Annex to TATC Annual Statement 2011-12

ANNEX TO THE STATEMENT OF

MANAGEMENT RESPONSIBILITY

Year ended March 31, 2012

Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting of the Transportation Appeal Tribunal of Canada for Fiscal Year 2011-2012 (unaudited)

  1. 1.      Introduction

Under the Treasury Board Policy on Internal Control, departments are required to demonstrate the measures they are taking to maintain an effective system of internal control over financial reporting (ICFR). As such, departments are expected to conduct annual assessments of their system of ICFR, establish action plans to address any necessary adjustments, and to attach to their Statements of Management Responsibility a summary of their assessment results and action plan.

The Transportation Appeal Tribunal of Canada (TATC) will use the results of the periodic Core Control Audit performed by the Office of the Comptroller General to adhere to the Treasury Board Policy on Internal Control. Until such audit takes place, TATC will proceed with a risk-based assessment of the system of ICFR. It should be noted that TATC has a service partnership agreement with Transport Canada (TC) regarding a full range of administrative and financial services. Among the services provided to TATC by TC are accounting and financial statement preparation, and the processing of financial transactions. Consequently, TATC's ICFR are reliant on TC's ICFR. Below is a summary of the results of the assessment conducted as at March 31, 2012.

  1. 2.      Assessment results as of March 31, 2012

Design effectiveness aims to identify and document key controls, to ensure that they are in place and aligned with the risks they aim to mitigate, and that required remediation is addressed appropriately and in a timely manner.

TATC is at the early stage of design effectiveness for ICFR and will continue this work in the next fiscal year.

Operating effectiveness aims to ensure that key controls are working as intended over a defined period, and that required remediation is addressed appropriately and in a timely manner. The testing of operating effectiveness has not started – therefore no assessment results are available at this time

  1. 3.      Assessment plan

TATC plans to complete the operational effectiveness testing of its entity and business process level controls in 2012-2013. Operational effectiveness testing of ICRF is expected to be completed in 2013-2014. After completing effectiveness testing, TATC will commence ongoing monitoring of the ICFR.