Financial Statements 2017-2018

   Statement of Management Responsibility Including Internal Control Over Financial Reporting (PDF)

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2018, and all information contained in these statements rests with the management of the Administrative Tribunals Support Service of Canada (ATSSC). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.

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 provide a centralized record of the ATSSC’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the ATSSC’s Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the ATSSC, and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The ATSSC is subject to periodic Core Control Audits performed by the Office of the Comptroller General of Canada (OCG) and uses the results of such audits to adhere to the Treasury Board Policy on Financial Management.

A Core Control Audit is currently on-going by the OCG. In the interim, the ATSSC has undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2018, in accordance with the Treasury Board Policy on Financial Management, and the results and action plan are summarized in the annex.

The financial statements of the ATSSC have not been audited.

____________________

Marie-France Pelletier
Chief Administrator

____________________

Christopher Bucar, CPA, CMA
Acting Chief Financial Officer

Ottawa, Canada
September 7, 2018

Statement of Financial Position (Unaudited)

Statement of Financial Position (Unaudited)

As at March 31 (in dollars)	2018	2017
Liabilities
Accounts payable and accrued liabilities (note 4)	10,365,620	7,547,149
Vacation pay and compensatory leave	3,293,781	3,203,443
Employee future benefits (note 5)	3,098,591	2,899,027
Total liabilities	16,757,992	13,649,619
Financial assets
Due from Consolidated Revenue Fund	4,354,792	2,442,524
Accounts receivable and advances (note 6)	10,500,309	9,153,067
Total financial assets	14,855,101	11,595,591
Departmental net debt	1,902,891	2,054,027
Non-financial assets
Prepaid expenses	91,040	91,281
Tangible capital assets (note 7)	5,514,565	3,764,496
Total non-financial assets	5,605,605	3,855,778
Departmental net financial position	3,702,715	1,801,751

Contractual obligations (note 8)

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

____________________

Marie-France Pelletier
Chief Administrator

____________________

Christopher Bucar, CPA, CMA
Acting Chief Financial Officer

Ottawa, Canada
September 7, 2018

Statement of Operations and Departmental Net Financial Position (Unaudited)

Statement of Operations and Departmental Net Financial Position (Unaudited)

(in dollars)	Planned Results 2017-18	For the Year Ended March 31, 2018	For the Year Ended March 31, 2017
Expenses
Tribunal specialized and expert support services	32,615,442	34,937,914	31,574,988
Registry services	19,460,662	18,132,590	14,909,568
Payments to tribunal chairs and members	21,344,272	24,790,459	23,646,617
Internal Services	21,114,555	25,377,562	23,544,467
Total expenses	94,534,930	103,238,525	93,675,640
Revenues
Recovery of CPP & EI related costs	17,690,600	28,293,715	22,404,333
Miscellaneous revenues	944	1,726	978
Revenues earned on behalf of Government	(944)	(5,117,576)	(3,277,072)
Total revenues	17,690,600	23,177,865	19,128,239
Net cost of operations before government funding and transfers	76,844,330	80,060,660	74,547,401
Government funding and transfers
Net cash provided by Government		63,940,492	60,330,329
Change in due from Consolidated Revenue Fund		1,912,268	(1,364,571)
Services provided without charge by other government departments (note 9)		16,105,749	15,014,193
Transfer of overpayment to other government departments		3,116	-
Total government funding and transfers		81,961,625	73,979,951
Net cost (revenue) of operations after government funding and transfers		(1,900,965)	567,450
Departmental net financial position - Beginning of year		1,801,751	2,369,202
Departmental net financial position - End of year		3,702,715	1,801,751

Segmented information (note 10)

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

Statement of Change in Departmental Net Debt (Unaudited)

Statement of Change in Departmental Net Debt (Unaudited)

(in dollars)	For the year ended March 31, 2018	For the year ended March 31, 2017
Net cost (revenue) of operations after government funding and transfers	(1,900,965)	567,450
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7)	3,266,396	866,188
Amortization of tangible capital assets (note 7)	(1,516,329)	(1,443,186)
Total change due to tangible capital assets	1,750,067	(576,998)
Change due to prepaid expenses	(241)	(132,579)
Net increase in net financial assets	(151,137)	(142,127)
Departmental net debt - Beginning of year	2,054,027	2,196,154
Departmental net debt - End of year	1,902,891	2,054,027

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

Statement of Cash Flows (Unaudited)

Statement of Cash Flows (Unaudited)

(in dollars)	For the year ended March 31, 2018	For the year ended March 31, 2017
Operating activities
Net cost of operations before government funding and transfers	80,060,660	74,547,401
Non-cash items:
Amortization of tangible capital assets (note 7)	(1,516,329)	(1,443,186)
Services provided without charge by other government departments (note 9)	(16,105,749)	(15,014,193)
Transfer of overpayment to other government departments	(3,116)	-
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	1,347,242	54,069
Increase (decrease) in prepaid expenses	(241)	(132,579)
Decrease (increase) in accounts payable and accrued liabilities	(2,818,472)	348,298
Decrease (increase) in vacation pay and compensatory leave	(90,338)	(149,963)
Decrease (increase) in employee future benefits	(199,564)	1,254,292
Cash used in operating activities	60,674,095	59,464,140
Capital investing activities
Acquisition of tangible capital assets (note 7)	3,266,396	866,188
Cash used in capital investing activities	3,266,396	866,188
Net cash provided by Government of Canada	63,940,492	60,330,329

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

Notes to the Financial Statements (Unaudited)

For the Year ended March 31, 2018

1. Authority and objectives

The Administrative Tribunals Support Service of Canada (ATSSC) was established with the coming into force on November 1, 2014, of the Administrative Tribunals Support Service of Canada Act. The ATSSC is responsible for providing support services and facilities to 11 federal administrative tribunals by way of a single, integrated organization.

These services include the specialized services required to support the mandate of each tribunal (e.g., registry, research and analysis, legal and other mandate or case specific activities to each tribunal), as well as internal services (e.g., human resources, financial services, information management and technology, accommodations, security, planning and communications).

The 11 tribunals are:

• Canada Agricultural Review Tribunal
• Canada Industrial Relations Board
• Canadian Cultural Property Export Review Board
• Canadian Human Rights Tribunal
• Canadian International Trade Tribunal
• Competition Tribunal
• Federal Public Sector Labour Relations and Employment Board
• Public Servants Disclosure Protection Tribunal
• Social Security Tribunal
• Specific Claims Tribunal
• Transportation Appeal Tribunal of Canada

The ATSSC has one strategic outcome: Efficient and effective services which support tribunal chairs and members in exercising their statutory responsibilities and ensure that their independence is protected in a manner which promotes Canadians' confidence in the federal tribunal system. According to the approved Program Aligment Architecture (PAA), the Statement of Operations and Departmental Net Financial Position was detailed by the following programs (business lines):

Tribunal specialized and expert support services

The Tribunal Specialized and Expert Support Services Program provides expert research, analysis, drafting support and advice as well as other support services including investigation and mediation to assist tribunals in the discharge of their statutory responsibilities. These services are provided by ATSSC employees such as legal counsel, sectoral experts, tribunal assistants and research personnel.

Registry services

The Registry Services Program provides registry services in support of tribunals. The program works closely with tribunal chairs and members to ensure that matters before the tribunals are heard and disposed of in a timely and efficient manner and within statutory obligations. Services provided include: processing tribunal documents; maintaining and safeguarding tribunal records; providing information to the public regarding tribunal procedures; assisting in the scheduling and conducting of tribunal hearings and assisting in communicating tribunal decisions to the parties and the public. Within the direction, legislative requirements and quasi-judicial principles of the tribunals they support, the Registry Services Program is also responsible for developing and monitoring many service standards, assessing the performance of registry functions and implementing required improvements.

Payments to tribunal chairs and members

The program administers appropriations with respect to tribunal chairs' and members' salaries and other compensation pursuant to the terms of tribunals' enabling legislation and Governor-in-Council appointments.

Internal services

Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal services delivery model in a department. The 10 service categories 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; and Acquisition Services.

2. Summary of significant accounting policies

These financial statements are prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Parliamentary authorities
The ATSSC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the ATSSC 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 Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2017-2018 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2017-2018 Departmental Plan.

(b) Net cash provided by Government
The ATSSC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the ATSSC is deposited to the CRF, and all cash disbursements made by the ATSSC 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 or to the CRF
Amounts due from or to 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 ATSSC is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues
All revenues are recognized in the period the event giving rise to the revenues occurred.
Revenues that are non-respendable are not available to discharge the ATSSC's liabilities. While the deputy head is expected to maintain accounting control, he or she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

(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 and employer contributions to the health and dental insurance plans are recorded as operating expenses at their carrying value.

(f) Employee future benefits

1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government. The ATSSC’s contributions to the Plan are charged to expenses in the year incurred and represent the total ATSSC obligation to the Plan. The ATSSC’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.
2. Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits 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 initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

(h) Non-financial assets
The costs of acquiring buildings, equipment and other capital property are capitalized as tangible capital assets and are amortized to expense over the estimated useful lives of the assets, as described in Note 7. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

(i) Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the liability for employee future 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.

(j) Related party transactions
Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
2. Certain services received on a without-charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

The ATSSC receives its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the ATSSC 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 authorities used

(in dollars)	2018	2017
Net cost of operations before government funding and transfers	80,060,660	74,547,401
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(16,105,749)	(15,014,193)
Amortization of tangible capital assets	(1,516,329)	(1,443,186)
Decrease (increase) in vacation pay and compensatory leave	(90,338)	(149,963)
Decrease (increase) in employee future benefits	(199,564)	1,254,292
Refunds / Adjustments to previous years' expenses	32,451	161,600
Total items affecting net cost of operations but not affecting authorities	(17,879,528)	(15,191,450)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	3,266,396	866,188
Increase (decrease) in prepaid expenses	(241)	(132,579)
Increase (decrease) in accountable advances	67,608	72,446
Total items not affecting net cost of operations but affecting authorities	3,333,764	806,056
Current year authorities used	65,514,897	60,162,007

(b) Authorities provided and used

(in dollars)	2018	2017
Authorities provided:
Vote 1 - Program expenditures	61,734,908	55,907,032
Statutory – Contributions to employee benefit plans	8,072,465	7,475,864
Statutory – Spending of proceeds from the disposal of surplus Crown assets	2,487	1,018
Total authorities provided	69,809,860	63,383,914
Less:
Lapsed: Operating	(4,293,371)	(3,221,012)
Authorities available for future years	(1,592)	(895)
Current year authorities used	65,514,897	60,162,007

4. Accounts payable and accrued liabilities

The following table presents details of the ATSSC's accounts payable and accrued liabilities:

(in dollars)	2018	2017
Accounts payable - Other government departments and agencies	1,272,858	601,016
Accounts payable - External parties	3,536,987	1,589,097
Total accounts payable	4,809,845	2,190,113
Accrued liabilities	5,555,775	5,357,036
Total accounts payable and accrued liabilities	10,365,620	7,547,149

5. Employee future benefits

(a) Pension benefits
The ATSSC's employees participate in the Public Service Pension Plan (the ''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 ATSSC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to the Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012, and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2017-18 expense amounts to $5,497,349 ($5,208,435 in 2016–17). For Group 1 members, the expense represents approximately 1.01 times (1.12 times for 2016–17) the employee contributions and, for Group 2 members, approximately 1.00 times (1.08 times for 2016–17) the employee contributions.

The ATSSC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits
Severance benefits provided to the ATSSC’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

(in dollars)	2018	2017
Accrued benefit obligation, beginning of year	2,899,027	4,153,319
Expense for the year	519,222	(1,027,382)
Benefits paid during the year	(319,658)	(226,910)
Accrued benefit obligation, end of year	3,098,591	2,899,027

6. Accounts receivable and advances

The following table presents details of the ATSSC's accounts receivable and advances balances:

(in dollars)	2018	2017
Accounts receivable - Other government departments and agencies	5,985,394	5,072,515
Accounts receivable - External parties	4,510,864	4,073,031
Temporary advances	4,051	7,521
Total accounts receivable and advances	10,500,309	9,153,067

7. Tangible capital assets

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
Informatics hardware	3 years
Informatics software	3 years
Machinery and equipment	5 years
Other equipment, including furniture	10 years
Leasehold improvements	Lesser of the remaining term of lease or useful life of the improvement

Assets under construction are recorded in the applicable asset class in the year they are put into service and are not amortized until they are put into service.

Cost (in dollars)	Opening Balance April 1, 2017	Acquisitions	Adjustments	Disposals and Write-Offs	Closing Balance March 31, 2018
Informatics hardware	2,974,506	539,959	-	(25,873)	3,488,592
Informatics software	6,655,181	953,900		(203,806)	7,405,275
Leasehold improvements	3,283,954	262,090	53,880	-	3,599,924
Machinery and equipment	87,940	-	-	-	87,940
Other equipment, including furniture	2,425,949	28,851	-	(154,407)	2,300,392
Assets under construction	53,880	1,481,597	(53,880)	-	1,481,597
	15,481,410	3,266,396	-	(384,086)	18,363,720

Accumulated Amortization (in dollars)	Opening Balance April 1, 2017	Amortization	Adjustments	Disposals and Write-Offs	Closing Balance March 31, 2018
Informatics hardware	2,473,627	269,597	-	(25,873)	2,717,351
Informatics software	5,030,276	817,282	-	(203,806)	5,643,751
Leasehold improvements	2,149,574	301,617	-	-	2,451,190
Machinery and equipment	71,080	3,429	-	-	74,509
Other equipment, including furniture	1,992,357	124,405	-	(154,407)	1,962,354
	11,716,914	1,516,329	-	(384,086)	12,849,155

Net Book Value (in dollars)	Opening Balance April 1, 2017	Closing Balance March 31, 2018
Informatics hardware	500,879	771,241
Informatics software	1,624,906	1,761,524
Leasehold improvements	1,134,380	1,148,734
Machinery and equipment	16,860	13,431
Other equipment, including furniture	433,592	338,038
Assets under construction	53,880	1,481,597
	3,764,496	5,514,565

8. Contractual obligations

The nature of the ATSSC’s activities may result in some large multi-year contracts and obligations whereby the ATSSC will be obligated to make future payments in order to rent equipment. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars)	2018/19	2019/20	2020/21	2021/22	2022/23
Equipment rental and service contract	105,421	22,622	4,800	4,800	3,600
Total	105,421	22,622	4,800	4,800	3,600

9. Related party transactions

The ATSSC is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The ATSSC enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the ATSSC received common services which were obtained without charge from other government departments as disclosed below.

(a) Common services provided without charge by other government departments
During the year, the ATSSC received services without charge from certain common service organizations, related to accommodation and the employer’s contribution to the health and dental insurance plans. These services provided without charge have been recorded at the carrying value in the ATSSC’s Statement of Operations and Departmental Net Financial Position as follows:

(in dollars)	2018	2017
Accommodation	10,573,102	9,819,075
Employer's contribution to the health and dental insurance plans	5,532,647	5,195,118
Total	16,105,749	15,014,193

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 Services and Procurement Canada and audit services provided by the Office of the Auditor General are not included in the ATSSC’s Statement of Operations and Departmental Net Financial Position.

The ATSSC also received services without charge from Employment and Social Development Canada specifically for the administration of the Social Security Tribunal. These services are related to the administration of IT services, Finance and Procurement services, Security service, mailroom service, facilities for hearing and the call center service.

(b) Other transactions with related parties

(in dollars)	2018	2017
Expenses - Other government departments and agencies	14,088,018	11,365,287
Revenues - Other government departments and agencies	14,199,558	9,174,302

Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

10. Segmented information

Presentation by segment is based on the ATSSC's core responsibilities. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

	For the Year Ended March 31, 2018
(in dollars)	Tribunal specialized and expert support services	Registry services	Payments to tribunal chairs and members	Internal services	Total
Expenses
Salaries and employee benefits	25,976,098	12,961,235	19,372,126	15,632,678	73,942,138
Accommodation	3,693,139	1,842,477	2,829,356	2,208,130	10,573,102
Professional and special services	2,699,030	1,342,408	561,904	2,553,963	7,157,303
Transportation and telecommunications	867,969	407,847	1,937,410	764,672	3,977,897
Rentals	961,016	1,388,907	14,250	1,142,217	3,506,390
Amortization of tangible capital assets	124,775	-	-	1,391,554	1,516,329
Acquisition of small equipment	51,217	26,674	21,631	999,486	1,099,008
Information	189,056	123,701	16,662	370,070	699,489
Materials and supplies	363,935	36,786	36,876	49,941	487,538
Repairs and maintenance	942	2,431	-	221,145	224,519
Utilities	-	-	-	33,300	33,300
Other	10,738	124	244	10,406	21,512
Total expenses	34,937,914	18,132,590	24,790,459	25,377,562	103,238,525
Revenues
Recovery of CPP & EI related costs	6,931,960	7,073,429	11,176,017	3,112,309	28,293,715
Miscellaneous revenues	-	-	-	1,726	1,726
Revenues earned on behalf of Government	(902,693)	(1,355,841)	(2,387,137)	(471,905)	(5,117,576)
Total revenues	6,029,267	5,717,588	8,788,880	2,642,130	23,177,865
Net cost of operations before government funding and transfers	28,908,647	12,415,002	16,001,579	22,735,432	80,060,660

11. Rounding

Due to rounding, figures may not add up to the totals shown.

Internal Controls Over Financial Reporting Annex
For the Year ended March 31, 2018

1. Introduction

The ATSSC is subject to periodic Core Control Audits performed by the OCG and uses the results of such audits to adhere to the Treasury Board Policy on Financial Management. The first Core Control Audit of the ATSSC is currently being conducted by the OCG.

In preparation for the audit, the ATSSC had undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2018, in accordance with the Treasury Board Policy on Financial Management. Measures were taken by the ATSSC to maintain an effective system of ICFR and to annually assess the performance of its financial controls to ensure that:

• financial arrangements or contracts are entered into only when sufficient funding is available;
• payments for goods and services are made only when the goods or services are received and/or the conditions of contracts or other arrangements have been satisfied; and
• payments have been properly authorized.

2. Assessment results during the twelve-month period ended March 31, 2018

The OCG completed the field work of the first phase of a two phase core control audit of the ATSSC during 2017–18.

3. Assessment plan

The OCG will be completing the second and final phase of the first core control audit of the ATSSC during 2018–19.