Statement of Management Responsibility Including Internal Control Over Financial Reporting

Canadian Human Rights Commission

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2021 and all information contained in these financial statements rests with the management of the Canadian Human Rights Commission (Commission). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.

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 fulfill 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 in the preparation of the Public Accounts of Canada, and included in the Commission's Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities, directives and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Commission and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The Commission is subject to periodic Core Control Audits performed by the Office of the Comptroller General of Canada (OCG) and uses the results of such audits to comply with the Treasury Board Policy on Financial Management. A Core Control Audit was performed in 2011-12 by the OCG. The Audit Report and related Management Action Plan are posted on the Commission's web site.

The Commission has undertaken a risk-based assessment of the system of ICFR in accordance with the Treasury Board Policy on Financial Management, and the results of the assessment conducted by an independent firm for the year ended March 31, 2021 and action plan are summarized in the annex.

The financial statements of the Commission have not been audited.

Marie-Claude Landry, Ad. E.
Chief Commissioner

Natalie Dagenais
Chief Financial Officer

Ottawa, Canada
September 2, 2021

Statement of Financial Position (Unaudited)
as at March 31
(in dollars)
  2021 2020
Liabilities
Accounts payable and accrued liabilities (note 4) 3,403,194 3,470,164
Vacation pay and compensatory leave 2,097,700 1,432,000
Employee future benefits (note 5) 824,000 845,800
Total liabilities 6,324,894 5,747,964
Financial assets
Due from the Consolidated Revenue Fund 3,075,203 2,837,437
Accounts receivable and advances (note 6) 638,364 1,041,061
Total gross financial assets 3,713,567 3,878,498
Financial assets held on behalf of Government
Accounts receivable and advances (note 6) (13,490) (38,498)
Total financial assets held on behalf of Government (13,490) (38,498)
Total net financial assets 3,700,077 3,840,000
Net debt 2,624,817 1,907,964
Non-financial assets
Prepaid expenses 56,949 32,489
Tangible capital assets (note 7) 1,424,581 1,303,736
Total non-financial assets 1,481,530 1,336,225
Net financial position (1,143,287) (571,739)

Contractual obligations (note 8)

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

Marie-Claude Landry, Ad. E.
Chief Commissioner

Natalie Dagenais
Chief Financial Officer

Ottawa, Canada
September 2, 2021

Statement of Operations and Net Financial Position (Unaudited)
for the year ended March 31
(in dollars)
  Planned Results 2021 2021 2020
Expenses
Engagement and Advocacy 7,687,806 5,211,465 4,586,522
Complaints 13,274,039 13,791,745 12,395,945
Proactive Compliance 5,797,608 5,107,046 2,561,711
Internal Services 12,708,001 13,657,905 11,738,565
Total expenses 39,467,454 37,768,161 31,282,743
Revenues
Internal Support Services 1,800,000 1,635,951 1,488,208
Miscellaneous revenues - 311,524 217,500
Revenues earned on behalf of Government - (311,524) (217,500)
Total net revenues 1,800,000 1,635,951 1,488,208
Net cost of operations before government funding and transfers 37,667,454 36,132,210 29,794,535
Government funding and transfers
Net cash provided by Government   30,796,489 25,620,326
Change in due from Consolidated Revenue Fund   237,766 (654,233)
Services provided without charge by other government departments (note 9)   4,523,435 4,230,246
Transfers of assets from / (to) other government departments   2,972 (2,105)
Net cost of operations after government funding and transfers   571,548 600,301
Net financial position - Beginning of year   (571,739) 28,562
Net financial position - End of year   (1,143,287) (571,739)

Segmented information (note 10)

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

Statement of Change in Net Debt (Unaudited)
for the year ended March 31
(in dollars)
  2021 2020
Net cost of operations after government funding and transfers 571,548 600,301
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7) 515,513 129,887
Amortization of tangible capital assets (note 7) (394,668) (479,311)
Loss on write-off of tangible capital assets (note 7) - (15,068)
Total change due to tangible capital assets 120,845 (364,492)
Change due to prepaid expenses 24,460 (10,181)
Net increase in net debt 716,853 225,628
Net debt - Beginning of year 1,907,964 1,682,336
Net debt - End of year 2,624,817 1,907,964

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

Statement of Cash Flow (Unaudited)
for the year ended March 31
(in dollars)
  2021 2020
Operating activities
Net cost of operations before government funding and transfers 36,132,210 29,794,535
Non-cash items:
Amortization of tangible capital assets (note 7) (394,668) (479,311)
Services provided without charge by other government departments (note 9) (4,523,435) (4,230,246)
Loss on write-off of tangible capital assets (note 7) - (15,068)
Variations in Statement of Financial Position:
(Decrease) increase in net accounts receivable and advances (377,689) 229,479
Increase (decrease) in prepaid expenses 24,460 (10,181)
Decrease in accounts payable and accrued liabilities 66,970 416,926
Increase in vacation pay and compensatory leave (665,700) (177,200)
Decrease (increase) in employee future benefits 21,800 (40,600)
Transfer of assets (from) / to other government departments (2,972) 2,105
Cash used in operating activities 30,280,976 25,490,439
Capital investing activities
Acquisition of tangible capital assets (note 7) 515,513 129,887
Cash used in capital activities 515,513 129,887
Net cash provided by Government of Canada 30,796,489 25,620,326

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

Notes to the Financial Statements (Unaudited)
For the year ended March 31

1. Authority and objectives

The Canadian Human Rights Commission (Commission) was established in 1977 under Schedule 1.1 of the Financial Administration Act in accordance with the Canadian Human Rights Act (CHRA).

The Commission leads the administration of the CHRA and works with employers to ensure compliance with the Employment Equity Act (EEA). The CHRA prohibits discrimination and the EEA promotes equality in the workplace. Under the leadership of the Pay Equity Commissioner and the Accessibility Commissioner, the Commission is also responsible for the administration and enforcement of the Pay Equity Act (PEA) and the Accessible Canada Act (ACA). These laws apply the principles of equal opportunity and non-discrimination to federal government departments and agencies, Crown corporations, and federally regulated private sector organizations. Finally, the Commission provides the Federal Housing Advocate with administrative services and facilities to support their duties and functions.

Engagement and Advocacy

Provide a national credible voice for equality in Canada by raising public awareness of human rights issues; engaging civil society, governments, employers and the public to affect human rights change and by monitoring and reporting on the implementation of the Government of Canada’s obligations under the United Nations’ Convention on the Rights of Persons with Disabilities.

Complaints

Provide people in Canada with a mechanism to file and resolve complaints under the Canadian Human Rights Act, Pay Equity Act, and Accessible Canada Act and to represent the public interest in achieving equality in Canada.

Proactive Compliance

Ensure federally regulated organizations comply with the requirements set out in the Employment Equity Act, Pay Equity Act, and the Accessible Canada Act and hold those who do not comply accountable.

Internal Services

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct services that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. These services are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Management Services; Materiel Management Services; and Acquisition Management Services.

2. Summary of significant accounting policies

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:

  1. Parliamentary authorities
    The Commission is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Commission 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 in the Statement of 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 Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2020-21 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt because these amounts were not included in the 2020-21 Departmental Plan.
  2. 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 Government.
  3. Due from the Consolidated Revenue Fund
    Amounts due from the 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 represent the net amount of cash that the Commission is entitled to draw from the CRF without further authorities to discharge its liabilities.
  4. Revenues
    • Revenues from internal support services are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
    • Revenues that are non-respendable are not available to discharge the Commission's liabilities. While the Chief Commissioner is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the Commission's gross revenues.
  5. 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, employer's contributions to the health and dental insurance plans and workers' compensation are recorded as operating expenses at their estimated carrying value.
  6. Employee future benefits
    • Pension benefits: Eligible employees participate in the Public Service Pension Plan (Plan), a multiemployer pension 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 Commission's total obligation to the Plan. 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.
    • Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
  7. Accounts receivable
    Accounts receivable are initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.
  8. Tangible capital assets
    All tangible capital assets having an initial cost of $5,000 or more are recorded at their acquisition cost. The Commission does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on First Nations reserves and museum collections.

    Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

    Asset class Amortization period
    Informatics hardware 3 to 5 years
    Informatics software 3 to 5 years
    Other equipment 3 to 15 years
    Leasehold improvements Over the remaining term of lease

    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

  9. 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:
    • i. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
    • ii. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.
  10. Measurement uncertainty
    The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the liability for employee future benefits, vacation pay and the useful life of tangible capital assets. 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

The Commission receives its funding through annual parliamentary authorities. 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, 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 authorities used

(in dollars)
  2021 2020
Net cost of operations before government funding and transfers 36,132,210 29,794,535
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (note 9) (4,523,435) (4,230,246)
Amortization of tangible capital assets (note 7) (394,668) (479,311)
Loss on write-off of tangible capital assets (note 7) - (15,068)
Increase in vacation pay and compensatory leave (665,700) (177,200)
Decrease (increase) in employee future benefits 21,800 (40,600)
Refunds of prior years' expenditures 6,421 8,984
Refunds of program expenditures 31,843 3,605
Accrued liabilities not charged to authorities (212,500) -
Adjustments to prior year's accounts payable 13,679 10,885
Total adjustments for items affecting net cost of operations but not affecting authorities (5,722,560) (4,918,951)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets (note 7) 515,513 129,887
Increase in employee advances 1,900 20,544
Employee overpayments 47,636 25,979
Increase (decrease) in prepaid expenses 24,460 (10,181)
Total adjustments for items not affecting net cost of operations but affecting authorities 589,509 166,229
Current year authorities used 30,999,159 25,041,813
b) Authorities provided and used

(in dollars)
  2021 2020
Authorities provided:
Vote 1 - Program expenditures 31,979,174 28,152,910
Vote 5 - Supporting the Canadian Human Rights Commission and Access to Justice - 68,970
Proceeds from the disposal of surplus Crown assets - 93
Statutory amounts - Contributions to employee benefits plan 3,369,223 2,739,951
Less:
Lapsed authorities (4,349,238) (5,920,111)
Current year authorities used 30,999,159 25,041,813

4. Accounts payable and accrued liabilities

(in dollars)
  2021 2020
Accounts payable - Other government departments and agencies 359,468 381,429
Accounts payable - External parties 1,007,480 900,083
Total accounts payable 1,366,948 1,281,512
Accrued salaries 2,036,246 2,188,652
Total accounts payable and accrued liabilities 3,403,194 3,470,164

5. Employee future benefits

  1. Pension benefits
    The Commission's employees participate in the Public Service Pension Plan (the "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. 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 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

    The 2020-21 expense amounts to $2,299,158 ($1,898,238 in 2019-20). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2019-20) the employee contributions and, for Group 2 members, approximately 1 time (1 time in 2019-20) the employee contributions.

    The Commission's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.
  2. Severance benefits
    Severance benefits provided to the Commission's 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, substantially all settlements for immediate cash out were completed and the remaining obligation will be disbursed upon departure from the public service. 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:
    (in dollars)
      2021 2020
    Accrued benefit obligation, beginning of year 845,800 805,200
    Expense for the year 65,457 243,368
    Benefits paid during the year (87,257) (202,768)
    Accrued benefit obligation, end of year 824,000 845,800

6. Accounts receivable and advances

(in dollars)
  2021 2020
Accounts receivable - Other government departments and agencies 327,990 632,537
Accounts receivable - External parties 274,926 372,176
Employee advances 35,248 34,348
Advances - Petty cash 200 2,000
Gross accounts receivable 638,364 1,041,061
Accounts receivable held on behalf of Government (13,490) (38,498)
Total net accounts receivable and advances 624,874 1,002,563

7. Tangible capital assets

Cost
(in dollars)
Asset class Opening Balance Acquisitions Transfers, Disposals and Write-Offs Closing Balance
Informatics hardware 652,132 183,356 - 835,488
Informatics software 1,797,744 - - 1,797,744
Other equipment 623,988 - - 623,988
Leasehold improvements 1,264,441 - - 1,264,441
Assets under construction 176,691 332,157 - 508,848
  4,514,996 515,513 - 5,030,509
Accumulated amortization
(in dollars)
Asset class Opening Balance Amortization Transfers, Disposals and Write-Offs Closing Balance
Informatics hardware 372,991 111,009 - 484,000
Informatics software 1,581,335 104,493 - 1,685,828
Other equipment 416,062 47,165 - 463,227
Leasehold improvements 840,872 132,001 - 972,873
  3,211,260 394,668 - 3,605,928
Net book value
(in dollars)
Asset class 2021 2020
Informatics hardware 351,488 279,141
Informatics software 111,916 216,409
Other equipment 160,761 207,926
Leasehold improvements 291,568 423,569
Assets under construction 508,848 176,691
  1,424,581 1,303,736

8. Contractual obligations

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

  Related Parties Acquisitions of goods and services Operating leases Total
2022 565,153 1,844,392 24,086 2,433,631
2023 91,551 174,890 2,916 269,357
2024 12,376 130,578 782 143,736
2025 6,883 98,711 - 105,594
2026 and thereafter 6,883 98,351 - 105,234
Total 682,846 2,346,922 27,784 3,057,552

9. Related party transactions

The Commission is related as a result of common ownership to all Government departments, agencies and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual. The Commission has defined its key management personnel as the Chief Commissioner, Deputy Chief Commissioner, and Executive Director.

The Commission enters into transactions with these entities in the normal course of business and on normal trade terms.

  1. Common services provided without charge by other government departments
    During the year, the Commission received services without charge from certain common service organizations, related to accommodation, the employer’s contribution to the health and dental insurance plans and worker's compensation coverage. These services provided without charge have been recorded in the Commission’s Statement of Operations and Net Financial Position as follows:
    (in dollars)
      2021 2020
    Accommodation 2,477,167 2,448,361
    Employer's contribution to the health and dental insurance plans 2,038,533 1,775,051
    Workers' compensation 7,735 6,834
      4,523,435 4,230,246
    The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada are not included in the Commission's Statement of Operations and Net Financial Position.
  2. Other transactions with other government departments and agencies
    In addition, the Commission provides internal support services to some other government departments and agencies related to the provision of finance, human resources, acquisition, administration and information technology services. The value of those agreements is $1,635,951 in 2020-21 ($1,488,208 in 2019-20). Contractual obligations with related parties, as shown in note 8 above, amount to a total of $682,846 over the next five years.
    (in dollars)
      2021 2020
    Accounts receivables 327,990 632,537
    Accounts payable 359,468 381,429
    Expenses 4,557,934 3,004,743
    Net Revenues 1,635,951 1,488,208

    Expenses and revenues disclosed in b) exclude common services provided without charge, which are already disclosed in a).

10. Segmented information

Presentation by segment is based on the Commission's core responsibilities. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

(in dollars)
  Engagement and Advocacy Complaints Proactive Compliance Internal Services 2021 2020
Operating expenses
Salaries and employee benefits 4,098,649 11,420,873 4,305,365 10,490,996 30,315,883 24,255,734
Professional and special services 695,049 1,101,313 352,012 791,398 2,939,772 2,215,171
Accommodation 334,595 925,533 357,379 859,660 2,477,167 2,448,360
Information services 10,353 58,226 454 386,532 455,565 137,387
Rentals 43,133 159,896 52,076 189,863 444,968 355,562
Amortization of tangible capital assets - - - 394,668 394,668 479,311
Equipment expenses 6,336 21,418 9,684 347,056 384,494 448,568
Communication 18,730 71,129 20,921 79,199 189,979 297,422
Utilities, materials and supplies 2,678 34,036 9,133 59,253 105,100 119,955
Repair and maintenance - - - 38,123 38,123 25,163
Travel and relocation 1,942 (679) 22 20,636 21,921 478,448
Claims against the Crown - - - 521 521 5,000
Loss on write-off of tangible capital - - - - - 15,068
Other - - - - - 1,594
Total operating expenses 5,211,465 13,791,745 5,107,046 13,657,905 37,768,161 31,282,743
Revenues
Internal support services - - - 1,635,951 1,635,951 1,488,208
Miscellaneous revenues - 26,996 - 284,528 311,524 217,500
Revenues earned on behalf of Government - (26,996) - (284,528) (311,524) (217,500)
Total net revenues - - - 1,635,951 1,635,951 1,488,208
Net cost of operations before government funding and transfers 5,211,465 13,791,745 5,107,046 12,021,954 36,132,210 29,794,535

Annex – Assessment of Internal Control over Financial Reporting for the fiscal year ended March 31, 2021 (Unaudited)

1. Introduction

This document provides a summary of information taken by the Canadian Human Rights Commission (Commission) to maintain an effective system of internal control over financial management (ICFM), including the system of internal control over financial reporting (ICFR), as well as information on assessment results and related action plan.

The Commission leverages the results of the periodic core control audits performed by the Office of the Comptroller General. The Audit Report for the Core Control Audit conducted during fiscal year 2011-12 and the related Management Action Plan are posted on the Commission's web site. Every year since 2009-10, the assessment of the Commission's internal controls in accordance with its ongoing monitoring plan is conducted by an independent firm.

Detailed information on the Commission's authority, mandate and core responsibilities can be found in the 2021-22 Departmental Plan and the 2020-21 Departmental Results Report.

1.1 Internal control management

The Commission has a well-established governance and accountability structure to support the assessment efforts and oversight of its system of internal control, which comprises:

  • organizational accountability structures as they relate to internal control management to support sound financial management, including the roles and responsibilities of senior managers of the Commission for control management in their areas of responsibility;
  • values and ethics;
  • ongoing communication and training on statutory requirements, and policies and procedures for sound financial management and control; and
  • monitoring of internal control management, as well as the provision of related assessment results and action plans to senior management.

1.2 Service arrangements relevant to financial statements

The Commission relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows:

Common Arrangements
  • Public Services and Procurement Canada centrally administers all payments including salaries, and the procurement of goods and services consistent with the Commission's delegation of authority, provides accommodation services and manages MyGCHR and Phoenix for the Commission;
  • The Treasury Board of Canada Secretariat provides the Commission with information to calculate the accrued severance liability and provides information on public service insurance and centrally administers payment of the employers' share of the  contributions toward statutory employee benefit plans; and
  • Employment and Social Development Canada provides worker's compensation coverage to the Commission.

Some other government departments and agencies rely on the Commission for the processing of certain transactions as per the interdepartmental arrangements.

Specific Arrangements
  • The Commission provides internal support services to some other government departments and agencies related to the provision of Finance, Human Resources, Acquisition, Administration and Information Technology services through Memorandums of Agreement. The information acquired through the assessments is shared with the clients who use the Commission's internal support services.

2. Assessment results during fiscal year 2020-21

The key findings and significant adjustments required for the 2020-21 fiscal year's assessment activities are summarized below.

2.1 New or significantly amended key controls

In the current fiscal year, there were no significantly amended key controls in existing processes that required a reassessment.

2.2 Ongoing monitoring program

In compliance with its rotational ongoing monitoring plan, the Commission reviewed and updated the documentation of the key controls in place and reassessed their operating effectiveness for the following business processes: contracting, pay administration, and budgeting and forecasting. In general, the assessment concluded that key controls for these business processes were found to be generally effective.

The Commission also documented and assessed the design and operating effectiveness of key controls for the revenue management business process. In general, the assessment concluded that the key controls were effective for the most part, with the following area of improvement:

  • Strengthening the approval process to support the signing of Memorandums of Agreement.

In addition, the documentation of the key controls in place and the operating effectiveness of information technology general controls (ITGCs) were reassessed in the area of IT security. The assessment revealed that key controls were found to be generally effective.

3. Action plan

3.1 Progress during fiscal year 2020-21

The Commission completed the annual assessment of internal controls according to the previous year rotational ongoing monitoring plan as shown in the following table:

Key Control Areas Previous year's rotational ongoing monitoring plan for current year Status
Business Process Contracting Completed as planned; no remedial actions required.
Pay administration Completed as planned; no remedial actions required.
Budgeting and forecasting Completed as planned; no remedial actions required.
Revenue management Completed as planned; one remedial action required.
ITGCs IT Security Completed as planned; no remedial action required.

3.2 Action plan for the next fiscal year and subsequent years

New emerging risk as a result of the COVID-19 pandemic were identified in the asset management process due to increasing flexibility in workspace arrangements and has been added to the ongoing monitoring plan.

The Commission’s risk based ongoing monitoring plan over the next three years is shown in the following table:

Rotational Ongoing Monitoring Plan Testing Operating Effectiveness
Key Control Areas Frequency Risk Rank 2021-22 2022-23 2023-24
Entity Level Control 2 years Medium Yes No Yes
Business Process Payments to suppliersFootnote 1 follows the table 2 years Medium Yes No Yes
Contracting 2 years Medium No Yes No
Pay Administration 2 years Medium No Yes No
Revenue Management 2 years Medium No Yes No
Year End Accounting and Financial reporting 2 years Medium Yes No Yes
Budgeting and forecasting 2 years Medium No Yes No
Cost Recovery 2 years Medium YesFootnote 2 Follows the table No Yes
CFO Attestation 2 years Medium YesFootnote 2 Follows the table No Yes
Asset Management 2 years Medium YesFootnote 2 Follows the table No Yes
ITGCs IT Management and computer and network operations 3 years Low Yes No No
IT Security (User Access) Annually High Yes Yes Yes
Application development and change management 2 years Medium Yes No Yes
Note 1:

The former business processes for travel and hospitality, acquisition cards and delegation of authority were combined into the business process for payments to suppliers.

Note 2:

Work will also include documentation and the design effectiveness of key controls for the Cost Recovery, CFO Attestation and Asset Management business processes.

Date modified:

Quick Links Navigation

How to File

FAQ's

Complain