Departmental Performance Report

Appendices

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

Marine Recommendations
Report No. M01C0054: Allanburg, Ontario - 11 August 2001
Fire on Board at Bridge 11 -
Bulk Carrier Windoc
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M02-04
The Department of Transport ensure that overall preparedness is appropriate for responding to vessel-related emergencies within the Seaway. The Board is waiting for further follow-up information from TC concerning the response. Pending To be reported next fiscal year
 
Bruce Mines Wharf, Georgian Bay, Ontario -
1 June 2000  Structural Failure -
Bulk Carrier Algowood
Report No. M00C0026
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M03-01
The Department of Transport require that masters on all Canadian bulk carriers of 150 m in length and over have continuous access to on-board or company shore-based hull stress monitoring systems to help ensure that maximum allowable hull girder stresses are not exceeded. TC is in the process of developing new "Cargo Regulations" that are intended to address operational requirements including cargo/ballasting - loading and distribution for bulk carrier vessels operating both domestically and internationally. TC intends to introduce provisions requiring that, prior to loading a bulk carrier, the master be in possession of comprehensive information on the vessel's stability and on the distribution of cargo for the standard loading conditions. Satisfactory intent TC indicated that further consultations with the industry have to be undertaken. Although draft new Cargo Regulations do not specifically require masters to have continuous access to a monitoring system, TC anticipates that the proposed requirements for more careful tracking of loading operations will lead to the need for fitting of loading instruments.
Report No. M01L0112: Off Havre-Saint-Pierre, Quebec -
 29 September 2001
Major Water Ingress -
Scallop Dragger Alex B.1
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M03-02
Transport Canada, in coordination with Fisheries and Oceans Canada, fisher associations and training institutions, develop a national strategy for establishing, maintaining and promoting a safety culture within the fishing industry. TC indicated that it has consulted with the Department of Fisheries and Oceans (DFO), Canadian Coast Guard (CCG), the Canadian Council of Professional Fish Harvesters (CCPFH) and training institutes with regard to information or programs involving a safety culture. An update of several initiatives underway by others to address safety was provided. Satisfactory in part The results of a study by the CCPFH, which included a profile of accidents at sea and proposed strategies for their prevention, are expected by the end of May 2005.

DFO is considering linking issuance of licences to vessel inspections.
Report No. M99L0126: Cap Tourmente, Quebec - 9 November 1999  Grounding and Constructive Total Loss -
Bulk Carrier Alcor
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M03-03
The Department of Transport, the Department of Fisheries and Oceans, and Canadian pilotage authorities, in consultation with marine interests, develop, implement and exercise contingency plans to ensure that risks associated with navigation-related emergencies are adequately addressed. TC agrees with the recommendation. TC and DFO/CCG indicated that measures are being taken in the Laurentian Region to identify improvements relating to alerting of the various players and that exercises are being proposed for testing the coordination and management of responses to navigation-related incidents. The Laurentian Pilotage Authority, which will be invited by TC and DFO/CCG to participate, has indicated its intention to participate. Satisfactory in part The "lessons learned" as a result of the measures being undertaken in DFO/CCG Laurentian Region will be shared with other regions for their use as required.
Report No. M00W0303: Pitt River Highway Bridge, British Columbia - 18 December 2000
Striking of a Bridge - Tugboat Miller Richmond and Barges Miller 201 and Miller 206
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M03-04
The Fraser River Port Authority and the provincial Ministry of Transportation, in collaboration with the bridge tenders and vessel operators, review and, if necessary, amend their current policies, practices and procedures, and ensure implementation so that the safety of vessels, bridges and bridge traffic is not compromised. A joint committee is to be established to review and amend, as necessary, and ensure implementation of current policies, practices
and procedures related to bridge and marine traffic and bridge operations.
Satisfactory intent A sub-committee of the Fraser River Port Authority Bridge Work Group was established to examine vessel/bridge operations. The Port Authority will also draft bridge procedures for the sub-committee's consideration.
Off Entrance to Fraser River, British Columbia - 13 August 2002
Capsizing and Loss of Life - Small Fishing Vessel Cap Rouge II
Report No. M02W0147
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
M03-05
The Department of Transport require all new inspected small fishing vessels of closed construction to submit stability data for approval. TC indicated that it is considering targeting, for the purposes of a stability assessment, fishing vessels that are considered to be at risk regarding their stability. Any new requirements to address fishing vessel stability concerns must follow the due regulatory development process and are expected to be incorporated in the new Fishing Vessel Safety Regulations, scheduled to come into force by the end of 2006. Unsatisfactory The intent of the recommendation was that, until such time as the new small fishing vessel safety regulations are introduced, interim measures be taken to address the safety risk. There is no indication that prior to such time as the new regulations are introduced the measures described in the recommendation will be implemented.
M03-06
The Department of Transport require all existing inspected small fishing vessels currently without any approved stability data be subjected to a roll period test and a corresponding freeboard verification not later than their next scheduled quadrennial inspection. TC indicated that it is considering targeting, for the purposes of a stability assessment, fishing vessels that are considered to be at risk regarding their stability. Any new requirements to address fishing vessel stability concerns must follow the due regulatory development process and are expected to be incorporated in the new Fishing Vessel Safety Regulations, scheduled to come into force by the end of 2006. Unsatisfactory The intent of the recommendation was that, until such time as the new small fishing vessel safety regulations are introduced, interim measures be taken to address the safety risk. There is no indication that prior to such time as the new regulations are introduced the measures described in the recommendation will be implemented.
M03-07
The Department of Transport, in collaboration with the fishing community, reduce unsafe practices by means of a code of best practices for small fishing vessels, including loading and stability, and that its adoption be encouraged through effective education and awareness programs. TC outlined a number of initiatives that the Department has taken to address safety within the fishing community. TC indicated that it is discussing with the Department of Fisheries and Oceans and stakeholders more efficient means of communication between government and fish harvesters. Unsatisfactory There was no indication of any initiative to develop a code of best practices for small fishing vessels.
Rail Recommendations
Occurrence No. R03V0083: Fraser Subdivision, near McBride, British Columbia - 14 May 2003 Timber Bridge Collapsed under a Train - Canadian National
RECOMMENDATION RESPONSE BOARD ASSESSMENT OF RESPONSE SAFETY ACTION TAKEN
R03-04
Canadian National verify the condition of its timber bridges and ensure their continued safety with effective inspection and maintenance programs. Canadian National (CN) did not completely accept the Board's recommendation. Satisfactory in part CN has verified the condition of its timber bridges and is developing a computerized inspection and maintenance tracking system for bridges.
R03-05
Transport Canada incorporate in its compliance reviews a comparison of railway working procedures and practices with railway inspection and maintenance records. TC accepted the recommendation and indicated that the Safety Management System audit program is being aggressively developed. Satisfactory intent TC is developing an auditing practice to assess the efficacy of CN's Safety Management System for inspection and maintenance of bridges.

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:

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

United States
Australia
France
United Kingdom
International

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.

Signature of Charles H. Simpson, Acting Chairman

Charles H. Simpson
Acting Chairman

Sinature of Jean Laporte, CGA, Senior Financial Officer

Jean L. Laporte, CGA
Senior Financial Officer

Gatineau, Canada
June 1, 2005

Auditor's Report

Auditor's Report signed by Sylvain Ricard, CA, Principal for the Auditor General of Canada

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

  2005 2004
ASSETS  
  Financial Assets
  Due from the CRF $2,374 $2,775
  Receivables and Advances (Note 4) 637 96
  Total Financial Assets 3,011 2,871
  Non-Financial Assets    
  Prepayments 39 32
  Inventories not for Re-Sale 118 115
  Property and Equipment (Note 5) 4,683 4,312
  Total Non-Financial Assets 4,840 4,459
Total Assets   $7,851 $7,330
LIABILITIES
  Accounts Payable and Accrued Liabilities $2,819 $2,786
  Accrual for Employee Vacation and Overtime 981 960
  Employee Severance Benefits 3,766 3,402
  Total Liabilities 7,566 7,148
NET ASSETS   285 182
Total Liabilities and Net Assets   $7,851 $7,330

Contingent Liabilities and Commitments (Notes 9 and 10 respectively)

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

Signature of Charles H. Simpson, Acting Chairman

Charles H. Simpson
Acting Chairman

Sinature of Jean Laporte, CGA, Senior Financial Officer

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)

  2005 2004
Revenues
Sales of Goods and Services $ 156 $ 15
Other Non-Tax Revenues 8 11
Total Revenues 164 26
Expenses
Salaries and Wages 20,349 19,897
Employee Benefit Plans 5,437 4,982
Professional and Special Services 3,028 3,505
Transportation and Communications 2,181 2,011
Accommodation 1,800 1,745
Amortization 1,118 1,104
Utilities, Materials and Supplies 590 622
Purchased Repair and Upkeep 565 600
Information 222 304
Rentals 135 75
Construction and/or Acquisition of Machinery and Equipment 109 70
Miscellaneous Expenses 9 18
Loss on Disposal of Property and Equipment 3 197
Total Expenses 35,546 35,130
Net Operating Results (35,382) (35,104)
Other Income (Note 6) 225 196
Other Expenses (Note 6) 225 196
Net Results (35,382) (35,104)
Net Assets, Beginning of Year 182 769
Net Cash Provided by Government (Note 3c) 32,535 31,789
Change in Due from the CRF (401) (377)
Services Provided Without Charge (Note 8) 3,351 3,105
Net Assets, End of Year $ 285 $ 182

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)

  2005 2004
Operating Activities
Net Results 35,382 35,104
Non-Cash Items Included in Net Results
Services Provided Without Charge (Note 8) 3,351 3,105
Amortization of Property and Equipment 1,118 1,104
Employee Severance Benefits 364 160
Loss on Disposal of Property and Equipment 3 197
  4,836 4,566
Statement of Financial Position Adjustments
Change in Liabilities 53 (481)
Change in Cash, Receivables and Advances, Prepayments, Inventories not for Re-Sale and Prepaid Expenses (544) 807
  (491) 326
Cash Used in Operating Activities 31,037 30,212
Investing Activities
Acquisitions of Property and Equipment 1,498 1,577
Cash Used in Investing Activities 1,498 1,577
Net Cash Provided by Government (Note 3c) $ 32,535 $ 31,789

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:

Asset Class Amortization Period
Buildings 30 years
Furniture 10 years
Office equipment 5 years
Laboratory equipment 10 years
Informatics hardware 4 years
Informatics software
(purchased)
3 years
Informatics software(in-house developed) 10 years
Motor vehicles 7 years
Other vehicles 15 years
Leasehold improvements lesser of useful life or term of the lease

(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

(in thousands of dollars) 2005 2004
Parliamentary Appropriations Voted:
Vote 20 - CTAISB Operating expenditures $ 26,017 $   - 
Vote 15 - CTAISB Operating expenditures $   - $ 22,304
Supplementary Vote 20a 1115 -
Supplementary Vote 20b 782 -
Supplementary Vote 15b - 4,889
Transfer from Treasury Board - Vote 15 381 2,139
Transfer from Treasury Board - Vote 10 - 163
Transfer from Treasury Board - Vote 5 130 -
Total Parliamentary Appropriations Voted 28,425 29,495
Less: Lapsed Appropriations 12 1,045
Total Appropriations Voted Used 28,413 28,450
Statutory Authority: Contribution to employee benefit plans 3,600 3,511
Total Appropriations Used 32,013 31,961
Other Statutory Authorities:
    Spending of proceeds from disposal of surplus Crown assets 34 96
    Spending of revenues as per FAA section 29.1 152
    Total Statutory Authorities Used 186 96
Total Authorities Used 32,199 32,057
b) Reconciliation of Net Results to Appropriations Used
(in thousands of dollars) 2005 2004
Net Operating Results 35,382 35,104
Adjustments for Items Not Affecting Appropriations
Less
Services Provided Without Charge 3,351 3,105
Amortization 1,118 1,104
Employee Severance Benefits 364 160
Prepayments 30 37
Inventory Used 26 43
Vacation Pay 22 50
Justice Canada Legal Services 19 14
Loss on Disposal of Property and Equipment 3 197
  4,933 4,710
Add
PAYE Adjustment 19 -
Non-tax Revenue 8 49
Refund of Prior Years' Expenditures   5 9
  32 58
Adjustments for Items Affecting Appropriations
Add
Acquisitions of Property and Equipment 1,498 1,577
Prepaids 39 -
Inventory Purchased 29 28
  1,566 1,605
Less
Proceeds from the Disposal of Surplus Crown Assets 34 96
  34 96
Total Appropriations Voted Used 32,013 31,961

c) Reconciliation to Net Cash Provided by Government

(in thousands of dollars) 2005 2004
Net cash provided by government 32,535 31,961
Revenues 164 26
Net change in non-cash working capital balance charged to the vote (686) 146
Total Appropriations Used $ 32,013 $ 31,961
4. Receivables and Advances
(In thousands of dollars) 2005 2004
Other Government Departments $445 $12
External Parties 152 -
GST refundable 32 76
Advances to Employees 8 8
Total $637 $96
5. Property and Equipment (In thousands of dollars)
Asset Class Historical Cost March 31, 2004 Additions Disposals Accumulated Amortization March 31, 2005 Net Book Value March 31, 2005 Net Book Value March 31,  20044
Buildings $2,715 $76 $- $1,932 $859 $895
Furniture 1,051 28 - 729 350 385
Office equipment 336 5 36 265 40 58
Laboratory equipment 2,419 63 142 1,635 705 749
Informatics hardware 3,834 388 971 2,111 1,140 1,314
Informatics software (purchased) 462 71 - 371 162 242
Informatics software (in development) - 867 - - 867 -
Motor vehicles 837 - - 372 465 553
Other vehicles 149 - 32 26 91 102
Leasehold improvements 34 - - 30 4 14
Total $11,837 $1,498 $1,184 $7,471 $4,683 $4,312
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:

Services Provided Without Charge (in thousands of dollars)
Department Type of Services 2005 2004
Public Works and Government Services Canada Accommodation, accommodation alteration and other services $1,800 $1,745
Treasury Board of Canada Employer's contributions to the health insurance plans 1,502 1,295
Office of the Auditor General of Canada External audit 31 49
Human Resources and Skills Development Canada Administration of workers' compensation 18 16
Total   $3,351 $3,105
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:

(in thousands of dollars) Commitments
2006 2007 Total
Acquisition of Goods and Services $756 $107 $863

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.