CCOHS Annual Report

Contractual obligations (note 11)

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

Approved by:

1. Authority and objectives

   • The Canadian Centre for Occupational Health and Safety (CCOHS) was established in 1978 under the Canadian Centre for Occupational Health and Safety Act and is a departmental corporation named in Schedule II to the Financial Administration Act. The objectives of CCOHS are to promote the right of workers in Canada to a healthy and safe working environment and to enhance the physical and mental health of workers. CCOHS' operating expenditures are funded in part by its operating revenue, budgetary appropriations and authorities available for use from previous years.
   • CCOHS has one program activity for reporting purposes, in addition to internal services. The activity is occupational health and safety information development, delivery services and tripartite collaboration.
   • The goal of this program is to provide free information on occupational health and safety to support workers in Canada in their efforts to improve workplace safety and health. Workers are provided information through a free and impartial personalized service via telephone, e-mail, person-to-person, fax or mail. Alternatively, they can independently access a broad range of electronic and print resources developed to support safety and health information needs of workers in Canada. This may include cost recovery products and services and is supported financially by contributions from various stakeholders.
   • Through health and safety information development, CCOHS collects, processes, analyzes, evaluates, creates and publishes authoritative information resources on occupational health and safety for the benefit of all workers in Canada. This information is used for education and training, research, policy development, development of best practices, improvement of health and safety programs, achieving compliance, and for personal use. When the product or service provided by CCOHS is to identifiable external recipients with benefits beyond those enjoyed by the general taxpayer, a fee is charged.
   • CCOHS promotes and facilitates consultation and cooperation among federal, provincial and territorial jurisdictions and participation by labour, management and other stakeholders in the establishment and maintenance of high standards and occupational health and safety initiatives for the Canadian context. The sharing of resources results in the coordinated and mutually beneficial development of unique programs, products and services. Collaborative projects are usually supported with a combination of financial and non-financial contributions to the programs by partners and stakeholders and result in advancement of the health and safety initiatives.
   • Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups 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; Material Services; and Acquisition Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2. Significant accounting policies

   • These financial statements have been prepared using the department's accounting policies stated below, which are based on Canadian public sector accounting standards. The representation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
     • Parliamentary authorities and revenue spending authority
       • CCOHS is financed in part by the Government of Canada through Parliamentary authorities. Included in the authorities provided and used is a revenue spending authority, which allows CCOHS to spend program revenue. Financial reporting of authorities provided to CCOHS 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 Financial Position and in the Statement of Operations and Net 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 CCOHS' operating budget approved on March 10th, 2022 at CCOHS' 134th Meeting of the Council of Governors, which were held virtually. Planned results pursuant to the spending of Parliamentary authorities are reported in the 2021-22 Departmental Plan and may not represent the full costs of the department, as additional costs are budgeted to be covered by additional cash revenues pursuant to section 6(1)(g) of the CCOHS Act.
       • In the fiscal year ending March 31, 2016, CCOHS was given authority pursuant to section 6(1)(g) of the CCOHS Act to spend revenue from fees it charges for products and services in the fiscal year in which the revenue was received or in subsequent fiscal years. Government transfers are recognized as revenue when authorized and when the organization has satisfied any eligibility criteria. CCOHS had updated the Departmental Reporting Framework and Departmental Plans to reflect the newly approved authorities given to CCOHS pursuant to section 6(1)(g) of the CCOHS Act.
     • Net Cash Provided by Government
       • CCOHS operates within the Consolidated Revenue Fund (CRF). The CRF is administered by the Receiver General for Canada. All cash received by CCOHS is deposited to the CRF and all cash disbursements made by CCOHS 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.
     • Amounts due from or to the CRF
       • Amounts due from or to the Consolidated Revenue Fund (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 represents the net amount of cash that CCOHS is entitled to draw from the CRF, without further authorities, in order to discharge its liabilities. This amount is not considered a financial instrument.
     • Revenues
       • Revenues are recognized in the period in which the underlying transaction or event that gave rise to the revenue takes place. Revenues for subscription-based products are recognized over the term of the subscription.
       • Subscriptions are based upon the right to use the information for a specified period. Information may be updated during the subscription period.
       • Funds received from external parties for specified purposes but not earned is recorded as deferred revenue. The deferred revenue represents cash received in advance of initial and ongoing product delivery, services or granting of access to the website. Revenues are then recognized in the period in which the related expenses are incurred.
     • Expenses
       • Expenses are recorded on the accrual basis.
       • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
       • Services provided without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost. A corresponding amount is reported as government funding.
     • Employee future benefits
       • Pension benefits: All eligible employees participate in the Public Service Pension Plan, a multi-employer plan administered by the Government of Canada. CCOHS' contributions are currently based on a multiple of an employee's required contributions and may change over time depending on the experience of the Plan. CCOHS' contributions to the Plan are charged to expenses in the year in which the services are rendered and represent its total obligation to the Plan. Current legislation does not require CCOHS to make contributions for any actuarial deficiencies of the Plan.
       • Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits were accrued as employees rendered the services necessary to earn them and were estimated based on employees' salaries and duration of service. This arrangement was closed to new entrants effective April 1, 2011 and the benefits accruing to participants are only adjusted for annual salary and wage increases. The remaining balance are paid upon departure from the public service.
       • Accumulated sick leave: Employees are eligible to accumulate sick leave benefits until the end of employment, according to their labour contract and conditions of employment. Sick leave benefits are earned based on employee services rendered and are paid upon an illness or injury related absence. However, sick leave entitlements do not vest and may only be used in the event of illness or injury related absence. Unused sick leave upon employee termination is not payable to the employee. No amount has been accrued in these financial statements and payments of sick leave benefits are included in current operations as incurred.
     • Accounts receivable
       • Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables from external parties where recovery is considered uncertain.
     • Contingent liabilities
       • Contingent liabilities are potential liabilities that 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.
     • Foreign currency transactions
       • Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange in effect at year end. Gains and losses resulting from foreign currency transactions are included in the statement of operations and net financial position according to the activities to which they relate.
     • Inventories
       • Inventories are valued at the lower of cost and net realizable value.
     • Tangible capital assets
       • All tangible capital assets having an initial cost of $5,000 or more are recorded at the acquisition cost. Tangible capital assets are amortized over their estimated useful life on a straight-line basis, as follows:

         Asset Class	Amortization Period
         Computer equipment	5 - 10 years
         Furniture and equipment	5 - 10 years
         Software	1-5 years
         Leasehold improvements	lesser of the remaining term of the lease or useful life of the improvement

       • Tangible capital assets are written down when conditions indicate that they no longer contribute to CCOHS' ability to provide goods and services or when the value of the future economic benefits associated with the tangible capital assets are less than the net book value.
     • Prepaid Expenses
       • Prepaid expenses are accounted for as non-financial assets as they can be used to provide services in the future.
     • Measurement uncertainty
       • The preparation of these financial statements is in accordance with Canadian public sector accounting standards and 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 future benefits and the estimated 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.
     • 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. Other related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

3. Parliamentary authorities

   • CCOHS receives its funding through annual Parliamentary authorities and external revenues. Items recognized in the Statement of Operations and 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, CCOHS has different net results of operations for the year on a Government funding basis than on an accrual accounting basis. Current year authorities used which is accounted below is on a cash basis based on Government funding as received. These differences are reconciled as follows:
     • Reconciliation of net cost of operations to current year authorities used:

       	2022	2021
       	$	$
       Net cost of operations before Government funding	7,613,072	6,735,278
       Adjustments for items affecting net cost of operations but not affecting authorities:
       Revenue collected under 6(1)(g) of the CCOHS Act	6,976,998	6,442,648
       Amortization of tangible capital assets (note 9)	(106,184)	(139,728)
       Services provided without charge from other Government departments (note 12)	(1,559,573)	(1,398,403)
       Refunds received in the current year for prior year expenditures	1,895	16,112
       Unpaid accrurals reversed for prior year expenses	9,203	not applicable-
       Decrease in employee severance benefits	43,921	183,048
       Decrease in vacation pay and compensatory leave	(80,332)	(230,112)
       Bad debts	(2,637)	not applicable-
       Total items affecting net cost of operations but not affecting authorities:	5,283,291	4,873,565
       Adjustments for items not affecting net cost of operations but affecting authorities:
       Add (deduct) change in:
       Increase (Decrease) in Prepaid Expenses	34	41,396
       Decrease in inventory	not applicable-	(18,862)
       Acquisition of tangible capital assets	196,635	74,277
       Total items not affecting net cost of operations but affecting authorities:	196,669	96,811
       Current year authorities used	13,093,032	11,705,654

     • Authorities provided and used:

       	2022	2021
       	$	$
       Vote 1 - Program expenditures	6,920,961	7,469,524
       Statutory - Employee Benefits Plan	1,390,491	1,279,977
       Authorities available for use in subsequent years from prior year	8,291,257	5,433,795
       Authorities available for use in subsequent years from current year	1,071,645	2,857,462
       Spending of cash revenues pursuant to section 6(1)(g) of the CCOHS Act	5,478,720	3,867,982
       Total current year authorities provided	23,153,074	20,908,740
       Less:
       Lapsed authorities reallocated to FY2022-23 - operating	(697,140)	(911,829)
       EBP surcharge related to FY2020-21	(772,041)	0
       CCOHS Respendable / Reinvestment Authorities available for use in subsequent years (note 14)	(8,590,861)	(8,291,257)
       Current year authorities used	13,093,032	11,705,654

4. Accounts payable and accrued liabilities

   • The following table presents details of CCOHS' accounts payable and accrued liabilities:

5. Employee future benefits

   • Pension benefits
     • CCOHS 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 of 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 to inflation.
     • Both the employees and CCOHS contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups - Group 1 relates to existing plan members as of December 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
     • The 2021-2022 expense amounts to $939,416 ($873,456 in 2020-21). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2020-21) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2020-21) the employee contributions.
     • CCOHS' responsibility with regards 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.
   • Severance benefits
     • Severance benefits provided to CCOHS 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, 2021 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:

       	2022	2021
       	$	$
       Accrued benefit obligation - opening balance	303,481	486,529
       Expense for the year	8,463	1,920
       Benefits paid during the year	(52,384)	(184,968)
       Accrued benefit obligation, end of year	259,560	303,481

6. Deferred revenues - donations

   • CCOHS, by virtue of subsection 6 (3) of its Act, may acquire money or other property by gift or otherwise and expend or dispose of those donations subject to their terms, if any. CCOHS received $5,534 net in donations in 2022 (2021 - $Nil). The balance at March 31, 2022 remains $118,986 (2021 - $113,452).

7. Accounts receivable

8. Net debt

   • The net debt is calculated as the difference between liabilities and financial assets. Employee severance benefits, as detailed in note 5 b), and vacation pay obligations represent the most significant components of net debt as future Government of Canada Parliamentary authorities will be required in order to discharge those obligations.

9. Tangible capital assets

10. Revenues

11. Contractual obligations

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

    	2023	2024	2025	2026	2027	Total
    	$	$	$	$	$	$
    Operating Leases	676,937	700,000	700,000	700,000	700,000	3,476,937

    CCOHS has a multi-year lease contract with related parties for $676,937 annually that expires during fiscal year 2024. Costs for operating leases during 2025, 2026 and 2027 has been estimated at $700,000. As per note 12, this accommodation is provided without charge by the Government of Canada.

12. Related party transactions

    CCOHS is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. CCOHS enters into transactions with these entities in the normal course of business and on normal trade terms. The transactions are measured at the exchange amount agreed to by the related parties. During the year, CCOHS received common services, which were obtained without charge from other Government departments as disclosed below.

    • Services provided without charge by other government departments
      • During the year, CCOHS 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 in the Statement of Operations and Net Financial Position as follows:
        
      • The Government has centralized 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 are not included in CCOHS' Statement of Operations and Net Financial Position.
    • Other transactions with related parties

      • 	2022	2021
        	$	$
        Accounts receivable from other government departments (note 7)	1,944	not applicable-
        Accounts payable to other government departments and agencies (note 4)	633,242	702,494
        Expenses-Other Government departments and agencies	366,958	300,111
        Revenue-Other government departments and agencies	1,996,930	1,927,113

13. Segmented information

    Presentation by segment is based on CCOHS' program activity architecture. The presentation by segment is based on the same accounting policies as described in summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expense and by major type of revenues. The segment results for the year are as follows:

    • 	Internal Services	Health and Safety	2022	2021
      	$	$	$	$
      Salaries and employee benefits	4,422,156	7,587,712	12,009,868	10,619,479
      Professional and special services (incl. Governors and committees)	232,766	869,736	1,102,502	881,475
      Accommodation	216,620	460,317	676,937	676,937
      Transport and communications	19,179	112,795	131,974	138,362
      Information	63,697	40,119	103,816	193,242
      Purchased repair and upkeep	6,351	3,762	10,113	306,664
      Utilities, materials and supplies	25,049	65,441	90,490	171,816
      Rental	59,208	298,978	358,186	50,223
      Other expenditures	not applicable-	106,184	106,184	139,728
      Total Expenses	5,045,026	9,545,044	14,590,070	13,177,926
      Revenues	not applicable-	not applicable-	6,976,998	6,442,648
      Cost from continuing operations			7,613,072	6,735,278

14. CCOHS Respendable / Reinvestment Authorities:

    In 2015-16, the Treasury Board Secretariat facilitated a change in the funding structure for CCOHS. As a result, CCOHS was given unrestricted authority (pursuant to section 6 (1) (g) of the CCOHS Act) to spend revenue from fees charged for its products and services within the fiscal year in which the revenue was received or in subsequent fiscal years.

    The purpose of CCOHS' respendable / reinvestment authorities are to provide CCOHS with funding to facilitate one-time expenditures, reinvestment in capital equipment or program development in accordance with CCOHS' strategic plan.

    	2022
    	$
    Balance, beginning of year	8,291,257
    Annual operating surplus(cost)	334,853
    Tangible capital assets purchased with internal funds	(196,635)
    Amortization of internally funded tangible capital assets	106,184
    Other working capital changes	not applicable-
    Internal revenue carried forward to subsequent year pursuant to section 6(1)(g) of the CCOHS Act	55,202
    Balance, end of year	8,590,861
    Allocated respendable / reinvestment authorities
    Deferred revenues for projects in 2021-2022	(891,023)
    Deferred revenues - donations (note 6)	(118,986)
    Net debt funded by CCOHS (note 8)	(274,245)
    Planned operational and capital investments - 2022 to 2026	(5,326,490)
    Total allocated respendable / reinvestment authorities	(6,610,744)
    Unallocated respendable / reinvestment authorities	1,980,117

15. Transfer of transition payments for implementing salary payments in arrears

    The Government of Canada implemented salary payments in arrears in 2014-15. As a result, a onetime payment was issued to employees and will be recovered from the government in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay process. This change to the pay system had no impact on the expenses of CCOHS. Prior to year-ended March 31, 2022, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Works and Government Services Canada, who is responsible for the administration of the Government pay system.

16. Financial instruments and risk management

    • Liquidity risk:
      • Liquidity risk is the risk that CCOHS will encounter difficulty in meeting its obligations associated with financial liabilities. The entity's objective for managing liquidity risk is to manage operations and cash expenditures within the appropriation authorized by Parliament or allotment limits approved by the Treasury Board. As described in note 8, government sources of liquidity are required to fund the net debt position.
      • The entity's risk exposure and its objectives, policies and processes to manage and measure this risk did not change significantly from the prior year.
    • Credit risk:
      • Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. CCOHS is not exposed to significant credit risk. CCOHS provides services to other government departments and agencies and to external parties in the normal course of business. Accounts receivable are due on demand. The maximum exposure the entity has to credit is risk equal to the carrying value of its accounts receivables.
    • COVID-19:
      • In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization and has had a significant financial, market and social dislocating impact across the world. This has resulted in governments worldwide, including the Canadian and Ontario governments, enacting emergency measures to combat the spread of the virus.
      • In response to the pandemic, an agreement was entered into in 2021 between CCOHS and the Public Health Agency of Canada (PHAC) for CCOHS to deliver services for the development of sector-specific COVID-19 workplace guidance materials; the development and maintenance of an on-line hub of COVID-19 workplace information and guidance for Canadian employment sectors; and expert advisory services in relation to some of PHAC's guidance materials. The agreement with PHAC spanned over two years with total funding of $1.5 million, of which $1.015 million was recognized in the prior year and $0.485 million was recognized in the current year. Additional funding was provided to CCOHS under Business Resumption Funding to cover personnel, operating costs and certain employee benefit plans. The agreement was also a two-year agreement in the aggregate amount of $2,500,000 of which approximately $1.28 million was recognized during the prior year and $1.22 million was recognized in the current year.