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Section III. Supplementary Information

Financial Performance Overview

Revenues from sales of products and services continue to decline in many product areas. This is primarily due to changes in the market place for information due to competition from Internet providers of OSH information. In addition, the decline in the US currency has reduced the total sales revenue approximately $250,000. To offset these losses, CCOHS has expanded its training service to include e learning and this has been very successful. A MSDS Management System Service has also been added and revenues are steadily increasing. Appropriations are consistent with prior years.

CCOHS switched from paying employee health benefits directly to PWGSC to the same system other government department’s use. This involves funding being received from Treasury Board from a statutory vote and a corresponding flat rate being charged to CCOHS. In services provided without charge CCOHS is recognizing health and dental benefits provided by TBS to be consistent with the presentation by other departments.

CCOHS continues to generate approximately 50% of its budget from the sale of products and services. Expenditures are consistent with prior years other than the costs associated with new product development. Audited financial statements are published in our Annual Report.

Financial Summary Tables

The following tables are applicable to CCOHS:

Table 1: Summary of Voted Appropriations

Table 2: Comparison of Total Planned Spending to Actual Spending

Table 3: Historical Comparison of Total Planned Spending to Actual Spending

Table 4: Respendable Revenues

Table 5: Contingent Liabilities

Table 6: Other Information: Summary of Revenue, Expenses and Appropriations

Table 7: Other Information: User Fees

Table 1

Summary of Voted Appropriations

Authorities for 2006-07 Part II of the Estimates

Financial Requirements by Authority ($ millions)
	2006-07
Vote	Planned Spending	Total Authorities	Actual
Vote 35	4.5	4.3	4.3
Supplementary Estimates (A)	-	0.2	0.2
Total Department	4.5	4.5	4.5

Additional funding was received during the year for rollover provisions less amounts deducted for expenditure savings.

Table 2

Comparison of Total Planned Spending to Actual Spending 2006-07 ($ millions)

Business Line	FTE	Operating	Capital	Grants and Contributions	Total Gross Expenditures	Less: Respendable Revenues	Total Net Expenditures
CCOHS	96	8.8	-	-	8.8	4.3	4.5
Total Authorities	96	8.8	-	-	8.8	4.3	4.5
Actuals	90	8.4	-	-	8.4	3.9	4.5
Other Revenues and Expenditures
Other Non-respendable Revenues							-
Total Authorities							-
Actuals							-
Cost of services provided by other departments							0.7
Total Authorities							1.2
Actuals							1.2
Net cost of the Program							5.2
Total Authorities							5.7
Actuals							5.7

Revenue estimates were difficult to achieve given the significant decline in the value of the US dollar. It has become increasingly difficult to achieve sales targets due to the rapid change in technologies and availability of alternative information. Expenditures relating to revenue generation were lowered to balance the decline in revenues. The cost of services provided by other departments represents accommodation services provided by PWGSC and audit services provided by the OAG. In addition, costs of health and dental benefits were added this year. This was not included on the Report on Plans and Priorities, but was disclosed in the audited financial statements.

Table 3

Historical Comparison of Total Planned to Actual Spending ($ millions)

			2006-07
Business Line	Actual 2004-05	Actual 2005-06	Planned Spending	Total Authorities	Actual
CCOHS	4.4	4.5	4,5	4.5	4.5
Total	4.4	4.5	4.5	4.5	4.5

Table 4

Respendable Revenues ($ millions)

			2006-07
Business Line	Actual 2004-05	Actual 2005-06	Planned Spending	Total Authorities	Actual
CCOHS	3.8	3.8	4.3	4.3	3.9
Total	3.8	3.8	4.3	4.3	3.9

Respendable revenues represent monies generated from the sale of goods and services. CCOHS generates approximately 50% of its operating budget from its cost-recovery activities. Sales of goods and services are impacted by general market conditions, foreign exchange fluctuations, government budgets, changes in technology, and competition.

Table 5

Contingent Liabilities

Claims and Pending and Threatened Litigation:

CCOHS is involved in a dispute originating in the normal course of business. An amount, consistent with legal opinion obtained from our legal counsel, has been accrued as an account payable at year-end.

Other Liabilities:
Vacation Pay	$ 376,314
Employee Termination Benefits	$ 1,447,902
Total	$ 1,824,216

Vacation Leave:

Employees are permitted to accumulate unused vacation leave from year to year to a maximum of 30 days. These costs are recognized only when paid.

Employee Termination Benefits:

CCOHS employees are entitled to severance benefits based on their years of service, salary and age at the time of departure. The cost of these benefits is accrued as the employees render the services necessary to earn them. Management determined the accrued benefit obligations using its best estimates of the accrued obligations at the year-end. These benefits represent the only employee benefits obligations of CCOHS that entails settlement by future payments.

Sick Leave:

Employees are permitted to accumulate unused sick leave. However, such sick leave entitlements do not vest and can be used only in the event of illness. The amount of accumulated sick leave entitlements, which will become payable in future years cannot reasonably be determined and accordingly have not been recorded in the information provided. Payments of sick leave are included in current operations as incurred.

Pension Plan:

Eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. CCOHS’ contributions to the Plan reflect the full cost of the employer contributions. This amount is currently based on a multiple of the employee’s required contributions and may change over time depending on the experience of the Plan. CCOHS’ contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Centre. CCOHS is not currently required to make contributions with respect to any actuarial deficiencies of the Public Service Pension Plan.

Table 6 - Other Information (applicable only for CCOHS)

Summary of Revenue, Expenses and Appropriations ($ thousands)

	Actual
	1995-96	1996-97	1997-98	1998-99	1999-00	2000-01	2001-02	2002-03	2003-04	2004-05	2005-06	2006-07
Revenues	4,649	4,373	4,226	4,239	4,086	4,328	4,485	4,185	3,910	3,781	3,830	3,876
Expenses	6,575	6,340	6,399	6,578	7,044	6,688	7,589	8,275	7,806	8,150	8,332	8,382
Appropriations	1,926	1,967	2,222	2,359	3,043	2,400	3,276	4,156	4,173	4,369	4,501	4,506

Table 7 - 2006-7 User Fee Reporting

The User Fees Act is not applicable to the revenues generated by CCOHS.

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