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SECTION III: SUPPLEMENTARY INFORMATION

Organizational Information

The Registry of the Competition Tribunal has been designated a department for the purposes of the Financial Administration Act, with the Minister of Industry as its minister, and the Registrar as the deputy head. The RCT has 14 full-time employees and provides all necessary administrative support required by the Tribunal for the hearing and disposition of all applications. The RCT responds to all requests for information by the legal community, researchers and the public on the status of cases, the Competition Tribunal Rules and its case law.

The Tribunal is composed of not more than six judicial members and not more than eight non-judicial members. Non-judicial members have backgrounds in economics, business, accounting, marketing and other relevant fields. Figure 1 shows the Tribunal’s organizational structure.

The Governor in Council appoints judicial members, on the recommendation of the Minister of Justice, from among the judges of the Federal Court and designates one of the judicial members as Chairperson of the Tribunal. The Governor in Council appoints non-judicial members on the recommendation of the Minister of Industry. Appointments are for a fixed term not exceeding seven years; members may be re-appointed.

Figure 1

Organizational Information

Table 1: Comparison of Planned to Actual Spending (including Full-time Equivalents)

($ thousands )	2004–05 Actual	2005–06 Actual	2006–07
($ thousands )	2004–05 Actual	2005–06 Actual	Main Estimates	Planned Spending	Total Authorities	Total Actuals
Program Activity: Process Cases	1,505	1,590	1,524	1,524	1,545	1,524
Total	1,505	1,590	1,524	1,524	1,545	1,524
Less: Non‑respendable revenue			N/A		N/A
Plus: Cost of services received without charge	480	485	N/A		N/A
Total Departmental Spending	1,985	2,075	N/A		N/A
Full-time Equivalents	14	14	N/A	14	N/A	14

Table 2: Resources by Program Activity

($ thousands)

2006–07
Program Activity	Budgetary							Plus: Non- budgetary	Total
Program Activity	Operating	Capital	Grants	Contributions and Other Transfer Payments	Total: Gross Budgetary Expenditures	Less: Respendable Revenue	Total: Net Budgetary Expenditures	Loans, Investments, and Advances	Total
Process Cases	1,545	n/a	n/a	n/a	1,545	n/a	1,545	n/a	1,545
Main Estimates	1,524
Planned Spending	1,524				1,524		1,524		1,524
Total Authorities	1,545
Actual Spending	1,524				1,524		1,524		1,524

Table 3: Voted and Statutory Items

($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2006–07
Vote or Statutory Item	Truncated Vote or Statutory Wording	Main Estimates	Planned Spending	Total Authorities	Total Actuals
Vote 45	Operating expenditures	1,524	1,524	1,545	1,524
(S)	Contributions to employee benefit plans	162	162	177	177
	Total	1,686	1,686	1,722	1,701

Table 4: Services Received Without Charge

($ thousands )	2006–07 Actual Spending
Accommodation provided by Public Works and Government Services da	459
Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds); employer’s contribution to employees’ insured benefits plans and associated expenditures paid by the Treasury Board of Canada Secretariat	64
Salary and associated expenditures of legal services provided by the Department of Justice Canada	------
Total 2006–07 Services received without charge	523

Table 15: Financial Statements of Departments and Agencies (including Agents of Parliament)

Registry of the Competition Tribunal
Statement of Financial Position (Unaudited)
At March 31
*(in dollars)*

				2007		2006
Assets

Financial assets
	Cash		$		$
	Accounts receivable and advances (note 4)			48,108		95,392
		Total financial assets		48,108		95,392

Non-financial assets
	Tangible capital assets (note 5)			40,127		27,335

TOTAL			$	88,235	$	122,727

Liabilities

	Accounts payable and accrued liabilities		$	42,080	$	139,366
	Vacation pay and compensatory leave			65,249		65,249
	Employee severance benefits (note 6)			234,649		164,278
		Total liabilities	$	341,978	$	368,893
Equity of Canada				(253,743)		(246,166)
TOTAL			$	88,235	$	122,727

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

Registry of the Competition Tribunal
Statement of Equity of Canada (Unaudited)
At March 31
*(in dollars)*

		2007		2006

Equity of Canada, beginning of year	$	(246,166)	$	(258,186)
Net cost of operations		(2,273,654)		(2,278,648)
Current year appropriations used (note 3)		1,700,955		1,736,590
Change in net position in the Consolidated Revenue
Fund (note 3)		42,122		69,487
Services received without charge from other
government departments (note 7)		523,000		484,591
Equity of Canada, end of year	$	(253,743)	$	(246,166)

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

Registry of the Competition Tribunal
Statement of Cash Flow (Unaudited)
For the Year Ended March 31
*(in dollars)*

				2007		2006

Operating Activities
	Net cost of operations		$	2,273,654	$	2,266,717
	Non-cash items:
		Amortization of tangible capital assets		12,791		(41,577)
		Services received without charge from
		other government departments (note 7)		(523,000)		(484,591)
	Variations in Statement of Financial Position:
		(Decrease) in accounts receivable
		and advances		(47,284)		(55,500)
		Decrease in liabilities		26,915		117,830
Cash used by operating activities			$	1,743,076		1,802,879

Capital investment activities
	Acquisitions of tangible capital assets		$	-		3,198

Financing activities
	Net cash provided by Government		$	1,743,076		1,806,077

Net Cash Used				-		2,234

Cash, beginning of year				(1,117)		(1,117)

Cash, end of year			$	(1,117)	$	(1,117)

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

Registry of the Competition Tribunal
Notes to the Financial Statements (unaudited)


1.	Authority and Objectives

	The Registry of the Competition Tribunal (Registry) is a quasi-judicial adjudicative tribunal created in 1986 by the Competition Tribunal Act. Its mandate is to hear applications and issue orders related to the civil renewable matters set out in Parts VII.1 and VIII of the Competition Act, whose purpose is to maintain and encourage competition in Canada, and to ensure that firms compete fairly and markets operate efficiently. The Registry has no other function and operates at arm's length from government and its departments.





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 Registry is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Registry do not parallel financial reporting according to 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 Registry operates within the Consolidated Revenue Fund (CRF) which is administered by the Receiver General for Canada. All cash received by the Registry is deposited to the CRF and all cash disbursements made by the Registry 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)	Change in net position in the Consolidated Revenue Fund

	The change 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 Registry. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.



(d)	Expenses

	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, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.



(e)	Employee future benefits

	i.	Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Registry's contributions to the Plan are charged to expenses in the year incurred and represent the total Registry obligation to the Plan. Current legislation does not require the Registry 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.




(f)	Accounts and loans receivables

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


(g)	Tangible capital assets

	All tangible capital assets and leasehold improvements having an initial cost of $3,000 or more are recorded at their acquisition cost. The Registry does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.



	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
	Machinery and equipment			10 years
	Informatics hardware			3 - 4 years
	Other equipment			5 - 10 years

(h)	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 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 Registry 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 Registry 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:
					2007	2006
					(in dollars)

	Net cost of operations				2,273,654	2,266,717

	Adjustments for items affecting net cost of operations but not affecting appropriations
		Add (Less): expenses not affecting appropriations
			Services provided without charge		(523,000)	(484,591)
			Amortization of tangible capital assets		12,791	(41,577)
			Employee severance benefits		(70,371)	(8,276)
			Adjustment of previous year's accounts payable		7,881	1,119
					1,700,955	1,733,392
	Adjustments for items not affecting net cost but affecting appropriations
		Add: Tangible capital assets acquisitions			-	3,198

	Current year appropriations used				1,700,955	1,736,590

(b)	Appropriations provided and used
					Appropriations Provided
					2007	2006
					(in dollars)

	Vote 45 - Operating expenditures				1,544,953	1,591,750
	Statutory amounts				178,112	134,723
	Less:
	Appropriations available for future years					(1,117)
	Lapsed appropriations: Operating				(22,110)	11,234

	Current year appropriations used				1,700,955	1,736,590

(c)	Reconciliation of net cash provided by Government to current year appropriations used
					2007	2006
					(in dollars)

	Net cash provided by Government				1,743,076	1,806,077
	Change in net position in the Consolidated Revenue Fund
		Decrease in accounts receivable and advances			47,284	55,500
		(Decrease) in accounts payable and accrued liabilities			(97,286)	(126,106)
		Other adjustments			7,881	1,119
					(42,121)	(69,487)

	Current year appropriations used				1,700,955	1,736,590

4.	Accounts Receivable and Advances

	The following table presents details of accounts receivable and advances:
					2007	2006
					(in dollars)

		Receivables from other Federal Government departments and agencies			10,073	94,892
		Receivables from external parties			37,535
		Employee advances			500	500

		Total			48,108	95,392


5.	Tangible Capital Assets
	(in dollars)
	Capital asset class		Cost
			Opening	Acquisitions	Disposals	Closing
			balance		and write-offs	balance
	Informatics hardware		217,340			217,340
	Other equipment		172,824			172,824
	Machinery and equipment		122,847			122,847
			513,011			513,011





	Tangible Capital Assets (Cont’d)

	Capital asset class		Accumulated amortization
			Opening balance	Amortization	Disposals and write-offs	Closing balance
			Opening balance		Disposals and write-offs	Closing balance
	Informatics hardware		227,035	(17,143)		209,892
	Other equipment		154,748	(11,888)		142,860
	Machinery and equipment		103,893	16,240		120,133
			485,676	(12,791)		472,885

	Capital asset class				2007	2006
					Net book	Net book
					value	value
	Informatics hardware				7,449	(9,695)
	Other equipment				29,964	18,076
	Machinery and equipment				2,714	18,954
					40,127	27,335

	Amortization expense for the year ended March 31, 2007 was - $12,791 (2006 was $51,272)

6.	Employee benefits

	a) Pension benefits

	The Registry'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 Registry contribute to the cost of the Plan. The 2006-07 expense amounts to $130,446 ($98,869 in 2005-06) which represents approximately 2.2 times (2.6 in 2005-06) the contributions by employees.


	The Registry's 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 Registry 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:



					2007	2006
					(in dollars)

	Accrued benefit obligation, beginning of the year				164,278	156,002
	Expense for the year				70,371	28,719
	Benefits paid during the year				-	(20,443)
	Accrued benefit obligation, end of the year				234,649	164,278

7.	*Related party transactions*

	The Registry is related as a result of common ownership to all Government of Canada departments, agencies and Crown Corporations. The Registry enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Registry 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 Registry received services that were obtained without charge from other government departments and agencies. These services without charge have been recognized in the Registry's Statement of Operations as follows:


					2007	2006
					(in dollars)

		Accommodation			459,000	420,591
		Employer's contribution to the health and dental insurance plans			64,000	64,000
		Total			523,000	484,591

	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 cost 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 Registry's Statement of Operations.




	b) Payables outstanding at year-end with related parties:
					2007	2006
					(in dollars)

		Accounts payable to other government departments and agencies			-	7,882

REGISTRY OF THE COMPETITION TRIBUNAL

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements of the Registry of the Competition Tribunal (Registry) for the year ended March 31, 2007 and all information contained in these statements rests with the Registry'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 managements' 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 Registry's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Registry'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 Registry.

The financial statements of the Registry have not been audited.

___________________________ ___________________________

Raynald Chartrand Michael Fleming

Deputy Head and Registrar Financial Officer

Ottawa, Canada

Date:

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ARCHIVED - Registry of the Competition Tribunal

Archived Content

SECTION III: SUPPLEMENTARY INFORMATION

Organizational Information

Table 1: Comparison of Planned to Actual Spending (including Full-time Equivalents)

Table 2: Resources by Program Activity

Table 3: Voted and Statutory Items

Table 4: Services Received Without Charge

Table 15: Financial Statements of Departments and Agencies (including Agents of Parliament)