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 user 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 Canadian Centre for Occupational Health and Safety

Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

These future-oriented statements have been prepared:

• As at December 31, 2012.
• On the basis of government policies, government priorities and external environment at the time the future-oriented financial information was finalized
• According to the requirements of the Treasury Board Accounting policies which are based on Canadian generally accepted accounting principles for the public sector.
• On the basis that the resources provided will enable CCOHS to deliver the expected results specified in the Report on Plans and Priorities
• On the basis of historical costs.

While every attempt has been made to accurately forecast final results from 2012/13 to 2013/14, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, CCOHS will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

These financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector and year-end instructions issued by the Office of the Comptroller General. Significant accounting policies are as follows:

• Parliamentary appropriations
  
  CCOHS is financed in part by the Government of Canada through Parliamentary appropriations. Appropriations provided to CCOHS do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 6 provides a high-level reconciliation between the bases of reporting.


• Due from the Consolidated Revenue Fund and 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. Due from the CRF represents the amount of cash that CCOHS is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities. Net cash provided by government is the difference between all cash receipts and all cash disbursements including transactions with departments of the federal government.


• Forecasted 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 have 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 or granting of website - access.


• Forecasted Expenses – Expenses are recorded on the accrual basis:
  
  Vacation pay and compensatory leave are expensed as the benefits accrue to 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.


• Employee future benefits
  
  
  • Pension benefits: Eligible employees contribute to the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. CCOHS' contributions to the Plan are charged to expenses in the year incurred and represent CCOHS' 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 are accrued as employees render the services necessary to earn them and are estimated based on employees' salaries, duration of service and age.
  • 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. An allowance 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 on March 31st. Gains and losses resulting from foreign currency transactions are included in the statement of operations according to the activities to which they relate.


• Inventories for resale
  
  Inventories are valued at the lower of cost and net realizable value. Inventories are primarily print materials held for resale.


• Tangible capital assets
  
  All tangible capital assets and leasehold improvements with an acquisition cost of $1,000 or more are capitalized at 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 years
  Furniture and equipment	5 years
  Software	1-5 years
  Leasehold improvements	5 years
  Measuring equipment	5 years



• Measurement uncertainty
  
  The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector and year-end instructions issued by the Office of the Comptroller General 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 differ significantly 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. Post-employment 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.

• Reconciliation of net cost of operations to current year authorities used:
  
  

  	2013 Estimated Results $	2014 Planned Results $
  Net cost of operations before Government funding	6,523,281	6,181,621
  Non-cash items:
  Amortization of tangible capital assets	(82,392)	(82,392)
  Services received without charge from other government departments	(1,297,547)	(1,278,077)
  Decrease (Increase) in employee severance benefits	614,414	100,000
  (Increase) in vacation pay and compensatory leave	(869)	-
  	5,756,887	4,921,152
  Adjustments for items not affecting net cost of operations but affecting authorities:
  Add (Less)
  Respendable revenue not yet collected	(151,269)	40,000
  Acquisition of tangible capital assets	150,142	150,000
  Total items not affecting net cost of operations but affecting authorities	(1,127)	190,000
  Current year authorities used	5,755,760	5,111,152



• Authorities provided and used:
  
  

  	2013 Estimated Results $	2014 Planned Results $
  Human Resources Social Development Canada – Vote 25	3,853,172	3,853,172
  Human Resources Social Development Canada – statutory	1,130,830	1,117,980
  Human Resources Social Development Canada – Vote 25A	142,463	57,868
  Treasury Board – Vote 15 – collective agreements	-	-
  Treasury Board – Vote 30 – paylist shortfalls	687,163	100,000
  Current year authorities provided	5,813,628	5,129,020
  Less:
  Lapsed authorities – operating	(57,868)	(17,868)
  Current year authorities used	5,755,760	5,111,152

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. We estimate CCOHS will receive NIL in donations in 2012/2013 (2011/2012 - $NIL). The balance at March 31, 2014 is estimated at $100,901.