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Appendix A — Glossary

Accident

in general, a transportation occurrence that involves serious personal injury or death, or significant damage to property, in particular to the extent that safe operations are affected (for a more precise definition, see the Transportation Safety Board Regulations)

Incident

in general, a transportation occurrence whose consequences are less serious than those of an accident, or that could potentially have resulted in an accident (for a more precise definition, see the Transportation Safety Board Regulations)

Occurrence

a transportation accident or incident

Safety Recommendation

a formal way to draw attention to systemic safety issues, normally warranting ministerial attention

Safety Advisory

a less formal means for communicating lesser safety deficiencies to officials within and outside the government

Safety Information Letter

a letter that communicates safety-related information, often concerning local safety hazards, to government and corporate officials

Appendix B — Audited Financial Statements

Transportation Safety Board of Canada
Statement of Management Responsibility

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 management of the Transportation Safety Board of Canada (TSB). 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 TSB's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the TSB'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 TSB.

The financial statements of the TSB have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

 

 

Gatineau, Canada
July 8, 2009

Auditor's Report

[D]

Transportation Safety Board of Canada
Statement of Financial Position

As at March 31 (in thousands of dollars)	2009	2008
Assets
Financial assets
Due from the Consolidated Revenue Fund	3 090	2 163
Accounts receivable and advances (Note 4)	176	317
Total financial assets	3 266	2 480
Non-financial assets
Prepaid expenses	70	38
Inventory	119	76
Tangible capital assets (Note 5)	5 490	5 382
Total non-financial assets	5 679	5 496
TOTAL Assets	8 945	7 976
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities	3 208	2 439
Vacation pay and compensatory leave	919	974
Employee severance benefits (Note 6)	4 707	3 802
Total liabilities	8 834	7 215
Equity of Canada	111	761
TOTAL Liabilities and Equity of Canada	8 945	7 976
Contingent liabilities (Note 7) Contractual obligations (Note 8) The accompanying notes form an integral part of these financial statements.

 

 

Gatineau, Canada
July 8, 2009

Transportation Safety Board of Canada
Statement of Operations

For the year ended March 31 (in thousands of dollars)	2009	2008
Expenses
Salaries and wages	20 486	19 544
Employee benefits	5 989	4 418
Professional and special services	3 034	2 891
Transportation and communications	2 267	2 050
Accommodation	1 948	1 937
Amortization	1 012	944
Repairs and maintenance	661	625
Utilities, materials, supplies and equipment	445	445
Rentals	125	138
Information	84	185
Loss on disposal of assets	19	17
Other expenses	-	6
TOTAL Expenses	36 070	33 200
Revenues
Other non-tax revenues	20	21
Sales of goods and services	8	17
TOTAL Revenues	28	38
Net Cost of Operations	36 042	33 162
The accompanying notes form an integral part of these financial statements.

 

Transportation Safety Board of Canada
Statement of Equity of Canada

For the year ended March 31 (in thousands of dollars)	2009	2008
Equity of Canada, beginning of the year	761	172
Net cost of operations	(36 042)	(33 162)
Net cash provided by the Government of Canada (Note 3(c))	30 653	30 001
Change in Due from the Consolidated Revenue Fund	927	351
Services received without charge (Note 9(a))	3 812	3 399
Equity of Canada, end of the year	111	761
The accompanying notes form an integral part of these financial statements.

 

Transportation Safety Board of Canada
Statement of Cash Flow

For the year ended March 31 (in thousands of dollars)	2009	2008
Operating activities
Net cost of operations	36 042	33 162
Non-cash items:
Services received without charge (Note 9(a))	(3 812)	(3 399)
Amortization of tangible capital assets	(1 012)	(944)
Loss on disposal and write-down of tangible capital assets	(19)	(17)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances	(141)	(12)
Increase (decrease) in prepaid expenses	32	(15)
Increase (decrease) in inventory	43	(4)
Increase in liabilities	(1 619)	(51)
Cash used for operating activities	29 514	28 720
Capital investment activities
Acquisition of tangible capital assets	1 150	1 314
Proceeds from the disposal of tangible capital assets	(11)	(33)
Cash used for capital investment activities	1 139	1 281
Net cash provided by the Government of Canada	30 653	30 001
The accompanying notes form an integral part of these financial statements.

 

Transportation Safety Board of Canada
Notes to the Financial Statements

1. Authority and Objectives

The Canadian Transportation Accident Investigation and Safety Board (CTAISB) was established in 1990 under the Canadian Transportation Accident Investigation and Safety Board Act and is a departmental corporation named in Schedule II to the Financial Administration Act. In its day-to-day activities the CTAISB is also known by the name Transportation Safety Board of Canada, or simply the TSB. The objective of the TSB is to advance transportation safety. It seeks to identify safety deficiencies in transportation occurrences and to make recommendations designed to eliminate or reduce any such safety deficiencies. In addition to investigations, including where necessary public inquiries into selected occurrences, the TSB may conduct studies into more general matters pertaining to transportation safety. The TSB has the exclusive authority to make findings as to causes and contributing factors when it investigates a transportation occurrence. The TSB's operating expenditures are funded by a budgetary lapsing authority whereas contributions to employee benefit plans are funded by statutory authorities.

2. Summary of 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:

1. Parliamentary appropriations
   The TSB is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the TSB do not parallel financial reporting according to Canadian 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 two bases of reporting.
   
2. Net Cash Provided by Government
   The TSB operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the TSB is deposited to the CRF and all cash disbursements made by the TSB 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.
   
3. Due from the Consolidated Revenue Fund
   Due from the Consolidated Revenue Fund represents the amount of cash that the TSB is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities.
   
4. Revenues
   Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
   
5. 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 received without charge from other government departments are recorded as operating expenses at their estimated cost.
   
   
6. 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 TSB's contributions to the Plan are charged to expenses in the year incurred and represent the total TSB obligation to the Plan. Current legislation does not require the TSB 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.
   
   
7. Accounts receivable
   Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
   
8. Inventories
   Inventories consists of parts, material and supplies held for future program delivery and not intended for re-sale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.
   
9. Tangible capital assets
   All tangible capital assets and leasehold improvements having an initial cost of $2,000 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:

   
   

   Tangible Capital Asset class	Amortization Period
   Buildings	30 years
   Furniture	10 years
   Office equipment	5 years
   Laboratory equipment	10 years
   Informatics hardware	4 years
   Informatics software (purchased)	3 years
   Informatics software (in house developed)	10 years
   Motor vehicles	7 years
   Other vehicles	15 years
   Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

   
   
10. 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 useful lives of tangible capital assets, the assumptions underlying the employee severance benefits liability and the assessment of contingent liabilities. 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 TSB receives 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 TSB 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 Parliamentary appropriations used:

(in thousands of dollars)	2009	2008
Net cost of operations	36 042	33 162
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
Services received without charge	(3 812)	(3 399)
Amortization of tangible capital assets	(1 012)	(944)
Loss on disposal and write-down of tangible capital assets	(19)	(17)
Employee severance benefits	(905)	218
Vacation pay and compensatory leave	55	71
Refund of previous years' expenses	-	21
Miscellaneous non-tax revenues	28	17
Payables at year-end adjustment	1	16
Other adjustments	1	-
	30 379	29 145
Adjustments for items not affecting net cost of operations but affecting appropriations: Add (Less):
Acquisition of tangible capital assets	1 150	1 314
Increase (decrease) in prepaid expenses	32	(15)
Increase (decrease) inventory	43	(4)
Current year Parliamentary appropriations used	31 604	30 440

 

(b) Parliamentary appropriations provided and used:

(in thousands of dollars)	2009	2008
Vote 10 - CTAISB Operating expenditures	25 589	25 415
Transfer from Treasury Board - Vote 15	1 329	954
Transfer from Treasury Board - Vote 25	1 271	1 274
Transfer from Treasury Board - Vote 30	575	567
Spending of revenues as per Financial Administration Act section 29.1	19	10
Statutory contributions to employee benefit plans	3 319	3 287
Statutory spending of proceeds from disposal of surplus Crown assets	15	39
Total authorities	32 117	31 546
Less: Lapsed appropriations - Operating	(513)	(1 106)
Current year Parliamentary appropriations used	31 604	30 440

 

(c) Reconciliation of net cash provided by the Government of Canada to current year Parliamentary appropriations used:

(in thousands of dollars)	2009	2008
Net cash provided by the Government of Canada	30 653	30 001
Proceeds from disposal of tangible capital assets	11	33
Refund of previous years' expenses	-	21
Miscellaneous non-tax revenues	28	17
Payables at year-end adjustment	1	16
Decrease in accounts receivable and advances	141	12
Increase in accounts payable and accrued liabilities	769	340
Other adjustments	1	-
Current year Parliamentary appropriations used	31 604	30 440

 

4. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

(in thousands of dollars)	2009	2008
Receivables from other Federal Government departments and agencies	164	307
Receivables from external parties	3	1
Employee advances	9	9
TOTAL	176	317

 

5. Tangible Capital Assets

Cost (in thousands of dollars)	Opening Balance	Acquisitions	Disposals	Closing Balance
Buildings	2 854	21	-	2 875
Furniture	1 159	180	(148)	1 191
Office equipment	212	-	(7)	205
Laboratory equipment	2 572	176	(163)	2 585
Informatics hardware	3 825	235	(293)	3 767
Informatics software (purchased)	728	35	-	763
Informatics software (in house developed)	2 592	-	-	2 592
Motor vehicles	713	52	(74)	691
Other vehicles	103	-	(1)	102
Leasehold improvements	101	451	-	552
TOTAL	14 859	1 150	(686)	15 323

 

Accumulated amortization (in thousands of dollars)	Opening Balance	Amortization	Disposals	Closing Balance
Buildings	2 282	116	-	2 398
Furniture	561	93	(140)	514
Office equipment	212	-	(7)	205
Laboratory equipment	1 913	104	(162)	1 855
Informatics hardware	3 128	292	(293)	3 127
Informatics software (purchased)	601	67	-	668
Informatics software (in house developed)	319	255	-	574
Motor vehicles	392	64	(53)	403
Other vehicles	35	7	(1)	41
Leasehold improvements	34	14	-	48
TOTAL	9 477	1 012	(656)	9 833

 

Net book value (in thousands of dollars)	Opening Balance	-----------------	------------	Closing Balance
Buildings	572			477
Furniture	598			677
Office equipment	-			-
Laboratory equipment	659			730
Informatics hardware	697			640
Informatics software (purchased)	127			95
Informatics software (in house developed)	2 273			2 018
Motor vehicles	321			288
Other vehicles	68			61
Leasehold improvements	67			504
Net Book Value	5 382			5 490

 

6. Employee Benefits

1. Pension benefits:
   The TSB'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/Quebec Pension Plans benefits and they are indexed to inflation.
   
   

   Both the employees and the TSB contribute to the cost of the Plan. The 2008-2009 expense amounts to $2,396,269 ($2,396,441 in 2007-2008), which represents approximately 2.6 times the contributions by employees, which amounts to $922,664.

   The TSB'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.

2. Severance benefits:
   The TSB 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 thousands of dollars)	2009	2008
   Employee severance benefits, beginning of year	3 802	4 020
   Expense for the year recorded as employee benefits	1 359	178
   Benefits paid during the year	(454)	(396)
   Employee severance benefits, end of year	4 707	3 802

   
   

7. Contingent Liabilities

In the normal course of its operations, the TSB becomes involved in various legal actions. Some of these potential liabilities 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 on the TSB's financial statements.

As at March 31, 2009, there are no outstanding legal actions against the TSB.

8. Contractual Obligations

The nature of the TSB's activities can result in some large multi-year contracts and obligations whereby the TSB will be obligated to make future payments when the services/goods are received.

Significant contractual obligations that can be reasonably estimated represent a total amount of $1,337,653, broken down as follows:

(in thousands of dollars)	2009-2010	2010-2011	2011-2012	2012-2013	2013-2014
Acquisition of goods and services	1 162	162	14	-	-

9. Related Party Transactions

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

1. Services received without charge:

   During the year the TSB received without charge from other departments, accommodation, administration of workers' compensation, the employer's contribution to health and dental insurance plans, and external audit services. These services without charge have been recognized in the TSB's Statement of Operations as follows with a corresponding amount in the Equity of Canada:

   
   

   (in thousands of dollars)	2009	2008
   Accommodation	1 948	1 937
   Employer's contribution to health and dental insurance plans	1 746	1 363
   External audit services	99	78
   Administration of worker's compensation	19	21
   TOTAL	3 812	3 399

   
   

    

   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 TSB's Statement of Operations given that a reasonable amount for those types of services cannot be determined.

2. Payables outstanding at year-end with related parties:
   
   
   

   (in thousands of dollars)	2009	2008
   Accounts payable to other government departments and agencies	623	200

   
   

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1. A transportation occurrence is any accident or incident associated with the operation of an aircraft, ship, railway rolling stock or pipeline. It also includes any hazard that could, in the Board's judgement, result in an accident or incident if left unattended.↑
2. "Demand Decline Slows — But No Recovery in Sight," Press Release 21 of the International Air Transport Association, 27 May 2009.↑
3. Statistics Canada, "Characteristics of International Travellers," The Daily, 28 May 2009.↑
4. Transport Canada, Transportation in Canada - An Overview, Catalogue No. T1-10/2008E.↑
5. Statistics Canada, Monthly Railway Carloadings, March 2009 (http://www.statcan.gc.ca/pub/52-001-x/52-001-x2009003-eng.htm).↑
6. "Les nouveaux monstres des mers," L'Actualité, July 2009.↑
7. "Transport maritime, une industrie qui prend l'eau," La Presse Affaires, 29 November 2008.↑
8. "Le trafic aérien mondial est menacé," Le Devoir, 29 April 2009.↑
9. http://www.tbs-sct.gc.ca/ppg-cpr/framework-cadre-eng.aspx?Rt=1037↑
10. While the Board's operations are for the 2008-2009 fiscal year, occurrence statistics are for the 2008 calendar year and come from the TSB information systems unless otherwise indicated. Please also note that, in a live database, the occurrence data are constantly being updated. Consequently, the statistics can change slightly over time. Comparisons are generally to the last 5 or 10 years. For definitions of terms such as accident, incident and occurrence, see Appendix A.↑
11. Investigations are considered complete after the final report has been issued.↑

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