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PWC – Independent auditor’s report

To the Board of Directors of Ontario Public Service Employees Union

Our opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Ontario Public Service Employees Union (the Organization) as at December 31, 2021 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

What we have audited

The Organization’s financial statements comprise:

• the statement of financial position as at December 31, 2021;
• the statement of revenues and expenditures and fund balances for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include significant accounting policies and other explanatory

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Organization in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Organization’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Organization or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Organization’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether  due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Organization to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings,  including any significant  deficiencies  in internal control that we identify during our audit.

PricewaterhouseCoopers LLP

Chartered Professional Accountants, Licensed Public Accountants Vaughan, Ontario

March 17, 2022

Statement of Financial Position

As at December 31, 2021

					2021	2020
	General Fund	Strike Fund	Education Fund	Defence Fund	Total	Total
	$	$	$	$	$	$
Assets
Current assets Cash	14,969,649	5,157,300	3,347,046		23,473,995	11,884,167
Receivables Dues	7,261,357				7,261,357	7,223,455
Other	1,339,746		223		1,339,969	2,607,042
Prepaid expenses and other assets	1,223,748		16,261		1,240,009	1,301,263
	24,794,500	5,157,300	3,363,530		33,315,330	23,015,927
Investments	4,218,363	38,404,789			42,623,152	37,720,951
Capital assets (note 3)	3,929,057	54,778,487			58,707,544	45,574,340
	32,941,920	98,340,576	3,363,530		134,646,026	106,311,218
Liabilities and Fund Balances
Current liabilities Bank indebtedness (note 4)	3,225,062				3,225,062	3,290,384
Accounts payable	10,817,321	7,685	56,027		10,881,033	10,521,895
Accrued liabilities Obligations under capital leases (note 6)	29,506,213   193,159				29,506,213   193,159	26,006,856   152,218
	43,741,755	7,685	56,027		43,805,467	39,971,353
Inter-fund balances	(17,741,738)	17,465,109	251,516	25,113
Obligations under capital leases
(note 6)	216,156				216,156	421,601
Post-employment benefits (note 9)	56,022,000				56,022,000	50,631,000
	82,238,173	17,472,794	307,543	25,113	100,043,623	91,023,954
Fund surplus (deficit)	(49,296,253)	80,867,782	3,055,987	(25,113)	34,602,403	15,287,264
	32,941,920	98,340,576	3,363,530		134,646,026	106,311,218
Commitments and contingencies

(notes 8 and 11)

Statement of Revenue and Expenditures and Fund Balances

For the year ended December 31,  2021

					2021	2020
	General Fund	Strike Fund	Education Fund	Defence Fund	Total	Total
	$	$	$	$	$	$
Revenue Membership dues	112,846,703	10,821,732	1,459,849	200,000	125,328,284	119,418,967
Investment income (note 7)	175,592	1,262,303			1,437,895	1,196,088
Other income	1,467,487				1,467,487	1,591,666
	114,489,782	12,084,035	1,459,849	200,000	128,233,666	122,206,721
Expenditures Members’ activities (schedule 1)	36,254,482			225,113	36,479,595	35,611,479
Executive board activities (schedule 2)	644,726				644,726	672,531
Departmental costs (schedule 3)	56,307,991				56,307,991	53,177,245
Strike		150,800			150,800	304,296
Amortization of capital assets	2,696,690	3,057,360			5,754,050	3,902,995
Education			259,235		259,235	532,222
Investment management fees		48,570			48,570	9,121
	95,903,889	3,256,730	259,235	225,113	99,644,967	94,209,889
Net operating revenue	18,585,893	8,827,305	1,200,614	(25,113)	28,588,699	27,996,832
Post-employment benefits
(note 9)	(7,716,479}				(7,716,479}	(6,850,000}
Excess (deficiency) of
revenue over expenditures before the undernoted	10,869,414	8,827,305	1,200,614	(25,113)	20,872,220	21,146,832
Contribution from merger (note 12)						7,908,746
Change in fair value of investments	524,572	2,786,347			3,310,919	521,170
Income (loss) for the year	11,393,986	11,613,652	1,200,614	(25,113)	24,183,139	29,576,748
Fund surplus (deficit) – Beginning of year	(55,828,704)	69,260,595	1,855,373		15,287,264	(19,667,484)
Net actuarial gain (loss) – post-employment benefits (note 9)	(4,868,000)				(4,868,000)	5,378,000
Inter-fund transfers (notes 7 and 12)	6,456	(6,465}
Fund surplus (deficit) – End of year	{49,296,262l}	80,867,782	3,055,987	{25,113l}	34,602,403	15,287,264

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

Statement of Cash Flows

For the year ended December 31, 2021

Cash provided by (used in)	2021 $	2020 $
Operating activities
Income for the year Items not affecting cash	24,183,139	29,576,748
Amortization of capital assets	5,754,050	3,902,995
Contribution from merger (note 12)	–	(7,649,575)
Post-employment benefits	523,000	(99,000)
Change in fair value of investments	(3,310,919)	(521,170)
Reinvested investment income	(1,591,282)	(1,131,809)
	25,557,988	24,078,189
Changes in non-cash working capital (note 10)	5,148,920	(2,846,804)
	30,706,908	21,231,385
Investing activities
Proceeds on disposal of investments	–	1,446,025
Purchase of capital assets	(18,887,254)	(14,522,610)
	(18,887,254)	(13,076,585)
Financing activities
Change in bank indebtedness	(65,322)	133,722
Repayment of capital lease obligations	(164,504)	(135,020)
	(229,826)	(1,298)
Change in cash during the year	11,589,828	8,153,502
Cash – Beginning of year	11,884,167	3,730,665
Cash – End of year	23,473,995	11,884,167

 Notes to financial statements

1     Summary of significant accounting policies

Purpose of organization

Ontario Public Service Employees Union (OPSEU) is incorporated without share capital under the provisions of Part III of the Corporations Act of the Province of Ontario (the Act). The Act requires that OPSEU be carried on without the purpose of gain for its members and that any profits or other accretions to OPSEU be used in promoting its objectives.

OPSEU is exempt from income tax under the provisions of paragraph 149(1)0c) of the Income Tax Act (Canada).

Basis of accounting

These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO) in Part III of the Chartered Professional Accountants of Canada Handbook. The financial statements include the following significant accounting policies.

Fund accounting

These financial statements include the following funds:

1)      Strike Fund

The Strike Fund is maintained in accordance with Article 23 of the Constitution:

• OPSEU shall maintain a Strike Fund, whose assets shall be used only for the following purposes:

1. for strike pay and expenses related to strikes, lockouts and other work stoppage situations involving OPSEU members; and
2. on a two-thirds majority roll-call of the Executive Board, to make interest free loans to other striking unions where the Board deems such loans to be in the interest of OPSEU

• Notwithstanding Article 1, theassets of the Strike Fund may be encumbered by one or more security interests in order to secure any form of indebtedness of OPSEU, subject to any policies that may be established from time to time by the Executive Board regarding the manner of giving of security over the assets of the Strike Fund. Any such approval encumbrance shall require approval by two-thirds of the Executive Board.

Notwithstanding Article 23.1, up to 10 million dollars of the assets of the Strike Fund may be encumbered. There are no assets encumbered as at December 31, 2021 (2020 – $nil).

(1)

2)      Education Fund

The resources of this fund are used to support OPSEU’s Education Program.

3)      Defence Fund

The resources in this fund are used to support situations that involve fundamental challenges to OPSEU’s principles, standards and practices.

4)      General Fund

The ongoing operations of OPSEU are funded through the General Fund. This includes all staffing and related costs, the operating costs for OPSEU’s buildings and equipment, the costs for negotiations, legal and other fees related to grievance handling, organizing, committee meetings, campaigns and other member activities.

Rebates to Locals

Rebate funds are used by the Locals to run their operations in accordance with OPSEU’s constitution and local by-laws. The per capita membership dues rebates to Locals are recorded as an expenditure in the year in which they are paid.

Capital assets

Capital assets are carried at cost less accumulated amortization. Amortization charges are based on the estimated useful lives of the assets and are calculated at the following annual rates and methods:

Building and improvements – 4% declining balance

Furniture and fixtures – 3 years straight line

Computer hardware and soft are Equipment –  3 years straight line

Vehicles –  3 years straight line

Leasehold improvements – over-term of lease

Capital lease assets – over-term of lease

Major capital expenditures intended to enhance or prolong the life of a building are treated as assets. Annual operating costs are recorded as expenses of the General Fund.

OPSEU reviews the carrying amounts of its long-lived assets regularly. If the long-lived assets no longer have any long-term service potential to OPSEU, the excess of the net carrying amount over any residual value is recognized as an expense in the statement of revenue and expenditures and fund balances.

Post-employment benefits

OPSEU records its obligations under the pension plan and other post-retirement benefit plan as being its total liabilities and related costs less the plan assets. OPSEU has the following policies:

• OPSEU has elected to use the actuarial valuation for funding purposes (funding valuations) for the pension and other post-retirement benefit
• The cost of pensions and other retirement benefits earned by employees is actuarially determined using the projected benefit method pro-rated on service and management’s best estimate of expected plan investment performance for funded plans, salary escalation, retirement ages of employees and expected health-care
• Plan assets are measured at fair When the fair value of plan assets exceeds the defined benefit obligation, the plan surplus will be recognized as a defined benefit asset on the statement of financial position only to the extent it is expected to be realized. A valuation allowance for any excess of the plan surplus over the expected future benefit will be recorded in the statement of revenue and expenditures and fund balances.
• Actuarial gains and losses arise when the actual return on plan assets differs from the expected return on the plan assets for a period, or when the defined benefit obligations change during the year. The actuarial gains and losses are recorded directly in the General Fund. A curtailment is an event that significantly reduces the expected years of future service of present employees or eliminates the accrual of defined benefits for future services of a significant number of active participants. The components of the gain or loss are recognized in the statement of revenue and expenditures and fund balances in the year in which they occur.

Financial instruments

Financial assets and financial liabilities are initially measured at fair value. OPSEU measures all its financial assets and financial liabilities at amortized cost, except for long-term investments, which are measured at fair value. Changes in the fair value are recognized in the statement of revenue and expenditures and fund balances.

Financial assets measured at amortized cost include cash and amounts receivable. Long-term investments are measured at fair value including fixed income investments.

Financial liabilities measured at amortized cost include bank indebtedness, accounts payable and accrued liabilities.

Revenue recognition and dues receivable

OPSEU uses the restricted fund method of accounting for its contributions.

Membership dues are recognized as revenue of the General Fund, Education Fund and Defence Fund in the year received or receivable in accordance with the approved budget. Membership dues are recognized as revenue of the Strike Fund in the year received or receivable in accordance with Article 23 of the Constitution. Dues receivable are recognized as an asset when the amount to be received can be reasonably estimated and collection is reasonably assured.

Investment income is recognized as revenue of the General Fund and Strike Fund when earned, based on the investments held in each fund.

Leased assets

Leases entered into that transfer substantially all the benefits and risks associated with ownership are recorded as the acquisition of a capital asset and the incurrence of an obligation. The asset is amortized in a manner consistent with assets owned by OPSEU, and the obligation, including interest thereon, is liquidated over the term of the lease. All other leases are accounted for as operating leases, and the rental costs are expensed as incurred.

Use of estimates

The preparation of these financial statements in accordance with ASNPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from those estimates. Accounts requiring significant estimates include receivables, investments, useful lives and impairment of capital assets and post-employment benefits.

2     Funds in the hands of the Locals

The assets of Locals are available for the general use of OPSEU only in the event a Local should cease to exist because the members cease to be members of OPSEU. Funds in the hands of Locals have not been included in these financial statements because of the unavailability of the funds except in this extreme situation. Based on the most recent trustees’ reports received, these funds have been conservatively estimated to be in excess of $42,000,000 (2020 – $33,000,000).

3    Capital assets

The capital assets of the General Fund are as follows:

			2021	2020
Cost $	Cost $	Accumulated amortization $	2021	2020
Building and improvements	1,328,635	944,938	383,697	454,085
Assets acquired under capital leases	1,113,543	819,715	293,828	459,370
Furniture and fixtures	1,682,608	1,468,983	213,625	267,985
Computer Hardware	2,926,806	2,580,576	346,230	515,398
Software	2,939,929	2,703,991	235,938	443,266
Vehicles	4,498,192	3,437,457	1,060,735	800,035
Land	483,492		483,492	483,492
Leasehold improvements	4,101,646	3,190,134	911,512	1,067,486
	19,074,851	15,145,794	3,929,057	4,491,117

 

The capital assets of the  Strike Fund are as follows:

                  2021 2020

			Net $	Net $
	Cost $	Accumulated amortization $	Net $	Net $
Land
100 Lesmill	4,805,905		4,805,905	4,805,888
155 Lesmill	5,040,620		5,040,620	5,040,620
31 Wellesley	1,956,760		1,956,760	1,956,760
Education Centre	2,555,318		2,555,318
Niagara	120,000		120,000	120,000
Orillia	300,000		300,000	300,000
Thunder Bay	456,551		456,551	456,551
Sudbury	1,300,000		1,300,000	1,300,000
Kingston	Buildings	400,000		400,000	400,000
100 Lesmill	20,210,820	6,641,066	13,569,754	11,720,142
155 Lesmill	14,843,911	1,183,821	13,660,090	9,986,251
31 Wellesley	438,410	192,783	245,627	234,982
Education Centre	5,027,694	11,116	5,016,578
Niagara	203,345	95,575	107,770	40,396
Orillia	782,301	169,577	612,724	446,200
Thunder Bay	2,172,531	519,302	1,653,229	1,774,015
Sudbury	859,160	5,487	853,673	426,730
Kingston	3,761,223	1,637,335	2,123,888	2,074,688
	65,l34,549	10,456,062	54,778,487	41,083. J3

 

 

 

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4     Bank and other indebtedness

 

OPSEU has an available bank line of credit of $5,000,000. The line of credit is due on demand and is secured by a general security agreement on the net assets of OPSEU. Drawings against the line of credit are limited to 10% of the prior year’s revenue plus $2,000,000. Interest is charged at the prime rate plus 0.5% per annum.

 

As at December 31, 2021, $nil (2020 – $nil) was drawn against the line of credit. The remaining bank indebtedness of $3,225,062 (2020 – $3,290,384) represents outstanding cheques, net of any outstanding deposits.

 

5     Government remittances

 

Included in accounts payable are government remittances payable, including payroll withholdings and related taxes, and Workers’ Safety Insurance premiums of $86,221 (2020 – $78,732).

 

6    Obligations under capital leases

 

The following presents future minimum lease payments under capital leases expiring with various maturities to October 2023 and interest rates varying from 1.96% to 2.27% per annum, together with the present value of the obligations:

$

 

2022	227,909
2023	201,056
	428,965
Less: Interest	19,650
	409,315
Less: Current portion	193,159
	216,156

 

7    Investment income

Included in investment income are interest income and fund distributions of $276,682 (2020 – $211,893) and dividend income of $1,161,213 (2020 – $963,210).

 

The investments in the Strike Fund are professionally managed by BMO Asset Management Inc. (part of the BMO Financial Group), RBC Dominion Securities, and Scotia Wealth Management. The investments and related fees total approximately $48,570 (2020 – $9,121).

 

 

 

 

 

 

 

 

(6)

 

 

 

 

8    Commitments

 

The future minimum lease payments under operating leases that have non-cancellable terms in excess of one year as at December 31, 2021 are as follows:

 

		$
	2022	1,200,617
	2023	1,131,834
	2024	862,981
	2025	690,681
	2026	208,667
		4,094,780
9	Post-employment benefits

 

OPSEU provides pension benefits to employees through a jointly sponsored pension plan. The pension plan is jointly sponsored with two other member unions. The costs and risks of the pension plan are shared between the joint sponsors. OPSEU has elected to measure the defined benefit obligation and costs of the plan using the most recently completed funding valuation. In OPSEU’s financial statements, 100% of the defined benefit obligation and fair value of assets of the pension plan are recognized.

 

OPSEU also provides other post-retirement benefits to substantially all of its employees.

 

It also provides post-employment benefits for retired employees.
	2021 $	2020 $
Pension plan
Other post-retirement benefit plan	56,022,000	50,631,000
	56,022,000	50,631,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7)

 

 

 

 

Information about OPSEU’s pension plan and other post-retirement benefit plan in aggregate is as follows:

 

Other post-retirement

Pension                                                     benefit  Ian

 

	2021 $	2020 $	2021 $	2020 $
Defined benefit obligation Fair value of plan assets	217,103,000 (240,186,000}	210,019,000 (212,326,000}	56,022,000	50,631,000
	(23,083,000)	(2,307,000)	56,022,000	50,631,000

 

 

Valuation allowance Defined benefit obligation

23,083,000                 2,307,000

 

56,022,000               50,631,000

 

 

Discount rate	5.4	5.70%	5.4	5.70%
Salary increase Expected long-term rate of	3.5	3.50%
return on plan assets	5.7	5.80%
Inflation rate Health benefit costs (decreasing to 4% over 12 years)	2.0	2.00%	6.8	7.50%
Dental costs			4.0	4.00%

 

The movement in the defined benefit obligation during the year is as follows:

 

Other post-retirement

Pension                                            benefit  Ian

 

	2021 $	2020 $	2021 $	2020 $
Beginning balance, as at January 1		5,554,000	50,631,000	50,554,000
Interest cost	(79,000)	224,000	2,936,000	2,981,000
Service cost	2,554,000	1,957,000	1,775,000	1,696,000
Actuarial loss (gain)	(17,798,000)	(4,709,000)	2,021,000	(2,976,000)
Valuation allowance Benefits paid	20,645,000 (5,322,000}	2,307,000 (5,333,000}	(1,341,000}	(1,624,000}
Ending balance, as at December 31			56,022,000	50,63_1,000

 

 

 

 

 

 

 

 

 

(8)

 

 

 

 

The net pension and other post-retirement benefit expense for the year was determined as follows:

 

 

 

                                  Pension Qian

Other post-retirement

                                     benefit Qian

 

 

	2021 $	2020 $	2021 $	2020 $
Current service cost	2,554,000	1,957,000	1,775,000	1,696,000
Interest expense Interest income on plan assets	11,879,000   (11,958,000)	11,529,000   (11,305,000)	2,936,000	2,981,000
Net pension expense	2,475,000	2,181,000	4,711,000	4,677,000

 

Benefits of $9,553,000  (2020 –  $9,428,000) were paid from the pension plan during the year.

 

The most recently filed actuarial valuation of the pension plan was prepared as at December 31, 2020. The next required actuarial valuation for funding purposes is due with an effective date no later than December 31, 2023.

 

The most recent actuarial valuation of the pension and other post-retirement benefit plans was prepared as at December 31, 2019 and extrapolated to December 31, 2021.

 

The pension fund invests in bonds, pooled funds and domestic and foreign stocks.

 

10      Changes in non-cash working capital

 

2021 $			2020 $
	Dues receivable	(37,902)	(1,529,304)
	Other receivables	1,267,073	362,324
	Prepaid expenses and other assets	61,254	(626,966)
	Accounts payable	359,138	(2,410,653)
	Accrued liabilities	3,499,357	1,357,795
		5,148,920	{2,846,804}
11	Contingencies

 

OPSEU has been served with several human resource related claims, Ontario Labour Relations Board claims and other claims, which it is defending. At present, the outcomes of these claims are indeterminable. In the opinion of OPSEU, these claims will be settled without material financial liability. Should losses arise from any of these claims, such losses will be charged to operations in the year of resolution.

In 2014, OPSEU, as part of a group, entered into a limited guarantee of a credit facility on behalf of the New Democratic Party of Ontario. As at December 31, 2021, thefull amount of the credit facility has been drawn. The term of the facility is 48 months and is repayable in full or in part at any time without notice, penalty or bonus. The maximum amount of OPSEU’s potential liability is limited to $500,000.

 

 

 

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12    Merger with Educational Resources Facilitators of Peel (ERFP)

 

Effective July 6, 2020, theERFP merged with OPSEU/SEFPO. This merger resulted in approximately 3,700 full-time, part-time and casual employees of the Peel District School Board joining OPSEU. As per the Executive Board motion approving this merger, these members were placed in a new Local. As per the terms of the merger agreement, OPSEU/SEFPO acquired cash of $259,171 and investments of $7,649,575 as a result of the transaction. Subsequently, the Board of Directors transferred the amounts to the Strike Fund.

 

13    Financial instruments

 

Credit risk

 

Credit risk is the risk one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. OPSEU’s financial instruments that are exposed to concentrations of credit risk relate primarily to cash, investments, dues and other receivables. OPSEU manages its exposure to this risk by maintaining cash and investments with major financial institutions. Dues are received on a monthly basis from various employers. OPSEU regularly follows up on any overdue payments to reduce its exposure to default.

 

Liquidity risk

 

Liquidity risk is the risk OPSEU may encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, OPSEU will not have sufficient funds to settle a transaction on the due date, will be forced to sell financial assets at a value that is less than what they are worth or may be unable to settle or recover a financial asset. Liquidity risk arises from bank indebtedness, accounts payable, accrued liabilities and obligations under capital leases.

 

OPSEU continues to focus on maintaining adequate liquidity to meet cash interest and principal repayments, operating working capital requirements and capital expenditures.

 

Market risk

 

OPSEU is exposed to fluctuations in equity markets on its investments, which are invested in mutual funds and publicly listed equities. Market risk is managed through construction of a diversified portfolio of instruments traded on various markets and across various industries.

 

Interest rate risk

 

Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. OPSEU is exposed to interest rate risk arising from the possibility that changes in interest rates will affect the  value of fixed income denominated  investments and interest  payments on the line of credit.

 

 

 

 

 

 

(10)

 

Schedule of Expenditures – Members’ Activities

For the year ended December 31, 2021

 

 

 

General Fund	2021 $	2020 $
Affiliation dues	3,969,575	3,870,436
Affiliation expenses	254,741	104,507
Convention and regional meeting	338,682	395,573
Legal costs	8,267,005	7,424,734
Payments to Locals	16,413,707	16,771,582
Negotiation costs	1,463,707	1,091,859
Divisional and sector meetings	193,703	44,491
Committee meetings	566,074	675,078
Campaigns, donations and other	3,874,569	3,412,188
Organizing activities	721,599	1,539,331
Solidarity reserve	61,900	30,754
Member grievance activities	96,144	163,242
Other members’ recoveries	33,076	64,877
	36,254,482	35,588,652
Defence Fund Sector 10 PSLRTA Conference	866
Legal defence	224 247	22,827
	225,113	22 827
	36,479,595	35,611,479

 

Schedule of Expenditures – Executive Board Activities

For the year ended December 31, 2021

 

 

 

	2021 $	2020 $
Board meetings	156,599	125,502
Officers’ meetings	18,821	17,872
Committee activities	113,290	37,475
Regional activities	251,218	258,807
General board activities	104,798	232,875
	644,726	672,531

 

Ontario Public Service Employees Union

Schedule of Expenditures – Departmental Costs

For the year ended December 31,  2021

Schedule 3

 

 

 

 

 

	2021 $	2020 $
President’s office	2,091,037	1,838,500
First Vice-President’s office	639,924	623,610
Legal services division	6,604,113	6,510,486
Employee relations division	7,468,715	5,662,376
Finance	9,557,458	9,217,528
Communications division	7,544,369	7,137,751
Local services divisions – bargaining	5,332,285	5,376,914

 

Local services divisions – operations                                                                                                                                               17,070,090                                                                                                         16,810,080

 

56,307,991      53,177,245

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 OPERATING RESULTS
Comparison of Budget and Operating Results
	Budget Approved (Executive Board)		Board Approvals		Total Budget		2021 Actual		Variance
GENERAL FUND
Revenue
Membership Dues:
Ontario Public Service	32,000,000				32,000,000		33,310,091		1,310,091
Broader Public Service	63,000,000				63,000,000		66,794,214		3,794,214
C.A.A.T. – Academic	15,500,000				15,500,000		15,173,479		(326,521)
C.A.A.T. – Support	9,500,000				9,500,000		10,050,499		550,499
Total Membership Dues	120,000,000		–		120,000,000		125,328,284		5,328,283
Investment Income	–				–		175,592		175,592
Other Income	560,000				560,000		461,845		(98,155)
Permit fees	500,000				500,000		1,005,642		505,642
Total Revenue	121,060,000		–		121,060,000		126,971,363		5,911,362
Transfers to Other Funds:
Strike Fund	(6,000,000)				(6,000,000)		(10,821,732)		(4,821,732)
Education Fund	(1,909,500)				(1,909,500)		(1,459,849)		449,651
Defence Fund	(200,000)				(200,000)		(200,000)		–
Training Centre	(500,000)				(500,000)		–		(500,000)
Transfers from other Funds:
Strike Fund	1,000,000				1,000,000		–		(1,000,000)
LBED Anti-Privatization	650,000				650,000		–		(650,000)
Net Operating Revenue	114,100,500		–		114,100,500		114,489,782		(610,719)
Members’ Activities:
Affiliation Dues	3,878,400				3,878,400		3,969,318		(90,918)
Affiliation Expenses	717,617				717,617		254,741		462,875
Convention/Regional Meetings	3,246,110				3,246,110		338,682		2,907,428
Legal Expenses	8,115,000				8,115,000		8,267,005		(152,005)
Payments to Locals	14,558,000				14,558,000		16,413,707		(1,855,707)
Negotiations Costs	3,840,000				3,840,000		1,463,963		2,376,037
Division/Sector Meetings	1,730,000				1,730,000		193,703		1,536,297
Committee Meetings	2,059,700		4,373		2,064,073		566,074		1,497,999
Campaigns, Donations & Other	7,154,305		1,729,930		8,884,235		3,874,569		5,009,666
Organizing Initiatives	750,000				750,000		721,599		28,401
Solidarity Reserve	75,000				75,000		61,900		13,100
Other Members’ Expenses	451,700				451,700		129,220		322,480
Total Members’ Activities	46,575,831		1,734,303		48,310,134		36,254,482		12,055,652

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 OPERATING RESULTS
Comparison of Budget and Operating Results
	Budget Approved (Executive Board)		Board Approvals		Total Budget		2021 Actual		Variance
Executive Board
Board Meetings	230,000				230,000		138,497		91,504
Officers’ Meetings	31,000				31,000		18,821		12,179
Board Committees	112,000				112,000		113,290		(1,290)
Staff Negotiations	–				–		18,103		(18,103)
Regional Activities	471,600				471,601		251,218		220,383
General Board Activities	381,300				381,300		104,798		276,502
Total Executive Board	1,225,900		–		1,225,902		644,726		581,175
Departmental Costs
President’s Office	1,808,680				1,808,680		2,091,037		(282,357)
First Vice-President’s Office	637,675				637,675		639,924		(2,249)
Legal Services Division	8,587,947				8,587,948		6,604,113		1,983,835
Employee Relations Division	8,897,615		340,439		9,238,054		7,468,715		1,769,339
Finance	11,259,530		68,249		11,327,779		9,557,458		1,770,321
Communications Division	8,239,508				8,239,508		7,544,369		695,139
Local Services – Bargaining	6,514,083				6,514,083		5,332,285		1,181,798
Local Services – Operations	19,463,527				19,463,527		17,070,090		2,393,437
Administrative Savings	(1,000,000)				(1,000,000)		–		(1,000,000)
Total Departmental Costs	64,408,565		408,688		64,817,253		56,307,991		8,509,263
Amortization of Capital Assets	1,800,000		–		1,800,000		2,696,690		(896,690)
Net Operating Income	90,204		(2,142,991)		(2,052,789)		18,585,893		(20,860,119)
Post Employment Benefits	–		–		–		7,716,479		(7,716,479)
Change in value of Investments	–		–		–		524,572		(524,572)
Net Income for the year	90,204		(2,142,991)		(2,052,789)		11,393,986		(13,668,212)

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
		2021 Actual		Budget		Variance
GENERAL FUND
Members’ Activities
Affiliation Dues:
CLC		729,600		720,000		(9,600)
NUPGE		2,455,072		2,400,000		(55,072)
OFL		680,400		680,400		–
CAUT		104,503		78,000		(26,503)
Total affiliation dues		3,969,575		3,878,400		(91,175)
Affiliation Other Expenses:
OFL		105,636		435,342		329,706
NUPGE		2,885		44,308		41,423
CLC		146,221		234,167		87,946
CAUT		–		3,800		3,800
Total Affiliation Other Expenses		254,741		717,617		462,875
Convention & Regional Meetings:
AGM Delegates		9,229		1,500,000		1,490,771
AGM Staff				100,360		100,360
Committees		347		45,750		45,403
AGM Other		319,108		1,000,000		680,892
Regional Meetings		9,998		600,000		590,002
Total Convention & Regional Meetings		338,682		3,246,110		2,907,428
Divisional Meetings:
OPS		–		475,000		475,000
CAAT Academic		–		100,000		100,000
CAAT Support		–		155,000		155,000
BPS		193,703		1,000,000		806,297
Total Divisional Meetings		193,703		1,730,000		1,536,297
Committee Meetings
Sector	OPS	51,442		398,000		346,558
	CAAT Academic	31,008		142,000		110,992
	CAAT Support	30,053		140,000		109,947
	CAAT Joint	4,866		35,000		30,134
	CAAT Pension Sponsors	–		4,700		4,700
	BPS	297,463		721,373		423,910
	OPSEU Jt Trust	–		7,000		7,000
	BPS All Chairs	20,600		75,000		54,400

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
		2021 Actual		Budget		Variance
Equity	PWC	18,962		62,000		43,038
	Human Rights	11,692		62,000		50,308
	Rainbow Alliance	6,942		62,000		55,058
	Disability Caucus	6,219		62,000		55,781
	Francophone Caucus	16,137		62,000		45,862
	Young Workers	2,517		62,000		59,483
	Workers of Colour	55,128		62,000		6,872
	Indigenous Circle	7,306		82,000		74,694
	Equity Chairs	5,739		25,000		19,261
Total Committee Meetings		566,074		2,064,073		1,497,999
Payments to Locals
Local Rebates		12,361,872		11,000,000		(1,361,872)
Area Council Dues		12,358		34,000		21,642
Labour Council Dues		189,301		150,000		(39,301)
Local TimeOff		580,761		588,000		7,239
Local TimeOff Member Bookoff		3,266,348		2,700,000		(566,348)
Northern Lights Fund		–		27,000		27,000
Other Local Expenses		3,067		9,000		5,933
Total Payments to Locals		16,413,707		14,508,000		(1,905,707)
Negotiations:
Ontario Public Service		437,691		520,000		82,309
CAAT Academic		167,096		150,000		(17,096)
CAAT Support		34,235		150,000		115,765
Broader Public Service		664,815		2,500,000		1,835,185
Mobilizing		159,870		520,000		360,130
Total Negotiations:		1,463,707		3,840,000		2,376,293
Members’ Expenses
Grievance	OPS	25,725		230,000		204,274
	CAAT-A	1,301		15,000		13,699
	CAAT-S	(394)		8,000		8,394
	BPS	5,808		20,000		14,192
	BPS – Regional	63,703		120,000		56,297
Legal Services		–		8,000		8,000
Sub-Total Grievance		96,144		401,000		304,856
Membership Benefits		13,873		27,500		13,627
Campaign		30		–		(30)
Job Security		19,173		23,200		4,027
Total Members Expenses		129,220		451,700		322,480

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual		Budget		Variance
Legal Expenses
Collective Bargaining	224,259		295,000		70,741
Organizing	275,299		280,000		4,701
Grievance	7,076,271		6,780,000		(296,271)
Membership Benefits	259,860		195,000		(64,860)
Interest Arbitration	139,953		140,000		47
Legal Estimates/Other	291,363		425,000		133,637
Total Legal Expenses	8,267,005		8,115,000		(152,005)
Other Membership Expenses
Donations:
Union of Injured Workers	1,250		1,250		–
CCPA	5,000		5,000		–
Rainford Jackson Educ. Fund	–		2,500		2,500
Canadian Civil Liberties	1,250		1,250		–
Ont. Coalition for Better Daycare	500		500		–
Workers’ Arts & Heritage Center	5,000		5,000		–
Helen Kiss Memorial Bursary	1,000		1,000		–
Andre Bekerman Bursary	750		750		–
National Movement for Harmony	2,500		2,500		–
Donna Bryant Memorial Fund	1,000		1,000		–
Our Times	1,000		1,000		–
Stephen Lewis Fund	25,000		25,000		–
The Leonard Peltier Fund	2,500		2,500		–
Brian MacIntosh Memorial Fund	250		250		–
Bill Kuehnbaum Bursary	250		250		–
Larry Cripps Scholarship	1,000		1,000		–
Carol McGregor Scholarship	1,500		1,500		–
Curt Bishop Scholarship	1,000		1,000		–
LEAF Patron Sponsorship	5,000		5,000		–
Barbra Schlifer Clinic	750		750		–
Mayworks Festival	2,000		2,000		–
Speakers School	2,250		2,250		–
Peter Kormos Memorial Bursary	1,000		1,000		–
Bloodwatch.org	10,000		10,000		–
Ontario Autism Coalition	10,000		10,000		–
Amy Stiles Scholarship	1,000		1,000		–
Karen Gottschalk-Millar Memorial	1,000		1,000		–
Fred Upshaw Scholarship	1,000		1,000		–
Other Donations	234,620		301,000		76,380
Total Donations	309,370		388,250		78,880

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual	Budget	Variance
Campaigns
Political Action Committee	470	100,000	99,530
OHC Sponsorship	50,000	50,000	–
OHC Campaign	–	50,000	50,000
International Youth Day	5,167	180,000	174,833
Social Mapping Project	4,883	200,000	195,117
Human Rights Conference	273	160,000	159,727
Francophone Conference	–	104,000	104,000
Indigenous Conference	936	90,000	89,064
UN Status of Women	34,670	20,000	(14,670)
Coal Racialized Work-Build Cap Pro	42,042	98,500	56,458
Indigenous Water Campaign	3,439	–	(3,439)
Regional Writer’s Outreach	–	31,500	31,500
Bill 124 Charter Challenge	28,250	–	(28,250)
HPD Lobby Day & Constituency Wk	–	150,000	150,000
CAAT A Pre-Bargaining (Fall 2020)	11,385	23,000	11,615
Board of Education Pink T-Shirt	19,482	68,308	48,826
ODSP Download Consultation	1,086	19,239	18,153
Sector 18 Paint Night	12,250	12,250	–
Board of Ed – MHFA Training	9,846	36,675	26,829
Board of Ed – Political Action	5,420	62,750	57,330
CBS 2021 Bargaining Campaign	10,373	6,279	(4,094)
PHO 2021 Bargaining Campaign	7,811	8,002	191
HPD-Health Professionals Week	25,250	25,250	–
Red 4 ED Appreciation	236,932	185,857	(51,074)
MH&A Bargaining Conference	6,556	17,437	10,881
Ambulance H&S forum 2021	3,192	18,480	15,288
CAAT-A Bargaining T-Shirts	17,285	27,233	9,948
Black Creek Community Health	17,376	–	(17,376)
Fall Organizing Campaign: Phase 1	28,651	579,765	551,114
Orange Abinoojiinh Sacred Fire	5,210	32,850	27,640
7-Eleven Case Conference	20,673	18,867	(1,806)
Regional Billboard Media Buy	727,794	700,000	(27,794)
CoRW Mental Health & First Aid	12,381	16,473	4,092
CPAC Provincial Election 2022	–	280,768	280,768
7-Eleven Liquor License Tribunal	19,121	65,780	46,659
Other Campaigns	46,131	1,020,692	974,561
Total campaigns	1,414,334	4,459,954	3,045,620

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual		Budget		Variance
Other Programs
Annual Programs
Labour Day Parade	9,290		36,093		26,803
Promoting the Union Agenda	114,621		438,676		324,055
MDT Assignments	–		351,230		351,230
In Solidarity	1,368		60,000		58,632
Accommodation Policy	100,873		95,000		(5,873)
Membership Centres	1,130,593		1,400,000		269,407
Communications Incentive Fund	1,475		5,000		3,525
Social Justice Fund	154,315		154,315		–
Pride Day Activities	32,989		52,000		19,011
All Pension Appointees	107		10,000		9,893
Joint Leadership Meeting	10,473		35,000		24,527
OPSEU Accessibility Fund	–		10,000		10,000
Regional Hardship Fund	788,028		504,130		(283,898)
Racialized Workers Conference	–		182,000		182,000
CLC Labour College	6,109		100,000		93,891
Equity Gathering	9,895		82,872		72,977
Remember Me March	9,148		12,715		3,567
Social Justice	241		10,000		9,759
Hardship Committee Training	3,294		20,000		16,706
Retired Members Division	3,514		65,000		61,487
Subtotal annual programs	2,376,335		3,624,031		1,247,696
Other Programs
Human Rights Policies	126,559		60,000		(66,559)
OPSEU Women’s Conference	29,168		215,000		185,832
Previous Years’ Expenses	(386,784)		–		386,784
Caribana Activities	5,586		42,000		36,414
Retirees Conference	–		95,000		95,000
Subtotal other programs	(225,471)		412,000		637,471
Total Other membership expenses:	3,874,569		8,884,235		5,009,666
Organizing Initiatives	721,599		750,000		28,401
Solidarity Reserve	61,900		75,000		13,100
TOTAL MEMBERS’ ACTIVITIES	36,254,482		48,260,134		12,005,652

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual		Budget		Variance
DEPARTMENTAL COSTS:
President’s Office:
Salary & Payroll Costs	1,671,272		1,414,965		(256,307)
Vehicle & Staff Costs	283,246		213,132		(70,114)
Other Costs	136,519		180,583		44,064
	2,091,037		1,808,680		(282,357)
First Vice-President’s Office:
Salary & Payroll Costs	547,175		525,378		(21,797)
Vehicle & Staff Costs	70,392		77,197		6,805
Other Costs	22,357		35,100		12,743
	639,924		637,675		(2,249)
Legal Services Division:
Salary & Payroll Costs	6,029,176		7,844,647		1,815,471
Vehicle & Staff Costs	409,235		627,000		217,765
Other Costs	165,702		116,300		(49,402)
	6,604,113		8,587,947		1,983,834
Employee Relations Division:
Salary & Payroll Costs	1,169,620		1,421,910		252,290
Vehicle & Staff Costs	133,450		147,130		13,680
Other Costs	23,257		58,720		35,463
Training Costs	63,340		274,280		210,940
Accommodation	23,584		515,101		491,517
Organizational	6,055,464		6,820,912		765,448
	7,468,715		9,238,053		1,769,338
Finance:
Salary & Payroll Costs	6,536,228		7,917,850		1,381,622
Vehicle & Staff Costs	196,480		195,929		(551)
Other Costs	128,364		190,800		62,436
Organizational Expenses	702,959		550,000		(152,959)
Central Duplicating	92,536		506,000		413,464
Information Services (IT)	643,413		762,000		118,587
Building Expenses	1,257,478		1,205,200		(52,278)
	9,557,458		11,327,779		1,770,321

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual		Budget		Variance
Communications Division:
Salary & Payroll Costs	6,109,346		6,523,168		413,822
Vehicle & Staff Costs	445,255		716,700		271,445
Other Costs	405,717		353,640		(52,077)
Publishing Expenses	197,847		271,000		73,153
Organizing Initiatives	386,204		375,000		(11,204)
	7,544,369		8,239,508		695,139
Local Services – Bargaining
Salary & Payroll Costs	4,885,145		5,735,250		850,105
Vehicle & Staff Costs	350,407		649,700		299,293
Other Costs	96,733		129,132		32,399
	5,332,285		6,514,082		1,181,797
Local Services -Operations
Salary Costs	13,201,925		15,169,233		1,967,308
Vehicle Costs	894,366		1,338,000		443,634
Other Costs	165,634		81,800		(83,834)
Regional Offices	2,808,165		2,874,495		66,330
	17,070,090		19,463,528		2,393,438
Total Departmental Costs	56,307,991		65,817,252		9,509,261

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
2021 DETAILED VARIANCE ANALYSIS
	2021 Actual		Budget		Variance
STRIKE FUND
Strike Expenses
Strike Pay	80,718		–		(80,718)
Strike Benefits	27,015		–		(27,015)
Other Strike Expenses	43,067		–		(43,067)
Total Strike Expenses	150,800		–		(150,800)
EDUCATION FUND
Regional Educational Expenses
Region 1	33,053		172,000		138,947
Region 2	11,691		281,000		269,309
Region 3	33,467		237,000		203,533
Region 4	19,550		240,000		220,450
Region 5	82,137		355,000		272,863
Region 6	23,841		162,000		138,159
Region 7	18,783		130,000		111,217
Total Regional Education	222,522		1,577,000		1,354,477
Central Education Expenses
Train the Trainer	–		78,000		78,000
Orientation for New Presidents	21,223		161,864		140,641
Educational Material	3,012		30,000		26,988
Local Editor’s Conference	–		115,000		115,000
Anti Harassment Training	–		40,000		40,000
Pension Trustee Training	–		13,500		13,500
OPSEU Scholarship	10,000		10,000		–
Hardship Committee	2,478		–		(2,478)
Translation of Education Material	–		38,000		38,000
Total Central Education	36,713		486,364		449,651
Total Education Expenses	259,235		2,063,364		1,804,128

 

ONTARIO PUBLIC SERVICE EMPLOYEES UNION
Trustee Audit Reports – Arrears Listing
As per OPSEU Policy; a Local that is two Audit Reports (12 months) in arrears shall have their rebates held in trust by OPSEU. Once all delinquent Audit Reports are received, rebates being held (up to 36 months) will be released to the Local without interest. Rebates being held longer than 36 months are forfeited by the Local. The following is a list of rebates that are being held (as of March 15, 2022). These amounts include the regular quarterly payments plus any of the additional payments that were approved by the Executive Board
	Rebates held			Rebates held			Rebates held
LOCAL	“in trust”		LOCAL	“in trust”		LOCAL	“in trust”
115	$4,918.00		403	$5,583.00		601	$9,566.00
117	$11,000.00		410	$20,811.00		615	$3,503.00
119	$9,440.00		415	$32,351.00		616	$20,228.00
121	$7,423.25		418	$27,416.00		617	$6,451.00
141	$20,356.00		427	$16,145.53		618	$26,466.00
144	$45,932.00		428	$9,661.00		627	$14,511.00
146	$24,101.00		429	$9,111.00		628	$26,163.00
161	$5,884.00		430	$38,223.00		629	$7,144.00
165	$13,255.00		452	$4,953.00		630	$2,743.50
168	$22,342.00		460	$11,481.00		641	$11,088.00
			463	$10,500.00		644	$4,409.00
209	$8,771.13		473	$13,364.00		645	$3,886.00
210	$11,376.00		478	$11,304.00		646	$13,469.00
211	$47,698.00		480	$14,122.85		652	$11,413.00
213	$5,898.00		482	$5,000.00		667	$84,028.00
217	$34,924.00		490	$2,650.50		668	$35,959.00
239	$9,671.00		495	$10,523.00		675	$24,795.00
241	$33,926.00		4103	$17,478.00		679	$6,885.00
245	$76,808.00					682	$28,047.00
251	$34,455.00		503	$29,769.04
261	$14,534.00		511	$71,519.00		711	$4,204.00
267	$11,505.00		515	$27,489.00		712	$5,093.00
269	$21,190.00		527	$15,516.00		718	$10,600.00
270	$22,394.00		529	$37,489.00		721	$6,500.00
280	$16,329.00		535	$75,831.00		722	$6,545.37
282	$11,288.00		536	$31,820.00		723	$15,835.00
292	$7,291.00		555	$37,478.00		728	$12,013.00
293	$6,563.00		563	$78,740.00		729	$10,865.00
			572	$10,325.00		730	$5,500.00
304	$7,948.00		576	$76,246.01		735	$6,701.00
306	$23,753.00		578	$25,753.00
324	$20,391.00		580	$69,544.43
337	$5,107.96		584	$25,417.10
351	$17,201.55		592	$24,154.00
355	$6,178.00		593	$17,732.06
357	$10,826.00		598	$37,499.00
371	$5,089.13		5106	$20,533.00
372	$7,331.50		5108	$109,186.00
376	$45,546.00		5109	$47,528.00
382	$7,273.00		5115	$16,248.00
385	$10,637.00		5118	$7,228.00
395	$2,737.50