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SECTION III—SUPPLEMENTARY INFORMATION

3.1 Link to the Government of Canada Outcome Areas

The Tribunal’s single strategic outcome is the fair, timely and effective disposition of international trade cases and government-mandated inquiries in the several fields in which the Tribunal has been given jurisdiction. It contributes to the achievement of the Government of Canada’s goal for “a fair and secure marketplace” through:

• Access to impartial and timely processes for the investigation of complaints;

• The protection of businesses in Canada against unfair or injurious import competition;

• The promotion of integrity and fairness in government procurement;

• The fair application of tariffs and border excise taxes; and

• Reliable economic and trade analysis and advice to the Government.

The table below illustrates how the Tribunal’s program activities are linked to the Government of Canada outcome areas, as defined by the Whole-of-Government Framework.

Strategic Outcome: Fair, timely and effective disposition of international trade cases and government-mandated inquiries in various areas of the Tribunal’s jurisdiction
Program Activity	Actual Spending 2007-2008			Alignment to Government of Canada Outcome Areas
	Budgetary	Non-budgetary	Total •
1. Adjudication of Trade Cases (quasi-judicial role)	9,764		9,764	Fair and secure marketplace
2. General Economic Inquiries and References (advisory role)	297		297	Fair and secure marketplace
Total	10,061		10,061

3.2 Financial Tables

Table 1: Comparison of Planned and Actual Spending
(including FTEs)
($ thousands)

	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
Adjudication of trade cases	8,927	9,494	10,058	10,058	10,376	9,764
General economic inquiries and references	1,654	206	624	624	604	297
Total	10,581	9,700	10,682	10,682	10,980	10,061
Less: Non-respendable revenue	-	-
Plus: Cost of services received without charge	2,407	2,446	2,415	2,415	2,415	2,392
Total Tribunal Spending	12,988	12,146	13,097	13,097	13,395	12,453
FTEs	85	84	94	94	94	78

Table 2: Voted and Legislated Items
($ thousands)

		2007-2008
Vote or Legislated Item	Truncated Vote or Legislated Wording	Main Estimates	Planned Spending	Total Authorities	Actual
20	Operating Expenditures	9,306	9,306	9,857	8,938
(S)	Contributions to Employee Benefit Plans	1,376	1,376	1,123	1,123
(S)	Spending of Proceeds from the Disposal of Surplus Crown Assets
	Total	10,682	10,682	10,980	10,061

For further financial statements, go to www.citt-tcce.gc.ca/publicat/index_e.asp

Financial Statements

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008, and for all information contained in these statements rests with the Tribunal’s 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 Tribunal’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Tribunal’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide a 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 the 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 Tribunal.

The Tribunal’s financial statements have not been audited.

André F. Scott
André F. Scott
Chairman

Sylvie Mercier
Sylvie Mercier
Senior Financial Officer

Ottawa, Canada

July 7, 2008
Date

CANADIAN INTERNATIONAL TRADE TRIBUNAL
Statement of Operations (Unaudited)
For the year ended March 31
(in thousands of dollars)

	2008	2007
Expenses
Salaries and employee benefits	8,160	8,952
Accommodation	1,891	1,877
Professional services	919	740
Transportation	196	101
Acquisitions of equipment	189	112
Repairs and maintenance	174	139
Materials and supplies	158	161
Telecommunication	109	104
Information	48	52
Amortization	26	21
Other	19	17
Total expenses	11,889	12,276
Revenues
Other revenue	1	1
Total revenues	1	1
Net cost of operations	11,888	12,275

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

CANADIAN INTERNATIONAL TRADE TRIBUNAL
Statement of Financial Position (Unaudited)
At March 31
(in thousands of dollars)

	2008	2007
Assets
Financial assets
Accounts receivable (Note 6b)	276	253
Non-financial assets
Tangible capital assets (Note 4)	343	53
Total	619	306
Liabilities
Accounts payable and accrued liabilities	1,149	830
Vacation pay and compensatory leave	351	493
Employee severance benefits (Note 5b)	1,322	1,438
Total	2,822	2,761
Equity of Canada	(2,203)	(2,455)
Total	619	306

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

CANADIAN INTERNATIONAL TRADE TRIBUNAL
Statement of Equity of Canada (Unaudited)
For the year ended March 31
(in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	(2,455)	(2,413)
Net cost of operations	(11,888)	(12,275)
Current year appropriations used (Note 3)	10,061	9,700
Revenue not available for spending	(1)	(1)
Change in net position in the Consolidated Revenue Fund (Note 3)	(312)	88
Services received without charge from other government departments (Note 6a)	2,392	2,446
Equity of Canada, end of year	(2,203)	(2,455)

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

CANADIAN INTERNATIONAL TRADE TRIBUNAL
Statement of Cash Flow (Unaudited)
For the year ended March 31
(in thousands of dollars)

	2008	2007
Operating activities
Net cost of operations	11,888	12,275
Non-cash items
Amortization of tangible capital assets	(26)	(21)
Services received without charge from other government departments (Note 6a)	(2,392)	(2,446)
Variations in statement of financial position
Increase in liabilities	(61)	(240)
Increase in receivables	23	194
Cash used by operating activities	9,432	9,762
Capital investment activities
Acquisition of tangible capital assets	316	25
Financing activities
Net cash provided by Government of Canada	(9,748)	(9,787)

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

Notes to the Financial Statements (Unaudited)

(1) Authority and Objectives

The Tribunal’s objectives are to ensure that Canada can rely on a fair and efficient trade remedies system and that the Government of Canada, through the Tribunal’s fact-finding inquiries and standing references, can formulate strategies aimed at making Canadian producers more competitive in the global trade environment.

The Tribunal operates under the authority of the Canadian International Trade Tribunal Act. It is also governed by the following statutes, regulations and rules: Customs Act, Excise Tax Act, Special Import Measures Act, Energy Administration Act, Canadian International Trade Tribunal Regulations, Canadian International Trade Tribunal Procurement Inquiry Regulations and Canadian International Trade Tribunal Rules.

(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.

The significant accounting policies are as follows:

(a) Parliamentary appropriations—The Tribunal is financed by the Government through Parliamentary appropriations. Appropriations provided to the Tribunal do not parallel financial reporting according to generally accepted accounting principles. They are based, in large part, 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 the Government—The Tribunal operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Tribunal is put into the CRF, and all cash disbursements made by the Tribunal are paid from the CRF. The net cash provided by the Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the federal government.

(c) The change in net position in the CRF is the difference between the net cash provided by the Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Tribunal. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues—These are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(e) Expenses—These are recorded when the underlying transaction or expense occurred, subject to the following:

(i) Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment; and

(ii) Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans, and legal services are recorded as operating expenses at their estimated cost.

(f) Future employee benefits

(i) Pension benefits—Eligible employees participate in the Public Service Superannuation Plan, a multi-employer plan administered by the Government. The Tribunal’s contributions to the Plan are charged to expenses incurred in the year and represent the Tribunal’s total obligation to the Plan. Current legislation does not require the Tribunal to make contributions for any actuarial deficiencies of the Plan.

(ii) 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) Accounts receivables are amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(h) Foreign currency transactions—Transactions involving foreign currencies are converted to Canadian dollar equivalents using rates of exchange in effect at the time of those transactions.

(i) Tangible capital assets—All tangible capital assets having an initial cost of $5,000 or more are recorded at their acquisition costs. The Tribunal does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, or assets located on Indian reserves and museum collections.

Amortization of capital assets is done on a straight-line basis over the estimated useful life of the capital asset as follows:

Asset class	Amortization period
(1) Computer equipment	5 to 15 years
(2) Machinery and equipment	5 years

(j) Measurement uncertainty—The Tribunal prepares its financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, that require management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believed the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee severance benefits, vacation pay and compensatory leave and the useful life of tangible capital assets. Actual results could differ from those estimated. The estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year in which they become known.

(3) Parliamentary Appropriations

The Tribunal 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 Tribunal 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

	2008	2007
	(in thousands of dollars)
Net cost of operations	11,888	12,275
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (less):
Services received without charge	(2,392)	(2,446)
Amortization of tangible capital assets	(26)	(21)
Revenue not available for spending	1	1
Vacation pay and compensatory leave	142	(23)
Employee severance benefits	116	(113)
Adjustments of previous year expenses	16	2
Sub-total	9,745	9,675
Adjustments for items not affecting net cost of operations but affecting appropriations
Add:
Tangible capital acquisitions	316	25
Current year appropriations used	10,061	9,700

(b) Appropriations Provided and Used

Appropriations provided	2008	2007
	(in thousands of dollars)
Vote 20—Operating expenditures	9,857	9,081
Statutory amounts	1,122	1,162
Less:
Lapsed appropriations: operating	(918)	(543)
Current year appropriations used	10,061	9,700

(c) Reconciliation of Net Cash Provided by Government to Current Year Appropriations Used

	2008	2007
	(in thousands of dollars)
Net cash provided by government	9,748	9,787
Revenue not available for spending	1	1
Sub-total	9,749	9,788
Change in net position in the Consolidated Revenue Fund
Increase in accounts receivable and advances	(23)	(194)
Increase in accounts payable and accrued liabilities	319	104
Adjustments of previous year expenses	16	2
Sub-total	312	(88)
Current year appropriations used	10,061	9,700

(4) Tangible Capital Assets
(in thousands of dollars)

Cost					Accumulated amortization
Capital asset class	Opening balance	Acqui-sitions	Disposals and write-offs	Closing balance	Opening balance	Amorti-zation	Disposals and write-offs	Closing balance	2008 Net book value	2007 Net book value
Machinery and equipment	37	-	12	25	26	7	12	21
Computer equipment	90	316	20	386	48	19	20	47	339	42
Total	127	316	32	411	74	26	32	68	343	53

Amortization expense for the year ended March 31, 2008, is $ 26,198 (2007—$21,352).

(5) Employee Benefits

(a) Pension Benefits

The Tribunal’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 Tribunal contribute to the cost of the Plan. The 2007-08 expense amounts to $818,333 ($856,819 in 2006-07), which represents approximately 2.1 times (2.2 in 2006-2007) the contributions by employees.

The Tribunal’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 Tribunal 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:

	2008	2007
	(in thousands of dollars)
Accrued benefit obligation, beginning of year	1,438	1,325
Cost for the year	173	333
Benefits paid during the year	(289)	(220)
Accrued benefit obligation, end of year	1,322	1,438

(6) Related Party Transactions

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

(a) Services Provided Without Charge

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

	2008	2007
	(in thousands of dollars)
Accommodation	1,891	1,877
Employer’s contribution to the health and dental insurance plans	501	569
Total	2,392	2,446

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 the Department of Public Works and Government Services, are not included as an expense in the Tribunal’s Statement of Operations.

(b) Payables and Receivables Outstanding at Year End With Related Parties

	2008	2007
	(in thousands of dollars)
Accounts receivable with other government departments and agencies	276	253
Accounts payable to other government departments and agencies	54	9

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