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Departmental Performance Report

Appendices

A: Assessment of Responses to Recommendations Issued in 2003-2004

B: Links to Other Organizations Involved in Transportation Safety

C: Audited Financial Statements

Appendix A
Assessment of Responses
to Recommendations Issued in 2003-2004

Marine Recommendations

Rail Recommendations

Appendix B
Links to Other Organizations
Involved in Transportation Safety

More information on transportation safety in Canada is available from other federal government agencies who play a role in this area. The Internet addresses for the main organizations are as follows:

Transport Canada
National Energy Board
Canadian Coast Guard
Canadian Transportation Agency
Royal Canadian Mounted Police
Human Resources and Skills Development Canada
National Defence

Information on transportation safety in selected countries is available on the following Internet sites:

United States

National Transportation Safety Board

Federal Aviation Administration

Australia

Australian Transport Safety Bureau

France

Bureau d'Enquêtes et d'Analyses pour la sécurité de l'Aviation Civile

United Kingdom

Air Accidents Investigation Branch

Marine Accidents Investigation Branch

International

International Civil Aviation Organization

International Maritime Organization

International Transportation Safety Association

Appendix C
Audited Financial Statements

Canadian Transportation Accident Investigation and Safety Board Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2005 and all information contained in this report rests with management of the Canadian Transportation Accident Investigation and Safety Board (CTAISB).

These financial statements have been prepared by management in accordance with accounting standards issued by the Treasury Board of Canada Secretariat, which are consistent with Canadian generally accepted accounting principles for the public sector, using management's best estimates and judgements where appropriate. These statements should be read within the context of the significant accounting policies set out in the Notes.

Management has developed and maintains books, records, internal controls and management practices designed to provide reasonable assurance that the Board's assets are safeguarded and controlled, resources are managed economically and efficiently in the attainment of corporate objectives, and that transactions are in accordance with the Financial Administration Act and regulations as well as other applicable government policies and statutory requirements.

The transactions and financial statements of the CTAISB have been audited by the Auditor General of Canada, the appointed independent auditor for the Board.

Charles H. Simpson Acting Chairman	Jean L. Laporte, CGA Senior Financial Officer

Gatineau, Canada
June 1, 2005

Auditor's Report

Canadian Transportation Accident Investigation and Safety Board Statement of Financial Position
As at March 31
(in thousands of dollars)

Charles H. Simpson Acting Chairman	Jean L. Laporte, CGA Senior Financial Officer

Gatineau, Canada
June 1, 2005

Canadian Transportation Accident Investigation and Safety Board
Statement of Operations and Net Assets
for the year ended March 31 (in thousands of dollars)

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

Canadian Transportation Accident Investigation and Safety Board
Statement of Cash Flow
for the year ended March 31 (in thousands of dollars)

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

Canadian Transportation Accident Investigation and Safety Board Notes to the Financial Statements
for the year ended March 31, 2005

1. Authority and Objectives

The Canadian Transportation Accident Investigation and Safety Board (CTAISB) was established in 1990 under the Canadian Transportation Accident Investigation and Safety Board Act and is a departmental corporation named in Schedule II to the Financial Administration Act. In its day-to-day activities the CTAISB is more commonly known by the name Transportation Safety Board of Canada, or simply the TSB. The objective of the CTAISB is to advance transportation safety. It seeks to identify safety deficiencies in transportation occurrences and to make recommendations designed to eliminate or reduce any such safety deficiencies. In addition to investigations, including where necessary public inquiries into selected occurrences, the CTAISB may conduct studies into more general matters pertaining to transportation safety. The CTAISB has the exclusive authority to make findings as to causes and contributing factors when it investigates a transportation occurrence. The CTAISB's operating expenditures are funded by a budgetary lapsing authority whereas contributions to employee benefit plans are funded by statutory authorities.

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with accounting standards issued by the Treasury Board of Canada Secretariat which are consistent with Canadian generally accepted accounting principles for the public sector.

(a) Parliamentary appropriations - the CTAISB is primarily financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the CTAISB do not parallel financial reporting according to Canadian generally accepted accounting principles. They are based in large part on cash flow requirements. Consequently, items recognized in the Statement of Operations and in the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3a) to these financial statements provides information regarding the source and disposition of these authorities. Note 3b) provides a high-level reconciliation between the two bases of reporting. Note 3c) presents the reconciliation to Net Cash Provided by Government.

(b) Due from the CRF - as a departmental corporation, the CTAISB operates within the Consolidated Revenue Fund (CRF) administered by the Receiver General for Canada. All cash receipts are deposited to the CRF and all cash disbursements made by the CTAISB are paid from the CRF. Due from the CRF represents the amount of cash that the CTAISB is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities.

(c) Revenues - these are accounted for in the period in which the underlying transaction occurs that gives rise to the revenues.

(d) Employee severance benefits - are calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole. Employee severance benefits on cessation of employment represent obligations of the CTAISB that are normally funded in future years as they are paid.

(e) Vacation pay and overtime - are expensed in the year that the entitlement occurs.

(f) Contributions to pension plans - are recognized in the period that the contributions are made. The calculation of contributions is an estimate based on a government-wide average adjusted annually. Actuarial surpluses or deficiencies are not recorded in the CTAISB's books but are recognized in the consolidated financial statements of the Government of Canada.

(g) Services provided without charge - are recorded as operating expenses. Note 8 provides estimates of the more significant types of services provided to the CTAISB without charge.

(h) Receivables - these are stated at amounts expected to be ultimately realized. An allowance is made for receivables where recovery is considered uncertain.

(i) Inventories not for re-sale - these items are held for future program delivery and are not intended for re-sale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.

(j) Property and equipment - all assets plus leasehold improvements having an initial cost of $2,000 or more are recorded at their acquisition cost. Amortization of property and equipment is done on a straight-line basis over the estimated useful life of the capital asset as follows:

(k) 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 exchange rates in effect at year-end.

(l) Measurement uncertainty - the preparation of financial statements 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 items where estimates are used are the useful lives of property and equipment, employee severance benefits and the assessment of contingent liabilities.

3. Parliamentary Appropriations

a) Reconciliation of Parliamentary Appropriations Voted to Authorities Used

b) Reconciliation of Net Results to Appropriations Used

c) Reconciliation to Net Cash Provided by Government

4. Receivables and Advances

5. Property and Equipment
(In thousands of dollars)

6. Other Income / Expenses

The CTAISB is responsible for coordinating the financial management of funds for the networks of small federal agencies. The revenues consist of contributions from all agencies to the cost sharing. The expenses are the disbursements made on behalf of the group. Each government department will report its respective portion of expenses in its financial statements.

7. Related Party Transactions

The CTAISB is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The CTAISB enters into transactions with these entities in the normal course of business and on normal trade terms applicable to all individuals and enterprises except that certain services, as defined in note 2(g), are provided without charge. These services are described in Note 8.

8. Services Provided Without Charge

During the year, the CTAISB received services that were obtained without charge from other government departments and agencies for a total of $3,351,000 ($3,105,000 in 2004). These are recorded at their estimated costs in the financial statements as follows:

9. Contingent Liabilities

In the normal course of its operations, the CTAISB becomes involved in various legal actions. Some of these potential liabilities 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 on the Board's financial statements.

For the year ended March 31, 2005, there are various outstanding legal actions against the CTAISB. No liability has been recorded in the financial statements since management of the CTAISB considers them unlikely to be successful.

10. Commitments

The nature of the CTAISB's activities results in some large multi-year contracts and obligations whereby the CTAISB will be committed to make some future payments when the services/goods are rendered. Presently, such commitments apply only to the next two years. Major commitments that can be reasonably estimated are as follows:

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1.   While the TSB's operations are for the 2004-2005 fiscal year, occurrence statistics are for the 2004 calendar year. Comparisons are generally to the last 5 or 10 years

2.   Investigations are considered complete after the final report has been issued.