Canadian Centre for Occupational Health and Safety
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>Quarterly Financial Report

For the quarter ended, September 30, 2011

Statement outlining results, risks and significant changes in operations, personnel and program

Introduction

Canadian Centre for Occupational Health and Safety (CCOHS)

The Canadian Centre for Occupational Health and Safety (CCOHS) operates under the legislative authority of the Canadian Centre for Occupational Health and Safety Act S.C., 1977-78, c. 29 which was passed by unanimous vote in the Canadian Parliament. The purpose of this Act is to promote the fundamental right of Canadians to a healthy and safe working environment by creating a national institute (CCOHS) concerned with the study, encouragement and co-operative advancement of occupational health and safety.

CCOHS is Canada's national occupational health and safety resource which is dedicated to the advancement of occupational health and safety performance by providing necessary services including information and knowledge transfer; training and education; cost-effective tools for improving occupational health and safety performance; management systems services supporting health and safety programs; injury and illness prevention initiatives and promoting the total well-being physical, psychosocial and mental health - of working people. The Centre was created to provide a common focus for, and coordination of, information in the area of occupational health and safety.

CCOHS functions as an independent departmental corporation under Schedule II of the Financial Administration Act and is accountable to Parliament through the Minister of Labour. Further information on the mandate, roles, responsibilities and programs of CCOHS can be found in the Canadian Centre for Occupational Health and Safety 2011-2012 Main Estimates, available on the following website:
http://www.tbs-sct.gc.ca/est-pre/20112012/me-bpd/docs/me-bpd-eng.pdf

This quarterly financial report:

  • should be read in conjunction with the 2011-2012 Main Estimates and Supplementary Estimates A;
  • has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board; and
  • has not been subject to an external audit or review.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates and Supplementary Estimates for the 2011-2012 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 moneys 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued. In addition, CCOHS is not authorized to use its revenue collected during the election. The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date (YTD) results

Significant Changes to Authorities

CCOHS' authorities available used are slightly higher than the same quarter of 2012 to 2011. This is primarily due to expenditures for severances and maternity leaves. Vote 25 revenues are showing higher than last year due to the funding requirements during the election period. During an election there is no authority to spend respendable revenues collected during the course of operations. CCOHS revenues account for at least 40 to 50% of its total budget. Therefore, additional funding was provided via Governor General Warrants during the election period. Funds in excess of Main Estimates were recovered through the frozen allotment adjustment for vote netting revenue from Governor General Warrants. The balance is the same as the approved amounts in the main estimates.

Overall net funding was decreased due to the reduction in estimates from Budget Constraint Measures implemented last year. This reduction in funding took place in the second quarter of 2010 /2011 via a frozen allotment. This reduction was made permanent through the main estimates process for 2011/2012.

Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous, the gross budgetary expenditures were higher overall. Personnel expenditures are higher due to additional severances and maternity leaves. Professional services are higher than previous year due to additional costs relating to compliance with the Policy on Internal Control and costs associated with collective bargaining. Other standard objects are comparable to the prior year, with no significant variations. CCOHS carefully monitors its expenditures to ensure adequate funding.

Significant Changes to Revenues Collected

Revenues netted against expenditures are slightly higher than the same period last year. This can be attributed to increased sales of training products and services during the first quarter and subsequent cash collections in the second quarter. Revenue credited to the vote represents cash collection, which vary in timing from the actual sale. On the expenditure basis of accounting, revenues are recognized when collected.

Risks and Uncertainties

CCOHS is partially funded through voted parliamentary spending authorities and statutory authorities for personnel, operating expenditures and capital expenditures. CCOHS is also partially funded through respendable revenue from the sale of goods and services. Delivering departmental programs and services may depend on several risk factors such as economic fluctuations, political climate, technological and scientific development, government priorities, and central agencies or government-wide initiatives. CCOHS sells its products and services to workplaces and attempts to earn up to 50% of its budget through these sales. Our products and services are at risk due to changing technologies and general market conditions.

CCOHS is also a knowledge-based organization and as such, relies on maintaining its talented and committed workforce to continue delivering programs and services. Our aging workforce has seen several retirements per year and this trend is expected to continue.

In Budget 2010 - Leading the Way on Jobs and Growth, the Minister of Finance announced that the operating budgets of departments, as appropriated by Parliament, would be frozen at their 2010-11 levels for the years 2011-12 and 2012-13. It will be necessary for CCOHS to cash manage any increase in costs relating to operations and salaries during this time. This is a significant risk as CCOHS would have received funding for compensation increases during this time frame.

Mitigation Strategies

In order to mitigate this risk CCOHS will work to maximize revenues and manage its payroll costs to keep them to a minimum. This will include careful review of any vacancies and savings through attrition when appropriate.

Significant changes in relation to operations, personnel and programs

In April 2011, a new President and CEO began at CCOHS. The former incumbent retired after 14 years of service. Our Human Resources Manager retired after 30 years of service. A replacement Human Resources Manager began on July 4.

Steve Horvath
President and Chief Executive Officer
Bonnie Easterbrook, CGA
Chief Financial Officer

Hamilton, Canada November 14, 2011

Departmental budgetary expenditures by Standard Object (unaudited)


Fiscal year 2011-2012 Fiscal year 2010-2011
(In thousand of dollars) Planned expenditures for the year ending March 31,2012 Expended during the quarter ended September 30, 2011 Year to date used at quarter-end Planned expenditures for the year ending March 31,2011 Expended during the quarter ended September 30, 2010 Year to date used at quarter-end
Expenditures:
Personnel 7,582 2,012 3,861 7,268 1,870 3,716
Transportation and communications 150 31 65 265 23 57
Information 110 18 54 320 31 76
Professional and special services 1,068 238 484 995 198 456
Rentals 25 8 16 23 10 18
Repair and maintenance 125 38 83 132 22 50
Utilities, materials and supplies 100 28 43 153 39 42
Acquisition of land, buildings and works            
Acquisition of machinery and equipment 150 5 32 200 3 22
Transfer payments            
Public debt charges            
Other subsidies and payments            
Total gross budgetary expenditures 9,310 2,378 4,638 9,356 2,196 4,437
Less Revenues netted against expenditures:            
Revenues type 1 4,300 830 1,874 4,300 795 1,747
Revenues type 2            
Total Revenues netted against expenditures: 4,300 830 1,874 4,300 795 1,747
Total net budgetary expenditures 5,010 1,548 2,764 5,056 1,401 2,690

 

Statement of Authorities (unaudited)

Fiscal year 2011-2012 Fiscal year 2010-2011
(In thousand of dollars) Total available for use for the year ending March 31, 2012 Used during the quarter ended September 30, 2011 Year to date used at quarter-end Total available for use for the year ended March 31, 2011 Used during the quarter ended September 30, 2010 Year to date used at quarter-end
Vote 25 Net Operating expenditures 4,756 1,259 2,186 4,000 1,137 2,162
CCOHS Frozen allotment Adjustment for Vote Netting Revenue from Governor General Warrants (903)          
Adjustment for Cost Containment Measures       (86)    
Statutory Vote Employee benefit plans 1,157 289 578 1,056 264 528
Budgetary statutory authorities            
Total Budgetary authorities 5,010 1,548 2,764 4,970 1,401 2,690
Non-budgetary authorities            
Total authorities 5,010 1,548 2,764 4,970 1,401 2,690