Publications

Financial Statements 2008-2009

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009 and all information contained in these statements rests with Hazardous Materials Information Review Commission's management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Commission.

The financial statements of the Commission have not been audited.

Sharon Watts
President and Chief Executive Officer
Ottawa, Canada
Date: July 24, 2009

Daniele Dionne
Vice-President, Corporate Services and Adjudication
Ottawa, Canada
Date: July 22, 2009

 

Statement of Operations (Unaudited)

For the year ended March 31 (in dollars)	2009	2008
Expenses
Salaries and employee benefits	3,835,709	2,946,016
Professional and special services	915,395	512,762
Accommodation	566,809	563,056
Utilities, material and supplies	303,790	196,666
Travel and relocation	68,433	42,784
Communication	55,015	33,666
Information	39,290	12,922
Rentals	20,252	15,956
Purchased repair and maintenance	13,043	5,512
Bad debts	8,789	0
Other	171	(916)
	5,826,696	4,328,424
Revenues
Client services	578,393	502,040
Net cost of operations	5,248,303	3,826,384

 

Statement of Financial Position (Unaudited)

At March 31 (in dollars)	2009	2008
Assets
Financial Assets
Accounts receivable and advances (Note 4)	40,638	117,160
	40,638	117,160
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities	742,813	602,127
Vacation pay and compensatory leave	145,594	168,847
Employee severance benefits (Note 5)	613,001	479,898
Other liabilities	550	0
	1,501,958	1,250,872
Equity of Canada	(1,461,320)	(1,133,712)
	40,638	117,160

 

Statement of Equity (Unaudited)

For the year ended March 31 (in dollars)	2009	2008
Equity of Canada, beginning of year	(1,133,712)	(879,336)
Net cost of operations	(5,248,303)	(3,826,384)
Current year appropriations used (Note 3)	4,921,232	3,620,795
Revenue not available for spending	(578,194)	(502,400)
Change in net position in the Consolidated Revenue Fund (Note 3)	(247,583)	(291,337)
Services received without charge by other government departments (Note 6)	825,240	744,950
Equity of Canada, end of year	(1,461,320)	(1,133,712)

 

Statement of Cash Flow (Unaudited)

For the year ended March 31 (in dollars)	2009	2008
Operating activities
Net cost of operations	5,248,303	3,826,384
Non-cash items:
Services received without charge by other government departments (Note 6)	(825,240)	(744,950)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances	(76,522)	(9,446)
Increase in liabilities	(251,086)	(244,930)
Cash used for operating activities	4,095,455	2,827,058
Financing activities
Net cash provided by Government of Canada	(4,095,455)	(2,827,058)

 

Notes to the Financial Statements (Unaudited)

1. Authority and Purpose

The Hazardous Materials Information Review Commission was created as an independent quasi-judicial agency in 1987 by proclamation of the Hazardous Materials Information Review Act and is accountable to the Parliament of Canada through the Minister of Health. The Commission is charged with providing the trade secret protection mechanism within the Workplace Hazardous Materials Information System (WHMIS).

WHMIS is a nation wide system which contributes to the reduction of illness and injury caused by using hazardous materials in the Canadian workplace. WHMIS requires that manufacturers and suppliers provide employers with information on the hazards of materials produced, sold, or used in Canadian workplaces. The employers, in turn, provide that information to employees through product labels, worker education programs and material safety data sheets (MSDSs).

The Commission's dual role is to balance the right of chemical companies to protect trade secrets and the need of workers to have accurate health and safety information about hazardous chemicals used in the workplace.

The Commission's mandate is to:

• formally register claims for trade secret exemptions and issue registry numbers;
• issue decisions on the validity of claims for exemption using prescribed regulatory criteria;
• make decisions on the compliance of MSDSs and labels within WHMIS requirements; and
• convene independent boards with representatives from labour, suppliers or employers to hear appeals from claimants or affected parties on decisions and orders issued by the Commission.

The Commission is responsible for the administration and enforcement of the following statutes and/or regulations, for which the Minister of Health is accountable to Parliament as the responsible Minister for the Commission: Hazardous Materials Information Review Act, Hazardous Materials Information Review Regulations, Hazardous Materials Information Review Act Appeal Board Procedures Regulations, Hazardous Products Act, Controlled Products Regulations, Canada Labour Code—Part II, Canada Occupational Safety and Health Regulations, provincial and territorial occupational safety and health acts and regulations, and Inquiries Act.

 

2. Significant Accounting Policies

The 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.

Significant accounting policies are as follows:

(a) Parliamentary appropriations
The Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission 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 3 provides a high-level reconciliation between the bases of reporting.

(b) Net Cash Provided by Government
The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 federal government.

(c) Change in net position in the Consolidated Revenue Fund
The change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the Commission. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues
HMIRC's revenues represent the fees for the claims of exemption from the requirement of manufacturers to disclose a product's hazardous materials. Revenues are accounted for and considered earned in the period in which the claim is registered and a registry number is issued.

(e) Expenses
Expenses are recorded on an 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 and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

1. Pension benefits:  Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada.  The Commission's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan by the Commission.  Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
2. 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.  The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Receivables
All receivables recorded by the Commission are from other government departments for which the recovery is considered certain. As a result, no provision has been made.

(h) 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 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 most significant item where an estimate is used is the liability for employee severance benefits. 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 Appropriations

The Commission receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Commission has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used:

(in dollars)	2009	2008
Net cost of operations	5,248,303	3,826,384
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
Services provided without charge from other government departments	(825,240)	(744,950)
Revenue not available for spending	578,194	502,400
Severance pay benefits	(133,104)	61,359
Bad debts expense	(8,789)	0
Vacation pay and compensatory leave	23,254	(27,580)
Refund/adjustment of previous year's expenditures	38,415	3,182
Other	199	0
Current year appropriations used	4,921,232	3,620,795

 

(b) Appropriations provided and used:

(in dollars)	2009	2008
Operating expenditures - Vote 30	4,805,944	3,438,155
Statutory amounts	468,681	390,032
	5,274,625	3,828,187
Less: Lapsed appropriations	(353,393)	(207,392)
Current year appropriations used	4,921,232	3,620,795

 

(c) Reconciliation of net cash provided by Government to current year appropriations used

(in dollars)	2009	2008
Net cash provided by Government	4,095,455	2,827,058
Revenue not available for spending	578,194	502,400
	4,673,649	3,329,458
Change in net position in the Consolidated Revenue Fund
Refund/adjustment of previous year's expenditures	38,415	3,182
Variation in accounts receivable and advances	76,522	9,447
Variation in accounts payable and accrued liabilities	140,686	278,708
Other	(8,040)	0
	247,583	291,337
Current year appropriations used	4,921,232	3,620,795

 

4. Accounts Receivable and Advances

(in dollars)	2009	2008
Receivables from other Federal Government departments and agencies	39,113	116,958
Receivables from external parties	1,225	2
Employee advances	300	200
Net accounts receivable and advances	40,638	117,160

 

5. Employee Benefits

(a) Pension benefits

The Commission's 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 the Commission contribute to the cost of the Plan. The current and previous year expenses, which represent approximately 2 times (2.1 in 2007-08) the contributions by employees, amount to:

(in dollars)	2009	2008
Expense for the year	338,388	284,071

The Commission's 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.

(b) Severance benefits

The Commission provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)	2009	2008
Accrued benefit obligation, beginning of year	479,898	541,257
Expense for the year	133,103	18,333
Benefits paid during the year	0	(79,692)
Accrued benefit obligation, end of year	613,001	479,898

 

6. Related Party Transactions

The Commission is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Commission enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Commission received services which were obtained without charge from other government departments as presented in part (a).

(a) Services provided without charge

During the year the Commission received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the Comission's Statement of Operations as follows:

(in dollars)	2009	2008
Accommodation	566,809	563,056
Employer's contribution to the health and dental insurance plans	257,745	169,447
Legal services	686	12,447
Services provided without charges	825,240	744,950

The Government has structured 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 as an expense in the Commission's Statement of Operations.

(b) Payables outstanding at year-end with related parties:

(in dollars)	2009	2008
Accounts payable to other government departments and agencies	238,964	217,855