ARCHIVED - Public Service Staffing Tribunal

The Public Service Staffing Tribunal (PSST) has been established through the new Public Service Employment Act, and was enacted on November 20, 2003 by Order in Council 2003-1808. The PSST’s mandate is to consider and dispose of complaints under the revised Public Service Employment Act regarding internal appointments, complaints regarding internal appointments revoked by the Deputy Head or the Public Service Commission (PSC) following a departmental or PSC investigation made at the request of a department or agency, and complaints from employees who have been notified that they will be laid off. The PSST also promotes a non-adversarial resolution of disputes by providing mediation services.       

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 Tribunal is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Tribunal 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.

(b)   Net Cash Provided by 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 deposited to the CRF and all cash disbursements made by the Tribunal 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 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 Tribunal. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.       

(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 the accrual basis:      

(f)   Employee future benefits

(g)   Receivables recorded by the Tribunal are from Other Government Departments. Recovery is considered certain and a provision has not been made.

(h)   Contingent Liabilities – In the normal course of its operations, the Tribunal 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 Tribunal has no contingent liabilities as at March 31, 2008.   

(i)   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 Tribunal does not capitalize tangibles, 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 capital asset as follows:

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

(j)   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 31st. Gains and Losses resulting from foreign currency transactions are included in the Statement of Operations.      

(k)   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.       

The Tribunal 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 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:      
(in dollars)       

		2008	2007
Net cost of operations		5,035,227	3,725,144
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
	Services provided without charge	(527,471)	(392,301)
	Increase in employee severance benefit liability	(180,254)	(131,068)
	Increase vacation pay and compensatory leave liability	(34,782)	(24,578)
	Revenue not available for spending	15,223	29,210
	Amortization of tangible capital assets	(8,602)	(6,393)
		4,299,341	3,200,014
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
	Acquisitions of tangible capital assets	4,600	15,879
Current year appropriations used		4,303,941	3,215,893

b) Appropriations provided and used      
(in dollars)

		2008	2007
From public accounts
	Vote 105 – Program expenditures		4,710,000
	Vote 90 – Program expenditures	4,451,000
	Transfer from Treasury Board – Vote 15	30,000
	Transfer from Treasury Board – Vote 22	235,500
	Contributions to employee benefit plan	402,257	312,782
	Disposal of surplus of Crown assets	11
	Less:
	Lapsed appropriations: Operating	(814,827)	(1,806,888)
	Current year appropriations used	4,303,941	3,215,894

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

		2008	2007
Net cash provided by Government		3,884,042	3,273,122
Revenue not available for spending		15,223	29,210
Reversal of expenditures related to Justice Canada			–
Change in net position in the Consolidated Revenue Fund:
	Variation in accounts receivable and advances	100,672	(17,382)
	Variation in accounts payable and accrued liabilities	304,004	(69,056)
		404,676	(86,438)
Current year appropriations used		4,303,941	3,215,894

Capital asset class	Cost			Accumulated amortization			2008	2007
	Opening balance	Acquisitions	Closing Balance	Opening balance	Amortization	Closing Balance	Net book value	Net book value
Informatics Hardware and Software	12,828	4,600	17,428	5,146	5,426	10,572	6,856	7,682
Furniture and equipment	15,879	–	15,879	2,117	3,176	5,293	10,586	13,762
Total	28,707	4,600	33,307	7,263	8,602	15,865	17,442	21,444

Amortization expense for the year ended March 31, 2008 is $8,602 ($6,393 in 2006-07).

(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 $180,254 ($131,068 in 2006-07), which represents approximately 2.1 times (2.2 times 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 dollars)
Accrued benefit obligation, beginning of year	363,918	232,851*
Expense for the year	180,254	131,068
Benefits paid during the year	–	–
Accrued benefit obligation, end of year	544,172	363,919

* Accrued benefit obligation, beginning of year 2007, was corrected to reflect amount in the Tribunal’s accounts.

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.

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 dollars)
Accommodation	339,089	249,312
Employer’s contribution to the health and dental insurance plans	188,382	142,989
Total	527,471	392,301