Administrative Tribunals Support Service of Canada

   Financial Statements 2016-17 (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, 2017 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'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 provides 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 will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Internal Control.

In the interim, the ATSSC has continued the development of a systemic and multi-year plan to annually undertake a risk-based assessment of the system of ICFR during the year ended March 31, 2017, in accordance with the Treasury Board Policy on Internal Control, and the results and action plan to date are summarized in the annex.

The ATSSC's financial statements have not been audited.

____________________

Marie-France Pelletier
Chief Administrator


____________________

Luc Robitaille
Chief Financial Officer

Ottawa, Canada
September 6, 2017

Statement of Financial Position (Unaudited)

Statement of Financial Position (Unaudited)
As at March 31
(in dollars)
2017 2016
Liabilities
Accounts payable and accrued liabilities (note 4) 7,547,149 7,895,447
Vacation pay and compensatory leave 3,203,443 3,053,480
Employee future benefits (note 5) 2,899,027 4,153,319
Total liabilities 13,649,619 15,102,246
Financial assets
Due from Consolidated Revenue Fund 2,442,524 3,807,095
Accounts receivable and advances (note 6) 9,153,067 9,098,997
Total financial assets 11,595,591 12,906,092
Departmental net debt 2,054,027 2,196,154
Non-financial assets
Prepaid expenses 91,281 223,861
Tangible capital assets (note 7) 3,764,496 4,341,495
Total non-financial assets 3,855,778 4,565,356
Departmental net financial position 1,801,751 2,369,202

Contractual obligations (note 8)

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

____________________

Marie-France Pelletier
Chief Administrator


____________________

Luc Robitaille
Chief Financial Officer

Ottawa, Canada
September 6, 2017

Statement of Operations and Departmental Net Financial Position (Unaudited)

Statement of Operations and Departmental Net Financial Position (Unaudited)
(in dollars) Planned
Results
2016–17
For the
year ended
March 31, 2017
For the
Year Ended
March 31, 2016
Restated
(Note 11)
Expenses
Tribunal specialized and expert support services 31,799,840 31,574,988 31,520,981
Registry services 15,311,958 14,909,568 16,978,756
Payments to tribunal chairs and members 24,716,487 23,646,617 26,747,940
Internal Services 20,760,830 23,544,467 21,572,408
Total expenses 92,589,114 93,675,640 96,820,084
Revenues
Recovery of CPP & EI related costs 17,690,600 22,404,333 24,991,184
Miscellaneous revenues 531 978 253
Revenues earned on behalf of Government (531) (3,277,072) (3,028,339)
Total revenues 17,690,600 19,128,239 21,963,098
Net cost of operations before government funding and transfers 74,898,514 74,547,401 74,856,986
Government funding and transfers
Net cash provided by Government   60,330,329 54,262,954
Change in due from Consolidated Revenue Fund   (1,364,571) 259,913
Services provided without charge by other government departments (note 9)   15,014,193 14,500,278
Transfer of the transition payments for implementing salary payments in arrears   - (4,307)
Total government funding and transfers   73,979,951 69,018,838
Net cost of operations after government funding and transfers   567,450 5,838,148
Departmental net financial position - Beginning of year   2,369,202 8,207,350
Departmental net financial position - End of year   1,801,751 2,369,202

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, 2017
For the
year ended
March 31, 2016
Net cost (revenue) of operations after government funding and transfers 567,450 5,838,148
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7) 866,188 751,987
Amortization of tangible capital assets (note 7) (1,443,186) (1,359,186)
Total change due to tangible capital assets (576,998) (607,199)
Change due to prepaid expenses (132,579) 192,959
Net increase (decrease) in net debt (142,127) 5,423,908
Departmental net debt (net financial assets) - Beginning of year 2,196,154 (3,227,754)
Departmental net debt (net financial assets) - End of year 2,054,027 2,196,154

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, 2017
For the
year ended
March 31, 2016
Restated
(Note 11)
Operating activities
Net cost of operations before government funding and transfers 74,547,401 74,856,986
Non-cash items:
Amortization of tangible capital assets (note 7) (1,443,186) (1,359,186)
Services provided without charge by other government departments (note 9) (15,014,193) (14,500,278)
Transition payments for implementing salary payments in arrears - 4,307
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 54,069 (3,239,920)
Increase (decrease) in prepaid expenses (132,579) 192,959
Decrease in accounts payable and accrued liabilities 348,298 715,762
Increase in vacation pay and compensatory leave (149,963) (858,791)
Decrease (increase) in employee future benefits 1,254,292 (2,300,872)
Cash used in operating activities 59,464,140 53,510,968
Capital investing activities
Acquisition of tangible capital assets (note 7) 866,188 751,987
Cash used in capital investing activities 866,188 751,987
Net cash provided by Government of Canada 60,330,329 54,262,954

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

Notes to the Financial Statements (Unaudited)

For the Year ended March 31, 2017

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 case- and mandate-specific work), as well as internal services (e.g., human resources, financial services, information management and technology, accommodation, security 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
  • Public Servants Disclosure Protection Tribunal Canada
  • Public Service Labour Relations and Employment Board
  • Social Security Tribunal of Canada
  • 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 conduct 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 have been 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 2016-2017 Report on Plans and Priorities. 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 2016-2017 Report on Plans and Priorities.

(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. These amounts include receivables at year-end from other government departments. 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 accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

Revenues that are non-respendable are not available to discharge the ATSSC's liabilities. While the department 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 in reduction of the entity's gross revenues.

(e) Expenses
Expenses are recorded on the accrual basis:

  1. Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment; and
  2. 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 estimated cost.

(f) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer 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: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. 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.

2. Summary of significant accounting policies (continued)

(g) Accounts receivable
Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.

(h) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The ATSSC does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, or assets located on Indian Reserves and museum collections.

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 capital asset class in the year that they become available for use and are not amortized until they become available for use.

(i) Measurement uncertainty
The preparation of these financial statements 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 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.

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) 2017 2016
Restated
(Note 11)
Net cost of operations before government funding and transfers 74,547,401 74,856,986
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (15,014,193) (14,500,278)
Amortization of tangible capital assets (1,443,186) (1,359,186)
Increase in vacation pay and compensatory leave (149,963) (858,791)
Decrease (increase) in employee future benefits 1,254,292 (2,300,872)
Refunds / Adjustments to previous years' expenses 161,600 64,879
Total items affecting net cost of operations but not affecting authorities (15,191,450) (18,954,248)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 866,188 751,987
Increase (decrease) in prepaid expenses (132,579) 192,959
Increase in accountable advances 72,446 -
Transition payments for implementing salary payments in arrears - 4,307
Total items not affecting net cost of operations but affecting authorities 806,056 949,253
Current year authorities used 60,162,007 56,851,992

(b) Authorities provided and used

(in dollars) 2017 2016
Authorities provided:
Vote 1 - Program expenditures 55,907,032 54,777,079
Statutory – Contributions to employee benefit plans 7,475,864 8,642,950
Statutory – Spending of proceeds from the disposal of surplus Crown assets 1,018 123
Total authorities provided 63,383,914 63,420,152
Less:
Lapsed: Operating (3,221,012) (6,568,037)
Authorities available for future years (895) (123)
Current year authorities used 60,162,007 56,851,992

4. Accounts payable and accrued liabilities

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

(in dollars) 2017 2016
Accounts payable - Other government departments and agencies 601,016 826,922
Accounts payable - External parties 1,589,097 2,104,910
Total accounts payable 2,190,113 2,931,832
Accrued liabilities 5,357,036 4,963,615
Total accounts payable and accrued liabilities 7,547,149 7,895,447

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.

For the year ended March 31, 2017, expense amounts to $5,208,435 ($5,957,585 in 2015–16). For Group 1 members, the expense represents approximately 1.12 times (1.25 times for 2015–16) the employee contributions and, for Group 2 members, approximately 1.08 times (1.24 times for 2015–16) 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 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, 2017, 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) 2017 2016
Accrued benefit obligation, beginning of year 4,153,319 1,852,447
Expense for the year (1,027,382) 2,660,593
Benefits paid during the year (226,910) (359,721)
Accrued benefit obligation, end of year 2,899,027 4,153,319

6. Accounts receivable and advances

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

(in dollars) 2017 2016
Accounts receivable - Other government departments and agencies 5,072,515 4,687,063
Accounts receivable - External parties 4,073,031 4,411,934
Temporary Advances 7,521 -
Total accounts receivable and advances 9,153,067 9,098,997

7. Tangible capital assets

Cost
(in dollars)
Opening Balance
April 1, 2016
Acquisitions Adjustments Disposals and Write-Offs Closing Balance
March 31, 2017
Informatics hardware 2,914,476 60,030 - - 2,974,506
Informatics software 5,500,108 576,641 578,432 - 6,655,181
Leasehold improvements 2,736,611 175,638 371,705 - 3,283,954
Machinery and equipment 87,940 - - - 87,940
Other equipment, including furniture 2,425,949 - - - 2,425,949
Assets under construction 950,137 53,880 (950,137) - 53,880
  14,615,222 866,188 - - 15,481,410
Accumulated Amortization
(in dollars)
Opening Balance
April 1, 2016
Amortization Adjustments Disposals and Write-Offs Closing Balance
March 31, 2017
Informatics hardware 2,175,430 298,197 - - 2,473,627
Informatics software 4,275,466 754,810 - - 5,030,276
Leasehold improvements 1,904,492 245,082 - - 2,149,574
Machinery and equipment 67,651 3,429 - - 71,080
Other equipment, including furniture 1,850,688 141,669 - - 1,992,357
  10,273,727 1,443,186 - - 11,716,914
Net Book Value
(in dollars)
Opening Balance
April 1, 2016
Closing Balance
March 31, 2017
Informatics hardware 739,046 500,879
Informatics software 1,224,643 1,624,906
Leasehold improvements 832,119 1,134,380
Machinery and equipment 20,289 16,860
Other equipment, including furniture 575,261 433,592
Assets under construction 950,137 53,880
  4,341,495 3,764,496

8. Contractual obligations

The nature of the ATSSC’s activities can 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) 2017/18 2018/19 2019/20
Equipment rental and service contract 342,485 80,744 17,822
Total 342,485 80,744 17,822

9. Related party transactions

The ATSSC is related as a result of common ownership to all government departments, agencies, and Crown corporations. 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 in the ATSSC’s Statement of Operations and Departmental Net Financial Position as follows:

(in dollars) 2017 2016
Restated
(Note 11)
Accommodation 9,819,075 9,591,308
Employer's contribution to the health and dental insurance plans 5,195,118 4,908,970
Total 15,014,193 14,500,278

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) 2017 2016
Expenses - Other government departments and agencies 11,365,287 13,177,276
Revenues - Other government departments and agencies 9,174,302 8,019,101

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 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 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, 2017
(in dollars) Tribunal specialized and expert support services Registry services Payments to tribunal chairs and members Internal services Total
Expenses
Salaries and employee benefits 23,149,030 11,234,908 19,110,487 13,783,753 67,278,178
Accommodation 3,389,999 1,640,372 2,794,847 1,993,857 9,819,075
Professional and special services 3,367,942 878,409 296,528 2,327,746 6,870,625
Transportation and telecommunications 627,583 577,444 1,367,944 645,074 3,218,045
Rentals 140,011 349,340 1,328 1,314,422 1,805,102
Amortization of tangible capital assets 105,152 - - 1,338,034 1,443,186
Acquisition of small equipment 40,149 37,843 1,968 1,355,468 1,435,428
Information 310,007 148,235 13,610 229,429 701,280
Materials and supplies 411,187 41,892 59,732 56,691 569,502
Repairs and maintenance 10,693 900 153 323,105 334,851
Other 23,234 208 20 135,500 158,962
Utilities - 17 - 41,389 41,406
Total expenses 31,574,988 14,909,568 23,646,617 23,544,467 93,675,640
Revenues
Recovery of CPP & EI related costs 6,810,626 5,974,734 9,618,972 - 22,404,333
Miscellaneous revenues - - - 978 978
Revenues earned on behalf of Government (1,265,848) (1,202,433) (807,814) (978) (3,277,072)
Total revenues 5,544,779 4,772,302 8,811,158 - 19,128,239
Net cost of operations before government funding and transfers 26,030,210 10,137,266 14,835,458 23,544,467 74,547,401

11. Accounting changes and adjustment to prior year's results

(a) Restatement for accommodation for 2015–16.

The amount recorded for service without charge for accommodations was overstated by $1,469,372 in the 2015–16 financial statements, as confirmed by the partner department. The effect of adjusting the 2015–16 amounts within the 2016–17 financial statements are included in the chart below.

(b) Accounting change in revenue earned on behalf of Government

The administrative expenditures of the Social Security Tribunal (SST) are chargeable to the Canada Pension Plan (CPP) and the Employment Insurance (EI) Operating Account and the ATSSC administers these expenditures through its vote-netted revenue authority. To reflect the complete cost of administration of the SST, employee benefits and health insurance are invoiced back to CPP and EI, although the revenues associate with theses costs are not respendable by the ATSSC. Given that, a decision was taken to the effect that revenues from CPP and EI for employees benefits and health insurance are better presented as revenues earned on behalf of Government. The effect of this change in accouning policy on 2015–16 amount in 2016–17 financial statements are presented in the chart below.

The effect of the resulting retroactive adjustments are as follows:

Statement of Operations and Departmental Net Financial Position
  2016
As previously
stated
Effect of change 2016
Restated
Note 11 (a) Note 11 (b)
Statement of Operations and Departmental Net Financial Position:
Expenses
Tribunal specialized and expert support services 31,996,089 (475,108) - 31,520,981
Registry services 17,240,522 (261,766) - 16,978,756
Payments to tribunal chairs and members 27,207,804 (459,864) - 26,747,940
Internal Services 21,845,042 (272,634) - 21,572,408
Total expenses 98,289,456 (1,469,372) - 96,820,084
Revenues earned on behalf of Government (253)   (3,028,086) (3,028,339)
Total revenues 24,991,184   (3,028,086) 21,963,098
Net cost of operations before government funding and transfers 73,298,272 (1,469,372) 3,028,086 74,856,986
Net cash provided by Government 51,234,868   3,028,086 54,262,954
Services provided without charge by other government departments 15,969,650 (1,469,372)   14,500,278
Total government funding and transfers 67,460,124 (1,469,372) 3,028,086 69,018,838
Consolidated Statement of Cash Flows
Net cost of operations before governement funding and transfers 73,298,272 (1,469,372) 3,028,086 74,856,986
Services provided without charge by other government departments (15,969,650) 1,469,372   (14,500,278)
Cash used in operating activities 50,482,881   3,028,086 53,510,968
Net cash provided by Government of Canada 51,234,868   3,028,086 54,262,954

12. Comparative Information

Comparative figures have been reclassified to conform to the current year’s presentation.


PIC ANNEX:

1. Introduction

The Administrative Tribunals Support Service of Canada (ATSSC) was created on November 1, 2014. In the first years of operations of providing support services to 11 administrative tribunals, the ATSSC has focussed on establishing management practices and controls such as identifying and establishing governance structures, increasing the use of common processes and systems, and standardizing internal services processes.

Within this context, this Annex provides summary information on the measures taken by ATSSC to maintain an effective system of internal control over financial reporting (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.

The ATSSC will leverage the results of the periodic core control audits to be performed by the Office of the Comptroller General (OCG). In the interim, below is a summary of the results of the assessment conducted during fiscal year 2016-17.

2. Assessment results during the twelve-month period ended March 31, 2017

An ATSSC ICFR Framework was completed during 2016-17. The ATSSC also completed the planning and scoping for its risk assessment of key financial statement accounts and processes during 2016-17. The risk assessment takes into consideration the results of periodic core control audits that have been performed by the OCG on the tribunals which the ATSSC now supports and the management action plans resulting from those audits.

3. Assessment plan

An assessment of the design of the system of ICFR began in 2016-17 and will continue into 2017-18. The OCG will be performing the first core control audit of the ATSSC during 2017-18. The plan for additional ICFR work required beyond 2017-18 will be based on the results of the 2017-18 core control audit.

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