ARCHIVED - Canadian Forces Grievance Board

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

SECTION III – SUPPLEMENTARY INFORMATION

Organizational Information

click on image to enlarge

click on image to enlarge

 

Table 1: Comparison of Planned to Actual Spending (including FTEs)

(in $000,s)	2004-05 Actual	2005-06 Actual	2006-07
			Main Estimates	Planned Spending	Total Authorities	Actual
Review of Canadian Forces grievances referred by the Chief of Defence Staff	6,784.1	3,370.1	3,344.0	3,344.0	3,314.5	2,967.1
Corporate Services	N/A	2,818.4	3,063.0	3,063.0	3,098.3	2,884.9
Total	6,784.1	6,188.5	6,407.0	6,407.0	6,412.8	5,852.0
Plus: Cost of services received without charge	276.0	276.8	240.0	240.0	240.0	255.9
Total Departmental Spending	7,060.1	6465.3	6,647.0	6,647.0	6,652.8	6,107.9
Full-time Equivalents*	47.0	43.0	46.0	46.0	46.0	40.0

* Includes Members appointed by the Governor in Council.

Table 2: Resources by Program Activity

(in $000,s) 2006-07
Program Activity	Budgetary	Total
	Operating
Review of Canadian Forces Grievances referred by the Chief of Defence Staff
Main Estimates	3,344.0	3,344.0
Planned Spending	3,344.0	3,344.0
Total Authorities	3,314.5	3,314.5
Actual Spending	2,967.1	2,967.1
Corporate Services
Main Estimates	3,063.0	3,063.0
Planned Spending	3,063.0	3,063.0
Total Authorities	3,098.3	3,098.3
Actual Spending	2,884.9	2,884.9

Table 3: Voted and Statutory Items

(in $000,s) Vote or Statutory Item	Canadian Forces Grievance Board	2006-07
		Main Estimates	Planned Spending	Total Authorities	Total Actuals
15	Operating expenditures	5,798.0	5,798.0	5,849.0	5,288.2
(S)	Contributions to employee benefit plans	609.0	609.0	563.8	563.8
	Total	6,407.0	6,407.0	6,412.8	5,852.0

 

Table 4: Services Received Without Charge

(in $000,s)	2006-07
Contributions covering employers’ share of employees’ insurance premiums and expenditures paid by Treasury Board of Canada Secretariat (excluding revolving funds). Employer’s contribution to employees’ insured benefits plans and associated expenditures paid by TBS	255.9
Total 2006-07 Services received without charge	255.9

 

Table 5: Financial Statements of the Canadian Forces Grievance Board

Financial statements are prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with the appropriations-based reporting. Note 3 on page 37 of the Financial statements reconcile these two accounting methods.

click on image to enlarge

 

	Canadian Forces Grievance Board
	Statement of Operations (unaudited)
	for the year ended March 31
(in dollars)						2007	2006
OPERATING EXPENSES
Personnel						4,063,355	4,544,018
Other professional services						673,143	739,139
Rental						589,517	581,467
Machinery and Equipment						153,437	110,740
Informatics services						149,254	77,398
Accounting & Legal services						141,934	150,498
Telecommunication services						84,801	91,117
Training and Educational services						79,951	68,887
Travel and Relocation						73,075	124,901
Repairs						40,927	16,862
Materials and Supplies						35,251	59,434
Communication Services						21,738	42,103
Amortization of tangible capital assets						18,440	15,943
Publishing and Printing						7,249	3,222
Postage and Freight						6,741	11,129
Protection Services						5,903	4,006
Interest						71	3,361
Total Expenses						6,144,787	6,644,225
REVENUES
Revenues						15	90
						15	90
Total Revenues
Net costs of Operations						6,144,772	6,644,135

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

 

	Canadian Forces Grievance Board
	Statement of Financial Position (unaudited)
	at March 31
(in dollars)				2007	2006
ASSETS
	Financial assets
	Accounts Receivable and Advances			50,753	6,422
		Total financial assets		50,753	6,422
	Non-financial assets
	Tangible Capital assets (Note 4)			31,423	31,887
		Total non-financial assets		31,423	31,887
TOTAL				82,176	38,309
LIABILITIES
	Accrued salaries and wages			209,822	181,278
	Accounts payable - External parties			212,970	243,075
	Accounts payable - Other government departments			61,652	297,449
	Vacation pay and compensatory leave			166,089	166,089
	Employee severance benefits (Note 5)			691,041	646,788
Equity of Canada				(1,259,398)	(1,496,370)
TOTAL				82,176	38,309

The accompanying notes form an integral part of these financial statements

 

	Canadian Forces Grievance Board
	Statement of Equity of Canada (unaudited)
	at March 31
(in dollars)			2007	2006
Equity of Canada, beginning of year
	Net cost of operations		(1,496,370)	(1,205,246)
	Current year appropriations used (Note 3)		(6,144,772)	(6,644,135)
	Change in net position in the Consolidated Revenue Fund (Note 3)		5,852,064	6,188,481
	Other professional services		273,750	(112,180)
	Services provided without charge by other government departments (Note 8)		(15)	(90)
			255,945	276,800
Equity of Canada			(1,259,398)	(1,496,370)

The accompanying notes form an integral part of these financial statements

Canadian Forces Grievance Board
Statement of Cash Flow(unaudited)
For the Year ended March 31
(in dollars)							2007	2006
Operating Activities
Net Costs of Operations							6,144,772	6,644,135
		Non-Cash items
		Other professional services
			Amortization of tangible capital assets				(18,440)	(15,943)
			Services provided without charge by other government departments				(255,945)	(276,800)
		Variation in Statement of Financial Position
			Increase or (decrease) in accounts receivable and advances				(463)	(69,079)
			Increase or (decrease) in accounts payables and accrued liabilities				193,104	134,508
			Increase or (decrease) in receivables				44,794	(340,610)
Cash used by operating activities							6,107,822	6,076,211
Capital Investment Activities
			Acquisitions of capital tangible assets				17,976
Cash used by capital investments activities							17,976
Financing Activities
			Net cash provided by government				(6,125,798)	(6,076,211)

The accompanying notes form an integral part of these financial statements

 

 

1. Authority and Objectives

The Canadian Forces Grievance Board (CFGB) is an independent, arms-length organization that was created through amendments to the National Defence Act (NDA) approved by Parliament on December 10, 1998. The amendments that were made to the NDA were aimed at modernizing and strengthening the military justice system, making the whole grievance review process simpler and shorter for members of the Canadian Forces. The CFGBThe Canadian Forces Grievance Board (CFGB) is an independent, arms-length organization that was created through amendments to the National Defence Act (NDA) approved by Parliament on December 10, 1998. The amendments that were made to the NDA were aimed at modernizing and strengthening the military justice system, making the whole grievance review process simpler and shorter for members of the Canadian Forces. The CFGB’’s mandate is to review grievances in order to render fair and impartial findings and recommendations in a timely and informal manner to the Chief of Defence Staff and the grievor.

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

1. Parliamentary appropriations – the Canadian Forces Grievance Board is financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the CFGB do not parallel financial reporting according to Canadian generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position, are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
2. Net Cash Provided by Government - The department operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the department is deposited to the CRF and all cash disbursements made by the department 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 federal government.
3. Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
4. Revenues:
   • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
   • Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
   • Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
   • Revenues that have been received but not yet earned are recorded as deferred revenues.
5. Expenses –– Expenses are recorded on the accrual basis:
   • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment;
   • Services provided without charge by other government departments for the employer’s contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.
6. Employee future benefits
   1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The department’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the plan. Current legislation does not require the department to make contributions for any actuarial deficiencies of the Plan.
   2. Severance Benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from results of the actuarially determined liability for employee severance benefits for the Government as a whole.
7. Accounts and loans receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
8. Contingent liabilities – Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
9. Tangible capital assets – All tangible assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Board does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

   Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the capital asset as follows: Informatics hardware - 3 years.

10. Measurement uncertainty - The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

(a) Reconciliation of net cost of operations to current year appropriations used:

(in dollars)			2007	2006
Net cost of Operations			6,144,772	6,644,135
Adjustments for items affecting net cost of operations but not affecting appropriations
Add (Less):
	Services provided without charge		(255,945)	(276,800)
	Employee severance benefits		(44,253)	(160,080)
	Amortization of tangible capital assets		(18,440)	(15,943)
	Vacation pay and compensatory leave		-	(15,936)
	Other adjustments		(18,972)	(2,142)
	Revenues		15	90
	Refunds of Prior Years Expenditures		26,911	15,157
			5,834,088	6,188,481
Adjustments for items not affecting net cost of operations but affecting appropriations
Add (Less):
	Capital Acquisitions of tangible capital assets		17,976	-
Current year appropriations used			5,852,064	6,188,481

 

(b) Appropriations provided and used

(in dollars)			2007	2006
	Vote 15 Operating expenditures		5,849,000	5,963,000
	Statutory amounts		563,841	626,036
	Less:
	Available for use in future years		-	-
	Lapsed appropriations: Operating		(560,777)	(400,555)
	Current year appropriation used		5,852,064	6,188,481

 

(c) Reconciliation of net cash provided by Government to current year appropriations used

(in dollars)			2007	2006
Net cash provided by Government			6,125,798	6,076,211
Revenue not available for spending			15	90
Change in net position in the Consolidated Revenue Fund
	Variation in advances		(129)	69,079
	Variation in accounts receivable		(44,202)	340,610
	Variation in accounts payable – others		(30,104))	(191,755)
	Variation in accounts payable – OGD		(235,797)	(36,141)
	Variation in accrued salaries		28,544	(82,628)
	Refund of prior year expenditures		26,911	15,157
	Other adjustments		(18,972)	(2,142)
			(273,734)	112,180
	Current year appropriation used		5,852,064	6,188,481

 

4. Tangible Capital Assets

(in dollars)
	COST			ACCUMULATED AMORTIZATION
Capital asset class	Opening balance	Acquisitions	Closing balance	Opening balance	Acquisitions	Closing balance	2007 Net book value	2006 Net book value
Machinery and equipment	230,592	17,976	248,568	198,705	18,440	217,145	31,423	31,887

 

5. Employee Benefits

1. Pension benefits: The Board’s employees participate in the Public Service Pension 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 pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension plans benefits and they are indexed by inflation.

   Both the employees and the Board contribute to the cost of the Plan. The 2006-07 expense amounts to $415,551 (2005-06 $463,266), which represents approximately 2.2 times the contributions by employees.

   The Board’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 Board provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)			2007	2006
Accrued benefit obligation, beginning of year			646,788	486,708
Expenses for the year			44,253	160,080
Accrued benefit obligation, end of year			691,041	646,788

 

6. Contingent liabilities

Claims and litigation

Claims have been made against the Board in the normal course of operations. Legal proceedings for claims totalling approximately $40,000 ($40,000 in 2006) were still pending at March 31, 2007. Some potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

7. Contractual Obligations

The nature of the Board’s activities can result in some large multi-year contracts and obligations whereby the Board will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars)				2008
Accommodation				587,613
Total				587,613

 

8. Related party transactions

The Board is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Board enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Board received services which were obtained without charge from other Government departments as presented in part (a).

(a) Services provided without charge:

During the year the Board received without charge from other department the employer’s contribution to the health and dental insurance plans. These services without charge have been recognized in the Board’s Statement of Operations as follows:

(in dollars)		2007	2006
Employers contribution to the health and dental insurance plans		255,945	276,800

 

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included as an expense in the department’s Statement of Operations.

 

Table 6: Travel Policies

Comparison to the Treasury Board Secretariat (TBS) Special Travel Authorities

The Canadian Forces Grievance Board follows the TBS Special Travel Authorities.

Comparison to the Treasury Board Secretariat (TBS) Travel Directive, Rates and Allowances

The Canadian Forces Grievance Board follows the TBS Travel Directive, Rates and Allowances

• Previous Page
• Table of Contents
• Next Page