Section 3 – Financial Information

Excerpt from 2019-20 Main Estimates

Raison d'être

The Administrative Tribunals Support Service of Canada (ATSSC) is responsible for providing the support services and the facilities that are needed by each of the administrative tribunals it serves to enable them to exercise their powers and perform their duties and functions in accordance with their legislation and rules. Additional information can be found in the ATSSC’s Departmental Plan.

The Minister of Justice and Attorney General of Canada is responsible for this organization.

Organizational Estimates
	2017-18 Expenditures	2018-19		2019-20 Main Estimates
		Main Estimates	Estimates To Date
		(dollars)
Budgetary
Voted
1        Program expendiatures	57,442,434	55,556,354	57,396,778	53,434,525
5        Resolving Income Security Program Disputes More Quickly and Easily	. . . . .	. . . . .	. . . . .	500,000
Total Voted	57,442,434	55,556,354	57,396,778	53,934,525
Total Statutory	8,072,465	9,687,430	9,948,157	9,729,373
Total Budgetary	65,514,897	65,243,784	67,344,935	63,663,898

Measures Announced in Budget 2019

[Vote 5] Resolving Income Security Program Disputes More Quickly and Easily: to make the recourse process for the Employment Insurance, the Canada Pension Plan and the Old Age Security programs easier to navigate and more responsive to the needs of Canadians.

Note on Planned Spending by Purpose

Detailed allocations of new Budget funding to core responsibilities are not yet available. Budget Implementation is shown in these Main Estimates for information; it is not a core responsibility. To support the Departmental Plan, updated information to reflect new spending measures will be made available soon.

2019–20 Main Estimates by Purpose
Budgetary	Operating	Capital	Transfer Payments	Revenues and other reductions	Total
	(dollars)
Support services and facilities to federal administrative tribunals and its members	67,920,283	. . . . .	. . . . .	(24,595,561)	43,324,722
Internal Services	24,118,449	. . . . .	. . . . .	(4,279,273)	19,839,176
Budget Implementation (for information)	500,000	. . . . .	. . . . .	. . . . .	500,000
Total	92,538,732	. . . . .	. . . . .	(28,874,834)	63,663,898

Listing of Statutory Authorities
	2017–18 Expenditures	2018–19 Estimates To Date	2019–20 Main Estimates
	(dollars)
Budgetary
Contributions to employee benefit plans	8,072,465	9,948,157	9,729,373

Items for inclusion in the Proposed Schedule 1 to the Appropriation Bill

(for the financial year ending March 31, 2020)

Unless specifically identified under the Changes in 2019–20 Main Estimates section, all vote wordings have been provided in earlier appropriation acts.

Vote No.	Items	Amount ($)	Total ($)
	ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CANADA
1	– Program expenditures	53,434,525
	– Authority to make recoverable expenditures in relation to the application of the Canada Pension Plan and the Employment Insurance Act
5	– Authority granted to the Treasury Board to supplement any appropriation of the organization for the initiative “Resolving Income Security Program Disputes More Quickly and Easily”, announced in the Budget of March 19, 2019, including to allow for the provision of new grants or for any increase to the amount of a grant that is listed in any of the Estimates for the fiscal year, as long as the expenditures made possible are not otherwise provided for	500,000
			53,934,525
			53,934,525

2019-20 ESTIMATES

Statutory Forecasts
	2017–18 Expenditures	2018–19 Estimates To Date	2019–20 Main Estimates
	(dollars)
Budgetary
Administrative Tribunals Support Service of Canada
Contributions to employee benefit plans	8,072,465	9,948,157	9,729,373
Total Budgetary	8,072,465	9,948,157	9,729,373

Budgetary Expenditures by Standard Object
This table shows the forecast of total expenditures by Standard Object, which includes the types of goods or services to be acquired, or the transfer payments to be made and the revenues to be credited to the vote. Definitions of standard objects available at:https://www.tpsgc-pwgsc.gc.ca/recgen/pceaf-gwcoa/1920/7-eng.html
Budgetary Expenditures by Standard Object
	No.	Administrative Tribunals Support Service of Canada	Total
Personnel	1	73,320,048	73,320,048
Transportation and communications	2	3,858,895	3,858,895
Information	3	656,013	656,013
Professional and special services	4	8,182,576	8,182,576
Rentals	5	2,574,511	2,574,511
Purchased repair and maintenance	6	526,840	526,840
Utilities, materials and supplies	7	646,452	646,452
Acquisition of land, buildings and works	8	. . . . .	. . . . .
Acquisition of machinery and equipment	9	2,121,529	2,121,529
Transfer payments	10	. . . . .	. . . . .
Public debt charges	11	. . . . .	. . . . .
Other subsidies and payments	12	651,868	651,868
Less: Revenues and other reductions		28,874,834	28,874,834
Total		63,663,898	63,663,898

Expenditures by Purpose
Budgetary	2018-19 Main Estimates	2019–20 Main Estimates
		Operating	Capital	Transfer Payments	Revenues and other reductions	Total
		(dollars)
Administrative Tribunals Support Service of Canada
Support services and facilities to federal administrative tribunals and its members	44,987,481	67,920,283	. . . . .	. . . . .	(24,595,561)	43,324,722
Internal Services	20,256,303	24,118,449	. . . . .	. . . . .	(4,279,273)	19,839,176
Budget Implementation (for information)	. . . . .	500,000	. . . . .	. . . . .	. . . . .	500,000
Total	65,243,784	92,538,732	. . . . .	. . . . .	(28,874,834)	63,663,898

2019-20 Main Estimates Overview

2019-20 MAIN ESTIMATES FINANCIAL OVERVIEW

CONTEXT: The ATSSC’s total authorities in the Main Estimates for 2019-20 are $92.1M including $53.5M in voted appropriations, $9.8M for the Employee Benefits Plan (EBP) and $28.8M in Vote-Netted Revenue (VNR) authority.

The ATSSC’s total Main Estimates for 2019-20 are $92.1M: $53.5M in voted appropriations authority; $9.8M in statutory authority (EBP); $28.8M in respendable recoveries through a VNR authority. These funds support the wide-ranging services that the ATSSC provides to the 11 tribunals. Approximately $68M (74%) of these funds are dedicated to core responsibilities that directly support tribunal mandates, while the remaining $24.1M (26%) is allotted to internal services (“back office”) operations. Of its available resources, $73.4M (80%) are dedicated to paying salaries and benefits of both staff and tribunal members, while the remaining $18.7M (20%) is used for other operating expenditures. The ATSSC remains committed to monitoring its expenditures and funding requirements to ensure that we are delivering the services the tribunals need to effectively deliver on their mandates. ATSSC VNR Authority The VNR authority gives the ATSSC the authority to make recoverable expenditures to the Canada Pension Plan (CPP) and the Employment Insurance (EI) Operating Accounts. The Social Security Tribunal (SST) recovers the majority of its expenditures (99%) from the CPP and the EI Operating Accounts. The remaining 1% is included in appropriations and support costs for the Old Age Security (OAS) program.

ATSSC Budget Management Framework

Administrative Tribunals Support Service of Canada Policy on Budget Management

1. Effective Date

1. This policy takes effect on July 1, 2016.

2. Application

1. This policy applies to all positions and levels of management with budget and financial risk management responsibilities and related delegated financial signing authorities for the Administrative Tribunals Support Service of Canada (ATSSC).

3. Context

1. This policy supports the following legislation and Treasury Board (TB) policy instruments:

1. The Administrative Tribunals Support Service of Canada Act;

2. The Financial Administration Act (FAA);

3. The Federal Accountability Act (FedAA); and

4. The TB Financial Management Policy Framework.

2. The Chief Administrator has the rank and status of a Deputy Head of a department as defined by the FAA, the FedAA, and Treasury Board policies.

3. The Chief Administrator is responsible for the provision of the support services and the facilities that are needed by each of the administrative tribunals to exercise its powers and perform its duties and functions in accordance with the rules that apply to its work. In carrying out his or her functions, the Chief Administrator will promote a collaborative approach with the tribunals in the allocation of resources.

4. The Chief Administrator’s powers, duties and functions do not extend to any of the powers, duties and functions conferred by law on any administrative tribunal or on any of its members.

5. The Chief Administrator may delegate to any employee of the Service any of the powers, duties, and functions conferred on the Chief Administrator under the ATSSC Act or any other Act of Parliament.

6. For greater certainty, the Chairperson of an administrative tribunal continues to have supervision over and direction of the work of the tribunal.

4. Definitions

1. Definitions of key terms to be used in the interpretation of this policy are provided in the Appendix.

5. Statement

1. Delegations of financial authority are approved by the Minister to positions within the department. All levels of management are accountable for the sound management of resources, and each has a role and a responsibility in ensuring effective and transparent financial management planning, budgeting, spending, monitoring and reporting. The ATSSC has two sources of financial authorities: appropriations authority and vote-netted revenue (VNR) authority. Resources granted to the department must be managed using a robust budget management regime that is effective, efficient and transparent. Budget decisions will be based upon thoroughly documented analysis, forecasts, and accurate, timely information integrated with related non-financial performance information used to achieve results.

6. Objective

1. The objective of this policy is to clearly define the roles, responsibilities and accountabilities that managers at all levels must exercise, and be accountable for, in the stewardship and oversight of resources.

2. Through adherence to this policy, the department endeavours to achieve robust and standardized budget practices and controls across the department.

7. Principles

1. The following principles are fundamental to the sound management of resources at the ATSSC:

1. Sound and pragmatic planning serves as the foundation, and is a prerequisite for robust budget management;

2. Accountability and responsibility for assigned budgets rests with Fund Centre Managers. This includes effective stewardship and control over budgets and commitments and monitoring of surpluses/deficits, forecasts and funding pressures on an ongoing basis;

3. Budgets are managed efficiently and effectively in compliance with legislation, TB and departmental policies, authorities, and TB decisions and conditions, and departmental appropriations are not exceeded;

4. Objective and prudent judgment is exercised through effective budget management and controls that reflect the department’s mandate, activities, values and ethics, and risk tolerance;

5. Responsibilities set out in the budget management framework are understood and fulfilled by those who are responsible;

6. Sound budget management practices include ongoing periodic reviews of budgets, forecasts and funding pressures that support objectives and respect TB and departmental policies, directives, standards and guidelines;

7. The engagement of stakeholders is encouraged for issues relating to the management of resources;

8. Effective monitoring of resources, the establishment of financial risk mitigation strategies, and policy and legislation compliance and effective processes are the cornerstone of sound budget management and control across the department as articulated in detailed directions, where:

1. initial budget allocations are distributed to all Fund Centres in the departmental financial system prior to the beginning of the fiscal year, or in extraordinary circumstances at a time specified by the Chief Financial Officer;

2. periodic forecasts and management variance reporting processes are standardized for use by Fund Centre Managers and expected resource utilization forecasts reflect a realistic outlook of the activities to be carried out;

3. reallocations are thoroughly documented, approved by the appropriate authority, and accurately reflected in the accounts of the department in a timely manner to ensure budget reallocation decisions are sound and consistent with legislation, TB and departmental policies, directives, standards and guidelines;

4. reallocation, funding pressures and project requirements are identified promptly, are accurately documented, and are part of an approved management action plan;

5. activities and related funding requirements are aligned with the TB and departmental budgetary cycles, and modifications of allotments are consistent with TB decisions and/or approvals; and

6. budget management advice, guidance, training and capabilities, and capacity development are maintained and provided by the Chief Financial Officer to all Fund Centre Managers as described in the departmental Budget Management Framework.

9. Operations are regularly assessed for opportunities to reallocate funds from lower to higher priorities while ensuring that overall funding limits, policy parameters and TB conditions are respected;

10. Submissions to TB for Supplementary Estimates and/or related modifications of allotments, are accurately documented and are accurately reflected in the departmental financial system and financial reporting; and

11. Access to timely budgetary advice, information, and training is critical to ensuring decisions are informed and are high quality.

8. Roles and Responsibilities

1. The Chief Administrator, as the ATSSC Accounting Officer, is responsible for:

1. Establishing a budget the management framework that addresses the department’s financial planning, budgeting, spending, forecasting and reporting needs and that ensures the effective stewardship of resources;

2. Ensuring resources are sufficient to cover the cost of providing support services and facilities that are needed by each of the administrative tribunals to exercise its powers and perform its duties and functions in accordance with the rules that apply to its work;

3. Ensuring that resources are allocated according to a shared plan that is anchored in departmental priorities;

4. Approving the budget and the resource management strategy;

5. Establishing governance and oversight for effective budget management;

6. Establishing expectations for effective financial resource management processes, controls, reporting, and financial risk management;

7. Obtaining advice and confirmation from the Chief Financial Officer that:

1. financial authorities approved by TB and granted by Parliament are not exceeded;

2. budgets are regularly reconciled to the approved financial authorities and are monitored;

3. resources for new or amended financial authorities are used for the purposes intended, allocated or reallocated in an accurate and timely manner, and are thoroughly documented and reported on;

4. spending is in compliance with financial authorities granted under the Appropriations Act and the FAA; and

5. operational budgets are aligned with the ATSSC’s strategic direction.

8. Approving the reallocation of funds from the departmental reserve, and between Senior Departmental Managers’ budgets;

9. Approving the reallocation of funds between Program Alignment Architecture elements;

10. Signing and approving financial reports/and documents:

1. quarterly financial reports;

2. letter of representation to be submitted with the Public Accounts documents;

3. complete set of annual financial statements; and

4. other financial reports and documents.

11. Ensuring appropriate and timely action is taken to address any significant issue or instance of non-compliance of any matter related to this policy.

2. The Chief Financial Officer is responsible for:

1. Supporting the Chief Administrator in budget management and stewardship across the department, with specific responsibilities for the ATSSC-wide budget management and financial risk mitigation strategies;

2. Developing and implementing the department’s budget management framework, including all financial resource management internal controls;

3. Establishing a budget allocation process, including initial budgets and reserve allocation, providing periodic financial reports, overseeing all budget reallocations and managing the departmental reserve;

4. Certifying to the Chief Administrator that budget and financial management information and reports are reliable and timely;

5. Providing a signed attestation on the financial aspects of Cabinet documents;

6. Providing a challenge function on financial management matters;

7. Providing advice and assurance to the Chief Administrator that:

1. budgets, reallocations, and amounts included in any funding initiatives or official communications are reliable and reasonable;

2. approved initial budget allocations have been distributed to Fund Centre Managers on a timely basis in the departmental financial system before the beginning of the fiscal year;

3. significant financial risks and associated risk mitigation strategies are reasonable;

4. budget transfers are thoroughly documented, timely and consistently applied in accordance with TB and departmental policies, directives, standards and guidelines, and ATSSC’s delegated financial authorities; and

5. delegated financial authorities are recorded and exercised as per TB and departmental policies, directives, standards and guidelines.

8. Advising the Chief Administrator on the financial risks, risk mitigation strategies, and implications associated with existing funding or anticipated new funding initiatives (e.g., business cases, Cabinet documents, reallocations);

9. Ensuring financial information and all corresponding decisions related to budgets are accurately recorded in the departmental financial system and financial reports; and

10. Providing functional leadership and ongoing training and support to all personnel who have a role in financial management.

3. Senior Departmental Managers are responsible for:

1. Complying with and utilizing the departmental budget management framework;

2. Managing approved budgets, resources and related budget information within his or her area of responsibility, ensuring they are managed in accordance with Parliamentary budget authorities, legislation, TB and departmental policies and directives, and delegated financial authorities;

3. Ensuring, and providing assurance to the Chief Administrator and Chief Financial Officer, that the budget management regime and financial information within his or her area of responsibility are effective and accurate, and utilize standard departmental budget management processes and controls as outlined in detailed directions;

4. Supporting the Chief Administrator in establishing the strategic direction, setting annual priorities, and developing risk mitigation strategies;

5. For Senior Departmental Managers who lead the direct support of a Tribunal, obtained from the Chairpersons, relevant information related to the work of administrative tribunals, including expected volume of activities and any changes in support service requirements;

6. Advising the Chief Financial Officer or the Chief Administrator or his or her delegate as appropriate, of any budget issue or material deficiency that may affect operations within his or her area of responsibility;

7. Ensuring resources are used for their intended purposes;

8. Managing budgets within his or her area of responsibility, including approving budget reallocations within their envelopes and ensuring budgetary decisions are based on complete and accurate information;

9. Ensuring proposed or approved plans contain budget forecasts and are properly resourced to achieve results;

10. Monitoring budgets, forecasts, expenditures, and other financial information within his or her area of responsibility on a continuous basis;

11. Ensuring initial budget allocations, funding requests, and any subsequent budget transfers within his or her area of responsibility are based on sound analysis;

12. Identifying budget surpluses or deficits and new funding requirements within his or her area of responsibility;

13. Seeking the advice of the Chief Financial Officer or delegate on funding requirements for new initiatives, significant budget transfers and resource reallocations; and

14. Leading the preparation and approving the content of any business cases or Cabinet document affecting his or her area of responsibility and submitting them to the Chief Financial Officer for review, analysis and formal attestation of the financial aspects.

4. Fund Centre Managers are responsible for:

1. Complying with and utilizing the departmental budget management framework and using sound budget management practices within his or her area of responsibility;

2. Reporting budget and financial management issues in a timely manner to his or her Senior Departmental Manager, Financial Management Advisor or the Chief Financial Officer as appropriate;

3. Utilizing authorized resources for the purpose intended;

4. Monitoring financial and budget information for accuracy, appropriate coding, comparing actual expenditures against plans and forecasts , and taking timely action to correct any deficiencies;

5. For Fund Centre Managers who provide direct support to a Tribunal, advising his or her Senior Departmental Manager, as appropriate, of any budget issues or material deficiency that may affect his or her work in supporting the tribunal;

6. Informing his or her Financial Management Advisor of any transactional discrepancies or concerns;

7. Reviewing commitments and contracts on an ongoing basis to confirm their continued validity and accuracy;

8. Preparing and approving forecasts for his or her area of responsibility;

9. Analyzing and explaining spending variances or discrepancies from plans;

10. Identifying budget surpluses or deficits and new funding requirements within his or her area of responsibility;

11. Making optimal use of the resources available to the department to achieve plans and objectives;

12. Providing financial information or assessments to his or her Senior Departmental Manager, Financial Management Advisor, and the Chief Financial Officer as required for external or internal disclosure or reporting requirements; and

13. Ensuring the use of public funds is compliant with relevant legislation, TB and departmental policies, directives and granted authorities.

5. Financial Management Advisors are responsible for:

1. Providing assurance and advice on financial matters to Fund Centre Managers, Senior Departmental Managers, Fund Centre Administrators and the Deputy Chief Financial Officer;

2. Providing advice and support to management in their responsibility in ensuring Parliamentary budget authorities and internal budget allocations have not been exceeded and that budgetary usage is compliant with financial authorities granted under the Appropriations Act and the FAA;

3. Providing advice, recommendations and support to management in his or her responsibility to ensure financial decisions are managed in accordance with TB and departmental policies and directives, delegated financial authorities, legislation and departmental policy instruments;

4. Advising and supporting Senior Departmental Managers and Fund Centre Managers in exercising his or her delegated budget and financial management responsibilities;

5. Representing the Chief Financial Officer in providing support and advice to Senior Departmental Managers and Fund Centre Managers on the budget management framework;

6. Providing recommendations and a challenge function to Senior Departmental Managers and Fund Centre Managers on the quality and accuracy of budget, forecast, and resource allocation information;

7. Informing Fund Centre Managers or his or her direct Senior Departmental Manager, as appropriate, of any material funding pressures or discrepancies in a timely manner;

8. Supporting the development of a strong budgetary and financial management culture by assisting Senior Departmental Managers, Fund Centre Managers and Fund Centre Administrators in the effective use of the budget management tools and systems;

9. Reviewing, providing a challenge function and providing recommendations on business cases and Cabinet documents; and

10. Supporting the Chief Financial Officer, Senior Departmental Managers and Fund Centre Managers in the development of financial plans, business cases and budget allocation strategies.

6. Fund Centre Administrators are responsible for:

1. Understanding and exercising his or her financial and budgetary administrative support responsibilities;

2. Providing financial administrative support to his or her manager(s) to accurately record and reflect financial transactions in the departmental financial system in a timely manner;

3. Ensuring inputs are accurately documented, approved, and compliant with the approved departmental financial coding structure and related Program Alignment Architecture;

4. Providing financial administrative support to his or her Senior Departmental Manager or Fund Centre Manager(s) in the ongoing processing of approved commitments and contractual obligations in a timely manner;

5. Accurately inputting, verifying and adjusting commitment information in a timely manner in the departmental financial system;

6. Actively seeking financial administrative support training, on an ongoing basis, to meet departmental standards for budgetary reporting and analysis, and supporting his or her Senior Departmental Manager or his or her Fund Centre Manager(s) in exercising their budget management roles and responsibilities.

9. Monitoring and Reporting

1. Monitoring of this policy will be based on the principles of budget and financial risk management and is intended to promote transparency and accountability in the sound management of resources across the department.

2. A review of this policy will be performed periodically by the Chief Financial Officer to ensure the policy is current and continues to meet the department’s requirements, and that it complies with all legislation and TB and departmental policies and directives.

3. The implementation of the Budget Management Framework, including this policy, will be monitored by the Chief Financial Officer and will be reported on to the Chief Administrator and governance sub-committees.

10. Consequences

1. Financial management will be monitored through audits, the regular review of transactions, and analysis of financial information. If it becomes apparent that there is a case of noncompliance with the Budget Management Framework, including this policy, the Chief Financial Officer in collaboration with the respective Senior Departmental Manager or the Chief Administrator as appropriate, will apply consequences using TB-recommended processes that are applicable for non-compliance with TB and departmental policies and as set out in the FAA and other policy instruments.

11. Enquiries

1. For additional information or guidance regarding this policy, please direct your enquiries to your Financial Management Advisor.

12. References

1. Relevant Legislation

• Financial Administration Act

• Federal Accountability Act

• Administration Tribunals Support Service of Canada Act

2. Treasury Board Publications

• Management Accountability Framework

• Policy on Financial Management Governance

• Policy on Financial Resource Management, Information and Reporting

3. Related ATSSC Publications

• Directives relating to the Budget Management Framework

Appendix – Definitions

Approve means to formally consent or agree, normally documented in writing.

Advise means to offer professional counsel or to recommend a course of action.

Administrative Tribunal means a body referred to in the schedule of the Administrative Tribunals Support Service of Canada Act.

Budget means the total amount of funding allocated to a particular area of responsibility.

Budget surplus is the amount determined to be available for use, or will be unspent, after factoring in forecasts, commitments, contracts, and expenditures.

Chairperson means the person appointed to supervise and direct the work of an administrative tribunal.

Challenge Function is the activity of questioning an assumption, proposal, forecast, or result based on analysis, expertise, and experience. A positive result of the challenge function is a more thorough and evidenced-based product that informs management in decision making.

Chief Administrator has the rank and status of a deputy head of a department as defined in Treasury Board policies.

Financial Management Advisor (FMA) means the person assigned to specific Senior Departmental Manager(s) or Fund Centre Manager(s) with the responsibility of providing professional financial management advice. FMAs report to the Chief Financial Officer organization, through the Finance and Planning Directorate. FMAs are concerned with all financial information and plans of the organization, in order to provide their best professional advice.

Financial risk management is the process to identify, assess, manage, and control potential events or situations that may impede the department’s ability to achieve their desired financial objectives.

Forecast is the total amount that is expected to be disbursed within an established budget, after assessment of financial risks and obligations. The forecast may vary from one reporting period to the next, and does not necessarily represent a funding pressure, or a budget surplus.

Fund Centre Administrator (FCA) is the person responsible for providing financial administrative support to Senior Departmental Managers or Fund Centre Managers. FCAs are involved in a wide range of financial functions, including purchasing, monitoring budgets and commitments, and verifying invoices for payment. This function is commonly delegated to the Administrative Assistant or Executive Assistant positions of an organization.

Fund Centre Managers are defined as individuals with budget and financial risk management responsibilities as per their delegated financial signing authorities.

Funding Pressure is an amount identified by the Fund Centre Manager as a requirement for additional funds exceeding his or her budget.

Initial Budget is the budget approved by the Chief Administrator at the beginning of the fiscal year, and is based on the Notional Budget, increased or reduced for permanent or temporary adjustments approved for the fiscal year in question, which had not been included in the Notional Budget.

Notional Budget is the budget that is allocated before the presentation and approval of budget plans. These allocations are the starting point for an approved initial budget. They can be based on analysis of previous years’ expenditures, approved adjustments, and other factors that may influence the level of resources to be allocated.

Reference Levels means the approved upper funding limits to be used by the department.

Recommend means to present a course of action that is favourable to the stated objectives and that takes into consideration legislation, policy, and authorities.

Resource(s) includes human, material, financial and information resources.

Senior Departmental Manager means a position that is allocated resources and the incumbent is a member of the Senior Management Committee or other delegates who have been identified by the CA.

Vote-Netted Revenue Authority is an authority to make recoverable expenditures from another source of funds than the ATSSC’s appropriations. In the case of the SST, the VNR Authority is to make recoveries against the Canada Pension Plan Account and the Employment Insurance Operating Account.

2019-20 ATSSC Budget Allocation

2019-20 Initial Budget Allocation by Secretariats and Internal Services Directorates

	Salary	Non-salary	Total3
Secretariats
Canada Agricultural Review Tribunal	656,693	280,549	937,242
Canada Industrial Relations Board1	7,785,042	3,502,577	11,287,619
Canadian Cultural Property Export Review Board	1,502,647	404,960	1,907,607
Canadian Human Rights Tribunal	3,683,011	456,600	3,683,011
Canadian International Trade Tribunal	5,968,130	611,445	6,579,575
Competition Tribunal2	583,509	415,754	999,263
Federal Public Sector Labour Relations and Employment Board	7,432,011	2,636,500	10,068,511
Public Servants Disclosure Protection Tribunal2			226,500
Social Security Tribunal	21,959,300	5,135,362	27,094,662
Specific Claims Tribunal2	1,111,187	682,955	1,794,142
Transportation Appeal Tribunal of Canada	1,375,143	274,181	1,649,324
National Joint Council	680,188	149,249	829,437
Sub-total - Secretariats			67,056,892
Internal Services
Chief Administrator			798,830
Deputy Chief Administrator			530,519
Planning and Communications	1,117,410	173,234	1,290,644
Information Services and Solutions Team	3,836,103	3,923,210	7,759,313
Strategic Initiatives	380,779	170,815	551,594
DG, Corporate Services	325,675	94,800	420,475
Accommodations and Security	1,053,090	799,858	1,852,949
Finance Directorate	3,481,431	680,643	4,162,073
Human Resources	2,280,220	415,168	2,695,388
Sub-total - Internal Services			20,061,785
Total	65,953,717	21,164,961	87,118,678

¹ Includes special one-time funding

² Members’ remunerated by the Office of the Commissioner for Federal Judicial Affairs

³ Total includes A-base appropriations + VNR

Quarterly Financial Report

ADMINISTRATIVE TRIBUNALS SUPPORT SERVICE OF CANADA
Quarterly Financial Report
For the quarter ended June 30, 2019

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

1. Introduction

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This report should be read in conjunction with the 2019-20 Main Estimates. This quarterly report has not been subject to an external audit or review.

The Administrative Tribunals Support Service of Canada (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 by each tribunal (e.g. registry, research and analysis, legal and other mandate or case activities specific to each tribunal), as well as internal services (e.g., human resources, financial services, information management and technology, accommodations, security, planning and communications).

Further information on the mandate, roles, responsibilities and programs of the ATSSC can be found by accessing the 2019-20 Departmental Plan.

1.1. Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities (Annex A) includes the ATSSC's spending authorities granted by Parliament and those used by the ATSSC, consistent with the Main Estimates for the 2019-20 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The ATSSC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis. The main difference between the quarterly financial report and the departmental financial statements is the timing of when revenues and expenses are recognized.

2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended June 30, 2019.

The ATSSC’s financial structure is mainly composed of voted budgetary authorities namely, Vote 1—Program expenditures and Vote Netted Revenue (VNR) authority, as well as statutory authorities for contributions to employee benefit plans. The VNR gives the ATSSC authority to make recoverable expenditures on behalf of the Canada Pension Plan (CPP) and the Employment Insurance (EI) operating accounts. Presented in Graph 1 below are the gross and net budgetary authorities and expenditures for the first quarter of 2019-20. For more details, refer to the Statement of Authorities table presented in Annex A.

Graph 1: Comparison of budgetary authorities and expenditures for the first quarter ended June 30, 2019, and June 30, 2018.

The ATSSC expended $20.2 million (22% of total authorities available for use) in the first quarter of 2019-20, compared to 17.5 million in the same quarter of 2018-19. The majority of expenditures relate to personnel, which totaled $16.7 million (83% of gross expenditures). The remaining $3.5 million primarily comprises professional and special services (mainly informatics services, translation costs and consulting services) and rental costs.

2.1. Significant Changes to Authorities

(Please refer to the Statement of Authorities table presented in Annex A.)

As of June 30, 2019, the total budgetary authorities available for use for the year decreased from $65.2 million in 2018-19 to $63.7 million in 2019-20 mainly due to the following:

• $1 million decrease of temporary space optimization project funding; and

• $0.5 million decrease of temporary funding for the Information Technology Infrastructure Consolidation (On-boarding) Project.

2.2. Significant Changes to Vote Netted Revenue

(Please refer to the Statement of Authorities table presented in Annex A.)

As of June 30, 2019, the Vote Netted Revenue authority decreased from $30.4 million in 2018-19 to $28.9 million in 2019-20 for the charging of administrative costs to the CPP and EI operating accounts to support the discharge of the mandates of the Social Security Tribunal (SST) and the ATSSC as it relates to the SST.

Temporary authorities were provided in 2017-18 ($1.0 million) and 2018-19 ($3.9 million) for space modernization.

2.3. Significant Changes to Expenditures

(Please refer to the Departmental Budgetary Expenditures by Standard Object table presented in Annex B.)

Expenditures for the Quarter

First quarter gross budgetary expenditures increased from $17.5 million in 2018-19 to $20.2 million in 2019-20 mainly due to:

• $1.6 million increase in personnel spending related to an increase in salary rates resulting from the signing of collective agreements and revised remuneration agreements, an increase in number of staff, and an increase in employee benefit plan (EBP) costs due to a delay in the processing of EBP transactions for the first quarter of 2018-19;

• $0.5 million increase in professional services spending related to the management of a larger number of projects; and

• $0.5 million increase in rental costs due to a timing difference in the Public Services and Procurement Canada invoicing process.

3. Risks and Uncertainties

There is a risk that the ATSSC may not be able to maintain appropriate delivery capacity to meet the mandates of tribunals and the evolving needs of all program and internal service areas. As an organization tasked with delivering existing support services while seeking to improve its service delivery model, the ATSSC must ensure that it maintains appropriate delivery capacity. In particular, the ATSSC must effectively plan its operations and investments to make efficient and effective use of its limited financial and human resources.

To mitigate this risk, emerging trends, priorities, needs and legislative changes are being monitored to identify potential impacts on caseloads and on the ATSSC resources and funding. The ATSSC has built into the budget planning and allocation processes the flexibility to re-allocate resources if and when required. The ATSSC is also developing a long-term investment plan that links proposed investments to organizational and tribunal priorities.

4. Significant Changes in Relation to Operations, Personnel and Programs

Nick Covelli has been appointed as the new Deputy Chief Administrator effective April 15, 2019.

Approval by Senior Officials

Approved by:

____________________	____________________
Nick Covelli	Christopher Bucar, MBA, CPA, CMA, CD
A/Chief Administrator	Director General Corporate Services and Chief Financial Officer

Ottawa, Canada

August 27^th 2019

ANNEX A

Statement of Authorities (unaudited)
(in dollars)
	Fiscal year 2019-20			Fiscal year 2018-19
	Total available for use for the year ending March 31st 2020*	Used during the quarter ended June 30th 2019	Year to date used at quarter end	Total available for use for the year ending March 31st 2020*	Used during the quarter ended June 30th 2018	Year to date used at quarter end
Vote 1 - Program expenditures	82,809,359	17,783,062	17,783,062	85,936,733	15,846,069	15,846,069
Less: Revenues netted against expenditures	(28,874,834)	-	-	(30,380,379)	-	-
Net Program expeditures	53,934,525	17,783,062	17,783,062	55,556,354	15,846,069	15,846,069
Budgetary statutory authorities	9,729,373	2,432,343	2,432,343	9,687,430	1,614,572	1,614,572
Total Budgetary authorities	63,663,898	20,215,405	20,215,405	65,243,784	17,460,641	17,460,641

* Includes only Authorithies available for use and granted by Parliament at quarter-end

ANNEX B

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)
	Fiscal year 2019-20			Fiscal year 2018-19
	Planned expenditures for the year ending March 31st 2020	Expended during the quarter ended June 30th 2019	Year to date use of at quarter end	Planned expenditures for the year ending March 31st 2019	Expended during the quarter ended June 30th 2018	Year to date use of at quarter end
Expenditures
Personnel	73,320,048	16,742,744	16,742,744	73,420,523	15,112,868	15,112,868
Professional and special services	8,182,576	1,316,073	1,316,073	9,120,880	836,856	836,856
Transportation and communications	3,858,895	576,948	576,948	3,932,933	554,744	554,744
Rentals	2,574,511	841,201	841,201	3,745,301	368,539	368,539
Acquisition of machinery and equipment	2,212,529	50,525	50,525	3,261,460	78,894	78,894
Utilities, materials and supplies	646,452	314,033	314,033	754,318	242,218	242,218
Information	656,013	330,467	330,467	719,064	212,573	212,573
Repair and maintenance	526,840	45,717	45,717	377,240	53,847	53,847
Other subsidies and payments	651,868	(2,303)	-2,303	292,444	102	102
Total gross budgetary expenditures	92,538,732	20,215,405	20,215,405	95,624,163	17,460,641	17,460,641
Less Revenues netted against expenditures
Revenues	(28,874,834)	-	-	(30,380,379)	-	-
Total Revenues netted against expenditures	(28,874,834)	-	-	(30,380,379)	-	-
Total net budgetary expenditures	63,663,898	20,215,405	20,215,405	65,243,784	17,460,641	17,460,641

2018-19 Public Accounts

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, 2019, 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 Framework, 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 comply with the Treasury Board Policy on Financial Management.

The first Core Control Audit of the ATSSC was conducted by the OCG in two phases in 2017-18 and 2018-19. The Audit Report and related Management Action Plan were tabled at and approved by the Small Departments Audit Committee (SDAC). The Audit Report is posted on the ATSSC’s web site.

The financial statements of the ATSSC have not been audited.

_________________________

Marie-France Pelletier
Chief Administrator

_________________________

Christopher Bucar, CPA, CMA
Chief Financial Officer

Ottawa, Canada
September 6, 2019

Statement of Financial Position (Unaudited) as of March 31
(in dollars)	2019	2018
Liabilities
Accounts payable and accrued liabilities (note 4)	14,094,806	10,365,620
Vacation pay and compensatory leave	3,228,548	3,293,781
Employee future benefits (note 5)	2,849,992	3,098,591
Total liabilities	20,173,346	16,757,992
Financial assets
Due from Consolidated Revenue Fund	4,669,505	4,354,792
Accounts receivable and advances (note 6)	14,875,771	10,500,309
Total financial assets	19,545,276	14,855,101
Departmental net debt	628,070	1,902,891
Non-financial assets
Prepaid expenses	869,176	91,040
Tangible capital assets (note 7)	10,215,297	5,514,565
Total non-financial assets	11,084,473	5,605,605
Departmental net financial position	10,456,403	3,702,715
Contractual obligations (note 8)

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

_________________________

Marie-France Pelletier
Chief Administrator

_________________________

Christopher Bucar, CPA, CMA
Chief Financial Officer

Ottawa, Canada
September 6, 2019

Statement of Operations and Departmental Net Financial Position (Unaudited)
(in dollars)	Planned Resuls 2018-19	For the Year Ended March 31st, 2019	For the Year Ended (Restated Note 11) March 31st, 2018
Expenses
Registry services	19,997,154	16,206,638	18,132,590
Legal services	7,874,117	9,934,408	6,987,583
Mandate and members services	59,422,857	52,894,514	52,740,790
Internal services	23,225,417	25,597,826	25,377,562
Total expenses	110,519,545	104,633,386	103,238,525
Revenues
Recovery of CPP & EI related costs	34,416,805	31,095,435	28,293,715
Miscellaneous revenues	727	1,111	1,726
Revenues earned on behalf of Government	(4,037,153)	(4,590,379)	(5,117,576)
Total revenues	30,380,379	26,506,167	23,177,865
Net cost of operations before government funding and transfers	80,139,166	78,127,219	80,060,660
Government funding and transfers
Net cash provided by Government		69,223,529	63,940,492
Change in due from Consolidated Revenue Fund		314,713	1,912,268
Services provided without charge by other government departments (note 9)		15,341,534	16,105,749
Transfer of overpayment to other government departments		1,131	3,116
Total government funding and transfers		84,880,907	81,961,625
Net cost (revenue) of operations after government funding and transfers		(6,753,688)	(1,900,965)
Departmental net financial position - Beginning of year		3,702,715	1,801,751
Departmental net financial position - End of year		10,456,403	3,702,715
Segmented information (note 10)

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

Statement of Change in Departmental Net Debt (Unaudited)
(in dollars)	For the Year Ended March 31st, 2019	For the Year Ended March 31st, 2018
Net cost (revenue) of operations after government funding and transfers	(6,753,688)	(1,900,965)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7)	6,685,927	3,266,396
Amortization of tangible capital assets (note 7)	(1,985,195)	(1,516,329)
Total change due to tangible capital assets	4,700,732	1,750,067
Change due to prepaid expenses	778,135	(241)
Net increase in net financial assets	(1,274,821)	(151,137)
Departmental net debt - Beginning of year	1,902,891	2,054,027
Departmental net debt - End of year	628,070	1,902,891

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

Statement of Cash Flows (Unaudited)
(in dollars)	For the Year Ended March 31, 2019	For the Year Ended March 31, 2018
Operating activities
Net cost of operations before government funding and transfers	78,127,219	80,060,660
Non-cash items:
Amortization of tangible capital assets (note 7)	(1,985,195)	(1,516,329)
Services provided without charge by other government departments (note 9)	(15,341,534)	(16,105,749)
Transfer of overpayment to other government departments	(1,131)	(3,116)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	4,375,462	1,347,242
Increase (decrease) in prepaid expenses	778,135	(241)
Decrease (increase) in accounts payable and accrued liabilities	(3,729,186)	(2,818,472)
Decrease (increase) in vacation pay and compensatory leave	65,233	(90,338)
Decrease (increase) in employee future benefits	>248,599	(199,564)
Cash used in operating activities	62,537,602	60,674,095
Capital investing activities
Acquisition of tangible capital assets (note 7)	6,685,927	3,266,396
Cash used in capital investing activities	6,685,927	3,266,396
Net cash provided by Government of Canada	69,223,529	63,940,492

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

Notes to the Financial Statements (Unaudited) For the Year ended March 31, 2019

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

The ATSSC has one core responsibility: To provide support services and facilities to federal administrative tribunals and their members. According to the approved framework, the Statement of Operations and Departmental Net Financial Position was detailed by the following programs (business lines):

Mandate and members services
The Mandate and Members Services Program provides expert research, analysis, drafting support and advisory services, outreach and training activities, investigation support services, mediation as well as policy and procedure development to assist tribunals in the discharge of their statutory responsibilities. These services are provided by ATSSC employees such as sectoral experts, tribunal assistants and research personnel. This program also includes the payment of tribunal member salaries and other expenses related to their duties.

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. These services are provided by ATSSC employees such as legal counsel and judicial assistants.

Legal services
The Legal Services Program provides legal advice, legal research, and legislative and regulatory support services to the tribunals on their case files and other matters related to the tribunals' mandates. These services are provided by ATSSC employees such as legal counsel and judicial assistants.

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 2018-19 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 2018-19 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 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.

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 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)	2019	2018
Net cost of operations before government funding and transfers	78,127,219	80,060,660
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(15,341,534)	(16,105,749)
Amortization of tangible capital assets	(1,985,195)	(1,516,329)
Decrease (increase) in vacation pay and compensatory leave	65,233	(90,338)
Decrease (increase) in employee future benefits	248,599	(199,564)
Refunds / Adjustments to previous years' expenses	930,773	32,451
Total items affecting net cost of operations but not affecting authorities	(16,082,124)	(17,879,528)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	6,685,927	3,266,396
Increase (decrease) in prepaid expenses	778,135	(241)
Increase (decrease) in accountable advances	21,833	67,608
Total items not affecting net cost of operations but affecting authorities	7,485,895	3,333,764
Current year authorities used	69,530,990	65,514,897

(b) Authorities provided and used
(in dollars)	2019	2018
Authorities provided:
Vote 1 - Program expenditures	62,104,025	61,734,908
Statutory – Contributions to employee benefit plans	8,778,521	8,072,465
Statutory – Spending of proceeds from the disposal of surplus Crown assets	2,659	2,487
Total authorities provided	70,885,205	69,809,860
Less:
Lapsed: Operating	(1,353,148)	(4,293,371)
Authorities available for future years	(1,067)	(1,592)
Current year authorities used	69,530,990	65,514,897

4. Accounts payable and accrued liabilities

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

(in dollars)	2019	2018
Accounts payable - Other government departments and agencies	1,271,210	1,272,858
Accounts payable - External parties	4,345,368	3,536,987
Total accounts payable	5,616,578	4,809,845
Accrued liabilities	8,478,228	5,555,775
Total accounts payable and accrued liabilities	14,094,806	10,365,620

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 2018-19 expense amounts to $6,122,140 ($5,497,349 in 2017–18). For Group 1 members, the expense represents approximately 1.01 times (1.01 times for 2017–18) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times for 2017-18) 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, 2019, 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)	2019	2018
Accrued benefit obligation, beginning of year	3,098,591	2,899,027
Expense for the year	40,671	519,222
Benefits paid during the year	(289,270)	(319,658)
Accrued benefit obligation, end of year	2,849,992	3,098,591

6. Accounts receivable and advances

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

(in dollars)	2019	2018
Accounts receivable - Other government departments and agencies	9,380,366	5,985,394
Accounts receivable - External parties	5,483,180	4,510,864
Temporary advances	12,225	4,051
Total accounts receivable and advances	14,875,771	10,500,309

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 to 10 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, 2018	Acquisitions	Adjustments	Disposals and Write-Offs	Closing Balance, March 31, 2019
Informatics hardware	3,488,592	443,092	-	-	3,931,684
Informatics software	7,405,275	90,964	-	-	7,496,239
Leasehold improvements	3,599,924	3,174,546	3,634,515	-	10,408,985
Machinery and equipment	87,940		-	-	87,940
Other equipment, including furniture	2,300,392	-	-	-	2,300,392
Assets under construction	1,481,597	2,977,325	(3,634,515)	-	824,407
	18,363,720	6,685,927	-	-	25,049,647

Accumulated Amortization
(in dollars)	Opening Balance April 1, 2018	Amortization	Adjustments	Disposals and Write-Offs	Closing Balance, March 31, 2019
Informatics hardware	2,717,351	229,248	-	-	2,946,599
Informatics software	5,643,751	850,668	-	-	6,494,419
Leasehold improvements	2,451,190	813,939	-	-	3,265,129
Machinery and equipment	74,509	3,429	-	-	77,938
Other equipment, including furniture	1,962,354	87,911	-	-	2,050,265
	12,849,155	1,985,195	-	-	14,834,350

Net Book Value
(in dollars)	Opening Balance April 1, 2018				Closing Balance, March 31, 2019
Informatics hardware	771,241				985,085
Informatics software	1,761,524				1,001,820
Leasehold improvements	1,148,734				7,143,856
Machinery and equipment	13,431				10,002
Other equipment, including furniture	338,038				250,127
Assets under construction	1,481,597				824,407
	5,514,565				10,215,297

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

(in dollars)	2019/20	2020/21	2021/22	2022/23	2023/24	Total
Equipment rental and service contract	91,304	68,816	68,817	66,507	-	295,444
Total	91,304	68,816	68,817	66,507	-	295,444

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)	2019	2018
Accommodation	10,023,115	10,573,102
Employer's contribution to the health and dental insurance plans	5,318,419	5,532,647
Total	15,341,534	16,105,749

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)	2019	2018
Expenses - Other government departments and agencies	18,091,264	14,088,018
Revenues - Other government departments and agencies	18,210,467	14,199,558

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:

(in dollars)	Registry services	Legal services	Mandate and members services	Internal services	2019	2018
Expenses
Salaries and employee benefits	12,357,026	8,433,313	40,631,088	14,996,547	76,417,974	73,942,138
Accommodation	1,627,496	1,085,861	5,346,331	1,963,427	10,023,115	10,573,102
Professional and special services	955,981	171,003	2,574,931	2,823,213	6,525,128	7,157,303
Transportation and telecommunications	487,289	119,471	1,932,142	615,993	3,154,895	3,154,895
Rentals	331,466	3,650	1,619,309	1,399,130	3,353,555	3,506,390
Amortization of tangible capital assets	-	-	-	1,985,195	1,985,195	1,516,329
Acquisition of small equipment	42,373	5,923	137,990	1,130,598	1,316,884	1,099,008
Information	351,584	53,630	224,236	297,088	926,538	699,489
Materials and supplies	50,328	55,843	396,959	76,308	579,438	487,538
Repairs and maintenance	3,073	5,714	25,168	273,383	307,338	224,519
Utilities	9	-	-	25,475	25,484	33,300
Other	12	-	6,360	11,470	17,842	21,512
Total expenses	16,206,638	9,934,408	52,894,514	25,597,826	104,633,386	103,238,525
Revenues
Recovery of CPP & EI related costs	(1,602,215)	3,499,248	22,943,581	6,254,821	31,095,435	28,293,715
Miscellaneous revenues	-	-	-	1,111	1,111	1,726
Revenues earned on behalf of Government	(743,185)	(490,427)	(2,414,173)	(942,594)	(4,590,379)	(5,117,576)
Total revenues	2,345,400)	3,008,821	20,529,408	5,313,338	26,506,167	23,177,865
Net cost of operations before government funding and transfers	18,552,038	6,925,587	32,365,106	20,284,488	78,127,219	80,060,660

11.Comparative information

In 2018-19, the ATSSC replaced its Program Alignment Architecture with the Departmental Results Framework (DRF). The new structure resulted in changes in the programs, aside from the Registry Services Program and the Internal Services Program. For presentation and comparison purposes, the financial statements have been prepared in accordance with the new DRF.

Restatement of Expenses of 2017-18
	Before	Before Effect of change	After
Tribunal specialized and expert support services	34,937,914	(34,937,914)	-
Payment to tribunal chairs and members	24,790,459	(24,790,459)	-
Registry services	18,132,590	-	18,132,590
Internal services	25,377,562	-	25,377,562
Mandate and members services		52,740,790	52,740,790
Legal services		6,987,583	6,987,583

12. Rounding

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