STATEMENT OF FINANCIAL POSITION

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

Approved by:

Statement of Operations and Net Financial Position

Statement of Change in Net Debt

Statement of Cash Flow

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 in accordance with Canadian public sector accounting standards. Significant accounting policies are as follows:
     • 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.
       • 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.
     • 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 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.
       • Cash that has been received 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. Subscriptions are based upon the right to use the information for a specified period. Information may be updated during the subscription period.
     • 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 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. Therefore, no amount has been recorded in the financial statements.
     • 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 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
       • 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.
     • Accounting estimates
       • 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.

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:

       	2018	2017
       	$	$
       Net cost of operations before Government funding	6,135,675	5,879,738
       Adjustments for items affecting net cost of operations but not affecting authorities:
       Revenue collected under 6(1)(g) of the CCOHS Act	5,337,068	5,287,768
       Amortization of tangible capital assets (note 9)	(129,484)	(111,293)
       Services provided without charge from other Government departments (note 12)	(1,321,647)	(1,308,963)
       Other working capital adjustments	9,110	(5,259)
       Decrease in employee severance benefits	30,732	70,372
       Decrease in vacation pay and compensatory leave	7,349	80,570
       Total items affecting net cost of operations but not affecting authorities:	3,933,128	4,013,195
       Adjustments for items not affecting net cost of operations but affecting authorities:
       Add (deduct) change in:
       Decrease in inventory for resale	(9,109)	(6,916)
       Acquisition of tangible capital assets	97,279	44,379
       Total items not affecting net cost of operations but affecting authorities:	88,170	37,463
       Current year authorities used	10,156,973	9,930,396

       
       
     • Authorities provided and used:

       	2018	2017
       	$	$
       Human Resources Social Development Canada - Vote 1	3,956,267	3,969,600
       Human Resources Social Development Canada - Statutory	1,028,903	1,069,997
       Frozen allotments - professional services, dvertising and travel	-	(12,500)
       Treasury Board – Vote 15 – economic allocations	231,974	-
       Treasury Board - Vote 30 - paylist shortfalls	135,038	150,652
       Authorities available for use in subsequent years from prior year	1,597,698	1,283,034
       Authorities available for use in subsequent years from current year	1,076,275	314,664
       Spending of cash revenues pursuant to section 6(1)(g) of the CCOHS Act	4,804,791	4,752,647
       Total current year authorities provided	12,830,946	11,528,094
       Less:
       CCOHS Respendable / Reinvestment Authorities available for use in subsequent years (note 14)	(2,673,973)	(1,597,698)
       Current year authorities used	10,156,973	9,930,396

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 2017-2018 expense amounts to $700,683 ($745,467 in 2016-17). For Group 1 members, the expense represents approximately 1.01 times (1.12 times in 2016-17) the employee contributions and, for Group 2 members, approximately 1.00 times (1.08 times in 2016-17) the employee contributions.
     • 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.
   • 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, 2018 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:

       	2018	2017
       	$	$
       Accrued benefit obligation - opening balance	905,116	975,488
       Expense for the year	20,446	21,648
       Benefits paid during the year	(51,178)	(92,020)
       Accrued benefit obligation, end of year	874,384	905,116

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 did not receive any donations in 2018 (2017 - $0). The balance at March 31, 2018 is $113,152 (2017 - $113,152).

7. Accounts receivable

8. Net debt

   • 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 future 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 some large 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:

    	2019	2020	2021	2022	2023	Total
    	$	$	$	$	$	$
    Acquisition of goods and services	140,000	100,000	-	-	-	240,000
    Operating Leases	676,937	676,937	676,937	676,937	676,937	3,384,685
    Total	816,37	776,937	676,937	676,937	676,937	3,624,685

    CCOHS has a multi-year lease contract with related parties in the amount of $3,384,685. As per note 12, this accommodation is provided without charge.

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. 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

      • 	2018	2017
        	$	$
        Accounts receivable from other government departments and agencies	-	6,844
        Accounts payable to other government departments and agencies	420,265	399,772
        Expenses-Other Government departments and agencies	210,488	216,049
        Revenue-Other government departments and agencies	705,039	641,990

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	2018	2017
      	$	$	$	$
      Salaries and employee benefits	2,890,158	5,805,200	8,695,358	8,444,509
      Professional and special services (incl. Governors and committees)	461,117	934,222	1,395,339	1,406,345
      Accommodation	219,769	457,168	676,937	676,937
      Transport and communications	49,310	138,811	188,121	208,306
      Information	22,201	57,292	79,493	64,759
      Purchased repair and upkeep	51,478	130,775	182,253	146,819
      Utilities, materials and supplies	27,884	67,711	95,595	79,861
      Rental	19,297	10,866	30,163	28,677
      Other expenditures	-	129,484	129,484	111,293
      Total Expenses	3,741,214	7,731,529	11,472,743	11,167,506
      Revenues	-	-	5,337,068	5,287,768
      Cost from continuing operations			6,135,675	5,879,738

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.

    	2018
    	$
    Balance, beginning of year	1,597,698
    Annual operating deficit	(233,421)
    Tangible capital assets purchased with internal funds	(97,279)
    Amortization of internally funded tangible capital assets	129,484
    Other working capital changes	(28,972)
    Internal revenue carried forward to subsequent year pursuant to section 6(1)(g) of the CCOHS Act	1,306,463
    Balance, end of year	2,673,973

    Of the accumulated respendable / reinvestment authorities available at the end of year, CCOHS expects to use $1,877,000 over the following years from 2019 to 2023 with the remaining amount of $796,973 to be available for use in 2024 and beyond.

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 one-time 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-end, 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. Change in financial statement presentation

    In 2018, CCOHS changed its financial statement presentation regarding prepaid expenses. Prepaid expenses are now disclosed under Non-financial Assets and the 2017 comparative numbers have been restated to reflect this change.

17. 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.
      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.