Canadian Centre for Occupational Health and Safety
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>Quarterly Financial Report

For the quarter ended, September 30, 2012

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 2012-2013 Main Estimates, available on the following website:
http://www.tbs-sct.gc.ca/est-pre/20122013/me-bpd/docs/me-bpd-eng.pdf

This quarterly financial report:

  • should be read in conjunction with the 2012-2013 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 2012-2013 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.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012-2013, frozen allotments will be established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.

CCOHS does not have a frozen allotment for fiscal 2012-13.

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

Significant Changes to Authorities

CCOHS' net authorities available for use are comparable to the same quarter of 2013 to 2012. Vote 25 revenues are showing higher in 2011/12 due to the funding requirements during the election period. During the election in 2011/12 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 for 2012-13 compared to 2011-12 remains unchanged. There is a slight variance due to the change in employee health benefits rates. CCOHS received funding for operating budget carry forward amounts in September this year which is earlier than last year.

Statement of Departmental Budgetary Expenditures by Standard Object

Compared to the previous year, the gross budgetary expenditures is lower overall. Personnel expenditures and other standard objects are slightly lower than the prior year, with variations representing timing differences in compensation and severance payments. CCOHS anticipates higher severance payments due the phasing out of the plan. A significant expenditure for severance phase out will occur in the third quarter. In addition maternity and parental leave costs are higher. This will be offset by recoveries of these expenditures through vote 15 in the third quarter. 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 cash collections of sales made in the last quarter of fiscal 2011/2012 as the revenues represent the revenue credited to the vote. 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, 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 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.

Budget 2012 Implementation

Budget 2012 did not have any significant impact on CCOHS. However the continued freezing of funding as announced in Budget 2010 continues for 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 May 2012, a new Human Resources Manager began at CCOHS. Our previous Human Resources Manager was with us for six months, replacing a long term 30 year employee. Our Vice President who had been with CCOHS for over 30 years also retired during this period.

There have been no other significant changes in our operations or programs.

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

Hamilton, Canada, October 31, 2012

Departmental budgetary expenditures by Standard Object (unaudited)


Fiscal year 2012-2013 Fiscal year 2011-2012
(In thousand of dollars) Planned expenditures for the year ending March 31, 2013 Expended during the quarter ended September 30, 2012 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended September 30, 2011 Year to date used at quarter-end
Expenditures:
Personnel 7,556 1,859 3,773 7,582 2,012 3,861
Transportation and communications 150 26 52 150 31 65
Information 110 14 31 110 18 54
Professional and special services 1,068 236 479 1,068 238 484
Rentals 25 8 16 25 8 16
Repair and maintenance 125 18 41 125 38 83
Utilities, materials and supplies 100 8 21 100 28 43
Acquisition of land, buildings and works            
Acquisition of machinery and equipment 150 9 16 150 5 32
Transfer payments            
Public debt charges            
Other subsidies and payments            
Total gross budgetary expenditures 9,284 2,178 4,429 9,310 2,378 4,638
Less Revenues netted against expenditures:            
Revenues type 1 4,300 841 1,938 4,300 830 1,874
Revenues type 2            
Total Revenues netted against expenditures: 4,300 841 1,938 4,300 830 1,874
Total net budgetary expenditures 4,984 1,337 2,491 5,010 1,548 2,764

 

Statement of Authorities (unaudited)

Fiscal year 2012-2013 Fiscal year 2011-2012
(In thousand of dollars) Total available for use for the year ending March 31, 2013 Used during the quarter ended September 30, 2012 Year to date used at quarter-end Total available for use for the year ended March 31, 2012 Used during the quarter ended September 30, 2011 Year to date used at quarter-end
Vote 25 Net Operating expenditures 3,853 1,055 1,926 4,756 1,259 2,186
CCOHS Frozen allotment Adjustment for Vote Netting Revenue from Governor General Warrants -     (903)    
Statutory Vote Employee benefit plans 1,131 282 565 1,157 289 578
Operating budget carry forward vote 25 142          
Budgetary statutory authorities            
Total Budgetary authorities 5,126 1,337 2,491 5,010 1,548 2,764
Non-budgetary authorities            
Total authorities 5,126 1,337 2,491 5,010 1,548 2,764