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