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Departmental Performance Report

Appendices

A: TSB Participation to Conferences and Technical Meetings Pertinent to Transportation Safety

B: TSB Participation in Safety Symposiums, International Safety Organizations and International Investigations

C: Assessment of Responses to Air Recommendations Issued Before 2005-2006

D: Links to Other Organizations Involved in Transportation Safety

E: Audited Financial Statements

Appendix A
TSB Participation to Conferences and Technical Meetings
Pertinent to Transportation Safety

Members of the Board made presentations to the International Helicopter Safety Symposium 2005 in Montréal, Quebec, the Canadian Maritime Pilots' Association in Québec, Quebec, the Operation Lifesaver annual conference in Gatineau, Quebec, and the Canadian Board of Marine Underwriters annual general meeting in Toronto, Ontario. They also attended the Air Canada Pilots Association flight safety conference in Toronto, the Air Transport Association of Canada annual symposium in Montréal, the Helicopter Association of Canada annual convention in Vancouver, British Columbia, the Administrative Tribunal Members' Forum in Ottawa, Ontario, and the Council of Canadian Administrative Tribunals annual conference also in Ottawa. Members of the Board also visited Canadian Pacific Railway's new infrastructure in Kamloops, British Columbia.

In addition, the Executive Director was a guest speaker at the Chief Coroners and Chief Medical Examiners annual conference and the Canadian Business Aviation Association annual training seminar. The Executive Director also attended the Canadian Transportation Agency and Railway Association of Canada annual workshop, the Canadian Aviation Executives' Safety Network annual meeting, Transport Canada's annual Canadian Aviation Safety Seminar, the Air Transport Association of Canada annual symposium and the annual executive meeting of the Association québécoise des transporteurs aériens.

The Director General, Investigation Operations, attended meetings with individual Canadian railway companies and an industry association to discuss matters of mutual interest, and participated in consultative sessions of the Canadian Maritime Law Association, the Canadian Marine Advisory Council, the Air Transport Association of Canada and the National Research Council Institute for Aerospace Research and Centre for Surface Transportation Technology. He also made presentations to the annual Flightscape Users conference, the 2005 SARSCENE conference (search and rescue issues) and the Transportation of Dangerous Goods Advisory Council annual meeting. He also participated in the International Civil Aviation Organization (ICAO) briefings on results of its audit of Canada's conformance to ICAO obligations.

Marine staff in Vancouver continue to take a leading role in the Marine Action Group activities whereby safety presentations, which include practical displays of vessel stability characteristics, are made to fishing and other interests. Presentations have also been made to Pacific Marine Training Institute students, the BC Seafood Alliance, the Workers' Compensation Board of British Columbia, the Pacific Prawn Fishermen's Association, the Crab Fishermen's Association, the Hupacasath Native Band Fishers and the Pacific Coast Marine Review Panel. In the Central region, staff attended Canadian Marine Advisory Council meetings (both national and regional), gave presentations on fishing vessel safety and participated in important marine discussions. Other presentations have been given to the Canadian Power and Sail Squadrons, the International Shipmasters' Association convention, the Company of Master Mariners of Canada and the Golden Horseshoe Advisory Group. Quebec staff in the Laurentian region conducted presentations to the biannual meeting on Naval Applications of Materials Technology and attended a monthly meeting of the Constructeurs et navigateurs amateurs (CONAM). In the Maritimes region, a presentation was made to the Marine Medical Seminar for the Medical Examiners of Seafarers.

Pipeline staff gave presentations on the TSB investigation process to industry representatives both in the Atlantic Provinces and in Alberta. Additionally, they participated in a mock pipeline rupture exercise that involved the National Energy Board, industry, local fire and police departments and other governmental organizations.

Rail staff gave presentations on the TSB and its work at conferences in Moncton, New Brunswick, at Transport Canada's Annual Workshop on Highway-Railway Grade Crossing Research, to coroners' offices, to police organizations and to railway companies. Staff also participated in a mock rail accident in Ottawa, along with municipal representatives, emergency response personnel and industry representatives.

Air staff participated in annual meetings with departments and associations within the aviation community. It also provided formal briefings to Canadian airport fire chiefs attending the Canadian Airport Fire Protection Association meeting in Richmond, British Columbia; to the International Helicopter Symposium in Montréal, on lessons learned from TSB investigations into helicopter accidents; to the Canadian Aerospace Institute on basic helicopter aerodynamics and lessons learned from TSB investigations into helicopter accidents (1994-2003); to Air Canada on the interaction between the TSB and the Air Canada emergency response team after an accident; and to the International Confidential Aviation Safety Systems (ICASS) on SECURITAS (the TSB Confidential Safety Reporting System). The Air Branch improved partnerships and working procedures with other departments and agencies (Transport Canada, NAV CANADA, Foreign Affairs Canada, Canada Border Services Agency, Canadian Air Transport Security Authority, Department of National Defence, National Research Council and ICAO). The Air Branch contributed support to seminars conducted by the Air Canada Pilots Association, the Air Line Pilots Association, the Air Transportation Association of Canada, the American Helicopter Society International, the Canadian Aeronautics and Space Institute, the Canadian Aviation Maintenance Council, the Helicopter Association of Canada, the Northwest Territories Government Airports Group and the International Society of Air Safety Investigators.

The TSB Engineering facilities continued to support occurrence investigations with their core business of timely and quality engineering investigation reports, and provided briefings and support for visits of particular interest to industry groups. This year, the Engineering Branch provided support and was instrumental in the following:

• a briefing to the Department of National Defence Icing Operations Standing Committee;



• worked with Canadian Pacific Railway, DaimlerChrysler Canada and the County of Renfrew following a rail crossing accident;



• during the underwater search and recovery of the Messerschmitt-Bolkow-Blohm BO 105 Canadian Coast Guard helicopter, assisted Canadian Coast Guard ships and helicopters, a Royal Canadian Mounted Police patrol boat, an Irving Oil dive ship and remotely operated vehicles, and the Bedford Institute of Oceanography;



• cooperated with Environment Canada and Canadian National to ensure that the TSB could continue its investigation while Environment Canada and Canadian National were conducting their own independent parallel investigations and is currently negotiating with the National Research Council Chalk River laboratories to use the neutron diffraction method for measuring residual stresses in the rails;



• continued support to the Transport Canada Dangerous Goods Branch, which is looking into tank car failures not being investigated by the TSB.

The Human Performance Division delivered the Human Factors in Investigations course to external participants, including provincial and federal investigative bodies (Canadian Coast Guard, Department of National Defence, Transport Canada and National Energy Board), industry (NAV CANADA, Serco, and WestJet Airlines) and academia (Laurentian University). Human Performance staff also made educational presentations at academic institutions such as the University of Toronto.

The Macro-analysis Division provided support to Transport Canada's multi-disciplinary research project on grade-crossing accidents.

Appendix B
TSB Participation in Safety Symposiums, International Safety
Organizations and International Investigations

Over the past year, Board members attended the International Aviation Security Conference in Washington, D.C. and visited the U.S. National Transportation Safety Board in Washington, D.C. The Executive Director also participated in that visit and attended the annual meeting of the International Transportation Safety Association (of which Canada is a founding member). Finally, an investigation information management system development memorandum of understanding was signed with the Australian Transport Safety Bureau.

The Marine Branch continued its important work with International Maritime Organization (IMO) committees and sub-committees, particularly the Human Element and Casualty Analysis working group and correspondence group. Marine staff reviewed several international investigation reports, and lessons learned have been submitted to the IMO for global publication. The IMO Code for the Investigation of Marine Casualties and Incidents is under review, and Canada is taking a lead role in the recommendation to have the Code become part of the prestigious International Convention for the Safety of Life at Sea (SOLAS). This will improve international cooperation and standardize procedures. Marine staff made two presentations to the Marine Accident Investigators' International Forum at its annual meeting in Port Vila, Vanuatu, where the Code was also addressed in detail by 45 nations. Partnering is being actively sought with other countries concerning the requirements to download and play back voyage data recorder (VDR) information following marine accidents. Marine staff are taking an active role in assuring technical competence by attending and participating in International Electrotechnical Commission meetings in the United Kingdom.

Rail staff attended the Wheel/Rail Interface Seminar in Chicago, Illinois, in May 2005, and the Advanced Hazmat Technician training at the Transportation Technology Center in Pueblo, Colorado, in October 2005. The Rail Branch sent a full set of investigation procedures and standards to the Republic of South Africa, which has just started a new regulatory regime. Informal discussions ensued on the application of the standards. In November 2005, Rail staff attended the International Rail Safety Conference in Cape Town, South Africa, and presented a paper describing lessons learned from three accident investigations to delegates from five countries.

The Air Branch improved communications and cooperation with the investigation agencies of Australia, China, Denmark, Finland, France, Germany, Iceland, the Netherlands, Norway, Portugal, the Republic of Korea, Sweden, the United Kingdom and the United States, and with industry manufacturers Bombardier, Pratt & Whitney Canada, Bell Helicopter, Airbus and Boeing. The Air Branch hosted the annual Nordic Accident Investigation Group meeting, which was attended by accident investigation authorities from Denmark, Finland, Iceland, Norway and Sweden. The Air Branch also participated in the European Aviation Safety Conference and the annual Flight Safety Foundation International Air Safety Seminar.

The Engineering Branch has an excellent working relationship with worldwide investigative agencies and assists, when requested, to complement the capabilities of those agencies with:

• flight data recorder (FDR) analysis and animation to assist in the investigation of the China Eastern CRJ aircraft accident;



• FDR and cockpit voice recorder (CVR) download, analysis and animation in support of the Sky Services Boeing 767 accident in Punta Cana, Dominican Republic;



• recorder download and technical support in the landing gear analysis for the Dash 8 accident in Trinidad and Tobago;



• FDR data analysis, flight animation and photogrammetric analysis of aircraft height above terrain and metallurgical work in Toulouse, France, following a CL-415 aircraft accident;



• CVR download for a DHC-6 aircraft accident in Costa Rica;



• as a member of the International Civil Aviation Organization (ICAO) Accident Investigation Recorders (AIR) Working Group, took part in ICAO's international meeting;



• for the Air France Airbus accident, worked with the U.S. National Transportation Safety Board (NTSB), France's Bureau d'Enquêtes et d'Analyse pour la Sécurité de l'Aviation Civile (BEA), the United Kingdom Air Accidents Investigation Branch, the U.S. Federal Aviation Administration (FAA) Technical Center, Messier Bugatti and Goodrich (brake systems), Michelin (tires), Zodiac (aircraft oxygen systems), Airbus, Team (solid state CVR) and Air France;



• technical non-disclosure arrangements were implemented to allow the access to Garmin International's schematics and layout diagrams to examine and retrieve stored data in global positioning system receivers recovered from accident vehicles;



• worked in cooperation with Dukane Seacom in the analysis of underwater acoustic locator beacons and established a working relationship to obtain schematics for future investigation purposes;



• carried out digital flight data recorder (DFDR) and CVR download, analysis and flight animation work, as well as direct access recorder (DAR) analysis and synchronization with DFDR data;



• worked with the aircraft manufacturer (Airbus), as well as with the BEA, the Federal Bureau of Aircraft Accidents Investigation (BFU) of Germany and the NTSB;



• developed the scope of the testing program undertaken by Airbus and partnered with the National Research Council for the composites aspect of the testing and analyses, and made a significant contribution in the publication of the safety advisories that affected the Airbus fleet worldwide;



• following a CL-415 accident in Europe, ensured continued support as the accredited representative from the state of manufacture; and



• ensured continued investigation support into a Pratt & Whitney PT6-20 engine failure on take-off in Australia on a King Air, which then crashed and was consumed by fire.

Human Performance staff participated in human factors working groups at international meetings, including the meeting of the International Maritime Organization in London, England, and chaired a panel session on human factors in helicopter safety and presented a research paper at the International Helicopter Safety Symposium in Montréal.

Macro-analysis staff participated in the ICAO Safety Indicators Study Group. The Macro-analysis Division also provided several statistical reports to international agencies and industries.

Appendix C
Assessment of Responses to Air Recommendations
Issued Before 2005-2006

Appendix D
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 Social 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 E
Audited Financial Statements

Transportation Safety Board of Canada
Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2006 and all information contained in these statements rests with management of the Transportation Safety Board of Canada (TSB). 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 and year-end instructions issued by the Office of the Comptroller General.

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 judgement 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 TSB's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the TSB'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 TSB.

The financial statements of the TSB have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

Wendy A. Tadros Acting Chair	Jean L. Laporte, CGA Senior Financial Officer

Gatineau, Canada
June 9, 2006

Auditor's Report

Transportation Safety Board of Canada Statement of Financial Position
At March 31
(in thousands of dollars)

Wendy A. Tadros Acting Chair	Jean L. Laporte, CGA Senior Financial Officer

Gatineau, Canada
June 9, 2006

Transportation Safety Board of Canada
Statement of Operations
For the Year Ended March 31
(in thousands of dollars)

Transportation Safety Board of Canada
Statement of Equity of Canada
For the Year Ended March 31
(in thousands of dollars)

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

Transportation Safety Board of Canada
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.

Transportation Safety Board of Canada Notes to the Financial Statements

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 TSB 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 TSB may conduct studies into more general matters pertaining to transportation safety. The TSB has the exclusive authority to make findings as to causes and contributing factors when it investigates a transportation occurrence. The TSB'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 Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector and year-end instructions issued by the Office of the Comptroller General.

Significant accounting policies are as follows:

(a) Parliamentary appropriations - the TSB is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the TSB do not parallel financial reporting according to Canadian 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 two bases of reporting.

(b) Net Cash Provided by Government - The TSB operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the TSB is deposited to the CRF and all cash disbursements made by the TSB 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) Due from the Consolidated Revenue Fund - represents the amount of cash that the TSB is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities.

(d) Revenues - Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(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 are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The TSB's contributions to the Plan are charged to expenses in the year incurred and represent the total TSB obligation to the Plan. Current legislation does not require the TSB to make contributions for any actuarial deficiencies of the Plan.

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) Accounts receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(h) Inventories - Inventories consists of parts, material and supplies held for future program delivery and 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.

(i) Tangible capital assets - All tangible capital assets and leasehold improvements having an initial cost of $2,000 or more are recorded at their acquisition cost.

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

(j) 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 and year-end instructions issued by the Office of the Comptroller General, 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 capital assets, the assumptions underlying the employee severance benefits liability and the assessment of contingent liabilities. 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 TSB receives 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 TSB 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:

b) Appropriations provided and used

During the year, the TSB over-expended approved authorities by $214,000. The overspent authorities for the 2005-06 fiscal year will reduce the TSB's appropriations for the 2006-07 fiscal year.

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

4. Accounts Receivable and Advances

5. Tangible Capital Assets
(In thousands of dollars)

6. Employee Benefits

(a) Pension benefits: The TSB'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/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the TSB contribute to the cost of the Plan. The 2005-06 expense amounts to $2,743,000 ($2,639,000 in 2004-05), which represents approximately 2.6 times the contributions by employees.

The TSB'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 TSB 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:

7. Contingent Liabilities

In the normal course of its operations, the TSB 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 TSB's financial statements.

As at March 31, 2006, there are various outstanding legal actions against the TSB. No liability has been recorded in the financial statements since management of the TSB considers them unlikely to be successful.

8. Contractual Obligations

The nature of the TSB's activities can result in some large multi-year contracts and obligations whereby the TSB will be obligated to make future payments when the services/goods are received.

Significant contractual obligations that can be reasonably estimated are summarized as follows:

9. Related Party Transactions

The TSB is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The TSB enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the TSB 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 TSB received without charge from other departments, accommodation, administration of worker's compensation, the employer's contribution to health and dental insurance plans, and external audit services. These services without charge have been recognized in the TSB's Statement of Operations as follows:

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 TSB's Statement of Operations given that a reasonable amount for those types of services cannot be determined.

(b) Administration of costs-shared activities:

The TSB 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. During the year, TSB administered $283,000 in revenues ($225,000 in 2004-05) and disbursed $279,000 in expenses ($225,000 in 2004-05).This year revenues exceeded expenditures by approximately $4,000. Due to the low value of this balance the excess revenues were not returned to contributing agencies, but were simply credited to TSB non-tax revenues.

10. Comparative information

This year the TSB has implemented the revised Treasury Board accounting policies in the preparation of its financial statements. As a result, comparative figures have been reclassified to conform to the current year's presentation.

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1.   International Civil Aviation Organization Universal Safety Oversight Audit Programme, Final Report on the Safety Oversight Audit of the Civil Aviation System of Canada (April 12 to 22, 2005).

2.   While the TSB activities are for the 2005-2006 fiscal year, occurrence statistics are for the 2005 calendar year. Comparisons are generally to the last 5 or 10 years.

3.   Transport Canada, Transportation in Canada 2005: Annual Report, TP 13198.

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

5.   These accidents include those resulting directly from the operation of a ship other than a pleasure craft. See the Transportation Safety Board Regulations for more information.

6.   These incidents include those resulting directly from the operation of an airplane having a maximum certificated take-off weight greater than 5,700 kg or of a rotorcraft having a maximum certificated take-off weight greater that 2,250 kg. See the Transportation Safety Board Regulations for more information.