ARCHIVED - Registry of the Competition Tribunal

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SECTION III - SUPPLEMENTARY INFORMATION

Strategic Outcome: Open, fair, transparent and expedtious hearings related to the Tribunal's jurisdiction.;
	Actual Spending 2007-08 ($ thousands)			Alignment to Government of Canada Outcome Area
	Budgetary	Non- budgetary	Total
Process cases	$1,537	$0	$1,537	A fair and secure marketplace

The Registry of the Competition Tribunal contributes to the Government of Canada outcome area of a fair and secure marketplace by supporting the Tribunal in conducting open and timely hearings of cases falling under its jurisdiction.

Table 1: Comparison of Planned to Actual Spending (including FTEs)

	2005- 06 Actual	2006- 07 Actual	2007-08 ($ thousands)
			Main Estimates	Planned Spending	Total Authorities	Actual
Process Cases	$1,590	$1,524	$1,536	$1,536	$1,750	$1,537
Total	$1,590	$1,524	$1,536	$1,536	$1,750	$1,537
Less: Non-respendable revenue	N/A	N/A	N/A	N/A	N/A	N/A
Plus: Cost of services received without charge	$485	$523	N/A	$630	N/A	$630
Total Departmental Spending	$2,075	$2,047	N/A	$2,166	N/A	$2,167
$
Full-time Equivalents	14	14	N/A	14	N/A	14

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 ($ thousands)
		Main Estimates	Planned Spending	Total Authorities	Main Actual
Vote 45	Operating expenditures	$1,536	$1,536	$1,600	$1,537
Vote 45b	Transfer of $150K from Industry Vote 1			$150
(S)	Contributions to employee benefit plans	$160	$160	$161	$161
	Total	$1,696	$1,696	$1,911	$1,698

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, 2008 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 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 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.

The original version was signed by

Raynald Chartrand	Erminda Mondero
Deputy Head and Registrar	Financial Officer
Ottawa, Canada
Date: August 28, 2008

Table 16: Financial Statements of Department

REGISTRY OF THE COMPETITION TRIBUNAL
Statement of Operations (unaudited) For the Year Ended March 31 (in dollars)
				2008			2007
Expenses
	Process cases
		Salaries and employee benefits	$	1,125,613		$	1,267,481
		Accommodation		570,132			459,000
		Professional and special services		346,562			399,155
		Transportation and telecommunications		129,253			106,023
		Utilities, materials and supplies		50,951			33,824
		Amortization of tangible capital assets		14,746			(12,791)
		Information		11,895			11,029
		Rentals		6,638			9,248
		Repair and maintenance		1,395			685
Net cost of operations			$	2,257,185		$	2,273,654
The accompanying notes are an integral part of these financial statements.

REGISTRY OF THE COMPETITION TRIBUNAL
Statement of Financial Position (unaudited) At March 31 (in dollars)
				2008			2007
Assets
Financial assets
	Accounts receivable and advances (Note 4)		$	17,011		$	48,108
		Total financial assets		17,011			48,108
Non-financial assets
	Tangible capital assets (Note 5)			102,844			40,127
		Total non-financial assets	$	102,844		$	40,127
TOTAL			$	119,855		$	88,235
Liabilities
	Accounts payable and accrued liabilities		$	138,618		$	42,080
	Vacation pay and compensatory leave			24,222			65,249
	Employee severance benefits (Note 6)			268,102			234,649
		Total liabilities	$	430,942		$	341,978
Equity of Canada				(311,087)			(253,743)
TOTAL			$	119,855		$	88,235
The accompanying notes are an integral part of these financial statements.

REGISTRY OF THE COMPETITION TRIBUNAL
Statement of Equity of Canada (unaudited) At March 31 (in dollars)
	2008	2007
Equity of Canada, beginning of year	(253,743)	(246,166)
Net cost of operations	(2,257,185)	(2,273,654)
Current year appropriations used (Note 3)	1,697,344	1,700,955
Change in net position in the Consolidated Revenue Fund (Note 3)	(127,636)	42,122
Services provided without charge by other Government departments (Note 7)	630,133	523,000
Equity of Canada, end of year.	(311,087)	(253,743)

The accompanying notes are 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)
				2008			2007
Operating Activities
	Net cost of operations		$	2,257,185		$	2,273,654
	Non-cash items:
	Amortization of tangible capital assets
	(Note 5)			(14,746)			(12,791)
	Services provided without charge by
	other government departments (Note 7)			(630,132)			(523,000)
	Variations in Statement of Financial Position
	Decrease in accounts receivable
	and advances			(31,097)			(47,284)
	(Increase) decrease in liabilities			(88,964)			26,915
Cash used by operating activities			$	1,492,245		$	1,743,076
Capital investment activities
	Acquisitions of tangible capital assets			77,464
	Cash used by capital investment activities			77,464
Financing activities
	Net cash provided by Government of Canada		$	(1,569,709)		$	(1,743,076)
The accompanying notes are an integral part of these financial statements.

REGISTRY OF THE COMPETITION TRIBUNAL

Notes to the Financial Statements (unaudited)

1. Authority and Objectives

The Competition Tribunal 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 reviewable 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 Tribunal has no other function and operates at arm's length from government and its departments.

The Competition Tribunal Act provides for an administrative infrastructure for the Registry. For the purpose of this report, a clear distinction between the Tribunal and its Registry must be established. While they assume complementary roles to support the implementation of the Competition Act, these two entities have different status, carry out different activities, and are subject to different accountability measures. One fundamental difference between the Tribunal and the Registry is that the former is a quasi-judicial body, while the latter is considered a federal department under the Financial Administration Act. In fact, the Financial Administration Act specifically excludes the Tribunal from the Registry's designation as a department.

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

(e) 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 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.
3. 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 receivable and advances

Accounts receivable and advances 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
Leasehold improvements	period of the lease

(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 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:

			2008	2007
			(in dollars)
Net cost of operations			2,257,185	2,273,654
Adjustments for items affecting net cost of operations but not affecting appropriations
Add (Less):
	Services provided without charge by other government departments		(630,132)	(523,000)
	Amortization of tangible capital assets		(14,746)	12,791
	(Increase) in employee severance benefits liability		(33,453)	(70,371)
	Decrease in vacation pay and compensatory leave liability		41,026	-
	Adjustment of previous year's accounts payable		-	7,881
			1,619,880	1,700,955
Adjustments for items not affecting net cost of operations
but affecting appropriations
Add: Tangible capital assets acquisitions			77,464
Current year appropriations used			1,697,344	1,700,955

(b) Appropriations provided and used

	Appropriations Provided
	2008	2007
	(in dollars)
Vote 45 - Operating expenditures	1,750,283	1,544,953
Statutory amounts	160,826	178,112
Less:
Lapsed appropriations: Operating	(213,765)	( 22,110)
Current year appropriations used	1,697,344	1,700,955

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

	2008	2007
	(in dollars)
Net cash provided by Government	1,569,709	1,743,076
Change in net position in the Consolidated Revenue Fund
Decrease in accounts receivable and advances	31,097	47,284
Increase (decrease) in accounts payable and accrued liabilities	96,538	(97,286)
Other adjustments		7,881
	127,635	(42,121)
Current year appropriations used	1,697,344	1,700,955)

4. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

	2008	2007
	(in dollars)
Receivables from other Federal Government departments and agencies	17,628	10,073
Receivables from external parties	(1,117)	37,535
Employee advances	500	500
Total	17,011	48,108

5. Tangible Capital Assets

Cost
	Opening balance	Acquisitions	Disposals and write-offs	Closing balance
Capital asset class
Informatics hardware	217,340	23,580	-	240,920
Other equipment	172,824	-	-	172,824
Machinery & equipment	122,847	-	-	122,847
Leasehold improvements	-	53,884	-	53,884
Total	513,011	77,464	-	590,475

Accumulated amortization
	Opening balance	Amortization	Disposals and write-offs	Closing balance
Capital asset class
Informatics hardware	209,892	5,958	-	215,850
Other equipment	142,860	7.902	-	150,762
Machinery & equipment	120,133	886	-	121,019
Leasehold improvements	-	-	-	-
Total	472,885	14,746	-	487,631

	Net Book Value
	2008	2007
Informatics hardware	25,070	7,449
Other equipment	22,062	29,964
Machinery and equipment	1,828	2,714
Leasehold improvements	53,884	-
Total	102,844	40,127

Amortization expense for the year ended March 31, 2008 is $14,746 (for the year ended
March 31, 2007 was - $12,791).

6. Employee benefits

1. Pension benefits
2. 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 2007-08 expense amounts to $116,928 ($130,446 in 2006-07) which represents approximately 2.2 times (2.2 times in 2006-07) the contributions by employees.

   The Registry'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.

3. 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:

	2008	2007
	(in dollars)
Accrued benefit obligation, beginning of the year	234,649	164,278
Expense for the year	33,453	70,371
Benefits paid during the year	-	-
Accrued benefit obligation, end of the year	268,102	234,649

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).

1. Services provided without charge:
2. During the year, the Registry 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 Registry's Statement of Operations as follows:
   

   	2008	2007
   	(in dollars)
   Accommodation	570,132	459,000
   Employer's contribution t o the health and dental insurance plans	60,000	64,000
   Total	630,132	523,000

   
   

   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.

3. Payables outstanding at year-end with related parties:

	2008	2007
	(in dollars)
Accounts payable to other government departments and agencies	75,286	24,864

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