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Section III: Supplementary Information

Financial Highlights

($ millions)

Condensed Statement of Financial Position At End of Year (March 31, 2010)	% Change	2010	2009
Assets
Total Assets	53%	92	60
Total Assets	53%	92	60
Liabilities
Total Liabilities	(42%)	64	110
Equity of Canada
Total Equity of Canada	156%	28	(50)
Total liabilities and equity of Canada	53%	92	60

($ millions)

Condensed Statement of Operations At End of Year (March 31, 2010)	% Change	2010	2009
Expenses
Total Expenses	(19%)	404	497
Net Cost of Operations	(19%)	404	497

Total net cost of operation was $404 thousand at the end of 2009-10, a decrease of $93 thousand over the previous year (19%). The decrease is mainly due to lower translation costs, Employee Benefit Plan and severance pay.

Total assets were $92 thousand at the end of 2009-10, an increase of $32 thousand over the previous year (53%). Accounts receivable represent 100% of the PACS assets.

Total liabilities were $64 thousand at the end of 2009-10, a decrease of $46 thousand over the previous year (42%). The decrease was mainly due to less account payables and liabilities at year-end related to salaries, such as employee benefits plan, performance pay and severance pay.

The Public Appointments Commission Secretariat has two Program Activities related to its Strategic Outcome. The Program Activity Oversight of the Governor-in-Council represents the main activity which contributes to the achievement of all Government of Canada outcomes by ensuring that selection processes for federal Governor-in-Council appointments are fair and competency-based. The Internal Services Program Activity supports the effective and efficient delivery of the first program.

In fiscal year 2009-10, $233 thousand (58%) was spent under the Program Activity Oversight of the Governor-in-Council and $171 thousand (42%) was spent under the Program Activity Internal Services.

Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010 and all information contained in these statements rests with departmental 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 fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Public Appointments Commission Secretariat’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Public Appointments Commission Secretariat’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 Public Appointments Commission Secretariat.

The financial statements of the Public Appointments Commission Secretariat have not been audited.

The paper version was signed by

Christine Miles
Deputy Executive Director

Ottawa, Ontario
September 7, 2010

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Public Appointments Commission Secretariat
Statement of Operations (Unaudited)

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for the year ended March 31, 2010

Expenses (Note 4)	2010	2009
	(in thousands of dollars)
Salaries and employee benefits	249	271
Accommodation (Note 8)	94	94
Professional and special services	49	79
Employee severance benefits (Note 6b)	6	39
Rental	4	4
Utilities, materials and equipment	1	2
Transportation and telecommunication	1	1
Repairs and maintenance	-	5
Other expenses	-	2
Net Cost of Operations	404	497

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

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Public Appointments Commission Secretariat
Statement of Financial Position (Unaudited)

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At March 31, 2010

Assets	2010	2009
	(in thousands of dollars)
Financial assets
Accounts receivable from other federal government departments and agencies	92	60
Total financial assets	92	60
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities (note 5)	19	71
Employee severance benefits (Note 6b)	45	39
Total liabilities	64	110
Equity of Canada	28	(50)
Total	92	60

Contractual obligations (Note 7)
The accompanying notes form an integral part of these financial statements.

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Public Appointments Commission Secretariat
Statement of Equity of Canada (Unaudited)

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At March 31, 2010

	2010	2009
	(in thousands of dollars)
Equity of Canada, beginning of year	(50)	102
Net cost of operations	(404)	(497)
Services provided without charge by other government departments (Note 8)	107	111
Current year appropriations used (Note 3)	291	347
Change in net position in the Consolidated Revenue Fund (Note 3c)	84	(113)
Equity of Canada, end of year	28	(50)

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

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Public Appointments Commission Secretariat
Statement of Cash Flow (Unaudited)

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for the year ended March 31, 2010

			2010	2009
			(in thousands of dollars)
Operating Activities
Net cost of operations		404	497
Non-cash items
Services provided without charge by other government departments (Note 8)		(107)	(111)
Variation in Statement of Financial Position
Increase in accounts receivable		32	(59)
(Increase) decrease in liabilities:
Accounts payable		52	(54)
Employee severance benefits		(6)	(39)
Cash used by operating activities		(29)	(263)
Net cash provided by Government of Canada		375	234

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

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Public Appointments Commission Secretariat
Notes to Financial Statements (Unaudited)

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For the year ended March 31, 2010

1. Authority and Objectives

The Public Appointments Commission Secretariat was established by Order in Council number PC 2006-0228, on April 21, 2006. The Secretariat was created to prepare the ground for the establishment of the Public Appointments Commission, and once established, to provide ongoing support. The mandate of the Commission and its Secretariat is described in the Federal Accountability Act.

The Commission and its Secretariat are within the portfolio of the Prime Minister, reflecting the prerogative of the Prime Minister with respect to Governor-in-Council appointments.

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 Public Appointments Commission Secretariat is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Public Appointments Commission Secretariat 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 statements of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provide a high-level reconciliation between the bases of reporting.
2. Net cash provided by government: The Public Appointments Commission Secretariat operates within the Consolidated Revenue Fund (CRF). The CRF is administered by the Receiver General for Canada. All cash received by the Public Appointments Commission Secretariat is deposited to the CRF and all cash disbursements made by the Public Appointments Commission Secretariat 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. 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 Public Appointments Commission Secretariat. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
4. 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 and the employer’s contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
5. 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 Public Appointments Commission Secretariat’s contributions to the plan are charged to expenses in the year incurred and represent the total departmental obligation to the plan. Current legislation does not require the Public Appointments Commission Secretariat 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.
6. Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
7. 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 believed these estimates and assumptions to be reasonable. The most significant item where estimates are used is the liability for employee severance benefits. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustment become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

The Public Appointments Commission Secretariat 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 Public Appointments Commission Secretariat 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:

	2010	2009
	(in thousands of dollars)
Net cost of operations	404	497
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge by other government departments (Note 7)	(107)	(111)
Employee severance benefits	(6)	(39)
Current year appropriations used	291	347

b) Appropriations provided and used:

	2010	2009
	(in thousands of dollars)
Vote - Operating expenditures	992	992
Statutory amounts	26	44
Less:
Lapsed appropriations: Operating	(727)	(689)
Current year appropriations used	291	347

c) Reconciliation of net cash provided by government to current year appropriations used:

	2010	2009
	(in thousands of dollars)
Net cash provided by government	234	269
Change in net position in the Consolidated Revenue Fund
Variation in accounts receivable	59	(119)
Variation in accounts payable	54	(37)
	113	(156)
Current year appropriations used	347	113

4. Expenses

The following table presents details of expenses by Program Activity:

	2010	2009
	(in thousands of dollars)
Program Activity
Oversight of the Governor-in-Council appointments	233	386
Internal Services	171	111
Total	404	497

5. Accounts Payable

The following table presents details of accounts payable:

	2010	2009
	(in thousands of dollars)
Payables to external parties	3	7
Payables to other federal government departments and agencies	16	64
Total	19	71

6. Employee Benefits

1. Pension benefits: Eligible Public Appointments Commission Secretariat’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 are indexed to inflation.
   
   Both the employees and the Public Appointments Commission Secretariat contribute to the cost of the Public Service Pension Plan. The 2009-10 expense amounts to $ 23,707 ($39,789 in 2008-09) which represents approximately 1.9 (2.0 in 2008-09) the contributions by employee.
   
   The Public Appointments Commission Secretariat 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 Public Appointments Commission Secretariat 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:
   
   

   	2010	2009
   	(in thousands of dollars)
   Accrued benefits obligation, beginning of year	39	-
   Expense for the year	6	39
   Benefit paid during the year	-	-
   Accrued benefit obligation, end of year	45	39

7. Contractual Obligations

The nature of Public Appointments Commission Secretariat’s activities can result in large multi-year contracts and obligations whereby the Department will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

	2011	2012	2013	2014	2015 and thereafter	Total
Rental	6	6	8	-	-	20
Professional and special services	18	-	-	-	-	18
Total	24	6	8	-	-	38

8. Related Party Transactions

The Public Appointments Commission Secretariat is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The Public Appointments Commission Secretariat enters into transactions with these entities in the normal course of business and on normal trade terms.

Services provided without charge: During the year, the Public Appointments Commission Secretariat received, without charge from other government departments, accommodation and the employer’s contribution to the health and dental insurance plans. These services without charge have been recognized in the Public Appointments Commission Secretariat’s Statement of Operations as follows:

	2010	2009
	(in thousands of dollars)
Accommodation	93	94
Employer’s contribution to the health and dental insurance plans	14	17
Total	107	111

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 Public Appointments Commission Secretariat’s Statement of Operations.

9. Program Activity Reporting

The 2009-10 Note 4 (Expenses) for the Public Appointments Commission Secretariat was prepared on the Treasury Board Secretariat reporting requirements for program activities. As a result, charges for Internal Services activities which were included in Oversight of the Governor-in-Council appointments activity in prior years, have now been presented separately. If this reporting requirement had not been implemented, expenses for 2009-10 would have been reported as follows:

	2010	2009
	(in thousands of dollars)
Program Activity
Oversight of the Governor-in-Council appointments	404	497

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