Report on Plans and Priorities - 2013-2014 - Financial Statements 2013-2014

Statement of Management Responsibility

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at January 18, 2013 and reflect the plans described in the Report on Plans and Priorities.

David Langtry Heather Throop
Acting Chief Commissioner Chief Financial Officer
Denis Pelchat  
Deputy Chief Financial Officer  

Ottawa, Canada

March 11, 2013

Future-Oriented Statement of Financial Position (Unaudited)

As at March 31
(in dollars)
Estimated
Results
2013
Planned
Results
2014
Liabilities    
Accounts payable and accrued liabilities (Note 6) 1,609,055  1,631,951
Vacation pay and compensatory leave 968,618 941,670
Employee future benefits (Note 7) 1,458,000 946,300
Total liabilities 4,035,673 3,519,921
Financial assets    
Due from Consolidated Revenue Fund  1,540,209 1,563,902
Accounts receivable and advances (Note 8) 147,182 145,506
Total gross financial assets  1,687,391 1,709,408
Financial assets held on behalf of Government 
Accounts receivable and advances (Note 8) (38,000) (38,000)
Total financial assets held on behalf of the Government  (38,000) (38,000)
Total net financial assets  1,649,391  1,671,408
Net debt  2,386,282 1,848,513
Non-financial assets 
Prepaid expenses 16,515 17,686
Tangible capital assets (Note 9) 1,132,911 901,082
Total non-financial assets  1,149,426 919,082 
Net financial position  (1,236,856) (929,431)

Information for the year ended March 31, 2013 includes actual amounts from April 1, 2012 to January 14, 2013.

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

Future-Oriented Statement of Operations and Net Financial Position (Unaudited)

For the year ended March 31
(in dollars)
Estimated
Results
2013
Planned
Results
2014
Expenses    
Human Rights Knowledge Development and Dissemination Program 4,621,039 4,226,670
Discrimination Prevention Program 4,958,547 4,934,350
Human Rights Dispute Resolution Program 10,534,482 10,412,676
Internal Services 8,481,282 8,688,928
Total Expenses 28,595,350 28,262,624
Revenues
Internal Support Services 1,050,000 1,218,000
Total Revenues 1,050,000 1,218,000
Net Cost of Operations befor Government funding 27,545,350 27,044,624
Government funding 
Net cash provided by Government 24,257,102 23,459,744
Change in due from Consolidated Revenue Fund (55,880) 23,693
Services provided without charge by other government departments (note 10) 3,882,747 3,868,612
Net cost (revenue) of operations after Government funding  (538,619) (307,425)
Net financial position - Beginning of year (1,775,475) (1,236,856)
Net financial position - End of year (1,236,856) (929,431)

Information for the year ended March 31, 2013 includes actual amounts from April 1, 2012 to January 14, 2013.

Segmented information (Note 11)

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

Future-Oriented Statement of Change in Net Debt (Unaudited)

For the year ended March 31
(in dollars)
Estimated
Results
2013
Planned
Results
2014
Net cost (revenue) of operations after Government funding   (538,619)  (307,425)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 9) 469,244 56,000
Amortization of tangible capital assets (note 9) (257,561) (287,515)
Total change due to tangible capital assets 211,683 (231,515)
Change due to prepaid expenses (1,592) 1,171
Net decrease in net debt (328,528) (537,769)
Net debt - Beginning of year 2,714,810 2,386,282
Net debt - End of year 2,386,282 1,848,513

Information for the year ended March 31, 2013 includes actual amounts from April 1, 2012 to January 14, 2013.

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

Future-Oriented Statement of Cash Flow (Unaudited)

For the year ended March 31
(in dollars)
Estimated
Results

2013
Planned
Results

2014
OPERATING ACTIVITIES    
Net cost of operations before Government funding  27,545,350 27,044,624
     
Non-cash items:     
Amortization of tangible capital assets (Note 9) (257,561) (287,515)
Services provided without charge by other government departments (Note 10) (3,882,747) (3,868,612)
     
Variations in Future-Oriented Statement of Financial Position:     
Decrease in accounts receivable and advances (35,913) (1,676)
Increase (decrease) in prepaid expenses (1,592) 1,171
Decrease in liabilities 420,321 515,752
Cash used in operating activities 23,787,858 23,403,744
     
CAPITAL ACTIVITIES    
Acquisitions of tangible capital assets (Note 9) 469,244 56,000
Cash used in capital activities 469,244 56,000
Net cash provided by Government of Canada 24,257,102 23,459,744

Information for the year ended March 31, 2013 includes actual amounts from April 1, 2012 to January 14, 2013.

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

Notes to the Future-Oriented Financial Statements (Unaudited)

1. Authority and Objectives

The Canadian Human Rights Commission was established in 1977 under Schedule II of the Financial Administration Act in accordance with the Canadian Human Rights Act. The Commission is responsible for the administration of the Canadian Human Rights Act (CHRA) and ensures compliance with the Employment Equity Act (EEA).

Human Rights Knowledge Development and Dissemination Program

This program helps foster both an understanding of and compliance with the CHRA and the EEA. Knowledge development also ensures that programs, interventions and decisions are grounded in evidence and best practices. Knowledge products include research, policies, regulatory instruments and special reports. Information and/or advice are provided to the Commission itself, Parliament, federal departments and agencies, Crown corporations, federally regulated private sector organizations, and the public. Partnerships with other human rights commissions as well as with governmental, non-governmental, research and international organizations are formed and maintained to leverage knowledge development and dissemination activities in areas of common interest.

Discrimination Prevention Program

This program helps foster and sustain a human rights culture in federally regulated organizations by promoting continuous improvement of an organization’s human rights competencies. Prevention initiatives, employment equity audits, learning programs and events are among the program’s tools to prevent discrimination and achieve employment equity objectives. Stakeholder engagement involves federal departments and agencies, Crown corporations, private sector organizations, provincial and territorial government bodies, international agencies, unions and other non-governmental organizations.

Human Rights Dispute Resolution Program

This program addresses discrimination by dealing with individual and systemic complaints and issues brought by individuals or groups of individuals against federally regulated employers and service providers. The Commission exercises its discretion in choosing the most appropriate dispute resolution method, including investigation, mediation and conciliation. The Commission also serves as a screening body in determining whether further inquiry is warranted, participates in all pre-tribunal mediations and represents the public interest in appearing before the Tribunal.

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across the organization and not to those provided specifically to a program.

2. Methodology and Significant Assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2012-13 is based on actual results as at January 14, 2013 and forecast for the remainder of the fiscal year. Estimated year-end information for 2012-13 is used as the opening position for the 2013-14 planned results, and forecasts have been made for the planned results for the 2013-14 fiscal year. 

The main assumptions are as follows:

  • (a) The Commission's activities will remain substantially the same as the previous year.
  • (b) Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

These assumptions are adopted as at January 18, 2013.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2012-13 and for 2013-14, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements, the Commission has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

  • (a) The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  • (b) Implementation of new collective agreements.
  • (c) Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, the Commission will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2012-13 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

a) Parliamentary Authorities
The Commission is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Commission do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the basis of reporting.

b) Net Cash Provided by Government
The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 Government.

c) Due from the CRF
Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Commission is entitled to draw from the CRF without further appropriations to discharge its liabilities.

d) Revenues
Revenues from Internal Support Services are recorded on an accural basis in the accounts based on the services provided in the year.

e) Expenses
Expenses are recorded on the accrual basis:

  • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation, employer’s contribution to the health and dental insurance plans and worker’s compensation 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 pension plan administered by the Government. The Commission’s contributions to the Plan are charged to expenses in the year incurred and represent the Commission’s total departmental obligation to the Plan. Current legislation does not require the Commission 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 Receivable
Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.

h) Tangible Capital Assets
All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The Commission does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful lives of the assets, as follows:

Asset class Amortization period
Informatics hardware 3 to 5 years
Informatics software 3 to 5 years
Other equipment 1 to 15 years
Leasehold improvements Over the remaining term of the lease

5. Parliamentary Authorities

The Commission receives its funding through annual Parliamentary authorities. Items recognized in the Future-oriented Statement of Operations and Future-Oriented Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Commission 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) Authorities requested
(in dollars)
Estimated
Results
2013
Planned
Results
2014
Authorities Requested    
Vote 10 - Program expenditures 22,439,144 20,882,978
Statutory amount - Contribution to employee benefits plan 3,122,040 3,087,978
Forecast Authorities Available 25,561,184 23,970,956
Forecast current year lapse (1,339,416) (478,811) 
Forecast authorities to be used 24,221,768 23,483,145

Forecast authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

(b) Reconciliation of Net Cost of Operations to forecast authorities to be used
(in dollars)
Estimated
Results
2013
Planned
Results
2014
Net cost of operations before government funding 27,545,350 27,044,624
Adjustments for items affecting Net Cost of Operations but not affecting authorities:    
Amortization of Tangible Capital Assets (Note 9) (257,561) (287,515)
Decrease in Employee Future Benefits 500,600 (511,700)
Decrease (Increase) in Vacation Pay and Compensatory Leave (153,118) 26,948
Services provided without Charge by other Government Departments (Note 10) (3,882,747) (3,868,612)
  (3,792,826) (3,617,479)
Adjustments for items not affecting Net Cost of Operations but affecting authorities:    
Acquisitions of Tangible Capital Assets (Note 9) 469,244 56,000
  469,244 56,000
Forecast authorities to be used 24,221,768 23,483,145

6. Accounts Payable and Accrued Liabilites

(in dollars) Estimated
Results
2013
Planned
Results
2014
Accounts Payable - Other Government Departments and agencies 521,523 581,296
Accounts Payable - External Parties 587,142 482,323
Accrued Salaries  500,390 568,423 
Total 1,609,055 1,631,951

7. Employee Future Benefits

(a) Pension benefits:

The Commission’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% 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 Commission contribute to the cost of the Plan. The forecast expenses are $2,229,137 in 2012–13 and $2,204,816 in 2013–14 representing approximately 1.9 times the contributions of employees in 2011–12.

The Commission’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 Commission 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 authorities.

As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

Information about the severance benefits, estimated as at March 31, is as follows:

(in dollars) Estimated
Results
2013
Planned
Results
2014
Accrued benefit obligation, beginning of year 1,958,600 1,458,000
Expense (adjustment) for the year 140,500 (511,700)
Expected benefit payments during the year (641,100) -
Accrued benefit obligation, end of year 1,458,000 946,300

8. Accounts Receivable and Advances

(in dollars) Estimated
Results
2013
Planned
Results
2014
Accounts receivable - Other government departments and agencies  68,847 68,049
Accounts receivable - External parties  75,835 74,957
Employee advances - Petty cash  2,500 2,500
Gross accounts receivable 147,182 145,506
Accounts receivable held on behalf of Government (38,000) (38,000)
Net accounts receivable  109,182 107.506

9. Tangible Capital Assets

(in dollars) Estimated
Results
2013
Planned
Results
2014
Opening balance  921,228 1,132,911
Acquisition of tangible capital assets  469,244 56,000
Less: Current year amortization  (257,561) (287,515)
Net book value 1,132,911 901,396

10. Related party transactions

The Commission is related as a result of common ownership to all Government departments, agencies, and Crown corporations. The Commission enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, the Commission provides Internal Support Services to other government departments related to the provision of Finance, Compensation, Procurement, Administration and Information Technology services. The forecast value of those agreements is $1,050,000 in 2012–13 and $1,218,000 in 2013–14

Common services provided without charge by other government departments

During the year, the Commission receives services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans and worker's compensation coverage. These services provided without charge have been recorded in the Commission's Future-oriented Statement of Operations and Net Financial Position as follows:

(in dollars) Estimated
Results
2013
Planned
Results
2014
Accommodation 2,397,203 2,313,905
Employer's contributions to the health and dental insurance plans 1,479,772 1,549,223
Workers’ compensation 5,772 5,484
Total 3,882,747 3,868,612

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included in the Commission’s Future-oriented Statement of Operations and Net Financial Position. 

11. Segmented information

Presentation by segment is based on the Commission’s program alignment architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the forecasted expenses incurred and forecasted revenues generated for the main program, by major object of expense and by major type of revenue. The segment planned results for the period are as follows:

(in dollars) Total 2013 2013
Human Rights
Knowledge Development and
Dissemination
Program
Discrimination
Prevention
Program
Human Rights
Dispute
Resolution
Program
Internal Services Total
Operating Expenses            
Salaries and employee benefits 21,998,965 3,279,721 3,838,708 8,120,867 6,611,737 21,851,033
Accommodation 2,397,203 280,677 483,143 839,485 710,600 2,313,905
Professional and special services 2,132,902 228,876 239,313 712,170 661,812 1,842,171
Travel and Relocation 596,940 171,603 103,191 316,009 9,197 600,000
Communication 382,302 43,442 101,057 193,733 141,768 480,000
Amortization of tangible capital assets 257,561 16,931 63,928 109,215 97,441 287,515
Information services 271,849 126,126 58,019 23,570 69,285 277,000
Rentals 203,316 13,737 15,638 51,979 128,646 210,000
Equipment expenses 184,241 7,053 11,227 8,941 148,779 176,000
Utilities, materials and supplies 137,708 56,699 18,321 29,955 65,025 170,000
Repairs and maintenance 27,697 1,805 1,805 6,752 39,638 50,000
Other 4,666  -   -   -   5,000  5,000 
Total Expenses 28,595,350 4,226,670 4,934,350 10,412,676 8,688,928 28,262,624
Revenues - Internal Support Services 1,050,000  -   -   -  1,218,000 1,218,000
Net Cost of Operations 27,545,350 4,226,670 4,934,350 10,412,676 7,470,928 27,044,624

Text Resize

-A +A