in the Consolidated Revenue Fund Refund/reversal of previous year's expenses Variation in accounts receivable Variation in accounts payable and accrued liabilities Other adjustments Current Year Appropriations Used	11,771,512 965 86,399 (126,931) (64,059) (9,690) (114,281) 11,658,196	12,771,292 1,066 167,092 213,411 (847,959) (17,958) (485,414) 12,286,944

4. Accounts receivable

	2007	2006
(in dollars) Receivables from other Federal government departments and agencies Receivables from external parties Total	357,677 17,248 374,925	208,799 39,195 247,994

5. Tangible Capital Assets

Cost	Opening Balance	Acquisitions	Transfers	Closing Balance
(in dollars) Leasehold improvements Informatics hardware Informatics software Furniture and equipment Machinery and equipment	263,333 492,561 2,781,491 163,284 27,885	76,850 7,850	0 0 0 0 0	263,333 492,561 2,781,491 240,134 35,735
	3,728,554	84,700	0	3,813,254
Accumulated Amortization	Opening Balance	Acquisitions Expense 2006-07	Transfers	Closing Balance
(in dollars) Leasehold improvements Informatics hardware Informatics software Furniture and equipment Machinery and equipment	37,772 432,543 174,052 46,292 13,690	119,777 32,265 278,125 18,727 5,184	0 0 0 0 0	157,549 464,808 452,177 65,019 18,874
	704,349	454,078	0	1,158,427
Net Book Value	3,024,205			2,654,827

6. Lease Obligation for Tangible Capital Assets

The Board has entered into agreements to rent machinery under capital lease with a cost of $12,772 and accumulated amortization of $12,772 as at March 31, 2007 ($12,772 and $10,643 respectively as at March 31, 2006). The obligation for the upcoming years include the following:

	2007	2006
(in dollars) Future lease payments Less: imputed interest Balance of obligation under leased tangible capital assets	0 0 0	2,070 34 2,036

7. 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/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Board contribute to the cost of the Plan. The 2007 expense amounts to $933,324 ($1,025,444 in 2006), which represents approximately 2.2 times (2.6 in 2005-06) 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 appropriations. Information about the severance benefits, measured as at March 31, is as follows:

	2007	2006
(in dollars) Accrued benefit obligation, beginning of year Expense for the year Benefits paid during the year Accrued benefit obligation, end of year	1,484,295 284,834 (115,748) 1,653,381	1,459,246 60,887 (35,838) 1,484,295

8. 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 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:

	2007	2006
(in dollars) Accommodation Employer's contribution to the health and dental insurance plans Total	2,205,694 616,692 2,822,386	2,167,453 618,390 2,785,843

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

	2007	2006
(in dollars) Accounts receivable with other government departments and agencies Accounts payable to other government departments and agencies	322,437 70,493	185,672 37,951

Table 6 - Response to Parliamentary Committees, and Audits and Evaluations for Fiscal Year 2006-07

Response to Parliamentary Committees

No recommendations were received.

 

Response to the Auditor General including to the Commissioner of the Environment and Sustainable Development (CESD)

To follow up.

 

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages.)

No external audits or evaluations were conducted.

 

Internal Audits or Evaluations

No internal audits or evaluation were conducted.

Table 7 - Travel Policies

The CIRB's Travel Policy complies with the Treasury Board Travel Directive with respect to its application to all Board staff and GIC appointees. In the case of GIC appointees, the CIRB generally adheres to the Special Travel Authorities applicable to GICs, as set out in the Treasury Board Travel Directive, with certain restrictions with respect to meal allowances and accommodation and the directives on business class air travel.

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