Quarterly Financial Report
For the quarter ended September 30, 2011

• Management Statement|
• Statement of Authorities|
• Budgetary Expenditures by Standard Object

Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates A. It has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board Accounting Standard 1.3. It has not been subject to an external audit or review.

Board Mandate

The Public Service Labour Relations Board (the Board) is an independent quasi-judicial statutory tribunal responsible for administering the collective bargaining and grievance adjudication systems in the federal public service and the Parliament of Canada. The Board’s legislative mandate is to provide adjudication services, mediation services and compensation analysis and research services in accordance with the Public Service Labour Relations Act. Under an agreement with the Yukon government, the PSLRB also administers the collective bargaining and grievance adjudication systems under the Yukon Education Labour Relations Act and the Yukon Public Service Labour Relations Act.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament and those used by the Board consistent with the Main Estimates and Supplementary Estimates for the 2011-2012 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Board uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date (YTD) results

Statement of Authorities

As of September 30, 2011, the total authorities available for use for the year have increased by $411 thousand compared to the same quarter of the previous year — from $13.96 million to $14.37 million. The net increase arose from a combination of increases in Vote 105 – Program expenditures ($334 thousand) and statutory authorities ($77 thousand).

As per the Statement of Authorities, the net increase of $334 thousand in Vote 105 – Program expenditures is primarily attributable to a difference in the approval of a transfer of funds for the operating budget carry-forward. The Board received that funding, in the amount of $620 thousand, in fiscal year 2011-2012, while it received a funding of $304 thousand in fiscal year 2010-2011. It is also attributable to funding increases of $88 thousand for retroactive salary payments from collective agreement settlements, offset by a reduction of $70.5 thousand in 2011-2012 from the cost-containment measures outlined in Budget 2010. The increase of $77 thousand in the statutory authorities is attributable to a rate change for contributions to employee benefit plans.

Budgetary Expenditures by Standard Object

The Board's quarterly and year-to-date spending are very similar to the previous year. There is an increase of $307 thousand in personnel expenses, primarily attributable to severance pay benefits earned prior to termination of employment as permitted by collective agreements. Rental expenses are lower than last year by 66 thousand or 29% due in part to prudent planning and a greater use of low-cost venues. Also, the Board has been more proactive in trying to convince its stakeholders to evaluate their needs for postponements with more notice that may result in fewer cancellation charges. A decrease of $167 thousand in the amount spent on professional and special services can be explained by the change to the Board's strategic direction for its case management system.

As can be seen in Figure 1, the Board spent approximately 40% of its authorities after the second quarter.

Figure 1 - Second Quarter Expenditures compared to Annual Authorities

Risks and Uncertainties

This Departmental Quarterly Financial Report (QFR) reflects the results of the current fiscal period in relation to the Main Estimates (and Supplementary Estimates A as applicable) for which full supply was released on June 27, 2011.

The Board is funded through annual appropriations. As a result, its operations are impacted by any changes in funding approved through Parliament. Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-11 levels for the fiscal years 2011-12 and 2012-13 and that departments would not be funded for salary increases resulting from collective agreements in those years. As departments must pay the salary increases to employees, they are expected to find efficiencies within their operating vote to fund these increases. Management is reviewing various options to adjust to this constraint in funding.

Furthermore, Budget 2011 announced that departmental budgets would be examined through a Strategic and Operating Review. However, at this time, the nature and extent of the impacts of this review are not known. While the Board has launched its own expenditure review to identify potential savings, it hopes to redirect any efficiencies found to its Compensation Analysis and Research Services or to cover other statutory activities which are currently under funded.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs over the last year.

Approved by:

The original version was signed by

Ottawa, Canada
November 29, 2011