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SECTION III: SUPPLEMENTARY INFORMATION

Financial Performance Overview

The PSLRB’s Main Estimates and Planned Spending of $11.4 million were increased by $3.7 million providing the PSLRB Total Authorities of $15.1 million.  Included in the PSLRB’s Total Authorities is a frozen allotment of $1.0M where no expenditures may be made. The increase in authorities is attributable to:

• $2.5 million incremental sunsetting funding received in Supplementary Estimates to carry out expanded statutory mandate under the Public Service Labour Relations Act (PSLRA);
• $1.2 million from eligible operating budget carry-forward, adjustments of employee benefits plan and for collective bargaining increases.

Actual spending for 2007-2008 was $11.7 million, $3.4 million less than the total authorities. The PSLRB’s lapse can mainly be associated with the withdrawal of Statistics Canada from the study of health services occupations, creating delays in the undertaking of the study, and the decision to discontinue the third study of selected security enforcement-related occupations. These two factors created staffing delays in the area of compensation analysis and research services and significant reduction in its planned operating cost.

Financial Tables

This section provides a summary of the Board’s financial performance. The tables included in this section show a comparison of four amounts: Main Estimates, Planned Spending, Total Authorities, and Actual. “Main Estimates” is the amount included in the Government’s 2007-2008 Main Estimates. “Planned Spending” is the amount included in the Board’s 2007-2008 Report on Plans and Priorities and indicates amounts planned at the beginning of the year. “Total Authorities” include Main, Supplementary, and other Estimate amounts approved by Parliament and the Treasury Board Secretariat. “Actual” shows what was actually spent.

The following financial tables apply to the Public Service Labour Relations Board: 

1. Comparison of Planned to Actual Spending
2. Voted and Statutory Items
3. Travel Policies

Table 1:  Comparison of Planned to Actual Spending
(thousands of dollars)

This table offers a comparison of the Main Estimates, Planned Spending, Total Authorities, and Actual Spending for 2007-2008. It also provides historical figures for Actual Spending.

			2007-2008
	2005-2006 Actual	2006-2007 Actual	Main Estimates	Planned Spending	Total Authorities	Actual
Adjudication, mediation, and compensation analysis and research	9,549.2	10,407.3	11,405.0	11,405.0	15,181.2	11,726.7
Less: Non-respendable revenue	(0.1)	(30.5)	—	—	—	(13.8)
Plus: Cost of services received without charge	2,165.0	2,376.2	—	2,298.0	2,339.9	2,339.9
Net cost of the Board	11,714.1	12,753.0	11,405.0	13,703.0	17,521.1	14,052.8
Full-time Equivalents	79	85	N/A	104	N/A	89
Note: Total Authorities includes $1.0M in frozen allotment.

Note: Total actual spending does not include the cost of services received without charge by other departments.

___________________________________________________________________________

Table 2:  Voted and Statutory Items

(thousands of dollars)

This table explains the way Parliament votes resources to the Board, including voted appropriations and statutory authorities.

Vote or Statutory Item		2007-2008
		Main Estimates	Planned Spending	Total Authorities	Actual
85	Program expenditures	10,617.0	10,617.0	14,098.1	10,643.6
(S)	Contribution to Employee Benefit Plan	788.0	788.0	1,083.0	1,083.0
(S)	Crown Assets Surplus	—	—	0.1	0.1
Total for the Board		11,405.0	11,405.0	15,181.2	11,726.7

Note: Planned Spending is the amount included in the Board’s 2007-08 Report on Plans and Priorities and indicates amounts planned at the beginning of the year.

Table 3: Travel Policies

The Board follows the Treasury Board Secretariat (TBS) Travel Directive, Rates and Allowances, and the TBS Special Travel Authorities, with restrictions on the amount that can be claimed by Governor-in-Council (GIC) appointees for meals and accommodations.

Financial Statements

These Financial Statements are prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables of this report is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note 3 of the financial statements reconciles these two accounting methods.

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008, and all information contained in this report rests with Board management. These 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, using management's best estimates and judgments where appropriate and give due consideration to materiality.

Management is responsible for the integrity and objectivity of the information in these financial statements. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Board’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, Board policies and statutory requirements, 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 Board.

The financial statements of the Board have not been audited.

 

• Casper Bloom, Q.C., Ad. E. 
  Chairperson
• Pierre Hamel
  Senior Financial Officer

Statement of Operations (unaudited)
For the year ended March 31, 2008

(in dollars)

---

				2008	2007
OPERATING EXPENSES
	Salaries and employee benefits			8,055,327	7,632,167
	Professional and special services			2,193,992	1,446,666
	Accommodation			1,826,920	1,940,601
	Transportation and telecommunications			683,576	576,643
	Acquisition of machinery and equipment			493,823	253,510
	Rentals			320,883	274,847
	Utilities, materials and supplies			232,265	177,317
	Amortization of tangible capital assets			187,186	124,434
	Communication			98,026	322,834
	Repairs and maintenance			70,735	23,230
	Other operating expenses			4,865	617
		Total Expenses		14,167,598	12,772,864
REVENUES
	Miscellaneous revenues			13,784	30,549
		Total Revenues		13,784	30,549
Net Cost of Operations				14,153,814	12,742,315
The accompanying notes form an integral part of these financial statements.

Statement of Financial Position (unaudited)
At March 31, 2008

(in dollars)

---

				2008	2007
ASSETS
	Financial assets
		Receivables from other federal government departments and agencies		165,903	104,660
		Advances		1,000	1,000
	Total financial assets			166,903	105,660
	Non-financial assets
		Tangible Capital Assets (Note 4)		237,384	290,882
	Total non-financial assets			237,384	290,882
TOTAL				404,287	396,542
LIABILITIES
		Accounts payable and accrued liabilities
			Federal government departments and agencies	341,429	239,539
			Others	1,275,828	1,043,457
		Vacation pay and compensatory leave		287,658	279,489
		Employee severance benefits (Note 5)		1,326,467	1,287,119
				3,231,382	2,849,604
EQUITY OF CANADA				(2,827,095)	(2,453,062)
TOTAL				404,287	396,542
Contingent liabilities (note 2(h))
The accompanying notes form an integral part of these financial statements.

Statement of Equity of Canada (unaudited)
For the year ended March 31, 2008

(in dollars)

---

	2008	2007
Equity of Canada, beginning of year	(2,453,062)	(1,589,185)
Net cost of operations	(14,153,814)	(12,742,315)
Current year appropriations used (Note 3)	11,726,710	10,376,817
Change in net position in the Consolidated Revenue Fund (Note 3)	(273,018)	(828,332)
Revenue not available for spending	(13,784)	(30,549)
Refund of previous year expenditures	-	(15,674)
Services provided without charge by other government departments (Note 6)	2,339,873	2,376,175
Equity of Canada, end of year	(2,827,095)	(2,453,062)
The accompanying notes form an integral part of these financial statements.

Statement of Cash Flow (unaudited)
For the year ended March 31, 2008

(in dollars)

---

			2008	2007
Operating Activities
	Net Cost of Operations		14,153,814	12,742,315
	Non-cash items:
		Amortization of tangible capital assets	(187,186)	(124,434)
		Services provided without charge by other government departments (Note 6)	(2,339,873)	(2,376,175)
	Variations in Statement of Financial position:
		Increase (decrease) in accounts receivable and advances	61,243	(302,227)
		Increase in liabilities	(381,778)	(627,059)
Cash used by operating activities			11,306,220	9,312,420
Capital Investment Activities
		Acquisitions of tangible capital assets	133,688	189,842
Cash used by capital investment activities			133,688	189,842
Financing Activities Net cash provided by Government of Canada			(11,439,908)	(9,502,262)
The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (unaudited)
Year ended March 31, 2008

1. Authority and Objectives

The mandate of the Public Service Labour Relations Board (the Board), established in 2005 by the enactment of the Public Service Labour Relations Act and successor to the former Public Service Staff Relations Board established in 1967, is to effectively and efficiently administer the systems of collective bargaining and grievance adjudication established under the Public Service Labour Relations Act and the Parliamentary Employment and Staff Relations Act, as well as certain provisions of Part II of the Canada Labour Code concerning occupational safety and health applicable to employees in the Public Service. The Board also administers the Yukon Public Service Labour Relations Act and the Yukon Education Labour Relations Act.

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 Board is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Board do not parallel financial reporting according to Canadian generally accepted accounting principles. 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.
2. Net cash provided by Government – The Board operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by the Board is deposited to the CRF and all cash disbursements made by the Board 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 department.  It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
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 the accrual basis:
   1. Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
   2. 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.
6. Employee future benefits
   1. Pension benefits:  Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Board's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Board to make contributions for any actuarial deficiencies of the Plan.
   2. 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. Receivables recorded by the Board are from other government departments. Recovery is considered certain and a provision has not been made.
8. Contingent liabilities – In the normal course of its operations, the Board may become 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 loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. The Board has no contingent liabilities as at March 31, 2008.
9. Tangible capital assets – All tangible capital assets plus leasehold improvements having an initial cost of $3,000 or more are recorded at their acquisition cost.  The Board does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value. Amortization of capital assets is done on a straight-line basis over the estimated useful life of the tangible capital asset as follows:
   

   Asset Class	Amortization Period
   Furniture and equipment	5 years
   Informatics hardware and software	3 years

   
   
10. Foreign currency transactions – Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions.  Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using exchange rates in effect on March 31. Gains and losses resulting from foreign currency transactions are included in the statement of operations.
11. 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 contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. 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 Board 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 Board 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  (in dollars)

	2008	2007
Net cost of operations	14,153,814	12,742,315
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge by other gov’t departments	(2,339,873)	(2,376,175)
Amortization of tangible assets	(187,186)	(124,434)
Increase in employee severance benefit liability	(39,348)	(81,295)
Revenue not available for spending	13,784	30,549
Increase in vacation pay and compensatory leave liability	(8,169)	(19,659)
Refunds of prior years' expenditures	-	15,674
	11,593,022	10,186,975
Adjustments for items not affecting net cost of operations but affecting appropriations
Add (Less):
Acquisitions of tangible capital assets	133,688	189,842
Current year appropriations used	11,726,710	10,376,817

(b) Appropriations provided and used (in dollars)

	2008	2007
Vote 100 — Program expenditures	-	17,073,000
Vote 85 — Program expenditures	10,617,000	-
Vote 85a — Supplementary	2,548,500	-
Transfer from Treasury Board - Vote 15	79,000	106,000
Transfer from Treasury Board - Vote 22	853,650	-
Contributions to employee benefit plan	1,082,950	993,528
Disposal of surplus of Crown assets	141	472
Less:
Lapsed appropriations: Operating	(3,454,531)	(7,796,183)
Current year appropriations used	11,726,710	10,376,817

(c) Reconciliation of net cash provided by Government to current year appropriations used (in dollars)

	2008	2007
Net cash provided by Government	11,439,908	9,502,262
Revenue not available for spending	13,784	30,549
Refunds of prior years' expenditures	-	15,674
Change in net position in the Consolidated Revenue Fund
Variation in accounts receivable and advances	(61,243)	302,227
Variation in accounts payable and accrued liabilities	334,261	526,105
	273,018	828,332
Current year appropriations used	11,726,710	10,376,817

4. Tangible Capital Assets (in dollars)

	Cost				Accumulated amortization				2008	2007
Capital asset class	Opening balance	Acqui- sitions	Closing balance		Opening balance	Amorti- zation	Closing balance		Net book value	Net book value
Informatics Hardware and Software	1,085,820	121,735	1,207,555		802,885	180,501	983,386		224,169	282,935
Furniture and equipment	84,605	11,953	96,558		76,658	6,685	83,343		13,215	7,947
Total	1,170,425	133,688	1,304,113		879,543	187,186	1,066,729		237,384	290,882

Amortization expense for the year ended March 31, 2008 is $187,186 ($124,434 in 2006-2007).

5. Employee benefits

(a) Pension benefits: The Board'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 Board contribute to the cost of the Plan. The 2007-08 expense amounts to $132,422 ($279,091 in 2006-07), which represents approximately 2.1 times for 2007-2008 (2.2 times on 2006-2007) the contributions by employees.

The Board'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 Board 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:

Employee benefits (in dollars)	2008	2007
Accrued benefit obligation, beginning of year	1,287,119	1,205,824
Expense for the year	132,422	279,091
Benefits paid during the year	(93,074)	(197,796)
Accrued benefit obligation, end of year	1,326,467	1,287,119

6. Related party transactions

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

Services provided without charge:

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

Services provided without charge (in dollars)	2008	2007
Accommodation	1,826,920	1,940,601
Treasury Board’s contribution to the health and dental insurance plans	512,953	435,574
Total	2,339,873	2,376,175

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 Board’s Statement of Operations.

Appendix A: Adjudication Services

		Carried over from previous years	Rec’d in 2007-08	Total	Closed in 2007-08 (includes cases settled, withdrawn and decided)	Carried forward to 2008-091	Decisions/ Orders2
Grievances		2992	893	3885	1028	2857	65
Complaints
•	Unfair labour practices	89	63	152	53	99	15
•	Canada Labour Code cases	18	3	21	8	13	3
Applications
•	Certifications	0	1	1	1	0	1
•	Revocations of certification	3	1	4	4	0	2
•	Determination of successor rights	0	0	0	0	0	0
•	Determination of management and confidential positions	64	530	594	310	284	310
•	Designation of essential positions	0	7	7	4	3	0
•	Review of Board decisions	2	3	5	5	0	4
•	Requests for extension of time	123	27	150	41	109	16
Total Cases		3291	1528	4819	1454	3365	416
Notes Cases can be carried over for a variety of reasons. They may be cases that were heard and were awaiting decisions at year-end, were scheduled for hearing, or were held in abeyance at the request of the parties pending discussions or other decisions from the Board, other tribunals or courts. Decisions and orders may affect more than one case.

Appendix B: Synopsis of Applications for
Judicial Review of Decisions

April 1, 2003, to March 31, 2008

	Decisions    rendered1	Number of applications	Applications withdrawn	Applications dismissed	Applications allowed	Applications pending2	Appeals of applications pending3
YEAR 1 (April 1, 2003, to March 31, 2004)	108	14	5	8	1	0	0
YEAR 2 (April 1, 2004, to March 31, 2005)	189	19	4	10	5	0	0
YEAR 3 (April 1, 2005, to March 31, 2006)	173	16	4	12	0	0	0
YEAR 4 (April 1, 2006, to March 31, 2007)	116	25	8	9	3	5	0
YEAR 5 (April 1, 2007 to March 31, 2008)	112	23	6	3	3	11	2
TOTAL	698	97	27	42	12	16	2

¹Decisions rendered do not include cases dealt with under the expedited adjudication process and Managerial Exclusion Orders issued by the Board upon consent of the parties.

²Applications that have yet to be dealt with by Federal Court.  Does not include appeals pending before the Federal Court of Appeal or the Supreme Court of Canada.

³Results of appeals disposed of have been integrated into statistics in this table.

Note: The figures for the last two fiscal years are not final, as not all the judicial review applications filed in those years have made their way through the court system.

Appendix C: Collective Bargaining Cases

April 1, 2007, to March 31, 2008

Arbitration Boards
	Carried over from previous year	4
	Received in 2007-2008	6
	Total cases	10
	Settlements	0
	Arbitral awards	5
	Carried forward to 2008-2009	5
Requests for Mediator
	Carried over from previous year	1
	Received in 2007-2008	5
	Total cases	6
	Settlements	0
	Mediators’ reports	3
	Carried forward to 2008-2009	3
Conciliation Boards / Public Interest Commissions
	Carried over from previous year	0
	Received in 2007-2008	0
	Total cases	0
	Settlements	0
	Conciliation board/PIC reports	0
	Carried forward to 2008-2009	0

Appendix D: Other Information

Statutes and Regulations Administered by the Public Service Labour Relations Board

• Public Service Labour Relations Act, S.C. 2003, c. 22, s. 2
• Public Service Labour Relations Board Regulations, SOR/2005-79
• Public Service Staff Relations Act, R.S.C. 1985, c. P-35 (repealed as of March 31, 2005)
• P.S.S.R.B. Regulations and Rules of Procedure, 1993, SOR/93-348 (repealed as of March 31, 2005)
• Parliamentary Employment and Staff Relations Act, R.S.C. 1985, c. 33 (2d Supp.), as amended.
• P.E.S.R.A. Regulations and Rules of Procedure, SOR/86-1140, as amended.
• Sections 133 and 145 of Part II of the Canada Labour Code, R.S.C. 1985, c. L-2
• Education Labour Relations Act, (Yukon), R.S.Y. 2002, c. 62 (amended by SY 2004, c.8)
• Yukon Teachers Staff Relations Board Regulations and Rules of Procedure, O.I.C. 1992/95
• Public Service Labour Relations Act, (Yukon), R.S.Y. 2002, c. 185 (amended by SY 2004, c.8)
• YPSSRB Regulations and Rules of Procedure, C.O. 1970/226

How to Reach Us

Public Service Labour Relations Board
P.O. Box 1525, Station B
Ottawa, Canada
K1P 5V2

Tel: 613-990-1800

Toll-free: 866-931-3454

Fax: 613-990-1849

General:	Fax: 613-990-1813
Registry Operations and Policy:	Fax: 613-990-3927
Dispute Resolution Services:	Fax: 613-990-9157
Website:	www.pslrb-crtfp.gc.ca

Email address: Mail.courrier@pslrb-crtfp.gc.ca

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