Financial Statements 2023-2024

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2024, and all information contained in these financial 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 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 the effectiveness of associated key controls, and to make any necessary adjustments. A risk-based assessment of the system of ICFR for the year ended March 31, 2024 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The financial statements of the ATSSC have not been audited.

____________________

Orlando Da Silva
Chief Administrator

____________________

Stéphane Lavigne, CPA
Chief Financial Officer

Ottawa, Canada
September 13, 2024

Statement of Financial Position (Unaudited)

Contractual obligations (note 10)

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

____________________

Orlando Da Silva
Chief Administrator

____________________

Stéphane Lavigne, CPA
Chief Financial Officer

Ottawa, Canada
September 13, 2024

Statement of Operations and Departmental Net Financial Position (Unaudited)

Segmented information (note 12)

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

Statement of Change in Departmental Net Debt (Unaudited)

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

Statement of Cash Flows (Unaudited)

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

Notes to the Financial Statements (Unaudited)

For the Year ended March 31, 2024

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. Through the Act, the ATSSC is responsible for providing support services and facilities to 12 federal administrative tribunals by way of a single, integrated organization. Additionally, the ATSSC provides facilities and administrative support to the National Joint Council and supports the Environmental Protection Tribunal of Canada through a memorandum of understanding (MOU) with Environment and Climate Change Canada.

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 12 tribunals are:

(through the ATSSC Act)

• 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
• Federal Public Sector Labour Relations and Employment Board
• Social Security Tribunal
• Specific Claims Tribunal
• Transportation Appeal Tribunal of Canada

(through a MOU with Environment and Climate Change Canada)

• Environmental Protection Tribunal of Canada

The ATSSC has two core responsibilities:

Support services and facilities to federal administrative tribunals and their members

The ATSSC is responsible for providing support services required by each tribunal by way of a single, integrated organization.

Internal services

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

• management and oversight services
• communications services
• legal services
• human resources management services
• financial management services
• information management services
• information technology services
• real property management services
• materiel management services
• acquisition management 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 2023-24 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 2023-24 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 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 as a reduction of the ATSSC'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.
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 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 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 9. 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

(b) Authorities provided and used

4. Revenues

The ATSSC has the following major types of revenues: Recovery of costs from the Employment Insurance Account and from the Canada Pension Plan, miscellaneous revenues and revenues earned on behalf of Governement. The ATSSC is partially funded by vote-netted revenue (a cost recovery mechanism), for the operations of the Social Security Tribunal Secretariat.

Miscellaneous revenues include the sale of crown assets, valuation gain and access to information and privacy requests.

5. Accounts payable and accrued liabilities

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

6. 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 2023-24 expense amounts to $7,777,285 ($7,748,926 in 2022–23). For Group 1 members, the expense represents approximately 1.02 times (1.02 times for 2022–23) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times for 2022-23) 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, 2024, 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:

7. Accounts receivable and advances

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

The following table provides an aging analysis of accounts receivable from external parties.

8. Risk management

The ATSSC has exposure to the following risks from its use of financial instruments: credit risk, market risk and liquidity risk.

(a) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss.The ATSSC's maximum exposure to credit risk at March 31, 2024, and March 31, 2023, is the carrying amount of its financial assets.

The ATSSC has determined that there is no significant concentration of credit risk related to accounts receivable from external parties. An analysis of the age of these financial assets and the associated valuation allowances used to reflect these accounts at their net recoverable value is disclosed in Note 7.

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The ATSSC's market risk is comprised of the currency risk.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rates.The ATSSC has determined that there is no significant concentration of currency risk related to foreign denominated financial instruments.

(c) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting its obligations associated with financial liabilities. As the funding for the ATSSC's financial liabilities is drawn from the Consolidated Revenue Fund, its exposure to liquidity risk is fully mitigated.

9. 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:

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.

10. 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 and for professional services. Significant contractual obligations that can be reasonably estimated are summarized as follows:

11. 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:

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 and facilities for hearing.

(b) Other transactions with related parties

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

(c) Administration of programs on behalf of other governement departments

Under a memorandum of understanding signed with Environment and Climate Change Canada on March 18, 2019, the ATSSC administers the Environmental Protection Tribunal of Canada. During the year, the ATSSC incurred expenses of $370,452 ($359,294 in 2022-2023) on behalf of Environment and Climate Change Canada. These expenses are reflected in the financial statements of Environment and Climate Change Canada and are not recorded in these financial statements.

12. 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 core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

13. Comparative information

Certain comparative figures have been reclassified to conform to the current year's presentation. Specifically, the 2023-24 expenses reported in the Statement of Operations and Departmental Net Financial Position have been reclassified by core responsibility (see Note 1). The ATSSC's core responsibilities are set out in its Departmental Results Framework, in accordance with the Treasury Board Policy on Results.

14. Rounding

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

Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting (Unaudited) For the Year ended March 31, 2024