• 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 Canadians 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 and by a budgetary lapsing appropriation.
• 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 Canadians in their efforts to improve workplace safety and health. Citizens 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 Canadians. 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 working Canadians. 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;
  • Acquisition Services;
  • and Travel and Other Administrative Services.
• Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

• These financial statements have been prepared using the Government’s accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
  
  Significant accounting policies are as follows:
  • Parliamentary authorities
    • CCOHS is financed in part by the Government of Canada through Parliamentary authorities. 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 operations and net financial position and the statement of financial position are not necessarily the same as those provided through authorities from Parliament. Note 4 provides a high-level reconciliation between the bases of reporting.
    • Liquidity risk is the risk that the Centre 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.
    • 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.
  • 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.
  • Net cash provided by government
    • 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 to be a financial instrument.
  • Revenues
    • Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. Subscriptions revenues are recognized in the period when the initial shipment is made for all physical goods, such as CD-ROM, and DVD. Revenues for subscriptions of internet 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.
    • Contributions to inquiries service received in advance are recognized in the next fiscal year as this relates to the service period for the contribution.
    • Cash that has been received but not yet 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.
  • Expenses – Expenses are recorded on the accrual basis:
    • Vacation pay and compensatory leave are accrued as the benefits earned by employees under their respective terms of employment.
    • Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans and audit services 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 multiemployer 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 render the services necessary to earn them and are estimated based on employees' salaries, duration of service and age. Entitlements stopped accruing on April 1, 2011. The remaining balance will be paid upon termination.
    • Accumulated sick leave: employees are entitled to sick leave benefits that accumulate but do not vest. No amount has been recorded in the financial statements in respect of these benefits as they are not significant.
  • 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.
    • 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. The entity is not exposed to significant credit risk. The entity 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.
  • 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 for resale
    • Inventories for resale are valued at the lower of cost and net realizable value. Inventories for resale are primarily print materials held for resale.
  • Tangible capital assets
    • Management has revised its capitalization policy in accordance with Treasury Board Standards in order to better reflect the nature of the operation. 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:
  • Measurement uncertainty
    • The preparation of these financial statements are 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.

• The net debt is calculated as the difference between liabilities and financial assets. Employee severance benefits and vacation pay obligations represent the most significant components of net debt as these obligations are paid from future 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 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. These differences are reconciled as follows:
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• The accounts payable and accrued liabilities are measured at cost, all of which are due within the next 12 months. The following table presents details of accounts payable and accrued liabilities:

• 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 $4,500 in donations in 2014 (2013- $7,095). The balance at March 31, 2014 is $110,902 (2013- $106,402).
• Contributions to Inquiries Service
  • CCOHS receives contributions from agreements with provincial parties to support the Inquiries Service for a fiscal year. The contributions are meant to be used in the year of contribution by the provincial organization, which may differ from the year end of CCOHS. Deferred contributions may occur when cash is received in advance of the funded year.

• 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/Quebec Pension Plans benefits and they are indexed to inflation.
  • Both the employees and CCOHS contribute to the cost of the Plan. The 2014 expense amounts to $785,661 (2013 - $787,772), which represents approximately 1.6 (2013- 1.7) times the contributions by employees.
  • CCOHS’ 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.
• Employee severance benefits
  • CCOHS provides severance benefits to its employees based on eligibility, years of service and final salary which provides for one week of salary per year of service up to 30 years. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:
  • As part of the collective agreement negotiations and changes to conditions of employment for other employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from CCOHS. These changes have been reflected in the calculation of the outstanding severance benefit obligation.
    

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. 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, audit services, 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 costeffectiveness 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

• 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: