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Section III Supplementary Information

Appendix A – HMIRC's Organization

The Council of Governors constitutes the key element of the Commission's governance structure, acts as an advisory body and provides strategic advice and guidance to the Commission. The Council consists of up to 18 members: 2 representing workers, 1 representing suppliers, 1 representing employers, 1 representing the federal government, and between 4 and 13 representing the provincial and territorial governments. Each governor is appointed by the Governor in Council for up to three years. The Council is headed by a chairperson chosen by the governors for a term of one year. The Council is responsible for making various recommendations to the Minister of Health, including changes to the regulations related to the Commission's fee structure, the procedures for reviewing claims for exemption, and the appeal procedures.

Most Council members concurrently represent other occupational health and safety organizations, and thus are part of the existing multi-jurisdictional occupational health and safety network.

The President and CEO is appointed by the Governor in Council and has the authority and responsibility to supervise and direct the organization's work on a day-to-day basis. The President is accountable to Parliament through the Minister of Health.

The Vice-President of Operations directs the work of the MSDS Compliance, Screening and Client Services divisions.

The Vice-President of Corporate Services and Adjudication directs the work of the Corporate Services, Regulatory Affairs and Appeals, and Communications divisions.

Appendix B – Financial Performance

Table 1: Comparison of planned to actual spending (including FTEs)

($ thousands)		2004–2005	2005–2006	2006–2007
		Actual	Actual	Main Estimates	Planned Spending	Total Authorities	Total Actuals
Claims Exemption Process		3,520	3,257	3,512	3,512	3,601	3,401
Total		3,520	3,257	3,512	3,512	3,601	3,401
Less: Non-Respendable Revenue		570 (1)	570 (2)	-	570	-	591
Plus: Cost of Services Received without Charge		880	894	-	1,215	-	754
Total Departmental Spending		3,830	3,581	-	4,157	-	3,564
Full-Time Equivalents		30	31	-	35	-	30

⁽¹⁾ 2004–2005: The $570,000 actual revenues are comprised of $407,460 of fees collected plus $162,540 of Health Canada's frozen allotment.
⁽²⁾ 2005–2006: The $570,000 actual revenues are comprised of $486,260 of fees collected plus $83,740 of Health Canada's frozen allotment.

Table 2: Resources by program activity ($ thousands)

2006–2007
Program Activity	Budgetary			Total
	Operating	Total: Gross Budgetary Expenditures	Total: Net Budgetary Expenditures
Claims Exemption Process
Main Estimates	3,512	3,512	3,512	3,512
Planned Spending	3,512	3,512	3,512	3,512
Total Authorities	3,601	3,601	3,601	3,601
Actual Spending	3,401	3,401	3,401	3,401

Table 3:  Voted and statutory items ($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2006–2007
		Main Estimates	Planned Spending	Total Authorities	Total Actuals
25	Operating expenditures	3,019	3,019	3,225	3,025
(S)	Contributions to employee benefit plan	493	493	376	376
	Total	3,512	3,512	3,601	3,401

Table 4:  Services received without charge ($ thousands)

	2006–2007
Accommodation provided by Public Works and Government Services Canada	557
Contributions covering employers' share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat (excluding revolving funds)	197
Salary and associated expenditures of legal services provided by Justice Canada	0
Total 2006–2007 Services received without charge	754

Table 5:  Sources of non-respendable revenue ($ thousands)

			2006–2007
	Actual 2004–2005	Actual 2005–2006	Main Estimates	Planned Spending	Total Authorities	Actual
Claim Exemption Process
Fees charged on claims for exemption	570 (1)	570 (2)	570	570	570	591
Total Non-Respendable Revenue	570	570	570	570	570	591

⁽¹⁾ 2004–2005: The $570,000 actual revenues are comprised of $407,460 of fees collected plus $162,540 of Health Canada's frozen allotment.
⁽²⁾ 2005–2006: The $570,000 actual revenues are comprised of $486,260 of fees collected plus $83,740 of Health Canada's frozen allotment.

Table 6:  Resource requirements by branch or sector ($ thousands)

2006–2007
Hazardous Materials Information Review Commission	Claims Exemption Process	Total
Office of the President
Planned Spending	176	176
Actual Spending	188	188
Operations Branch
Planned Spending	2,107	2,107
Actual Spending	2,069	2,069
Corporate Services and Adjudication Branch
Planned Spending	1,229	1,229
Actual Spending	1,144	1,144

Note: The breakdown of planned and actual spending between branches has been modified from the table presented in the RPP to be more informative. The planned spending amounts were calculated using a prorating of actuals at year-end.

Table 7-A:  User Fees Act ($ thousands)

A. User Fee	Fee Type	Fee Setting Authority	Date Last Modified
Confidential business information exemption fees	Regulatory	Hazardous Materials Information Review Act	June 2002

2006–2007
Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard	Performance Results
570	591	807	Complete pre-registration check and register claims within seven days of receipt, provided all necessary information is included.	100%

Planning Years
Fiscal Year	Forecast Revenue ($000)	Estimated Full Cost ($000)
2007–2008	570	769(1)
2008–2009	570	769(1)
2009–2010	570	769(1)

B. Date Last Modified
N/A

C. Other Information
(1) Based on 20/80 ratio utilized for differentiation between private good and public good activities as per the revised fee schedule.
Notes
Fees have been established as per the Government of Canada's External Charging Policy of 1997.

Table 7-B:  User Fees Act ($ thousands)

A. User Fee	Fee Type	Fee Setting Authority	Date Last Modified
Fees charged for the processing of access requested filed under the Access to Information Act (ATIA)	Other Products and Services (O)	Access to Information Act	1992

2006–2007
Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard	Performance Results
-(1)	-(1)	1	Response provided within 30 days following receipt of request; response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days of receipt of request.	100%

Planning Years
Fiscal Year	Forecast Revenue ($000)	Estimated Full Cost ($000)
2007–2008	-(1)	1
2008–2009	-(1)	1
2009–2010	-(1)	1

B. Date Last Modified
N/A

C. Other Information
(1) The financial information is being reported in millions of dollars. The actual and forecast revenues are below the chosen denomination.
Notes
Fees have been established as per the Government of Canada's External Charging Policy of 1997.

Table 8:  Policy on service standards for external fees

Supplementary information on Service Standards for External Fees can be found at www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp

Appendix C – Financial Statements of Departments and Agencies (including Agents of Parliament)

Financial statements are prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note 3 on page 8 of the financial statements reconciles these two accounting methods.

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 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 judgement 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 Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission'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 Commission.

The financial statements of the Commission have not been audited.

Sharon Watts
President and Chief Executive Officer
Ottawa, Canada
Date: August 8, 2007

 

Statement of Operations (unaudited)

For the year ended March 31 (in dollars) (in dollars)	2007	2006
Expenses
Salaries and employee benefits	3,080,696	2,962,335
Accommodation	556,982	701,944
Professional and special services	383,970	192,519
Utilities, material and supplies	101,907	81,791
Travel and relocation	43,607	46,010
Information	13,370	29,052
Communication	29,124	28,168
Rentals	12,018	11,168
Purchased repair and maintenance	7,137	4,719
	4,228,811	4,057,706
Revenues
Client Services	591,445	478,550
Net cost of operations	3,637,366	3,579,156

 

Statement of Financial Position (unaudited)

At March 31 (in dollars)	2007	2006
Assets
Financial Assets
Accounts receivable and advances (Note 4)	126,606	159,592
	126,606	159,592
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities	323,418	192,924
Vacation pay and compensatory leave	141,267	166,321
Employee severance benefits (Note 5)	541,257	430,522
Other liabilities	0	636
	1,005,942	790,403
Equity of Canada	(879,336)	(630,811)
	126,606	159,592

 

Statement of Equity (unaudited)

For the year ended March 31 (in dollars)	2007	2006
Equity of Canada, beginning of year	(630,811)	(943,302)
Net cost of operations	(3,637,366)	(3,579,156)
Current year appropriations used (Note 3)	3,400,784	3,256,597
Revenue not available for spending	(591,445)	(478,550)
Change in net position in the Consolidated Revenue Fund (Note 3)	(174,172)	219,213
Services received without charge by other government departments (Note 6)	753,674	894,387
Equity of Canada, end of year	(879,336)	(630,811)

 

Statement of Cash Flow (unaudited)

For the year ended March 31 (in dollars)	2007	2006
Operating activities
Net cost of operations	3,637,366	3,579,156
Non-cash items:
Services received without charge by other government departments (Note 6)	(753,674)	(894,387)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances	(32,986)	(20,023)
Decrease (increase) in liabilities	(215,539)	332,514
Cash used for operating activities	2,635,167	2,997,260
Financing activities
Net cash provided by Government of Canada	(2,635,167)	(2,997,260)

 

Notes to the Financial Statements (unaudited)

1. Authority and purpose

The Hazardous Materials Information Review Commission was created as an independent quasi-judicial agency in 1987 by proclamation of the Hazardous Materials Information Review Act and is accountable to the Parliament of Canada through the Minister of Health. The Commission is charged with providing the trade secret protection mechanism within the Workplace Hazardous Materials Information System (WHMIS).

WHMIS requires that manufacturers and suppliers provide employers with information on the hazards of materials produced, sold, or used in Canadian workplaces. The employers, in turn, provide that information to employees through product labels, worker education programs and material safety data sheets (MSDSs). A product's MSDS must fully disclose all hazardous ingredients in the product, its toxicological properties, any safety precautions workers need to take when using the product, and treatment required in the case of exposure. WHMIS is a nation wide system which contributes to the reduction of illness and injury caused by using hazardous materials in the Canadian workplace.

The Commission's dual role is to balance the right of chemical companies to protect trade secrets and the need of workers to have accurate health and safety information about hazardous chemicals used in the workplace.

The Commission's mandate is to:

• formally register claims for trade secret exemptions and issue registry numbers;
• issue decisions on the validity of claims for exemption using prescribed regulatory criteria;
• make decisions on the compliance of MSDSs and labels within WHMIS requirements; and
• convene independent boards with representatives from labour, suppliers or employers to hear appeals from claimants or affected parties on decisions and orders issued by the Commission.

The Commission is responsible for the administration and enforcement of the following statutes and/or regulations, for which the Minister of Health is accountable to Parliament as the responsible Minister for the Commission: Hazardous Materials Information Review Act, Hazardous Materials Information Review Regulations, Hazardous Materials Information Review Act Appeal Board Procedures Regulations, Hazardous Products Act, Controlled Products Regulations, Canada Labour Code-Part II, Canada Occupational Safety and Health Regulations, provincial and territorial occupational safety and health acts and regulations, and Inquiries Act.

 

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 Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission 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 Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 Commission. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues
HMIRC's revenues represent the fees for the claims of exemption from the requirement of manufacturers to disclose a product's hazardous materials. Revenues are accounted for and considered earned in the period in which the claim is registered and a registry number is issued.

(e) Expenses
Expenses are recorded on an 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 and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

1. 1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Commission's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan by the Commission. Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
2. 2. 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.

(g) Receivables
All receivables recorded by the Commission are from other government departments for which the recovery is considered certain. As a result, no provision has been made.

(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 item where an estimate is used is the liability for employee severance benefits. 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

The Commission receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Commission 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 appropriations used:

(in dollars)	2007	2006
Net cost of operations	3,637,366	3,579,156
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less): Add (Less):
Services provided without charge from other government departments	(753,674)	(894,387)
Revenue not available for spending	591,445	478,550
Justice Canada legal fees	(27,356)	(42,793)
Severance pay benefits	(110,735)	24,439
Vacation pay and compensatory leave	25,054	(9,972)
Refund/adjustment of previous year's expenditures	38,684	8,894
Other increase in liabilities	0	112,710
	(236,582)	(322,559)
Current year appropriations used	3,400,784	3,256,597

 

(b) Appropriations provided and used:

(in dollars)	2007	2006
Operating expenditures - Vote 25	3,224,850	3,074,879
Statutory Amounts	376,331	398,080
Less: Lapsed Appropriations	(200,397)	(216,362)
Current year appropriations used	3,400,784	3,256,597

 

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

(in dollars)	2007	2006
Net cash provided by Government	2,635,167	2,997,260
Revenue not available for spending	591,445	478,550
Change in net position in the Consolidated Revenue Fund
Justice Canada legal fees	(27,356)	(42,793)
Refund/adjustment of previous year's expenditures	38,684	8,894
Variation in accounts receivable	32,986	20,023
Variation in accounts payables	129,858	(213,655)
Other	0	8,318
	174,172	(219,213)
Current year appropriations used	3,400,784	3,256,597

 

4. Accounts receivable and advances

(in dollars)	2007	2006
Receivables from other Federal Government departments and agencies	125,791	158,716
Receivables from external parties	615	676
Employee advances	200	200
Net accounts receivable and advances	126,606	159,592

 

5. Employee benefits

(a) Pension benefits

The Commission'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 percent 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 Commission contribute to the cost of the Plan. The current and previous year expenses, which represent approximately 2.2 times (2.6 in 2005-06) the contributions by employees, amount to:

(in dollars)	2007	2006
Expense for the year	277,356	294,579

The Commission'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 Commission 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:

(in dollars)	2007	2006
Accrued benefit obligation, beginning of year	430,522	454,961
Expense for the year	170,142	52,861
Benefits paid during the year	(59,407)	(77,300)
Accrued benefit obligation, end of year	541,257	430,522

 

6. Related party transactions

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

(a) Services provided without charge

During the year the Commission received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the department's Statement of Operations as follows:

(in dollars)	2007	2006
Accommodation	556,982	701,944
Employer's contribution to the health and dental insurance plans	196,692	191,273
Legal services	0	1,170
Services provided without charges	753,674	894,387

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 Commission's Statement of Operations.

(b) Payables outstanding at year-end with related parties:

(in dollars)	2007	2006
Accounts payable to other government departments and agencies	17,003	9,140

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