Upload
lyminh
View
219
Download
0
Embed Size (px)
Citation preview
Technical Standards and Safety Authority
2004/2005 A N N U A L R E P O R T
T H E N EW FAC EOF SAF E TY
TSSA AR 2004 FINALv7.0 9/1/05 8:08 PM Page a
Technical Standards and Safety Authority (TSSA) is an organizationdedicated to increasing public safety in the home, workplace and at recre-ational facilities. It was created in 1996 as a not-for-profit, self-fundeddelegated administrative authority to administer and enforce public safetylaws in designated industry sectors: boilers and pressure vessels, operatingplants, elevating devices, fuel handling and stuffed/upholstered articles. It is also involved in the training and certification of operating engineers andtechnicians. In addition, TSSA has the ability to engage in discretionary services as long as it does not detract from or conflict with its delegatedresponsibilities.
The corporation’s range of safety services includes public education andconsumer information, training and certification, licensing and registration,engineering design review, inspections, investigations, safety managementconsultation, and enforcement and prosecution activities.
Working with partners in industry, government, advisory councils and thepublic, TSSA strives for a goal of zero serious injuries and fatalities in itsregulated sectors. The corporation continues its work to recognize andrespond to the needs of its customers and its employees to enhance publicsafety. Through its commitment to creating a work environment that isconducive to high morale and performance for its employees, and serviceexcellence for its customers, TSSA is moving towards achieving its vision ofbecoming the world leader in public safety services.
TSSA has a wholly owned subsidiary, TSSA Services Inc., which was incorpo-rated January 9, 2003 under the laws of the State of Georgia, as a U.S.Domestic Profit Corporation. The subsidiary had no operations in thecurrent period.
On The Cover:
Debra Thiel, Customer Service Advisor
Gord Kanani, Senior Special Devices Engineer, Elevating and Amusement Devices Safety Program
Christina Passfield, Inspector, Elevating and Amusement Devices Safety Program
Fiscal Year 2004/2005Performance Highlights
Technical Standards and Safety AuthorityCorporate Profile
Over the course of fiscal year 2004/2005, TSSA:
• introduced a comprehensive customer service enhance-ment strategy; based on results of previous customersatisfaction surveys and an internal assessment ofservice delivery processes, the focus of the strategy ison improving key business processes to alleviatesystemic obstacles to enhanced customer services;
• developed and delivered safety training programsspecifically designed to address knowledge gaps withowners and contractor groups, including propertymanagers’ training courses for boilers, and weldingand repair training programs;
• completed 675 audits under the repair and pipingcontractor audit program in response to an industryrequest to ensure contractors worked to appropriatestandards;
• delivered root cause analysis training – designed toenhance risk-based maturity and add to an ability toidentify root causes – to all inspectors in all programs;
• realized new safety partnerships, including with theOffice of the Fire Marshal, the Toronto TransitCommission and the Ontario Snow Resorts Association;
• introduced a Discretionary Services Policy, which hasbeen accepted by the Ontario government and hasreceived support from industry representatives;
• rationalized and simplified its management structure,to streamline and flatten the organization; and
• received the international Arthur Quern Quality Awardfrom the Risk and Insurance Management Society Inc.,for significant contributions in the field of riskmanagement and safety improvement.
TSSA AR 2004 FINALv7.0 9/7/05 6:01 PM Page b
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 1
Technical Standards and Safety Authority
2004/2005 A N N U A L R E P O R T
The Technical Standards and Safety
Authority presents the ‘new face of safety’.
It is characterized by an active attitude and
a new focus on results. It will be evidenced
through the corporation’s commitment to
creating a work environment that is
conducive to high morale and performance
for its employees, and service excellence
for its customers.
CONTENTS
A Message from the Chair 2
Reporting and Corporate Oversight 3
A Message from the President andChief Executive Officer 5
The New Face of Safety 6
Going Forward with Public Safety 12
Performance Reporting:Balanced Scorecard 18
Fiscal Year 2005/2006 Outlook 25
Management’s Discussion and Analysis 26
Management Responsibility forFinancial Reporting 28
Auditors’ Report 29
Consolidated Financial Statements 30
Notes to ConsolidatedFinancial Statements 33
Corporate Information 38
TSSA AR 2004 FINALv7.0 9/1/05 6:06 PM Page 1
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y2
A Message from the Chair
Last year my message as Chair focused on TSSA’s commitment
to transparency, accountability and good governance. I am
confident in saying that significant energy and efforts have
been devoted to demonstrating TSSA’s commitment to these
principles in the past year.
Since our inception in 1996, we have continued to
evolve to the point where our vision of becoming a world
leader in safety services is more than wishful thinking.
TSSA has made steady progress on the path to
becoming a risk-based, multifaceted and prevention-oriented
organization committed to the safety of the public in
Ontario. Our commitment to public safety is showing results.
The fact that TSSA is poised to offer its safety services, in fact
the benefits of the entire “safety system” approach to those
outside Ontario, is clear indication we are going forward with
the right product, the right people and the right approach to
service delivery.
The things we have done well in the past – consolidating
our safety expertise, building healthy, productive partnerships,
identifying and responding to customer needs, and developing
strong technical competencies – have secured the foundation
for our goals in the future.
If I could list accomplishments I am most proud of as
Chair, I would cite our unwavering commitment to customer
service, the high calibre and commitment to safety of
employees, our leading governance practices, and the quest
for improvement and innovation evident in the development
of the safety system approach. All of these are worth
celebrating; however, I would not suggest for a moment that
it is time to rest on our laurels.
TSSA has made great strides as an organization, with
a clear plan to move forward with confidence in pursuit of
challenging new objectives.
In September 2005, I will complete my term as Chair
of TSSA’s Board of Directors, having served on the founding
Board of TSSA since 1997. I would like to pay tribute to all the
Directors who have served with distinction and dedication.
Their engagement with TSSA’s mission, their governance skills
and their commitment to public safety have been exemplary.
I am confident TSSA is now an organization endowed with a
strong foundation, a positive track record, a skilled workforce
and Board and executive leadership to make strides in pursuit
of safety goals. Clearly, new stakes are in the ground and TSSA
is moving in the right direction.
Glenna Carr
Chair, Board of Directors
M O V I N G F O R WA R D
W I T H C O N F I D E N C E
TSSA AR 2004 FINALv7.0 9/7/05 6:03 PM Page 2
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 3
TSSA actively pursues a best practices approach to corporate
governance and corporate disclosure. As a not-for-profit
corporation without share capital, TSSA is committed to the
principles of transparency and accountability in all aspects of
its operations.
TSSA’s Board of Directors is responsible for promoting
the stewardship of the corporation, including promoting
sound corporate governance practices. The Board provides
oversight of the organization and takes a leading role in the
establishment of the corporation’s strategic direction. The
Board and senior management monitor emerging governance
best practices, with a view to adopting those that would best
serve to improve and enhance TSSA’s governance regime.
Among its key responsibilities, the Board:
• regularly reviews with management the strategic environ-
ment, the emergence of new risks and opportunities, and
the implications for TSSA’s strategic direction;
• approves strategic plans that take into account TSSA’s
major risks and opportunities, and oversees management of
those risks;
• charges the President and Chief Executive Officer of the
corporation with the general management and direction of
the business, and affairs of the corporation;
• appoints, monitors and assesses the performance of the
President and Chief Executive Officer;
• oversees the appointment, monitoring and succession
planning for senior management;
• monitors the external communications of the corporation,
including public disclosures;
• approves the fiscal plan and ensures the integrity of the
corporation’s reported financial performance.
During the fiscal year 2004/2005, TSSA accomplished
a number of objectives related to corporate governance.
Following a review of best practices, the organization
approved revised and updated terms of reference for each
Board committee. It also approved and completed a new
process for the selection of a Board Chair, and it completed
R E P O R T I N G A N D
C O R P O R A T E O V E R S I G H T
TSSA’s Board of Directors is responsiblefor promoting the stewardship of thecorporation, including promoting sound corporate governance practices.The Board provides oversight of the organization and takes a leading role inthe establishment of the corporation’sstrategic direction.
TSSA AR 2004 FINALv7.0 9/1/05 2:14 PM Page 3
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y4
position profiles for the Board Chair, and the President and
Chief Executive Officer.
As well, TSSA completed a skills assessment of directors,
which served to enhance the organization’s Board member
profile, in support of the recruitment of new directors.
TSSA provides transparent performance reporting by
way of this annual report and its yearly business plan. All of
these documents are also available through the corporation’s
website at www.tssa.org.
TSSA also reviews its performance with the Ontario
government on a quarterly basis utilizing a performance
report that is consistent with the company’s risk-based
approach to safety services. The quarterly reports include two
main features:
• risk assessment inputs, such as the number of design
reviews completed, the number of inspectors and inspections,
and the number of certifications; and
• risk control tools, such as the number of Director’s Orders
issued, completed prosecutions, convictions and the value
of the awards, and public awareness activities.
In keeping with good governance practices, TSSA’s
Board of Directors has adopted a board charter. The charter
describes the Board’s mandate, accountability and composition,
and sets out a board-specific code of conduct. The charter is
also available through the corporation’s website.
In keeping with good governancepractices, TSSA’s Board of Directors hasadopted a board charter. The charterdescribes the Board’s mandate, accountability and composition, and sets out a board-specific code of conduct.
TSSA AR 2004 FINALv7.0 9/1/05 2:16 PM Page 4
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 5
A Message from the President and
Chief Executive Officer
Having recently joined TSSA, I spent considerable time during
my initial months learning about the organization, and the
views and ideas of its employees and external stakeholders.
Any organization’s success depends on the capabilities and
commitment of its employees; therefore, a top priority for me
is to ensure our work environment is optimally conducive to
high morale and performance. This will enable us to attract
and retain the top resources necessary to deliver high quality
safety services in Ontario and fulfill our vision of becoming
the world leader in public safety services. As such, nurturing a
high performing team is one of our four interrelated strategic
priorities for the upcoming plan period.
With respect to our other strategic priorities, first
and foremost, we are committed to enhancing public safety.
This is the mandate of our organization and what each of
us strives for in all of our actions. We are committed to a
journey towards zero serious injuries and fatalities. We
will work with industry, our advisory councils and other
stakeholders to ensure that Ontario is the safest jurisdiction
possible with respect to the sectors we regulate.
While our organization is unique in comparison to
most service companies by virtue of our regulatory role, this
unique and privileged position only reinforces the need for
providing excellence in customer service. We will continue to
work with industry and consumer representatives as well as
other members of the public to enhance service delivery, and
we will act to improve corporate processes in response to
customer needs and concerns.
Finally, we will grow the organization by selectively
providing safety services outside Ontario. Working in other
jurisdictions will enhance our ability to attract and retain top
industry resources, and enable us to impact public safety
more broadly. The revenues generated will allow us to invest
in our safety services, research and development activities,
and knowledge management.
Impacting the safety and well-being of every person
in Ontario through our actions is a tremendous responsibility.
With strong Board leadership, an exceptional and committed
team, and effective and valuable industry relations, we
can continue to make a meaningful difference and achieve
our vision.
I am very pleased to have this opportunity to be part
of this important and dynamic organization.
Kathy Milsom
President and Chief Executive Officer
T H E N E W F A C E O F
P U B L I C S A F E T Y
TSSA AR 2004 FINALv7.0 9/1/05 6:07 PM Page 5
T H E N EW FAC EOF SAF E TY
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y6
“TSSA’s top priority is to provide unmatched service toour customers. This is a commitment that begins with ourown people. Improved public safety is a great incentiveto stay focused on customer service excellence.”LUISA ARMSTRONG, Manager, Customer Services
TSSA has launched a number of initiatives designed toenhance customer service throughout the organization. It ismore than an attitude of cooperation; it is also a way to directinteractions with customers, industry representatives, otherstakeholders and the public. The recent opening of TSSA’sCustomer Contact Centre, providing ready answers to inquiries,underscores the commitment to customer service excellence.As one of the major corporate challenges, TSSA employees aredevoted to understanding the basic needs of customers, andworking to meet and exceed their expectations.
The new face of safety begins with our talented, professional staff, and is clearlyreflected in our employees’ interactions with customers, industry representatives and thepublic. Some examples of how TSSA employees are utilizing innovative, cutting-edgesafety solutions to identify and mitigate technology-related risk follow.
C U S T O M E R S A R E A T T H E
C E N T R E O F O U R P E R F O R M A N C E
TSSA AR 2004 FINALv7.0 9/1/05 2:18 PM Page 6
“An effective inspection process means more thanensuring compliance with regulations. It also involveseffective partnerships with industry to see what isworking and what changes might be necessary.”MARCO GALLUCCI, Inspector, Fuels Safety Program
While regulations play a critical part in theoverall safety system, they are only effectivein concert with a proactive inspection team.TSSA’s approach to inspection ensures thatrisk mitigation resources and approaches arein place, and it provides a vital, ongoing linkbetween risk users and the regulations inexistence. Ultimately, TSSA sees front-lineinspection by fully qualified professionals as akey step in ongoing, responsible risk manage-ment and mitigation.
O U R S A F E T Y S Y S T E M M A I N T A I N S
T H E H I G H E S T S T A N D A R D S I N
T H E A R E A S R E G U L A T E D B Y T S S A
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 7
TSSA AR 2004 FINALv7.0 9/1/05 2:19 PM Page 7
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y8
Training and certification of professionalsensures that fully trained, knowledgeableand qualified persons are doing thefront-line safety work and, in turn,promoting the overall safety system.Whether in support of existing regula-tions or to bring a safety mentality toan unregulated environment, TSSA’straining and certification regime plays akey role in risk identification andcontrol.
A C O M M I T M E N T T O
L E A R N I N G A N D
T R A I N I N G B R I N G S
B E T T E R R E S U L T S
“Our trainingprograms producethe most proficientsafety professionalsavailable. Theexpertise is based onpersonal experienceand commitment,backed by real-world practicality.”MACKENZIE HILL, Operations Coordinator,Training and Certification
TSSA AR 2004 FINALv7.0 9/7/05 6:05 PM Page 8
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 9
“While never completely avoidable, risk canbe anticipated, identified and lessened.We work with our customers to mitigate riskwithin a proven safety management system.”SRIKANTH MANGALAM, Risk Management Advisor
Some element of risk is always presentin times of ever-evolving technology;however, such risk can be effectivelymanaged and mitigated through acombination of regulation enforcementand applied safety resources. TSSA’srisk management team understandsthat an innovative safety system isaimed at protecting the health andwellbeing of those interactingwith technology. As such, TSSA hasincorporated in its safety systemproven ways of identifying risk andlimiting its impact to minimum levels.
U N D E R S T A N D I N G A N D
M A N A G I N G R I S K I S A
C R I T I C A L C O M P O N E N T I N
T H E VA L U E C H A I N
Srikanth MangalamRisk Management Advisor
Gabriela DeleanuTechnical Leader, Boilersand Pressure Vessels
Oscar AlonsoPipelines/Vehicles andNatural Gas Engineer
Perpetua CoelhoRisk and InsuranceAnalyst
TSSA AR 2004 FINALv7.0 9/1/05 6:28 PM Page 9
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y10
Regulation in a technological environ-ment generally serves as a functionallegal control establishing benchmarksfor safety and control of risk; however,TSSA recognizes that although regula-tions are based on risk analysis, theyare not necessarily static. Factors suchas design, inspection, maintenance andhuman behaviour all impact on theregulations governing the safe use oftechnology. TSSA seeks to work with itscustomers and industry partners toachieve safety outcomes against abackdrop of voluntary compliance andcooperation. TSSA uses appropriateprogressive disciplinary processes,including administrative penalties,directives and prosecution, to ensurethat regulations and overall safety arebeing observed.
E X P E R T I S E I N
N E G O T I A T I N G
T H E C O M P L E X
R E G U L A T O R Y
E N V I R O N M E N T
“New technology invitesthe need to considerupdating currentregulations. Our closerelationship withmanufacturers, customersand government regulatorskeeps us focused on safetyconcerns.”TOM AYRES, General Counsel
TSSA AR 2004 FINALv7.0 9/1/05 2:25 PM Page 10
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 11
“TSSA’s success will be dependent on the individualcontributions and commitment of each of its employeesin meeting corporate objectives and customer needs.”KATHY MILSOM, President and CEO
TSSA appreciates that an organization isonly as strong and as effective as its teamof employees. To build on past successesand to achieve future objectives, TSSAis creating a work environment thatsupports all employees and enables themto innovate and excel in support ofcorporate priorities. Promoting a cultureof continuous improvement, measuringperformance, meeting targets and settingnew goals with full staff support andcommitment will enable TSSA to meet andexceed its objectives.
T H E R I G H T P E O P L E D O I N G
O U T S T A N D I N G W O R K
TSSA AR 2004 FINALv7.0 9/1/05 6:13 PM Page 11
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y12
Achievements in fiscal year 2004/2005, though varied, exhibit
clear safety and customer service themes. As well, recent
achievements indicate the emphasis on TSSA making optimal
use of the skills, experience and abilities of its employees in
meeting its corporate objectives.
In terms of public safety reporting, TSSA, as in
previous years, continues to evaluate its data and associated
analyses including root cause analysis of incidents to identify
safety concerns and design corresponding safety strategies
across all program areas. Details of the strategies being
implemented are available on TSSA’s website at www.tssa.org.
Setting safety targets, and measuring TSSA’s perform-
ance against these targets, is vital in assessing TSSA’s progress
on the journey to zero serious injuries and fatalities, and
will enable TSSA to demonstrate improved safety results on a
year-by-year basis.
TSSA made notable progress in the areas of public
safety, customer service and financial performance over the
past year. In the public safety area, TSSA delivered root cause
analysis training to all inspectors in each program area. TSSA
also developed and delivered safety training programs specifi-
cally designed to address knowledge gaps with building
owners and contractor groups, including property managers’
training courses for boilers, and welding and repair training
programs.
New and expanded partnerships also characterized
TSSA operations in fiscal year 2004/2005. TSSA entered into
safety partnerships with the Office of the Fire Marshal for a
seasonal safety campaign, the Toronto Transit Commission for
an escalator safety effort that will commence in fiscal year
2005/2006, and the Ontario Snow Resorts Association for the
Look, Load and Lower campaign.
Another accomplishment that is noteworthy is the
completion of special safety assessments of organizations
ranging from truck and engine manufacturing to utility
energy systems. These assessments resulted in safer plants,
reduced down time, and updates to management operation
and maintenance policies.
Also of note, TSSA’s amusement devices engineering
team completed a preliminary consultative review for the
new Sledgehammer ride at Paramount Canada’s Wonderland.
This was the first ride of its type to be installed anywhere in
the world, and TSSA was involved with approval of manufac-
turing and assembly reports, and on-site verification of
compliance during construction and installation.
TSSA furthered its involvement with industry repre-
sentatives and other stakeholders through such activities as
the TSSA-led emergency response procedures program to
assist firefighters when responding to incidents involving
elevators.
G O I N G F O R WA R D
W I T H P U B L I C S A F E T Y
TSSA AR 2004 FINALv7.0 9/7/05 6:07 PM Page 12
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 13
Over the past 12 months, TSSA made significant
strides in its safety enhancement efforts, as well as contin-
uing to transform itself from an enforcement-centred
organization to one in which proactive compliance and
prevention are key motivators. This is in keeping with the
corporation’s strategic and business objectives for the fiscal
year 2004/2005.
TSSA also continued its efforts to establish additional
benchmarks and performance standards by which to measure
its performance in the safety programs. Numerous customer
service enhancement initiatives took root over the past
operational term. TSSA completed an extensive customer
service survey to gauge customer views on service delivery
and to identify areas in need of improvement.
In addition, TSSA placed considerable emphasis and
effort on identifying, understanding and resolving employee
concerns, and responding to ideas and suggestions. This is in
keeping with its commitment to creating a work environment
that is conducive to high morale and performance, and
in recognizing and rewarding employee contributions. The
organizational structure was also reviewed, rationalized
and streamlined to render it more responsive and cost
effective.
TSSA’s balanced scorecard, found on pages 18 to 24
of this report, provides more detailed information about fiscal
year 2004/2005 goals and corresponding achievements in the
areas of public safety, service delivery, strategic development,
the development of a high performing team, and financial
performance. Some highlights for the various program areas
follow.
Boilers and Pressure Vessels Safety Program
TSSA is responsible for regulating all pressure retaining
components manufactured or used in Ontario, with a
commitment to ensuring the safety of boilers, pressure
vessels and piping systems.
The past year saw the boilers and pressure vessels
program team concentrating on communication and infor-
mation efforts to alert industry partners about the cause of
incidents in a more timely and efficient manner.
Other key initiatives for TSSA’s boilers and pressure
vessels team over the past year include:
• developing a new training course for repairs and welding;
and
• completing the first year of a mandatory compliance
program to certify organizations involved in piping and
repair with more than 600 companies becoming certified.
Operating (Power) Engineering Safety Program
TSSA examines and certifies over 15,000 power plant
engineers and operators to confirm their qualifications. In
Over the past 12 months, TSSA madesignificant strides in its safety enhance-ment efforts, as well as continuing totransform itself from an enforcement-centred organization to one in whichproactive compliance and prevention arekey motivators.
TSSA AR 2004 FINALv7.0 9/1/05 6:36 PM Page 13
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y14
addition, TSSA operating engineering inspectors conduct
initial and periodic inspections at operating plants to ensure
they are registered, operating safely and are in compliance
with safety regulations.
Highlights from the fiscal year 2004/2005 include:
• issuing 6,819 directives related to non-compliance with
safety regulations;
• carrying out a comprehensive inspection regime; and
• with the Boilers and Pressure Vessels Safety Program,
developing a greenhouse strategy with key stakeholders.
Elevating Devices Safety Program
TSSA is responsible for regulating the safety of more than
43,000 elevating devices in Ontario. These devices include
elevators, escalators, moving walks, lifts for persons with
physical disabilities, passenger ropeways, construction hoists
and ski lifts.
The past year was typically challenging for TSSA staff
in the elevating devices sector, due to an increase in the
overall number of elevating devices in Ontario.
Highlights from the fiscal year 2004/2005 include:
• issuing more than 55,000 directives, of which 1,226 were
considered of a serious nature;
• developing investigative criteria to help determine which
types of elevator incidents are most worthy of investigation
and follow-up;
• enhancing partnerships and public outreach efforts, such as
an arrangement with local firefighters for training in the
rescue of passengers trapped in elevators, and liaison with
large elevator/escalator operators to promote a safe rider
message; and
• continuing work with the Elevator and Escalator Safety
Foundation to help bring the Safe-T Rider message to
elementary school children; the message has been delivered
to four million grade four students in North America since
the program was launched in 1993; the program reached
40,000 Canadian students in 2004.
Amusement Devices Safety Program
TSSA is responsible for regulating the safety of all amuse-
ment rides in Ontario. These devices include roller coasters,
Ferris wheels, go-karts, inflatables and water slides. Ride
operators must also be licensed and are responsible for
the safe and proper set-up, maintenance and operation of
all rides.
In addition to noting a decrease in the number of
incident reports in fiscal year 2004/2005, the amusement
devices program was responsible for the regulation of 1,137
amusement rides in Ontario, an increase of 317 from the
previous year.
Highlights from fiscal year 2004/2005 include:
• ongoing emphasis to industry operators to report all
amusement ride incidents and near-misses;
• adopting a two-pronged education campaign aimed at
users and operators;
• delivering targeted safety material and information to
go-kart and water-slide operators across the province;
• conducting 28 safety tour campaigns;
• partnering with larger fair operators to provide seasonal
safety messages to more than 140,000 Ontarians; and
• in partnership with industry, developing best practices for
the amusement industry to promote safety in the workplace.
TSSA AR 2004 FINALv7.0 9/1/05 6:36 PM Page 14
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 15
Fuels Safety Program
TSSA provides fuel-related safety services associated with the
safe transportation, storage, handling and use of hydrocarbon
fuels such as gasoline, diesel, propane and natural gas. TSSA
delivers programs and services that regulate the safe use of
motor fuels, heating fuels and gaseous fuels for private,
industrial and commercial uses in Ontario.
Highlights from the fiscal year 2004/2005 include:
• issuing more than 20,000 directives, based on 2,000
scheduled inspections;
• conducting 1,700 audits of registered contractors and more
than 6,000 unannounced inspections;
• lending TSSA’s expertise in the fuel safety area, which led
to requests from other jurisdictions to investigate incidents
involving treatment, storage and distribution of hydro-
carbon fuels;
• investigating 1,525 natural gas pipeline incidents, noting
that the most common cause of problems centred on
improper excavation by contractors, failure to locate
pipelines before digging and locators providing inaccurate
information about the position of pipelines; and
• ongoing partnerships with other stakeholders to ensure
proper respect for buried pipelines and efforts to promote
One Call legislation, aimed at establishing a single
telephone number for information about the exact location
of underground infrastructure prior to excavation.
Upholstered and Stuffed Articles Safety Program
TSSA protects the public from potential hazards related to the
manufacture of upholstered and stuffed articles by ensuring
that manufacturers, renovators and home hobbyists use only
clean, new filling materials in these articles. TSSA also ensures
that these items are properly labeled and that filling
materials are disclosed to the public.
Highlights of the fiscal year 2004/2005 include:
• expanding and enhancing the upholstered and stuffed
articles inspection program to extend public safety
coverage in Ontario, and to encourage fairness throughout
the industry;
• adding Mandarin language services to TSSA’s website, to
assist the large group of Asian customers with communica-
tions regarding applicable regulation and related services,
such as registration, label approval and inspection services;
and
• enhancing cooperation with Canada Customs to avoid the
importation of secondhand materials to be sold in Ontario.
Achievements in all program areas for the fiscal year
2004/2005 indicate TSSA’s ongoing commitment to engage
all stakeholders in enhancing its safety services, and to
making note of all factors to understand and reduce risk.
TSSA AR 2004 FINALv7.0 9/1/05 6:36 PM Page 15
“TSSA’s Quality Assessed Facility program wasdeveloped to create safe work environments byforming a partnership between TSSA’s expertsand a company’s employees. The program setshigh standards for safer management of criticalequipment and operations, and reviewsprogress on an ongoing basis. TSSA recentlybrought its Quality Assessed Facility expertiseto our operation at International Truck andEngine Corporation in Chatham, Ontario. To usethe word ‘quality’ is a never-ending pursuit andthe program offered by TSSA took Internationalin the direction we need to go for safety, relia-bility and repeatability. When shutdowns are$1,800 per minute or $864,000 per day, everyminute of down time is a lost opportunity toproduce. This particular problem has been anon-issue in the last several years due to whatwas achieved with the [TSSA Quality Assessed]facility program.”
Mike DavisMaintenance Manager/Chief Operating
Engineer/CWB Weld Supervisor
International Truck and Engine Corporation
QUALITY ASSESSMENT PROGRAM GETS RESULTS ON MANY LEVELS
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y16
TSSA AR 2004 FINALv7.0 9/1/05 6:36 PM Page 16
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 17
“Some plant owners don’t always have theopportunity to read TSSA bulletins or notices,resulting in occasional communication gaps. Insome cases, this led to colleagues not beingaware of regulation changes until they werealready in place. Recently, on invitation by ourindustry association, TSSA presented an infor-mation session to the University of Toronto andother universities across the province tohighlight what’s going on and to hear what ourissues are as plant owners and operators. It’sclear to me that TSSA is continuously improvingits relationship with industry partners.”
Bruce D. DoddsDirector, Utilities and Building Operations,
University of Toronto
WORKING TO IMPROVE INFORMATION FLOW TO INDUSTRY PARTNERS
TSSA AR 2004 FINALv7.0 9/1/05 6:37 PM Page 17
P E R F O R M A N C E R E P O R T I N G :
B A L A N C E D S C O R E C A R DTSSA uses a balanced scorecard tool to document, manage, measure and report on performance in five key areas:
Public Safety, Service Delivery, Strategic Development, Human Resources and Financial Performance. The following
balanced scorecard provides the fiscal year end results of TSSA’s performance against fiscal year 2004/2005 goals.
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y18
Enhance safety in all business lines. Implement action plans to address
identified safety priorities and enhance
risk-based maturity in business lines by:
• improving investigations through
application of root cause analysis;
• identifying new discretionary services
that respond to gaps in the safety
system;
• targeting the unlicensed; and
Root cause analysis training has been delivered to all inspectors in all programs, as
planned. The training has enhanced risk-based maturity and had a positive effect in
terms of the causal information obtained and TSSA’s ability to identify root cause.
TSSA acted to improve investigations through improved inspector checklists, data
collection and on-site analysis. The integration of the new process into the POSSE®
(software) database has resulted in improved data quality and analysis.
TSSA developed and delivered safety training programs specifically designed to
address knowledge gaps with owners and contractor groups including:
• property managers’ training courses for boilers, and
• welding and repair training programs.
For unlicensed bounce (devices for bouncing upon) operators, work with school
boards and insurance companies has led to an awareness campaign that was
launched in April 2005. In addition, TSSA has worked in partnership with the
Ontario Association of Agricultural Societies, and Festivals and Events to raise
awareness regarding unlicensed amusement device operators at February and
March 2005 conventions.
675 audits were completed for the newly introduced repair and piping contractor
audit program developed in response to an industry request to ensure that all
contractors worked to appropriate standards.
P U B L I C S A F E T Y2004/2005 Objectives Performance Targets Performance Results
TSSA AR 2004 FINALv7.0 9/1/05 6:20 PM Page 18
Enhance safety in all business lines.
(continued)
Gain national and international
acceptance of Safety Index.
Encourage harmonization of safety
outcome measurement and
reporting across Canada.
• building partnerships to support
public awareness and education.
Endorsement of Safety Index received
from stakeholders, including other
Canadian regulators.
National amusement devices incident
database established.
Enhanced pipeline incident database
established.
TSSA entered into safety partnerships with:
• the Office of the Fire Marshal for a seasonal safety campaign, including
SummerSmart which was launched in the spring 2005;
• the Toronto Transit Commission (TTC) for escalator safety which will commence in
fiscal year 2005/2006 (TTC delayed implementation due to labour relation issues);
and
• the Ontario Snow Resorts Association for the Look, Load and Lower campaign.
TSSA continued work on the Safety Index enhancements recommended by the
external panel of risk measurement experts and supported by stakeholder consulta-
tions, including TSSA’s advisory councils. Quebec has shown interest in participating
in the development and testing of the Safety Index. In addition, the National Public
Safety Advisory Committee (NPSAC) members agree on the benefits of a quantita-
tive measurement of safety efforts and taking a cautious approach to development.
An enhanced amusement devices incident database, to better enable TSSA to
analyze incidents, has been established and is being utilized in Ontario. The tool has
been designed to enable the incorporation of nationwide data.
NPSAC has agreed to a framework and principles for a national incident database
and a working group is designing a pilot that will utilize amusement devices data.
Development of an enhanced Canadian pipeline incident database, the Damage
Information Reporting Tool (DIRT), has been actively supported by TSSA on behalf
of the Ontario Common Ground Alliance.
P U B L I C S A F E T Y2004/2005 Objectives Performance Targets Performance Results
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 19
TSSA AR 2004 FINALv7.0 9/7/05 6:12 PM Page 19
Target key customer satisfaction
drivers and implement strategies
for improvement.
Enhance service delivery efficiency.
Enhance service delivery quality
and consistency.
Achieve the following improvements
based on 2002 customer survey
results:
• 5% in value (58%);
• 5% in timeliness (70%); and
• 5% in service quality (non-inspection
services: 69%; inspection services
80%).
70% overall inspector utilization and
59% Fuels Safety Program inspector
utilization.
Develop additional or preferred
efficiency targets.
Quality audits indicate strategic plan
objectives achieved and future priori-
ties identified.
The key driver results from the 2004 customer survey are:
• value 57%
• timeliness 68%
• service quality (non-inspection: helpfulness) 67%
• inspection services 81%
In addition, safety effectiveness was rated at 77%, unchanged from 2002.
In keeping with TSSA’s commitment to continuously enhance customer services, a
comprehensive customer service strategy, based on the research results, was
established and implementation began over the course of the fiscal year. The focus
of the strategy is on improving key business processes identified as major influ-
encers, including accounting, licensing, registration and certification, training and
certification, inspection and engineering. The implementation of the first phase of
the Customer Contact Centre, effective March 1, 2005, also focused on addressing
several of the key customer service issues identified through the 2004 survey.
Inspector utilization for the fiscal year was:
• 70.9% overall; and
• 56.0% for the Fuels Safety Program.
An enhanced engineering utilization measure is in the development phase.
A review of initial audit results led to the development of an enhanced audit
checklist and supporting analysis tools that will be implemented in fiscal year
2005/2006.
S E R V I C E D E L I V E R Y2004/2005 Objectives Performance Targets Performance Results
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y20
TSSA AR 2004 FINALv7.0 9/1/05 6:20 PM Page 20
The previously referenced checklist and tools will enable data collection. In the
absence of the tools, data was not available for this measure in fiscal year 2004/2005.
This item was deferred to fiscal year 2005/2006.
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 21
S E R V I C E D E L I V E R Y2004/2005 Objectives Performance Targets Performance Results
Demonstrate the value of TSSA’s
strategic goals to current stake-
holders.
Service delivery shows a 5% improve-
ment in accuracy, and 5% improvement
in variance for inspection and engineering
programs.
Complete implementation of quality
management program six months following
completion of POSSE/Ranger software
rollout.
Develop and deliver an expanded
performance report to the government
on a quarterly basis.
Regulated customers express support
for TSSA’s strategic directions.
An expanded quarterly performance report has been provided to the government,
starting with the first quarter of fiscal year 2004/2005.
An Ontario government internal audit positively recognized the TSSA enhanced
performance report. Subsequently, a number of additional metrics have been added,
including the number of directives issues and resolved, or have been developed,
such as the number of scheduled inspections. These enhancements will be incorpo-
rated in fiscal year 2005/2006 reporting.
TSSA has refocused its approach to discretionary services to ensure avoidance of
both potential and perceived conflicts of interest, and to underscore the benefits
of discretionary services to the regulated business. TSSA has also developed a
Discretionary Services Policy, which has been accepted by the Ontario government,
and has received positive reaction from industry representatives. A letter of support
was received from the Ontario government.
S T R A T E G I C D E V E L O P M E N T2004/2005 Objectives Performance Targets Performance Results
Enhance service delivery quality
and consistency.
(continued)
TSSA AR 2004 FINALv7.0 9/1/05 6:20 PM Page 21
Develop new discretionary safety
services in existing business lines to
ensure sustainable safety outcomes
and revenue growth.
(continued)
Accelerate recognition of TSSA as a
full-service safety provider by
delivering existing services outside
Ontario.
Add new business lines in Ontario.
Effective marketing plans delivered for
all discretionary safety services in
existing business lines.
Successful delivery of discretionary
services from existing business lines in
at least two provinces.
Ontario government agrees to at least
one TSSA contract (including a pilot
project).
A planning session with broad employee participation identified the top eight
initiatives to pursue. Opportunity teams were formed to conduct market
research/assessment and develop marketing plans. A Vice President of Business
Development was recruited to provide strategic leadership.
Property manager training for elevating devices was delivered in Regina through a
partnership with the Building Owners and Managers Association (BOMA).
A pressure piping seminar was delivered in Halifax.
TSSA was awarded a contract for water slides inspection for an operator in Victoria
as a result of a cooperative relationship with an amusement device insurer.
A memorandum of understanding has been developed with the Ministry of
Environment for digester and landfill gas systems.
Hydrogen safety is currently unregulated in Ontario. TSSA is providing services
related to Hydrogen safety to address an existing safety gap with this alternative
fuel planned for future use in transportation and other uses. TSSA and the
government have been working to address the regulatory gap and the government
has agreed in principle to support changes to the Technical Standards and Safety
Act, 2000 that would enable the development of a regulatory framework for Hydrogen.
S T R A T E G I C D E V E L O P M E N T2004/2005 Objectives Performance Targets Performance Results
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y22
TSSA AR 2004 FINALv7.0 9/1/05 6:20 PM Page 22
H U M A N R E S O U R C E S2004/2005 Objectives Performance Targets Performance Results
Expand organizational capability to
deliver enhanced safety services in
Ontario.
Build dedicated resources and
unique capabilities that support
entry into markets outside Ontario.
Build dedicated resources and
unique capabilities that support
addition of new business lines in
Ontario.
Regional pilot meets success criteria.
New roles/accountabilities incorpo-
rated into the reward management
system.
Development and use of the following
metrics as management tools and
future use as strategic objectives:
• capability index; and
• performance results index.
Succession planning in place.
The organizational structure has been redesigned to resolve inherent internal
conflicts/questionable fit (Payroll, Internal Audit, Risk Management), flatten and
streamline reporting relationships in Operations (remove a layer of managerial
hierarchy), and enhance operational efficiency and effectiveness. The redesigned
organizational structure has resulted in the creation of an Administration and
Customer Services function to promote more effective delivery of services internally
and externally, and an internal audit function to support organizational effective-
ness from both a regulatory compliance and best-practices perspective.
A review of the regional pilot concept indicated it is not in the best interests of the
organization.
A process to review all job descriptions within the organization has begun to ensure
that the required skills and capabilities are identified for each position, and to
enable a clear understanding of individuals’ roles and responsibilities.
A revised performance management system is in development to respond to identi-
fied concerns by employees and external stakeholders.
Development of the capability index and the performance results index has been
identified to be superfluous in view of the introduction of a performance manage-
ment system that directly links employee performance objectives to core job
responsibilities, and corporate goals and objectives.
Senior management team succession plan was developed and presented to the
Human Resources Committee of the Board.
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 23
TSSA AR 2004 FINALv7.0 9/7/05 6:13 PM Page 23
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y24
H U M A N R E S O U R C E S2004/2005 Objectives Performance Targets Performance Results
Achieve cost recovery from inspec-
tion and engineering activities in
existing business lines.
Ensure the cost-effective delivery of
discretionary services in existing
business lines.
Effectively manage cash flow.
Employee survey priorities identified
and improvement targets defined prior
to implementing mini-audit.
Employee occupational health
and safety performance assessment
(phase 1 of 3) implemented and ready
to support the addition of an
employee safety index.
3.4% excess in mandatory services.
New fee schedules approved for
Elevating Devices, Amusement Devices,
and Upholstered and Stuffed Articles
Safety Programs.
12.8% surplus in discretionary services.
Accounts receivable outstanding days
reduced to 60 days.
An action plan responding to both the 2004 employee opinion survey and a
February 1, 2005 employee planning session was developed to address the top work
environment priorities. The action plan was made available to all employees and
action items are progressing on schedule, with employees receiving regular progress
updates.
Phase one of the employee health and safety assessment was successfully imple-
mented ahead of schedule. Three of six performance metrics have been integrated
into a quarterly occupational health and safety report, consistent with phase 1 of
the assessment development.
A $2.29 million excess or 6.3% of mandated services was achieved for the fiscal
year, exceeding the budgeted excess of $1.07 million.
New fee schedules were approved for Elevating Devices (fees unchanged),
Amusement Devices and Ski Lifts (increases in inspection, engineering and licensing
fees), and Upholstered and Stuffed Articles (fees unchanged) safety programs.
The discretionary business achieved break-even status for fiscal year 2004/2005. For
fiscal year 2005/2006, only profitable business lines will be pursued, thereby
projecting an appropriate surplus.
As of fiscal year-end, outstanding days were reduced to 76 days from 84 days in
fiscal year 2003/2004. The target was not met, as a holistic approach to addressing
issues related to TSSA’s invoicing/billing policies/processes had to be implemented,
as noted under the service delivery objective.
F I N A N C I A L P E R F O R M A N C E2004/2005 Objectives Performance Targets Performance Results
Build dedicated resources and
unique capabilities that support
addition of new business lines in
Ontario.
(continued)
TSSA AR 2004 FINALv7.0 9/1/05 6:20 PM Page 24
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 25
TSSA is focusing on four strategic priorities to help guide its
operations for the next fiscal year.
The four strategic priorities are:
• positive safety outcomes;
• customer service excellence;
• a high performing team; and
• strategic growth.
It is believed that a steady focus on each of these
priorities will help TSSA realize its vision of becoming a world
leader in safety services.
TSSA’s journey to zero serious injuries and fatalities
requires world-class data collection and analysis to support its
risk-based approach. As such, TSSA will make investments to
build its safety research and development capability. It is under-
stood that having the means to measure and report on safety
outcomes is essential to TSSA’s ability to validate the effective-
ness of the safety systems, and apply it in all existing and new
circumstances.
Customer satisfaction is a key priority for any
service-based organization. TSSA has identified customer
satisfaction as a key corporate priority, recognizing that the
relationship between customers and stakeholders is critical
to improving safety outcomes. TSSA also recognizes the
importance of developing and maintaining effective relation-
ships with customers and stakeholders as an important
tool in fulfilling the organization’s mission and mandate.
Although TSSA has an exceptional workforce, it is
recognized that for employees to excel, TSSA must create a
work environment that is conducive to high morale and
performance. Recognizing the value of its employees, TSSA will
focus on making substantial progress in enhancing the work
environment, in response to employees’ needs and concerns.
The fourth key strategic priority for TSSA is strategic
growth. TSSA’s risk-based approach has identified many
innovative safety solutions that are consistent with the
organization’s mission and vision. While some new opportu-
nities do not involve the exercise of TSSA’s delegated
regulatory authority, they can serve to enhance TSSA’s
expertise in delivering its regulatory services. As such, oppor-
tunities for discretionary services will contribute to positive
safety outcomes and will enable strategic investments,
including additional research and development activities.
While each of TSSA’s four strategic priorities
contributes to the goal of becoming a world leader in safety
services, special emphasis is being placed on the impact of a
high performing team. TSSA’s success in leveraging of the
skills, experience and practical knowledge of its employees
will enable the organization to deliver the remaining three
priorities areas and, in turn, set the stage for continued
growth and accomplishment.
F I S C A L Y E A R 2 0 0 5 / 2 0 0 6 O U T L O O K
TSSA AR 2004 FINALv7.0 9/7/05 6:14 PM Page 25
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y26
The following Management’s Discussion and Analysis (MD&A)
should be read in conjunction with the consolidated financial
statements included in this annual report. MD&A information
is growing in importance as a key part of an organization’s
governance disclosure efforts. It is designed to disclose infor-
mation to help readers understand an organization through
the eyes of management.
This section provides an overview of the previous year
of operations at TSSA and how the organization performed
from a financial perspective.
TSSA also uses a balanced scorecard to set objectives,
monitor and manage performance, and report outcomes in
five key areas, one of which is financial performance.
Mandated Revenue
TSSA’s mandated business continued to expand with revenue
growth in program areas. Mandated revenue for the year was
$36.1 million, which is $705,000 above budget. Overall
mandated revenue was $1.53 million higher than for fiscal year
2004, representing an annual growth rate of 4.4 per cent.
Total operational costs were below budget by
$364,000, due to such factors as staffing deferrals, an insur-
ance premium increase being less than expected, deferral of
customer service training (pending full development and
implementation of the customer service strategy), and some
savings realized through in-house development and facilita-
tion of certain training programs.
Discretionary Revenue
TSSA’s discretionary business fell short of targets for the last
fiscal year. The outcome stemmed from the absence of a
clearly articulated strategic plan for business development,
the refocusing of the business beyond Ontario, and the need
to recruit a Vice President of Business Development to
provide strategic leadership. Although revenue generated
from the Canadian Nuclear Safety Commission contract
amounted to $1.9 million, which is $218,000 higher than
budget, other revenue from discretionary services remained
at lower levels.
Total discretionary revenue fell short of target by
$528,000. With a strategic growth focus to business
development and strong corporate leadership, enhanced
performance was already evidenced shortly after fiscal year
end by confirmation that an international customer agreed
to a submitted proposal.
Net Assets
As of April 30, 2005, TSSA’s net assets are $12.7 million.
Of that total, $4.7 million is invested in capital assets and
$8.0 million is unrestricted.
M A N A G E M E N T ’ S D I S C U S S I O N
A N D A N A LY S I S
TSSA AR 2004 FINALv7.0 9/1/05 7:02 PM Page 26
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 27
2005 2004Actual Budget Actual
MANDATED REVENUEBoilers, Pressure Vessels/Operating Engineers $ 9,169 $ 8,745 $ 8,647Elevating Devices, Amusement Devices/Upholstered and Stuffed Articles 14,913 14,707 14,721Fuels Safety 11,995 11,920 11,180Total Mandated Revenue $ 36,077 $ 35,372 $ 34,548
DISCRETIONARY REVENUEBoilers, Pressure Vessels/Operating Engineers $ 2,612 $ 2,544 $ 1,845Elevating Devices, Amusement Devices/Upholstered and Stuffed Articles 516 619 245Fuels Safety 842 1,335 1,045Total Discretionary Revenue $ 3,970 $ 4,498 $ 3,135
TOTAL REVENUEBoilers, Pressure Vessels/Operating Engineers $ 11,781 $ 11,289 $ 10,492Elevating Devices, Amusement Devices/Upholstered and Stuffed Articles 15,429 15,326 14,966Fuels Safety 12,837 13,255 12,225Total Revenue $ 40,047 $ 39,870 $ 37,683
TECHNICAL STANDARDS AND SAFETY AUTHORITY
S U M M A R Y O F R E V E N U E SYear ended April 30, 2005, with comparative figures for 2004
($ in thousands)
TSSA AR 2004 FINALv7.0 9/1/05 7:02 PM Page 27
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y28
The consolidated financial statements of TSSA have been
prepared by management in accordance with generally
accepted accounting principles as prescribed by the Canadian
Institute of Chartered Accountants.
Management maintains financial and management
reporting systems that include appropriate controls to
provide reasonable assurance that the corporation’s assets are
safeguarded, to facilitate the preparation of relevant, reliable
and timely financial information.
Where necessary, management uses judgment to
make estimates required to ensure fair and consistent
presentation of this information.
The Board of Directors of TSSA is composed of 18
members, one of whom, the President and CEO, is an
employee of the organization. The Board of Directors has the
responsibility to review and approve the financial statements,
as well as overseeing management’s performance of its
financial reporting responsibilities. The Board of Directors has
approved the financial statements contained herein.
The auditors are responsible for auditing the financial
statements and have issued a report thereon.
All other financial and operating data included in
the annual report are consistent, where appropriate, with
information contained in the financial statements.
Kathy Milsom
President and CEO
Ellen Chui
Chief Financial Officer
M A N A G E M E N T R E S P O N S I B I L I T Y
F O R F I N A N C I A L R E P O R T I N G
TSSA AR 2004 FINALv7.0 9/1/05 7:15 PM Page 28
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 29
To the Members of Technical Standards
and Safety Authority
We have audited the consolidated statement of financial
position of Technical Standards and Safety Authority (TSSA)
as at April 30, 2005 and the consolidated statements of
operations, changes in net assets and cash flows for the year
then ended. These financial statements are the responsibility
of TSSA’s management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian
generally accepted auditing standards. Those standards
require that we plan and perform an audit to obtain reason-
able assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates
made by management, as well as evaluating the overall
financial statement presentation.
In our opinion, these consolidated financial state-
ments present fairly, in all material respects, the financial
position of TSSA as at April 30, 2005 and the results of its
operations and its cash flows for the year then ended in
accordance with Canadian generally accepted accounting
principles. As required by the Ontario Corporations Act, we
report that, in our opinion, these principles have been applied
on a basis consistent with that of the preceding year.
Chartered Accountants
Toronto, Canada
May 27, 2005
A U D I T O R S ’ R E P O R T
TSSA AR 2004 FINALv7.0 9/1/05 6:38 PM Page 29
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y30
2005 2004
ASSETSCurrent assets:
Cash $ 1,051 $ 1,650Short-term investments (note 3) 8,556 7,129Accounts receivable 4,145 5,605Prepaid expenses 811 693
14,563 15,077
Long-term investments (note 3) 10,293 8,047
Capital assets (note 4) 4,656 1,999
$ 29,512 $ 25,123
LIABILITIES AND NET ASSETSCurrent liabilities:
Accounts payable and accrued liabilities $ 7,220 $ 6,170Deferred revenue 9,595 8,549
16,815 14,719
Net assets:Invested in capital assets 4,656 1,999Unrestricted 8,041 8,405
12,697 10,404
Commitments and contingencies (note 5)
$ 29,512 $ 25,123
See accompanying notes to consolidated financial statements.
On behalf of the Board:
Chair of the Board of Directors Chair of the Audit, Risk and Finance Committee
TECHNICAL STANDARDS AND SAFETY AUTHORITY (Incorporated under the laws of Ontario)
C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O NYear ended April 30, 2005, with comparative figures for 2004
($ in thousands)
(Restated - note 2)
TSSA AR 2004 FINALv7.0 9/1/05 2:39 PM Page 30
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 31
2005 2004
Revenue $ 40,047 $ 37,683
Expenses:Salaries, wages and benefits 23,581 22,166Operating 12,827 12,684Amortization 1,346 997
37,754 35,847
Excess of revenue over expenses $ 2,293 $ 1,836
2005 2004Invested in
capital asset Unrestricted Total Total
Net assets, beginning of year:As previously reported $ 1,999 $ 9,035 $ 11,034 $ 9,206Adjustment to reflect accounting for
accrued unused vacation (note 2) – (630) (630) (638)As restated 1,999 8,405 10,404 8,568
Excess (deficiency) of revenue over expenses (1,388) 3,681 2,293 1,836
Investment in capital assets 4,045 (4,045) – –
Net assets, end of year $ 4,656 $ 8,041 $ 12,697 $ 10,404
See accompanying notes to consolidated financial statements.
TECHNICAL STANDARDS AND SAFETY AUTHORITY
C O N S O L I D A T E D S T A T E M E N T O F O P E R A T I O N SYear ended April 30, 2005, with comparative figures for 2004
($ in thousands)
C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N N E T A S S E T SYear ended April 30, 2005, with comparative figures for 2004
($ in thousands)
(Restated - note 2)
(Restated - note 2)(note 6)
TSSA AR 2004 FINALv7.0 9/1/05 2:39 PM Page 31
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y32
2005 2004
Cash provided by (used in):
Operating activities:Excess of revenue over expenses $ 2,293 $ 1,836Items not involving cash:
Amortization 1,346 997Loss on disposal of capital assets 42 1
Change in non-cash operating working capital 3,438 1,0997,119 3,933
Investing activities:Short-term investments (1,427) (2,722)Long-term investments (2,246) 291Acquisition of capital assets (4,045) (530)
(7,718) (2,961)
Increase (decrease) in cash (599) 972
Cash, beginning of year 1,650 678
Cash, end of year $ 1,051 $ 1,650
Supplemental cash flow information:Interest received $ 645 $ 369Interest paid 8 11
See accompanying notes to consolidated financial statements.
TECHNICAL STANDARDS AND SAFETY AUTHORITY
C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W SYear ended April 30, 2005, with comparative figures for 2004
($ in thousands)
(Restated - note 2)
TSSA AR 2004 FINALv7.0 9/1/05 2:39 PM Page 32
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 33
TSSA is the designated administrative authority responsible for the administration of the Technical Standards and Safety Act,
2000, which officially became law in Ontario effective June 2001. The designation and delegation of responsibility is made under
the authority of the Safety and Consumer Statutes Administration Act, 1996 (the Act) of Ontario. TSSA’s primary objective is to
promote and undertake activities which enhance public safety, including training, certification, licensing, registration, audit,
quality assurance, inspection, investigation, enforcement and other technical safety services. TSSA is incorporated under the
Corporations Act of Ontario as a corporation without share capital and is a not-for-profit organization under the Income Tax Act.
These consolidated financial statements include the accounts of TSSA and its wholly owned subsidiary TSSA Services, Inc. TSSA
Services, Inc. was incorporated on January 9, 2003 under the laws of the State of Georgia as a U.S. Domestic Profit Corporation
and had no operations during the current period.
1. SIGNIFICANT ACCOUNTING POLICIES
(a) Revenue recognition:
Revenue from the provision of inspection and engineering services is recorded when services are performed. Licensing, registration
and certification fees are recognized evenly over the period covered by the fee. Unearned fees are recorded as deferred revenue.
(b) Investments:
(i) Short-term investments:
Short-term investments are recorded at the lower of cost and market value.
(ii) Long-term investments:
Interest bearing long-term investments intended to be held to maturity are carried at amortized cost. Interest is recog-
nized on an effective yield basis. These investments are written down to their estimated realizable value when this
amount is less than amortized cost, unless TSSA has reason to believe it will be able to recover the carrying amount.
The loss is recognized as an expense. Estimated realizable value is the present value of future cash flows discounted at
the rate of interest inherent in the investment on acquisition.
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T YN O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S Year ended April 30, 2005
($ in thousands)
TSSA AR 2004 FINALv7.0 9/1/05 6:45 PM Page 33
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y34
(c) Capital assets:
Purchased capital assets are recorded at cost. Leases that transfer substantially all the benefits and risks of ownership are
capitalized. Replacements are expensed in the year of replacement. Amortization is provided on a straight-line basis over the
estimated useful lives of the assets at the following annual rates:
Business systems 20%
Equipment 25%
Furniture and fixtures 20%
Computer software 50%
Computer hardware 33%
Leasehold improvements Remaining term of lease
Amortization of a capital asset commences when it is brought into service.
Contributed capital assets are recorded at fair value at the date of contribution.
(d) Basis of accounting:
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles. The
preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the year. Actual results could differ from those estimates.
2. PRIOR PERIOD ADJUSTMENT
TSSA has identified an increase to the balance for accrued unused vacation entitlement of its employees. Such vacation entitle-
ment was formerly accrued only for amounts being paid out in cash to departing employees. This amount is now fully accrued.
TSSA has retroactively accounted for this and has changed previously reported amounts for salaries, wages and benefits
(decreased by $8), accounts payable and accrued liabilities (increased by $630), unrestricted net assets, end of year (decreased
by $630) and unrestricted net assets, beginning of year (decreased by $638).
TSSA AR 2004 FINALv7.0 9/1/05 6:45 PM Page 34
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 35
3. INVESTMENTS
(a) The short-term investments consist of bankers’ acceptances and bonds, with yields between 2.2% and 6%, maturing prior to
December 19, 2005.
(b) Long-term investments consist of:
2005 2004
Cost Market value Cost
Government bonds, with effective rates of
2.65% to 5.75%, maturing on
August 9, 2006 to September 10, 2007 $ 1,967 $ 1,956 $ 2,561
Corporate bonds, with effective rates of
3.00% to 6.46%, maturing from
May 4, 2006 to December 30, 2010 8,326 8,385 5,486
$ 10,293 $ 10,341 $ 8,047
4. CAPITAL ASSETS
2005 2004
Accumulated Net carrying Net carryingCost amortization amount amount
Business systems $ 3,633 $ 2,175 $ 1,458 $ 1,580
Equipment 592 287 305 44
Furniture and fixtures 1,104 188 916 30
Computer software 1,377 1,313 64 124
Computer hardware 2,496 1,779 717 217
Leasehold improvements 1,290 94 1,196 4
$ 10,492 $ 5,836 $ 4,656 $ 1,999
TSSA AR 2004 FINALv7.0 9/1/05 6:45 PM Page 35
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y36
5. COMMITMENTS AND CONTINGENCIES
(a) Operating facility:
Under the terms of its banking agreement, TSSA has available a demand operating facility of up to $750. This facility bears
interest at TSSA’s bank’s prime rate and is secured by a general security agreement over TSSA’s assets and assignment of fire and
business interruption insurance. As at April 30, 2005, no amounts were drawn on the facility.
(b) Lease obligations:
TSSA leases office space, vehicles and equipment. Future minimum payments, by year and in the aggregate, under operating
leases with initial or remaining terms of one year or more, consist of the following:
2006 $ 968
2007 915
2008 780
2009 727
2010 689
Thereafter 3,939
Total minimum lease payments $ 8,018
(c) Litigation:
TSSA has been named as defendant in certain litigations alleging actual and punitive damages; however, it is management’s
belief that the ultimate outcome will not materially affect TSSA’s financial position. Settlement, if any, will be accounted for
during the period of resolution.
(d) Service contracts:
Under the terms of a service contract, TSSA is required to carry certain insurance coverages for a 10-year period after the
completion of services rendered under this contract.
(e) Letter of credit:
TSSA has a letter of credit of $500 outstanding as a term and condition of a contract.
TSSA AR 2004 FINALv7.0 9/1/05 6:45 PM Page 36
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 37
6. INVESTED IN CAPITAL ASSETS
Change in net assets invested in capital assets is calculated as follows:
2005 2004
Deficiency of revenue over expenses:
Amortization of capital assets $ (1,346) $ (997)
Loss on disposal of capital assets (42) (1)
$ (1,388) $ (998)
Net change in invested in capital assets is as follows:
2005 2004
Purchase of capital assets $ 4,045 $ 530
7. PENSION PLAN
TSSA has established a defined contribution pension plan for its employees. Contributions by TSSA on account of current service
pension costs amounted to $970 (2004: $922).
8. FINANCIAL INSTRUMENTS
The carrying values of cash, short-term investments, accounts receivable and accounts payable and accrued liabilities approximate
their fair values due to the relatively short periods to maturity of the instruments.
The fair values of the long-term investments are based on quoted market values as disclosed in note 3.
9. INDEMNIFICATION OF DIRECTORS
TSSA has indemnified its past, present and future directors against expenses (including legal expenses), judgments, and any
amount actually or reasonably incurred by them in connection with any action, suit or proceeding in which the directors are
sued as a result of their service, if they acted honestly and in good faith with a view to the best interest of TSSA. The nature
of the indemnity prevents TSSA from reasonably estimating the maximum exposure. TSSA has purchased directors’ liability
insurance with respect to this indemnification.
TSSA AR 2004 FINALv7.0 9/1/05 6:45 PM Page 37
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y38
1 Moshe WertheimSenior Vice President,O & Y Enterprise
2 Elizabeth DowdeswellPresident, Nuclear WasteManagement Organization
3 Rudy RiedlPresident,R. G. Riedl Consulting Inc.
4 Kathy MilsomPresident and ChiefExecutive Officer, TSSA
5 Allan KupcisPast Chairman, Canadian Nuclear Association
6 George IrwinChairman and ChiefExecutive Officer, I-Toys Inc.
7 Glenna CarrChief Executive Officer,Carr-Gordon Limited(TSSA Chair)
8 Don AronsonPresident,Aronson & Associates Inc.
9 Maureen ShawPresident and ChiefExecutive Officer, IndustrialAccident PreventionAssociation
10 Ed MinichPast President and ChiefExecutive Officer, OtisCanada
11 Brian LackeyVice President, Operationsand Chief Engineer,Greater Toronto AirportsAuthority
12 Gary HansonGeneral Manager and ChiefOperating Officer,West Edmonton Mall
13 Bruna GiacomazziPast Chief Credit Officer,HSBC Bank Canada
14 Robbie ShawManaging Director,Development ProjectNova Scotia CommunityCollege
15 Peter RidoutMember, Consumers’Association of Canada
16 Mary ShenstoneDirector, Sector LiaisonBranch Ministry of GovernmentServices
Katherine Crooks(not shown)
Vice PresidentSuncor EnergyProducts Inc.
TSSA BOARD OF DIRECTORS (as of June, 2005)
C O R P O R A T E I N F O R M A T I O N
1 2
34
5 6
7
8
9
10
11
12
13
14
1516
TSSA AR 2004 FINALv7.0 9/1/05 6:49 PM Page 38
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 39
SENIOR MANAGEMENT TEAM (2004/2005)
1 Ellen ChuiChief Financial Officer
2 Vince RentonActing Director, HumanResources
3 Dave LisleDirector, Public Relations and Communications
4 Ted DanceVice President, Operations
5 Kathy MilsomPresident and CEO
6 John SlauenwhiteVice President, BusinessDevelopment
7 David ScrivenCorporate Secretary
8 Tom AyresGeneral Counsel
TSSA BOARD COMMITTEES (2004/2005)
Standing CommitteesTSSA requires all directors to be a member ofone of the three standing committees: Audit,Finance and Risk, Governance andNomination, and Human Resources. TheGovernance and Nomination Committee hasspecific composition requirements. ThePresident and CEO is a non-voting member ofall committees.
Audit, Finance and RiskThe Audit, Finance and Risk Committee hasleadership responsibility for monitoring theintegrity of TSSA’s internal controls andmanagement information systems, approvingthe fiscal plan, and ensuring the integrity of thecorporation’s reported financial performance. Ed Minich, ChairBruna Giacomazzi, MemberMaureen Shaw, MemberMary Shenstone, MemberMoshe Wertheim, MemberKathy Milsom, Non-voting Member
Governance and NominationThe Governance and Nomination Committeehas leadership responsibility for strategicplanning, monitoring external communica-tions, including public disclosures, andcorporate governance policies.
George Irwin, ChairGlenna Carr, MemberMichael Lio, MemberGary Hanson, MemberRudy Riedl, MemberKathy Milsom, Non-voting Member
Human ResourcesThe Human Resources Committee has leader-ship responsibility for monitoring andassessing the performance of the Presidentand CEO, succession planning for seniormanagement, and key human resourcepolicies of the corporation. Elizabeth Dowdeswell, ChairBob Callow, MemberKatherine Crooks, MemberAllan Kupcis, MemberBrian Lackey, MemberPeter Ridout, MemberKathy Milsom, Non-voting Member
Corporate SecretaryDavid Scriven
1
2
3
4
56
7 8
TSSA AR 2004 FINALv7.0 9/7/05 6:21 PM Page 39
T E C H N I C A L S T A N D A R D S A N D S A F E T Y A U T H O R I T Y40
TSSA STATUTORY APPOINTMENTS The individuals listed below are designated asDirector or Chief Officer for specificRegulations under Ontario’s TechnicalStandards and Safety Act, 2000.
John W. B. Coulter, C.E.T., TECH C.E.I.
Chief OfficerOperating EngineersOntario Regulation 219/01
Roland Hadaller, P.Eng. DirectorCompressed Natural GasOntario Regulation 214/01
Fuel Oil RegulationOntario Regulation 213/01
Gaseous FuelsOntario Regulation 212/01
Liquid FuelsOntario Regulation 217/01
Oil and Gas Pipeline SystemsOntario Regulation 210/01
Propane Storage and HandlingOntario Regulation 211/01
Fuel Industry CertificatesOntario Regulation 215/01
Certification of Petroleum EquipmentMechanicsOntario Regulation 216/01
Amusement DevicesOntario Regulation 221/01
Certification and Training of AmusementDevice MechanicsOntario Regulation 187/03
Elevating DevicesOntario Regulation 209/01
Certification and Training of Elevating DeviceMechanicsOntario Regulation 222/01
Rick Mile, DirectorBoilers and Pressure VesselsOntario Regulation 220/01
Dara Vorkapic, DirectorUpholstered and Stuffed ArticlesOntario Regulation 218/01
INDUSTRY ADVISORY COUNCILS TSSA is committed to meaningful, ongoingconsultations with its stakeholders, and itbenefits from the advice of 11 industryadvisory councils. These councils and theirchairs are listed below:
Denton Hoffman (Chair)Agricultural
Virginia Ludy (Chair)Amusement Devices
Glen Crawford (Chair)Boilers and Pressure Vessels
Jack Elias (Chair)Elevating Devices
Paul Rietdyk (Chair)Natural Gas
Donald C. Knibbs (Chair)Operating Engineers
Mark Nebel (Chair)Petroleum
Martin Clough (Chair)Propane
Bruce Haynes (Chair)Ski Lift Services
Gerry McGuire (Chair)Training Services
Don Strain (Chair)Upholstered and Stuffed Articles
CONSUMERS ADVISORY COUNCIL The Consumers Advisory Council (CAC)provides input to TSSA concerning the public’sperspective on safety associated with TSSA’sbusiness procedures and regulatory activities.
During the fiscal year, the CAC focusedon two main aspects of its mandate: facili-tating and promoting public input, andoversight of the safety education fund.
With respect to public input, the CACtogether with TSSA identified an assessmentframework and agreed upon next steps. Inparticular, the CAC provided helpful input inthe development of the new website. Withrespect to the safety education fund, the CACaffirmed an accounting of the current fundstatus, made recommendations regarding theterms of reference for the fund and has agreedupon an approach to identifying opportunitiesto put the fund to its intended use.
Members continue to increase theirinvolvement in TSSA related activities throughattendance in advisory council chairs’meetings, enhancing their role as provider ofconsumer perspective to the industrialadvisory councils’ deliberations and TSSAquarterly customer service meetings.Consumers Advisory Council (2004/2005)David Hahn (Chair)Patricia JensenIan KennedyEdward KoenDonna RussettLarry SchwartzDiana TengElizabeth VircKathryn Woodcock
TSSA AR 2004 FINALv7.0 9/1/05 2:45 PM Page 40
2 0 0 4 / 2 0 0 5 A N N U A L R E P O R T 41
Customer Contact and Issue ManagementTSSA is committed to delivering customerservice excellence through the effective handlingof customer contacts and issues management.
TSSA’s enhanced approach includes:• all levels of the organization;• encouraging an organizational culture that
welcomes feedback as an opportunity toimprove services;
• empowering staff to resolve issues on thefirst contact; and
• conducting root cause analysis on feedbackto improve business processes, communica-tion and service delivery.
TSSA is committed to providing timelyresponse to all contacts. To further this goal,on March 1, 2005, TSSA launched a newCustomer Contact Centre. Trained and capableTSSA staff and enhanced technology nowprovide TSSA’s customers and the generalpublic with a single point of contact to reachthe organization. Initiatives underway for thecurrent fiscal year will expand TSSA’s ability tohandle a greater variety of enquiries andtransactions.
During fiscal year 2004/2005, TSSAtracked a total of 23,535 enquiries and 4,294issues. Over 45 per cent of the issues fellunder the service delivery category. Over thesame period of time, TSSA received 1,862expressions of appreciation for services delivered.
TSSA will continue to strive towardimproving processes and service delivery as a
way to increase customer satisfaction andimprove safety outcomes in Ontario.
ENFORCEMENT ACTIVITYIn 2004/2005, TSSA pursued 20 prosecutions.TSSA continues to maintain a high level ofcompliance in the industries it regulates bytargeting enforcement resources in conjunc-tion with its risk management strategy.
Prosecutions are one high-profileenforcement activity used by TSSA. Legalorders are also utilized as an immediateenforcement tool. For example, the number oflegal orders issued regarding natural gaspipeline strikes has risen by over 1,000 percent since 1997. TSSA has completed anadministrative monetary penalties pilot projectin the Fuels Safety Program. TSSA intends toassess the impact of the administrativemonetary penalties before implementing it onthe Elevating and Amusement DevicesProgram. Administrative monetary penaltiesprovide an additional tool for obtainingcompliance with our safety standards.
FRENCH LANGUAGE SERVICESConsistent with its French Language ServicesPolicy, TSSA responded to all requests forFrench services during the year. TSSAcontinues to monitor requests for services inthe French language to determine the appro-priate level of service to meet public safetyand customer service needs.
TSSA AR 2004 FINALv7.0 9/1/05 2:46 PM Page 41
Technical Standards and Safety Authority
3300 Bloor Street West
14th Floor, Centre Tower
Toronto, ON
Canada M8X 2X4
Tel: 416-734-3300
Fax: 416-231-1626
Toll-Free: 1-877-682-8772 (TSSA)
E-mail: [email protected]
Find out more at www.tssa.org
TSSA AR 2004 FINALv7.0 9/1/05 2:47 PM Page 42