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SECTION III – SUPPLEMENTARY INFORMATION

Organizational Information

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Table 1: Comparison of Planned to Actual Spending (including Full-time Equivalents) (thousands of dollars)   2004-2005 2005-2006 2006-2007   Actual Spending * Actual Spending Main Estimates Planned Spending** Total Authorities Actual Spending Foster understanding of and compliance with the Canadian Human Rights Act -    19,487 17,945 18,241 18,803 18,658 Employment equity audits in federal and federally regulated work places -    2,902 3,060 2,724 3,318 2,471 Total 20,941 22,389 21,005 20,965 22,121 21,129 Less: Non-respendable revenue -    -    N/A  -    N/A  -    Plus: Cost of services received without charge 3,382 3,405 N/A 3,204 N/A  3,261 Total Commission Spending 24,323 25,794 N/A  24,169 N/A  24,390               Full-time equivalents 192 190 N/A  196 N/A  180

*	Reflects the best forecast of total planned spending to the end of the fiscal year.
**	These figures reflect adjustments made following the November 2005 restructuring.

 

 

During the five past years, the actual spending of the Commission has fluctuated, reaching a maximum of $23.6 million in 2002-2003. Those fluctuations were mainly due to temporary funding received for the following reasons and which was mostly sunsetted in March 2006:

• to assist the Commission in meeting its responsibilities under the Canadian Human Rights Act (permanent funding) and the Employment Equity Act (this funding sunsetted in March 2003);

• to participate in the hearings of three major pay equity complaints before the Canadian Human Rights Tribunal (this funding sunsetted in March 2006);

• to fund the development of a new Complaints Management System and Employment Equity Audit Tracking System (this funding sunsets in March 2008);

• to provide resources for the reduction of the complaints backlog, including those related to pay equity (this funding sunsetted in March 2006);

• to support the Commission's Legal Services Division with regards to program integrity pressures (permanent funding); and

• to fund salary increases resulting from collective bargaining agreements and executive salary increases (permanent funding).

Table 2: Resources by Program Activity ($ thousands)   2006-2007 Budgetary Main Estimates Planned Spending Total Authorities Actual Spending Foster understanding of and compliance with the Canadian Human Rights Act Operating 17,945 18,241 18,803 18,658 Employment equity audits in federal and federally regulated work places Operating 3,060 2,724 3,318 2,471 Total Commission 21,005 20,965 22,121 21,129

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Table 3: Voted and Statutory Items ($ thousands) Vote or Statutory Item Truncated Vote or Statutory Wording 2006-2007 Main Estimates Planned Spending Total Authorities Actual Spending 10 Program expenditures 18,643 18,603 19,780 18,788 (S) Contributions to employee benefit plans 2,362 2,362 2,341 2,341   Total Commission 21,005 20,965 22,121 21,129

The 2006-2007 Total Authorities represent an increase of approximately of $1. 1 million or 5% over the 2006-2007 Total Main Estimates of $ 21 million. This difference represents funding received through the Supplementary Estimates for 2005-2006 operating budget carry forward and for the salary increases resulting from the collective bargaining agreements.

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Table 4: Services Received Without Charge ($ thousands)   2006-2007   Actual Spending Accommodation provided by Public Works and Government Services Canada 2,273 Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat 981 Workers' compensation coverage provided by Human Resources and Social Development Canada 6 Salary and associated expenditures of legal services provided by the Department of Justice Canada 1 Total 2006-2007 Services received without charge 3,261

 

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Table 5: Resource Requirements by Branch ($ thousands)       2006-2007   Foster understanding of and compliance with the Canadian Human Rights Act Employment equity audits in federal and federally regulated work places Total Executive Offices (1) Planned Spending 600 223 883 Actual Spending 792 166 958 Dispute Resolution Branch (2) Planned Spending 6,812 - 6,812 Actual Spending 6,855 - 6,855 Discrimination Prevention Branch (3) Planned Spending 3,262 1,875 5,137 Actual Spending 3,567 1,698 5,265 Knowledge Center (4) Planned Spending * 3,458 - 3,458 Actual Spending 2,917 78 2,995 Corporate Management Branch and Corporate Secretary (5) Planned Spending * 4,049 626 4,675 Actual Spending 4,527 529 5,056 Total Commission Planned Spending 18,241 2,724 20,965 Actual Spending 18,658 2,471 21,129

* These figures reflect changes made to the organizational chart during the year.
 

(1) Composed of: Chief Commissioner's Office Secretary General's Office	(4) Composed of: Director General's Office Research and Statistical Analysis Division Policy and Regulatory Affairs Division Strategic Initiatives Division Library Services National Aboriginal Initiative Division
(2) Composed of: Deputy Secretary General's Office Pre-Complaint Services Division Alternative Dispute Resolution Services Division Investigations Division Litigation Services Division	(5) Composed of: Director General's Office Financial and Administrative Services Division Planning, Internal Audit and Evaluation Division Information Management and Information Technology Division Human Resources Division Learning and Professional Development Branch Executive Secretariat & International Program Division
(3) Composed of: Director General's Office Prevention Initiatives and Liaison Division Employment Equity Compliance Division Communications Division Regional Offices (5)

 

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Table 6: Details on Project Spending ($ thousands)   Current Estimated Total Cost 2002-2006 2006-2007 Actual Spending Main Estimates Planned Spending Total Authorities Actual Spending Foster understanding of and compliance with the Canadian Human Rights Act Case management technology project 1,400 954 450 450 - - Project phase: Planning of the phase 4 - Implementation of the Case and audit management system has been reprofiled to 2007-2008.

 

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Table 7: Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended
March 31, 2007, and all information contained in these statements rests with Commission management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

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 fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Commission.

The financial statements of the Commission have not been audited.

 

_______________________________________ Jennifer Lynch, Q.C. Chief Commissioner Ottawa, Ontario June 22, 2007

_______________________________________ Kathryn Hamilton Acting Director General, Corporate Management Ottawa, Ontario June 22, 2007

 

Statement of Operations (unaudited)

For the year ended March 31
(in dollars)

			2007	2006
	Foster understanding of and compliance with the Canadian Human Rights Act	Employment equity audits in federal and federally regulated work places	Total	Total
Operating Expenses (note 9)
Salaries, wages and benefits	14,989,294	2,068,839	17,058,133	18,414,781
Professional and special services	2,314,908	211,051	2,525,959	3,012,018
Rentals	2,167,071	287,369	2,454,440	2,497,002
Travel and relocation	576,355	21,378	597,733	601,629
Communication	376,020	21,205	397,225	416,422
Repairs and maintenance	159,867	10,213	170,080	209,068
Utilities, material and supplies	159,178	9,664	168,842	200,842
Information	145,559	8,206	153,765	163,738
Equipment expenses	109,096	8,268	117,364	264,398
Amortization of tangible capital assets	90,298	13,493	103,791	96,855
Loss on write-off of tangible capital assets	3,068	232	3,300	-
Claims against the Crown and court awards	2,000	1,000	3,000	-
Miscellaneous	1,626	44	1,670	486
Total Operating Expenses	21,094,340	2,660,962	23,755,302	25,877,259
Revenues Gain on disposal of tangible capital assets	3,792	287	4,079	-
Miscellaneous revenues	29,585	5,336	34,921	344
Total Revenues	33,377	5,623	39,000	344
Net Cost of Operations	21,060,963	2,655,339	23,716,302	25,876,915

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

 

Statement of Financial Position (unaudited)

As at March 31
(in dollars)

	2007	2006
Assets
Financial Assets Accounts receivable (note 4)	350,131	136,229
Advances - petty cash	2,800	3,350
Total Financial Assets	352,931	139,579
Non-Financial Assets Prepaid expenses	8,065	-
Tangible capital assets (note 5)	342,809	346,619
Total Non-Financial Assets	350,874	346,619
Total Assets	703,805	486,198
Liabilities
Accounts payable and accrued liabilities (note 6)	1,364,916	2,198,473
Vacation pay and compensatory leave	708,600	886,900
Guarantee deposits accounts	9,000	-
Employee severance benefits (note 7b)	3,045,000	3,280,000
Total Liabilities	5,127,516	6,365,373
Equity of Canada	(4,423,711)	(5,879,175)
Total Liabilities and Equity of Canada	703,805	486,198
Contractual obligations (note 8)

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

 

Statement of Equity (unaudited)

For the year ended March 31
(in dollars)

	2007	2006
Equity of Canada
Equity of Canada, beginning of year	(5,879,175)	(5,453,181)
Net cost of operations	(23,716,302)	(25,876,915)
Current year appropriations used (note 3b)	21,129,203	22,388,988
Revenue not available for spending	(102,477)	(4,260)
Change in net position in the Consolidated Revenue Fund (note 3c)	(883,640)	(338,407)
Services received without charge from other government departments (note 9)	3,261,400	3,404,600
Equity of Canada, end of the year	(4,423,711)	(3,404,175)

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

 

Statement of Cash Flow (unaudited)

For the year ended March 31
(in dollars)

	2007	2006
Operating Activities
Net Cost of Operations	23,716,302	25,876,915
Non-cash items included in Net Cost of Operations: Amortization of tangible capital assets (note 5)	(103,791)	(96,855)
Loss on write-off of tangible capital assets	(3,300)	-
Services received without charge from other government departments (note 9)	(3,261,400)	(3,404,600)
Gain on disposal of tangible capital assets	4,079	-
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable	213,902	(81,973)
Increase (decrease) in advances - petty cash	(550)	150
Increase in prepaid expenses	8,065	-
Increase in guarantee deposits accounts	(9,000)	-
Decrease (increase) in accounts payable and accrued liabilities	833,557	(211,207)
Decrease in vacation pay and compensatory leave	178,300	96,600
Decrease (increase) in employee severance benefits	235,000	(262,500)
Cash Used by Operating Activities	21,811,164	21,916,530
Capital Investment Activities
Acquisitions of tangible capital assets (note 5)	103,281	129,791
Proceeds from disposal of tangible capital asset	(4,079)	-
Cash Used by Capital Investment Activities	99,202	129,791
Net Cash Provided by Government	21,910,366	22,046,321

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

 

Notes to the Financial Statements (unaudited)

1. Authority and Objective

The Canadian Human Rights Commission was established in 1977 under Schedule II of the Financial Administration Act in accordance with the Canadian Human Rights Act.

The mandate of the Canadian Human Rights Commission is to discourage and reduce discriminatory practices by dealing with complaints of discrimination on the prohibited grounds in the Canadian Human Rights Act; conducting audits of federal departments and agencies and federally regulated private companies to ensure compliance with the Employment Equity Act; conducting research and information programs; and working closely with other levels of government, employers, service providers, and community organizations to promote human rights principles.

2. 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:

(a) Parliamentary appropriations

The Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission do not parallel financial reporting according to 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.

(b) Net cash provided by government

The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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.

(c) Change in net position in the Consolidated Revenue Fund

Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by the Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the Commission. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

2. Significant Accounting Policies (continued)

(d) Revenues

Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(e) 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 received without charge by other government departments for accommodation, employer's contribution to the health and dental insurance plans, worker's compensation coverage and legal services are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

(g) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for accounts receivable where recovery is considered uncertain.

(h) Tangible capital assets

Tangible capital assets and leasehold improvements having an initial cost greater than $5,000 are recorded at their acquisition cost and are amortized on a straight line basis over their estimated useful lives, as follows:

Amortization of the tangible capital asset commences the month following the asset is put into service.

(i) 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 liability for employee severance benefits and the useful life of tangible capital assets are the most significant items where estimates are used. 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

The Commission receives its funding through annual Parliamentary appropriations.  Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years.  Accordingly, the Commission has different net results of operations for the year on a government funding basis than on an accrual accounting basis.  The following tables present the reconciliation between the current year appropriations used, the net cost of operations and the net cash provided by the Government:

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

(in dollars)	2007	2006
Net Cost of Operations	23,716,302	25,876,915
Items affecting net cost of operations but not affecting appropriations:
Services received without charge from other government departments (note 9)	(3,261,400)	(3,404,600)
Amortization of tangible capital assets	(103,791)	(96,855)
Revenue not available for spending	102,477	4,260
Loss on write-off of tangible capital assets	(3,300)	-
Variation in vacation pay and compensatory leave	178,300	96,600
Variation in employee severance benefits	235,000	(262,500)
Other adjustments	154,269	54,019
Justice Canada fees	-	(8,642)
	(2,698,445)	(3,617,718)
Items not affecting net cost of operations but affecting appropriations:
Acquisitions of tangible capital assets	103,281	129,791
Variation in prepaid expenses	8,065	-
	111,346	129,791
Current year appropriation used	21,129,203	22,388,988

 

(b) Appropriations provided and used:

 

(in dollars)	2007	2006
Program expenditures - Vote 10	19,776,450	20,311,000
Statutory - Contributions to employee benefits plan	2,340,943	2,626,882
Proceeds from the disposal of surplus Crown assets	4,095	24
	22,121,488	22,937,906
Lapsed	(988,204)	(548,908)
	21,133,284	22,388,998
Proceeds from the disposal of surplus Crown assets available for use in the subsequent year	(4,081)	(10)
Current year appropriation used	21,129,203	22,388,988

 

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

 

(in dollars)	2007	2006
Net cash provided by Government	21,910,366	22,046,321
Revenue not available for spending	102,477	4,260
Change in net position in the Consolidated Revenue Fund:
Decrease (increase) in accounts receivable	(213,902)	81,973
Decrease (increase) in advances - petty cash	550	(150)
Increase (decrease) in accounts payable and accrued liabilities	(833,557)	211,207
Increase in guarantee deposits accounts	9,000	-
Other adjustments	154,269	54,019
Justice Canada fees	-	(8,642)
	(883,640)	338,407
Current year appropriation used	21,129,203	22,388,988

 

4. Accounts Receivable

(in dollars)	2007	2006
Other government departments	169,836	52,194
External parties	180,295	84,035
	350,131	136,229

 

5. Tangible Capital Assets

 

Tangible capital assets (in dollars)	Balance beginning of year	Acquisitions	Disposals / write-offs Adjustments	Balance end of year
Informatics hardware	187,424	-	(32,306)	155,118
Informatics software	68,662	64,819	-	133,481
Other equipment	89,563	38,462	16,699	144,724
Motor vehicles	22,040	-	(22,040)	-
Leasehold improvements	407,153	-	-	407,153
	774,842	103,281	(37,647)	840,476
Accumulated amortization (in dollars)	Balance beginning of year	Amortization	Disposals / write-offs Adjustments	Balance end of year
Informatics hardware	111,911	13,770	(12,307)	113,374
Informatics software	28,902	19,408	-	48,310
Other equipment	53,282	12,045	-	65,327
Motor vehicles	20,938	1,102	(22,040)	-
Leasehold improvements	213,190	57,466	-	270,656
	428,223	103,791	(34,347)	497,667
Net book value (in dollars)			2007	2006
Informatics hardware			41,744	75,513
Informatics software			85,171	39,760
Other equipment			79,397	36,281
Motor vehicles			-	1,102
Leasehold improvements			136,497	193,963
			342,809	346,619

Amortization expense for the year ended March 31, 2007 is $103,791 ($96,855 in 2006).

 

6. Accounts Payable and Accrued Liabilities

 

(in dollars)	2007	2006
External parties
Accounts payable and accrued liabilities	756,540	1,152,622
Accrued salaries	319,937	342,190
Other government departments
Accounts payable	288,439	703,661
	1,364,916	2,198,473

 

7. Employee Future Benefits

a) Pension benefits
The Commission's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada.  Pension benefits provide for pensions equal to 2% of the average of the five highest consecutive years' salary for each year of service to a maximum of 35 years.  The benefits are integrated with Canada/Quebec Pension Plan benefits and they are indexed to inflation.

Both the employees and the Commission contribute to the cost of the Plan.  In 2006-2007, the expenses amount to $2,095,144 ($2,364,194 in 2005-2006), which represents approximately 2.2 times (2.6 in 2005-2006) the contributions by employees.

The Commission's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

b) Severance benefits
The Commission provides severance benefits to its employees based on eligibility, years of service and final salary. The liability for severance benefits is not funded by Parliamentary appropriations, but the benefits paid during the year are funded. The severance benefits as of March 31 are as follows:

 

(in dollars)	2007	2006
Liability for employee severance benefits, beginning of year	3,280,000	3,017,500
Expense for the year	273,307	375,698
Benefits paid during the year	(508,307)	(113,198)
Liability for employee severance benefits, end of year	3,045,000	3,280,000

 

8. Contractual Obligations

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

 

(in dollars)	Rentals	Acquisitions of goods or services	Total
2007-2008	71,500	169,700	241,200
2008-2009	68,400	12,000	80,400
2009-2010	63,200	12,000	75,200
2010-2011	32,000	-	32,000

 

9. Related Party Transactions

The Commission is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations.  The Commission enters into transactions with these entities in the normal course of business and on normal trade terms.

During the year, the Commission receives services without charge from other departments, which are recorded at their estimated cost in the Statement of Operations as follows:

 

(in dollars)	2007	2006
Accommodation provided by Public Works and Government Services Canada	2,273,000	2,296,100
Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat	981,500	1,102,600
Worker's compensation coverage provided by Human Resources and Social Development Canada	5,900	5,900
Salary and associated expenditures of legal services provided by the Department of Justice Canada	1,000	-
	3,261,400	3,404,600

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 the services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Commission's Statement of Operations.

10. Comparative Information

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

 

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Table 8: Procurement and Contracting

Points to Address	Commission's Input
1. Role played by procurement and contracting in delivering programs	Procurement and contracting play a central role in the delivery of the Commission’s human rights mandate. Procurement, in particular, allows the Commission to meet operational requirements by obtaining highly specialized professional services (i.e., consultants, legal counsel, expert witnesses) in support of its mandate.
2. Overview of how the Commission manages its contracting function	The Commission operates in a centralized environment with procurement personnel at headquarters. Its procurement authorities are outlined in the Canadian Human Rights Commission Delegations of Financial Signing Authorities document. Advice and guidance on contracting policies and procedures is provided to managers and posted on the Commission’s intranet. The Commission has a Contract Review Committee with clear criteria for the review of contracts and for making recommendations to the Secretary General. All contracts, whether sole source over $10,000 or competitive over $25,000, are reviewed.
3. Progress and new initiatives enabling effective and efficient procurement practices	The Commission has made available on its intranet site detailed procurement operational policies, processes, procedures, definitions and tools. Templates have been developed for Requests for Contract, Requests for Contract Amendment and Requests for Proposal. Key accomplishments: The Commission has provided its staff with standardized and comprehensive contracting and procurement administrative tools and training to facilitate the delivery of the Commission’s mandate.

 

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Table 9: Response to Parliamentary Committees, and Audits and Evaluations for fiscal year 2006–2007

Planned Internal Audits and Evaluations	Estimated Start	Estimated Completion
Employment Equity Audit Program Evaluation Study	2006	2008
Management Audit of Corporate Services	2006	2007

Notes of Explanation:

The evaluation study of the Employment Equity Audit Program was not initiated as planned during the reporting period because the program was undergoing measures to improve and streamline the employment equity audit process.

The management audit of Corporate Services was not initiated as planned during the reporting period. An audit of travel and hospitality was conducted as part of a government-wide audit of small agencies. A new government-wide internal audit policy took effect in 2006 and, as a result, the Commission is currently examining its options as a small agency for ensuring adequate internal audit coverage.

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