Financial Statements 2011-2012

Statement of Management Responsibility

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at December 15, 2010 and reflect the plans described in the Report on Plans and Priorities.

*David Langtry*	*Heather Throop*
Deputy Chief Commissioner	Chief Financial Officer
*Denis Pelchat*
Deputy Chief Financial Officer

Ottawa, Canada
January 21, 2011

Canadian Human Rights Commission

Future-Oriented Statement of Operations (Unaudited)

For the year ended March 31 (in dollars)	Estimated Results 2011	Forecast 2012
Expenses
Human Rights Knowledge Development and Dissemination Program	3 992 875	4,233,942
Discrimination Prevention Program	5 832 685	5,581,236
Human Rights Dispute Resolution Program	10 239 214	10,410,338
Internal Services	7 228 633	7,727,233
Net Cost of Operations	27 293 407	27,952,749

Information for the year ended March 31, 2011 includes actual amounts from April 1, 2010 to December 31, 2010.

Segmented information (Note 11)

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

Canadian Human Rights Commission

Future-Oriented Statement of Financial Position (Unaudited)

As at March 31 (in dollars)	Estimated Results 2011	Forecast 2012
ASSETS
Financial Assets
Due from Consolidated Revenue Fund	1,640,928	2,012,712
Accounts Receivable and Advances (Note 6)	129,730	127,268
Total Financial Assets	1,770,658	2,139,980

Non-Financial Assets
Prepaid Expenses	11,039	13,247
Tangible Capital Assets (Note 7)	1,036,181	813,888
Total Non-Financial Assets	1,047,220	827,135
	2,817,878	2,967,115
LIABILITIES AND EQUITY OF CANADA
Liabilities
Accounts Payable and Accrued Liabilities (Note 8)	1,652,450	2,024,038
Vacation Pay and Compensatory Leave	918,642	884,364
Employee Future Benefits (Note 9)	3,756,621	3,631,468
Total Liabilities	6,327,713	6,539,870

Equity of Canada	(3,509,835)	(3,572,755)
	2,817,878	2,967,115

Information for the year ended March 31, 2011 includes actual amounts from April 1, 2010 to December 31, 2010.

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

Canadian Human Rights Commission

Future-Oriented Statement of Equity of Canada (Unaudited)

For the year ended March 31 (in dollars)	Estimated Results 2011	Forecast 2012

Equity of Canada, Beginning of Year	(3,218,547)	(3,509,835)
Net Cost of Operations	(27,293,407)	(27,952,749)
Change in Due from the Consolidated Revenue Fund	(514,760)	371,784
Net cash provided by the Government of Canada	23,749,465	23,791,868
Services provided without charge from other government departments (Note 10)	3,767,414	3,726,177
Equity of Canada, End of Year	(3,509,835)	(3,572,755)

Information for the year ended March 31, 2011 includes actual amounts from April 1, 2010 to December 31, 2010.

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

Canadian Human Rights Commission

Future-Oriented Statement of Cash Flow (Unaudited)

For the year ended March 31 (in dollars)	Estimated Results 2011	Forecast 2012
OPERATING ACTIVITIES
Net Cost of Operations	27,293,407	27,952,749

Non-Cash Items:
Amortization of Tangible Capital Assets (Note 7)	(200,734)	(249,793)
Services provided without charge from other government departments (Note 10)	(3,767,414)	(3,726,177)

Variations in Statement of Financial Position:
Increase (decrease) in Accounts Receivable and Advances	30,262	(2,462)
Increase (decrease) in Prepaid Expenses	(13,827)	2,208
Decrease (increase) in Liabilities	355,746	(212,157)
Cash used in Operating Activities	23,697,440	23,764,368

CAPITAL INVESTING ACTIVITIES
Acquisitions of Tangible Capital Assets (Note 7)	52,025	27,500
Cash used in Capital Investing Activities	52,025	27,500

Net Cash Provided by Government of Canada	23,749,465	23,791,868

Information for the year ended March 31, 2011 includes actual amounts from April 1, 2010 to December 31, 2010.

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

Canadian Human Rights Commission

Notes to the Future-Oriented Financial Statements (Unaudited)

1. Authority and Objectives

The Canadian Human Rights Commission (the Commission) was established in 1977 under Schedule II of the Financial Administration Act in accordance with the Canadian Human Rights Act. The Commission is responsible for the administration of the Canadian Human Rights Act and ensures compliance with the Employment Equity Act.

Human Rights Knowledge Development and Dissemination Program

This program supports increased equality of opportunity without discrimination on prohibited grounds, in federal and federally regulated workplaces and service centers, through the implementation of the employment equity audits and employer liaison activities. Stakeholder engagement may involve federal departments and agencies, Crown corporations and federally regulated workplaces, private sector organizations, provincial and territorial government bodies, international agencies, and non-governmental organizations.

Discrimination Prevention Program

Human Rights Dispute Resolution Program

This program supports resolution of human rights complaints against federal departments and agencies; federally regulated workplaces, Crown corporations, private sector organizations; and the public. The resolution of complaints may involve a range of dispute resolution processes, as well as an investigation if complaints are unresolved by the parties, prior to a decision by Commissioners. If a case is referred to the Canadian Human Rights Tribunal, the Commission's litigation team is involved in all mediations, and participates in hearings where appropriate, representing the public interest.

Internal Services

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.

2. Significant Assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.

2. Significant Assumptions (continued)

The main assumptions are as follows:

(a) The Commission's activities will remain substantially the same as the previous year.
(b) Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
(c) Estimated year end information for 2010-11 is used as the opening position for the 2011-12 forecasts.

These assumptions are adopted as at December d, yyyy.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2010-11 and for 2011-12, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these financial statements the Canadian Human Rights Commission has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

(a) The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
(b) Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, Canadian Human Rights Commission 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.

4. Summary of Significant Accounting Policies

The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a) 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 Future-oriented Statement of Operations and the Statement of Future-oriented Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the basis of reporting.

4. Summary of Significant Accounting Policies (continued)

(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 Government.
(c) Amounts Due from/to the CRF
Amounts due from/to 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 appropriations to discharge its liabilities.
(d) 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, the employer's contribution to the health and dental insurance plans and worker's compensation coverage are recorded as operating expenses at their estimated cost.

(e) Employee Future Benefits

(i) Pension Benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer 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 departmental obligation to the Plan. Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
(ii) 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.

(f) Accounts Receivable

Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.

(g) Tangible Capital Assets

All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost and amortized on a straight-line basis over their estimated useful lives, as follows:

Asset class	Amortization period
Informatics hardware	3 to 5 years
Informatics software	3 to 5 years
Other equipment	1 to 15 years
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement.

5. Parliamentary Authorities

The Commission receives its funding through annual Paliamentary authorities. Items recognized in the Statement of Operations 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) Authorities requested (in dollars)	Estimated Results 2011	Forecast 2012
Authorities Requested
Vote 10	21,223,540	21,436,080
Statutory	2,672,430	2,727,631
Authorities Available	23,895,970	24,163,711
Lapse	675,000	-
Forecast authorities to be used	23,220,970	24,163,711

Forecast authorities requested for the year are the planned spending amounts which are based on the Main Estimates, Supplementary Estimates (A), (B) and (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

(b) Reconciliation of Net Cost of Operations to forecast authorities to be used (in dollars)	Estimated Results 2011	Forecast 2012
Net Cost of Operations	27,293,407	27,952,749
Adjustments for items affecting Net Cost of Operations but not affecting authorities:
*Add (Less):*
Amortization of Tangible Capital Assets (Note 7)	(200,734)	(249,793)
Decrease (increase) in Employee Future Benefits	(158,972)	125,154
Decrease in Vacation Pay and Compensatory Leave	2,658	34,278
Services provided without Charge by other Government Departments (Note 10)	(3,767,414)	(3,726,177)
	(4,124,462)	(3,816,538)
Adjustments for items not affecting Net Cost of Operations but affecting authorities:
*Add (Less):*
Acquisitions of Tangible Capital Assets (Note 7)	52,025	27,500
	52,025	27,500
Forecast authorities to be used	23,220,970	24,163,711

6. Accounts Receivable and Advances

(in dollars)	Estimated Results 2011	Forecast 2012
Accounts Receivable
Other Government Departments	11,523	11,327
External Parties	115,407	113,441
Advances
Petty Cash	2,800	2,500
Total	129,730	127,268

7. Tangible Capital Assets

(in dollars)	Estimated Results 2011	Forecast 2012
Opening balance	1,184,890	1,036,181
Acquisition of Tangible Capital Assets	52,025	27,500
Less: Current year amortization	(200,734)	(249,793)
Net Book Value	1,036,181	813,888

8. Accounts Payable and Accrued Liabilities

(in dollars)	Estimated Results 2011	Forecast 2012
External Parties
Accounts Payable and Accrued Liabilities	1,074,799	1,451,158
Accrued Salaries	62,091	120,045
Other Government Departments
Accounts Payable	515,560	452,835
Total	1,652,450	2,024,038

9. 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 forecast expenses are $1,876,046 in 2010/11 and $1,914,796 in 2011/12, representing approximately 1.9 times the contributions of employees in 2009/10.

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 authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:

(in dollars)	Estimated Results 2011	Forecast 2012
Accrued benefit obligation, beginning of year	3,597,650	3,756,621
Expense for the year	344,313	182,798
Expected benefit payments during the year	(185,342)	(307,951)
Accrued benefit obligation, end of year	3,756,621	3,631,468

10. 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. In addition, the Commission has shared service agreements with other government departments related to the provision of Finance, Human Resources, Administration and Information Technology services. The forecast cost-recovery are $871,500 in 2010/11 and $1,000,000 in 2011/12. The Commission also obtained common services without charge from other Government departments as disclosed below. Common services provided without charge by other government departments

During the year, the Commission is forecasted to receive services without charge from certain common service organizations related to accommodation, workers’ compensation coverage and the employer's contribution to the health and dental insurance plans. These services without charge have been recorded in the Commission's future-oriented Statement of Operations as follows:

(in dollars)	Estimated Results 2011	Forecast 2012
Accommodation	2,425,565	2,432,385
Employer's contributions to the health and dental insurance plans	1,336,217	1,288,048
Workers’ compensation coverage	5,632	5,744
Total	3,767,414	3,726,177

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 Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Department's Statement of Operations.

11. Segmented information

Presentation by segment is based on the Commission's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the forecasted expenses for the main program activities, by major object of expense. The segment estimates for the period are as follows:

(in dollars)	Total 2011	2012
(in dollars)	Total 2011	Human Rights Development and Dissemination Program	Discrimination Prevention Program	Human Rights Dispute Resolution Program	Internal Services	Total 2012
Operating Expenses
Salaries and employee benefits	20,314,217	2,933,106	4,295,850	6,956,650	5,282,178	19,467,784
Accomodation	2,425,565	325,210	493,774	902,901	710,500	2,432,385
Professional and special services	2,124,065	572,846	465,437	1,503,721	1,038,284	3,580,288
Travel and Relocation	758,486	125,216	101,738	328,692	226,953	782,599
Communication	404,540	66,784	54,262	175,308	121,046	417,400
Information	273,571	32,000	26,000	84,000	58,000	200,000
Rentals	273,248	40,000	32,500	105,000	72,500	250,000
Amortization of tangible capital assets	200,734	42,780	33,675	102,066	71,272	249,793
Utilities, materials and supplies	177,024	32,000	26,000	84,000	58,000	200,000
Repairs and maintenance	166,965	32,000	26,000	84,000	58,000	200,000
Equipment expenses	157,681	32,000	26,000	84,000	30,500	172,500
Other	17,311	-	-	-	-	-
Net Cost of Operations	27,293,407	4,233,942	5,581,236	10,410,338	7,727,233	27,952,749