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Appendices

Appendix A - Glossary
Appendix B - Links to Other Organizations Involved in Transportation Safety
Appendix C - Audited Financial Statements

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Appendix A - Glossary

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 -

Links to Other Organizations Involved in Transportation Safety

More information on transportation safety in Canada is available from other federal government agencies who play a role in this area. The main organizations are as follows:

Transport Canada
National Energy Board
Canadian Coast Guard
Canadian Transportation Agency
Royal Canadian Mounted Police
Human Resources and Social Development Canada
National Defence

Information on transportation safety in selected countries is available on the following Internet sites:

United States

National Transportation Safety Board

Federal Aviation Administration

Australia

Australian Transport Safety Bureau

France

Bureau d'Enquêtes et d'Analyses pour la Sécurité de l'Aviation Civile

United Kingdom

Air Accidents Investigation Branch

Marine Accident Investigation Branch

International

International Civil Aviation Organization

International Maritime Organization

International Transportation Safety Association

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Appendix C - 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, 2008 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.

The original version was signed by _________________________	The original version was signed by _________________________
Wendy A. Tadros Chair	Jean L. Laporte, FCGA Senior Financial Officer

Gatineau, Canada
August 1, 2008

Auditor's Report

Transportation Safety Board of Canada
Statement of Financial Position
At March 31
(in thousands of dollars)

		2008	2007
ASSETS
	Financial assets
	Due from the Consolidated Revenue Fund	$2,163	$1,812
	Accounts receivable and advances (Note 4)	317	329
	Total financial assets	2,480	2,141
	Non-financial assets
	Prepaid expenses	38	53
	Inventory	76	80
	Tangible capital assets (Note 5)	5,382	5,062
	Total non-financial assets	5,496	5,195
Total assets		$7,976	$7,336
Liabilities
	Accounts payable and accrued liabilities	$2,439	$2,099
	Vacation pay and compensatory leave	974	1,045
	Employee severance benefits (Note 6)	3,802	4,020
	Total liabilities	7,215	7,164
Equity of Canada		761	172
Total liabilities and equity of Canada		$7,976	$7,336
Contingent liabilities and contractual obligations (Notes 7 and 8 respectively)
The accompanying notes form an integral part of these financial statements.

The original version was signed by _________________________	The original version was signed by _________________________
Wendy A. Tadros Chair	Jean L. Laporte, FCGA Senior Financial Officer

Gatineau, Canada
August 1, 2008

Transportation Safety Board of Canada
Statement of Operations
For the Year Ended March 31
(in thousands of dollars)

		2008	2007
Expenses
	Salaries	$ 19 544	$ 20 266
	Employee benefits	4,418	5,151
	Professional and special services	2,891	3,031
	Transportation and communications	2,050	2,017
	Accommodation	1,;937	1,850
	Ammortization	944	998
	Repairs and maintenance	625	626
	Utilities, materials, supplies and equipment	445	476
	Information	185	150
	Rentals	138	117
	Loss on disposal of assets	17	5
	Other expenses	6	1
Total Expenses		33 200	34 688
Revenues
	Other non-tax revenues	21	11
	Sales of goods and services	17	7
Total Revenues		38	18
Net Cost of Operations before administration of cost-shared activities		33,162	34,670
	Other Expenses (Note 9(c))	312	338
	Other Income (Note 9(c))	312	370
Net Cost of Operations		33,162 $	34,638 $
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)

	2008	2007
Equity of Canada, beginning of year	$ 172	$ 475
Net cost of operations	(33,162)	(34,638)
Net cash provided by Government of Canada	30,001	31,294
Change in due from the Consolidated Revenue Fund	351	(477)
Services received without charge (Note 9(a))	3,399	3,518
Equity of Canada, end of year	$ 761	$ 172
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)

		2008	2007
Operating activities
Net cost of operations		$ 33,162	$ 34,638
Non-cash items:
	Services provided without charge by other government departments	(3,399)	(3,518)
	Amortization of tangible capital assets	(944)	(998)
	Loss on disposal and write-down of tangible capital assets	(17)	(5)
		(4,360)	(4,521)
Variations in Statement of Financial Position:
	Increase (decrease) in accounts receivable and advances	(12)	270
	Increase (decrease) in prepaid expenses	(15)	1
	Increase (decrease) in inventory	(4)	(50)
	Decrease (Increase) in liabilities	(51)	116
Cash used by operating activities		28,720	30,454
Capital investment activities
	Acquisitions of  tangible capital assets	1,314	842
	Proceeds from disposal of tangible capital assets	(33)	(2)
Cash used by capital investment activities		1,281	840
Net cash provided by Government of Canada		$ 30,001	$ 31,294
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:

(a) 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.

(b) 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.

(c) 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.

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

(e) 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 provided without charge by other government departments are recorded as operating expenses at their estimated cost.

(f) 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.

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

(h) 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.

(i) 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:

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&nbsphouse 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

(j) 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:

			2008	2007
(in thousands of dollars)
Net cost of operations			$ 33,162	$ 34,638
Adjustments for items affecting net cost of operations but not affecting appropriations:
	Less:
		Services provided without charge	(3,399)	(3,518)
		Amortization of tangible capital assets	(944)	(998)
		Loss on disposal of assets and write-down of tangible capital assets	(17)	(5)
			(4,360)	(4,521)
	Add:
		Employee severance benefits	218	(160)
		Vacation pay and compensatory leave	71	80
		Refund of previous years expenses	21	11
		Miscellaneous non-tax revenues	17	39
		Payables at year-end adjustment	16	4
			343	(26)
Adjustments for items not affecting net cost of operations but affecting appropriations:
	Less:
		Prepaid expenses (decrease) increase	(15)	1
		Inventory used	(4)	(50)
			(19)	(49)
	Add:
		Acquisition of tangible capital assets	1,314	842
			1,314	842
Current year Parliamentary appropriations used			$ 30,440	$ 30,884

(b) Parliamentary appropriations provided and used

				2008	2007
(in thousands of dollars)
		Vote 10 - CTAISB Operating expenditures		$ 25,415	$ 25,486
		Supplementary Vote 10a			1,674
		Transfer from Treasury Board - Vote 15		954	1,096
		Transfer from Treasury Board - Vote 22		1,274	-
		Transfer from Treasury Board - Vote 23		567	-
		Spending of revenues as per Financial Administration Act section 29.1		10	4
		Statutory amounts:
			Contribution to employee benefit plans	3,287	3,403
			Spending of proceeds from disposal of surplus Crown assets	39	4
		Minus:
		Lapsed appropriations: Operating		(1,106)	(783)
		Current year Parliamentary appropriations used		$ 30,440	$ 30,884

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

		2008	2007
(in thousands of dollars)
	Net cash provided by Government of Canada	$ 30,001	$ 31,294
	Proceeds from disposal of tangible capital assets	33	2
	Refund of previous years expenses	21	11
	Miscellaneous non-tax revenues	17	39
	Payables at year-end adjustment	16	4
	Decrease (Increase) in accounts receivable and advances	12	(270)
	Increase (Decrease) in accounts payable and accrued liabilities	340	(197)
	Other adjustments		1
	Current year Parliamentary appropriations used	$ 30,440	$ 30,884

4. Accounts Receivable and Advances

			2008	2007
(in thousands of dollars)
		Receivables from other Federal Government departments and agencies	$ 307	$ 316
		Receivables from external parties	1	5
		Employee advances	9	8
		Total	$  317	$ 329

5. Tangible Capital Assets (in thousands of dollars)

Capital Asset Class	Historical Cost March 31, 2007	Acquisitions	Work in progress transfers	Disposals and write-offs	Accumulated Amortization March 31, 2008	Net Book Value March 31, 2008	Net Book Value March 31, 2007
Buildings	$2,854	$ -	$ -	$ -	$2,282	$572	$689
Furniture	981	178	-	-	561	598	500
Office equipment	212	-	-	-	212	-	3
Laboratory equipment	2,407	165	-	-	1,913	659	588
Informatics hardware	3,414	411	-	-	3,128	697	594
Informatics software (purchased)	670	58	-	-	601	127	136
Informatics software (in house developed)	2,002	-	590	-	319	2,273	1,885
Informatics software (in development)	270	320	(590)	-	-	-	270
Motor vehicles	837	115	-	(239)	392	321	321
Other vehicles	103	-	-	-	35	68	76
Leasehold improvements	34	67	-	-	34	67	-
Total	$13,784	$1,314	$-	$(239)	$9,477	$5,382	$5,062

6. Employee Benefits

(a) 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 2007-2008 expense amounts to $2,396,441 ($2,508,000 in 2006-2007), and are recorded as employee benefit expenses, which represents approximately 2.7 times the contributions by employees, which amounts to $890,858.

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.

(b) 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:

			2008	2007
(in thousands of dollars)
		Employee severance benefits, beginning of year	$ 4,020	$ 3,860
		Expense for the year recorded as employee benefits	178	608
		Benefits paid during the year	(396)	(448)
		Employee severance benefits, end of year	$ 3,802	$ 4,020

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, 2008, 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 are summarized as follows:

(in thousands of dollars)	2009	2010	Total
Acquisition of goods and services	$ 1,117	$ 17	$ 1,134

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).

(a) Services provided without charge:

During the year the TSB received without charge from other departments, accommodation, administration of worker's 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:

			2008	2007
(in thousands of dollars)
		Accommodation	$ 1,937	$ 1,850
		Employer's contribution to health and dental insurance plans	1,363	1,593
		External audit services	78	60
		Administration of worker's compensation	21	15
		Total	$ 3,399	$ 3,518

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.

(b) Payables outstanding at year-end with related parties:

	2008	2007
(in thousands of dollars)
Accounts payable to other government departments and agencies	$ 200	$ 197

(c) Administration of costs-shared activities:

The TSB was responsible for coordinating the financial management of funds for the networks of small federal agencies. The revenues consist of contributions from all agencies to the cost sharing. The expenses are the disbursements made on behalf of the group. Each government department will report its respective portion of expenses in its financial statements. During the year, TSB administered $311,500 in revenues ($370,000 in 2006-2007) and disbursed $16,751 in expenses ($338,000 in 2006-2007). Effective September 20, 2007, the TSB transferred this responsibility to Library and Archives Canada and the residual account balance of $294,749 was transferred to this organization.

10. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.

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1.   While the Board's operations are for the 2007-2008 fiscal year, occurrence statistics are for the 2007 calendar year unless otherwise indicated. Please 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.

2.   Investigations are considered complete after the final report has been issued. See Appendix A of the Annual Report to Parliament 2007-2008 for a list of reports released by the TSB in 2007-2008 by sector.

3.   Pipeline accident rates after 2003 reflect the impact of clarifications to the pipeline industry of the TSB's accident and incident reporting requirements, and of internal adjustments to the data in TSB's Pipeline Occurrence Database..

4.   Because accident statistics (derailments since 2001) have been adjusted in light of clarifications to industry of TSB's reporting requirements, historical rail accident rates after 2001 have been updated accordingly.

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