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Section III – Supplementary Information

Table 1: Comparison of Planned to Actual Spending (including Full-Time Equivalents)

(in millions of dollars)

This table offers a comparison of the Main estimates, Planned Spending, Total Authorities and Actual Spending for the recently completed fiscal year, as well as historical figures for Actual Spending.


 

2004–05
Actual

2005–06
Actual

2006–07

Main
Estimates

Planned
Spending

Total
Authorities

Total Actuals

Population and Public Health

586.7

477.2

506.6

629.7

536.2

510.8

Total

586.7

477.2

506.6

629.7**

536.2***

510.8****

Less: Non‑respendable revenue

0.0

0.2

0.0

0.0

0.0

0.3

Plus: Cost of services received without charge

11.4

17.6

0.0

20.2

20.2

21.0

Total Departmental Spending

598.1

494.6

506.6

649.9

556.4

531.5

Full-time Equivalents *

1,666

1,801

2,119

2,119

2,119

2,050


    * Full-time equivalents (FTE) are a measure of human resource consumption based on average levels of employment. FTEs are not subject to Treasury Board control but are disclosed in Part III of the Estimates in support of personnel expenditure requirements specified in the Estimates.

  ** The $123.1 million increase from Main Estimates to Planned Spending is due to increased funding for initiatives announced in Federal budgets such as: Avian and Pandemic Influenza Preparedness ($66.3 million); Canadian Strategy for Cancer Control ($52 million); Strengthening Canada’s Public Health Systems ($4.2 million); one year extension for the Centre of Excellence for Children’s Well Being ($1.8 million); offset by savings in procurement resulting from the ERC exercise ($1.2 million).

*** The $93.5 million decrease from Planned Spending to Total Authorities is mainly due to funding for Avian and Pandemic Influenza Preparedness deferred to subsequent fiscal years ($44 million); and funding for Canadian Strategy for Cancer Control provided to Health Canada instead of the Agency ($51 million).

**** The $25.4 million difference between Total Authorities and Actual Spending is mainly the result of lapses in operating expenditure of $20.5 million and transfer payments of $4.9 million.

Table 2: Resources by Program Activity

This table reflects how resources were used within the Public Health Agency of Canada by appropriation and by program activity.

(in millions of dollars)


2006–07 Budgetary

 

Operating

Grants

Contributions
and other
Transfer
Payments

Total: Gross Budgetary Expenditures

Less:
Respendable
Revenue

Total: Net Budgetary
Expenditures

Population and Public Health

 

 

 

 

 

 

Main Estimates

327.4

33.1

146.2

506.7

(0.1)

506.6

Planned Spending

392.7

89.1

148.0

629.8

(0.1)

629.7

Total Authorities

349.3

22.6

164.4

536.3

(0.1)

536.2

Actual Spending

328.7

21.0

161.2

510.9

(0.1)

510.8


Table 3: Voted and Statutory Items

(in millions of dollars)


Vote or Statutory Item

Truncated Vote or Statutory Wording

2006–07

Main
Estimates

Planned
Spending

Total
Authorities

Total Actuals

35

Operating expenditures

299.3

363.4

326.0

305.4

40

Grants and contributions

179.3

237.1

187.0

182.2

(S)

Contributions to employee benefit plans

28.0

29.2

23.2

23.2 

(S)

Spending of proceeds from the disposal of surplus Crown assets

Actual = $1,286.81

0.0

0.0

0.0

0.0

 

Total

506.6

629.7

536.2

510.8


Table 4: Services Received Without Charge

(in millions of dollars)


 

2006–07
Actual Spending

Accommodation provided by Public Works and Government Services Canada

9,4

Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat.

11.5

Salary and associated expenditures of legal services provided by the Department of Justice Canada

0.1

Total 2006–07 Services received without charge

21.0


Table 5: Sources of Respendable and Non-respendable Revenue

Respendable Revenue (in millions of dollars)


 

Actual
2004‑05

Actual
2005‑06

2006–07

Main
Estimates

Planned
Revenue

Total
Authorities

Actual

Population and Public Health

Sale to federal and provincial/territorial departments and agencies, airports and other federally regulated organizations of first aid kits to be used in disaster and emergency situations

0.1

0.1

0.1

0.1

0.1

0.1

Spending of proceeds from the disposal of surplus Crown assets

0.0

0.0

0.0

0.0

0.0

0.0

Total Respendable Revenue

0.1 

0.1 

0.1 

0.1 

0.1 

0.1 


Non-respendable Revenue (in million of dollars)


 

Actual
2004–05

Actual
2005–06

2006–07

Main
Estimates

Planned
Revenue

Total
Authorities

Actual

Population and Public Health

Sale of first aid kits / net vote revenue surplus

0.0

0.1

0.0

0.0

0.0

0.0

Royalties and other miscellaneous revenues

0.0

0.0

0.0

0.0

0.0

0.1

Sundries – credit cards rebate

0.0

0.1

0.0

0.0

0.0

0.2

Total Non-respendable Revenue

0.0

0.2 

0.0

0.0

0.0

0.3


Table 6: Resource Requirements by Branch

(in millions of dollars)


 

Population and Public Health

Agency Executive, Chief Public Health Officer*

 

Planned Spending

8.8

Actual Spending

4.8

Infectious Disease and Emergency Preparedness Branch**

 

Planned Spending

219.1

Actual Spending

161.8

Health Promotion and Chronic Disease Prevention Branch***

 

Planned Spending

153.7

Actual Spending

81.9

Strategic Policy, Communications and Corporate Services Branch****

 

Planned Spending

64.5

Actual Spending

81.0

Public Health Practice and Regional Operations Branch

 

Planned Spending

183.6

Actual Spending

181.3

Agency Total

 

Planned Spending

629.7

Actual Spending

510.8


The major differences between Planned and Actual spending are:

* Agency Executive, Chief Public Health Officer: The $4.0 million lapse was due to capacity and technical constraints in staffing coupled with deferment of Pandemic initiatives to future years.

** Infectious Disease and Emergency Preparedness Branch: Funding for Avian and Pandemic Influenza Preparedness deferred to subsequent fiscal years of $44 million; and funding reallocated to other branches $6.6 million leaving a small lapse of $6.7 million.

*** Health Promotion and Chronic Disease Prevention Branch: $51 million of funding for the Canadian Strategy for Cancer Control was approved under Health Canada as opposed to the Agency as originally envisioned; $15.4 million was allocated to other branches for new unplanned priorities; $5.4 million lapsed due to delays and timing changes; and uncertainty of funding by Governor General Special Warrants earlier in the fiscal year included the need to cash manage close to $3 million to operate the Centre of Excellence for Children which was not funded.

**** Strategic Policy, Communications and Corporate Services Branch: Operating Budget carry forward from 2005-06 provided $11.7 million, and funding transferred from other branches provided $4.8 million to cover new emerging pressures.

Table 7-A: User Fees Act


 

 

 

 

2006–07

Planning Years

A. User Fee

Fee Type

Fee-setting
Authority

Date Last
Modified

Forecast Revenue
($000)

Actual Revenue
($000)

Full Cost
($000)

Performance
Standard

Performance Results

Fiscal Year

Forecast Revenue
($000)

Estimated Full Cost
($000)

Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)

Other products and services (O)

Access to Information Act

1992

See Section C – Other Information Note 1

See Section C – Other Information Note 1

See Section C – Other Information Note 1

Response provided within 30 days following receipt of request: response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days of receipt of request.

See Section C – Other Information Note 1

2007-08

2008-09

2009-10

0.7

0.8

0.9

580

580

580

B. Date Last Modified

C. Other Information

1. Access to Information requests filed for the Public Health Agency of Canada in 2006-07 were processed by Health Canada. Accordingly, associated revenues and costs are reported under Health Canada for 2006-07.


Table 7-B: Policy on Service Standards for External Fees

Information on Service Standards for External Fees can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp

Table 8: Details on Transfer Payment Programs (TPPs)

The following is a summary of the transfer payment programs for the Agency that are in excess of $5 million. All the transfer payments shown below are voted programs.

  1. Population Health Fund
  2. Community Action Program for Children
  3. Canada Prenatal Nutrition Program
  4. Federal Initiative to Address HIV/AIDS in Canada
  5. Aboriginal Head Start / Early Childhood Development
  6. Canada Health Network
  7. Canadian Diabetes Strategy
  8. National Collaborating Centres Contribution Program

Supplementary information on these Transfer Payment Programs can be found at http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 9: Conditional Grants (Foundations)

  • The Agency provided a one-time conditional grant of $100 million to Canada Health Infoway in 2004-05 to support health surveillance.

Canada Health Infoway Inc. (Infoway) is an independent not-for-profit corporation with a mandate to foster and accelerate the development and adoption of electronic health information systems and compatible standards and communications technologies across Canada. Infoway is also a collaborative mechanism in which the federal, provincial and territorial governments participate as equals, toward a common goal of modernizing Canada’s health information systems. The Public Health Agency of Canada’s portion under this collaboration is the Health Surveillance Program. Health Canada has provided the Supplementary Information on their and the Public Health Agency of Canada’s conditional grants to Infoway.

Further information on this Conditional Grant can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp .

Table 10: Financial Statements

The following Financial Statements have been prepared in accordance with accrual accounting principles. The information presented in the other financial tables of this Performance Report were prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note 3 of the financial statements reconciles these two accounting methods.

Statement of Management Responsibility

Statement of Operations (unaudited)

PUBLIC HEALTH AGENCY OF CANADA


For the year ended March 31

2007

2006

(in dollars)

 

 

Expenses

 

 

Salaries and employee benefits

183,791,847

170,341,797

Transfer payments

181,361,341

175,244,575

Professional and special services

70,287,779

55,138,587

Utilities, material and supplies

37,356,355

41,351,299

Travel and relocation

17,485,034

15,793,168

Accommodation

12,884,158

11,961,621

Purchased repair and maintenance

8,887,103

6,019,930

Information

8,623,347

4,599,372

Amortization of tangible capital assets

6,920,987

6,263,550

Communication

5,287,798

4,748,297

Rentals

1,428,167

1,307,661

Other

1,784,117

1,180,989

 

536,098,033

493,950,846

Revenues

 

 

  Sales of goods and services

 

 

Rights and Privileges

28,377

25,376

Services of a Non-Regulatory Nature

88,871

125,742

  Interest

7,948

11,890

  Other

216,299

105,106

 

341,495

268,114

Net cost of operations

535,756,538

493,682,732


The accompanying notes form an integral part of the financial statements

Statement of Financial Position (unaudited)

PUBLIC HEALTH AGENCY OF CANADA


At March 31

2007

2006

(in dollars)

 

 

Assets

 

 

Financial assets

 

 

Accounts receivable and advances (Note 4)

8,067,818

5,884,928

Total financial assets

8,067,818

5,884,928

Non-financial assets

 

 

Tangible capital assets (Note 5)

63,517,725

65,742,171

Total non-financial assets

63,517,725

65,742,171

TOTAL

71,585,543

71,627,099

Liabilities and Equity of Canada

 

 

Liabilities

 

 

Accounts payable and accrued liabilities

94,035,266

79,975,372

Vacation pay and compensatory leave

8,432,076

7,387,369

Employee severance benefits (Note 6)

28,512,678

24,109,715

Other liabilities

2,763,581

2,402,497

 

133,743,602

113,874,953

Equity of Canada

(62,158,058)

(42,247,854)

TOTAL

71,585,543

71,627,099


Contractual Obligations (Note 7)

The accompanying notes form an integral part of the financial statements

Statement of Equity (unaudited)

PUBLIC HEALTH AGENCY OF CANADA



For the year ended at March 31
(in dollars)

2007

2006

Equity of Canada, beginning of year

(42,247,854)

(10,242,764)

Net cost of operations

(535,756,538)

(493,682,732)

Current year appropriations used (Note 3)

510,812,401

477,166,397

Refund of previous year expenditures

(3,259,280)

(6,413,953)

Revenue not available for spending (Note 3)

(296,270)

(193,247)

Change in net position in the Consolidated Revenue Fund (Note 3)

(10,828,711)

(26,481,555)

Services provided without charge by other government departments (Note 8)

19,418,194

17,600,000

Equity of Canada, end of year

(62,158,058)

(42,247,854)


The accompanying notes form an integral part of the financial statements

Statement of Cash Flow (unaudited)

PUBLIC HEALTH AGENCY OF CANADA


For the year ended March 31
(in dollars)

2007

2006

Operating activities

 

 

Net cost of operations

535,756,538

493,682,732

Non-cash items:

 

 

Amortization of tangible capital assets (Note 5)

(6,920,987)

(6,263,550)

Gain (loss) on disposal of tangible capital assets

(14,112)

12,367

Services provided without charge by other government departments (Note 8)

(19,418,194)

(17,600,000)

Variations in Statement of Financial Position:

 

 

Increase (decrease) in accounts receivable and advances

2,182,890

5,052,368

Increase (decrease) in accounts payable and accrued liabilities

(14,059,894)

(31,934,371)

Decrease (increase) in other liabilities

(361,084)

(397,025)

Decrease (increase) in vacation pay and compensatory leave

(1,044,707)

(763,019)

Decrease (increase) in employee severance benefits

(4,402,963)

(4,374,271)

Cash used by operating activities

491,717,487

437,415,231

Capital investment activities

 

 

Acquisitions of tangible capital assets  (Note 5)

4,711,940

6,674,778

Proceeds on disposal of tangible capital assets

(1,287)

(12,367)

Cash used by investment activities

4,710,653

6,662,411

Financing activities

 

 

Net cash provided by Government of Canada

(496,428,140)

(444,077,642)


The accompanying notes form an integral part of the financial statements

Notes to the Financial Statements (unaudited)

1. Authority and Objectives

The Public Health Agency of Canada (PHAC) was created as a new agency by orders in council on September 24, 2004 in response to growing concerns about the capacity of Canada's public health system to anticipate and respond effectively to public health threats. Its creation is the result of wide consultation with the provinces, territories, stakeholders and Canadians. It also follows recommendations from leading public health experts - including Dr. David Naylor's report, Learning from SARS: Renewal of Public Health in Canada, as well as other Canadian and international reports - for clear federal leadership on issues concerning public health and improved collaboration within and between jurisdictions.  The Public Health Agency of Canada Act, assented to December 12, 2006,  provides a statutory foundation for the new agency.

The agency is mandated to work in collaboration with its partners, to lead federal efforts and to mobilize pan-Canadian action in preventing disease and injury, and to promote and protect national and international public health through the following:

  • Anticipating, preparing for, responding to and recovering from threats to public health;
  • Carrying out surveillance of, monitoring, researching, investigating and reporting on diseases, injuries, other preventable health risks and their determinants, and the general state of public health in Canada and internationally;
  • Using the best available evidence and tools to advise and support public health stakeholders nationally and internationally as they work to enhance the health of their communities;
    Providing public health information, advice and leadership to Canadians and stakeholders; and
  • Building and sustaining a public health network with stakeholders.
2. Summary of significant accounting policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations
The agency is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the agency do not parallel financial reporting according to Canadian generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.

(b) Net Cash Provided by Government
The agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the agency is deposited to the CRF and all cash disbursements made by the agency are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

(c) Change in net position in the Consolidated Revenue Fund
The change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the agency. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

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

(e) Expenses
Expenses are recorded on an accrual basis:

  • Grants are recognized in the year in which the conditions for payment are met.  In the case of grants which do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
  • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
  • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada.  The agency's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan by the agency.  Current legislation does not require the agency to make contributions for any actuarial deficiencies of the Plan.
  2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them.  The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts receivable
Accounts receivable are stated at amounts expected to be ultimately realized. They are mainly comprised of amounts to be recovered from other government departments and the recovery is considered certain. As a result, no provision has been recorded as an offset against these amounts.

(h) Contingent liabilities
Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(i) Tangible Capital Assets
All tangible capital assets having an initial cost of $10,000 or more are recorded at their acquisition cost. The agency does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

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


Asset Class

 

Buildings

25 years

Works and infrastructure

25 years

Machinery and equipment

8-12 years

Computer equipment

3-5 years

Computer software

3 years

Other Equipment

10-12 years

Motor Vehicles

4-7 years

Other Vehicles

10 years


(j) Measurement uncertainty
The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

The agency receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the agency has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used:

(in dollars)

2007

2006

Net cost of operations

535,756,538

493,682,732

Adjustments for items affecting net cost of operations but not affecting appropriations:

 

 

Add (Less):

 

 

Amortization of tangible capital assets

(6,920,987)

(6,263,550)

Services provided without charge by other government departments

(19,418,194)

(17,600,000)

Revenues not available for spending

296,270

193,247

Refund/Adjustment of previous years expenses

3,259,280

6,413,953

Gain (loss) on disposal of tangible capital assets

(14,112)

12,367

Proceeds on disposal of tangible capital assets

(1,287)

(12,367)

Allowance for Contingent Liabilities

(350,000)

0

Vacation pay and compensatory leave

(1,044,707)

(763,019)

Decrease (increase) in severance benefits

(4,402,963)

(4,374,270)

Justice Canada legal fees

(1,022,689)

(808,786)

Other non appropriated amounts

(36,688)

11,312

 

(29,656,077)

(23,191,113)

Adjustments for items not affecting net cost of operations but affecting appropriations:

 

 

Add (Less):

 

 

Acquisitions of tangible capital assets

4,711,940

6,674,778

 

4,711,940

6,674,778

Current year appropriations used

510,812,401

477,166,397


(b) Appropriations provided and used:

(in dollars)

2007

2006

Operating expenditures - Vote 35 (2006 Vote 30)

299,278,000

234,719,000

Supplementary Vote 35a

30,730,105

0

Supplementary Vote 35b

0

0

Governor General's Special Warrants

0

59,164,660

Grants and contributions  - Vote 40 (2006 Vote 35)

179,306,000

164,009,000

Supplementary Vote 40a

6,018,366

0

Supplementary Vote 40b

0

0

Governor General's Special Warrants

0

645,000

Transfer from Treasury Board - Vote 5

293,605

15,415,000

Transfer from TB - Vote 10

(62,500)

0

Transfer from TB - Vote 15

(1,635,000)

0

Total Voted Parliamentary Appropriations

513,928,576

473,952,660

Lapsed appropriations:

(26,306,443)

(19,842,269)

Total Voted Parliamentary Appropriations Used

487,622,133

454,110,391

Contributions to employee benefit plans

23,188,745

23,043,639

Spending of proceeds from the disposal of surplus Crown assets

1,287

12,367

Collection Agency Fees

236

0

Current year appropriations used

510,812,401

477,166,397


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

(in dollars)

2007

2006

Net cash provided by Government

496,428,140

444,077,642

Revenue not available for spending

296,270

193,247

Refund/Adjustment of previous years expenses

3,259,280

6,413,953

Change in net position in the Consolidated Revenue Fund

 

 

Variation in accounts receivable and advances

(2,182,890)

(5,052,368)

Variation in accounts payables and accrued liabilities

13,709,894

31,934,371

Variation in other liabilities

361,084

397,025

Justice Canada legal fees

(1,022,689)

(808,786)

Other adjustments

(36,688)

11,313

Change in net position in the Consolidated Revenue Fund

10,828,711

26,481,555

Current year appropriations used

510,812,401

477,166,397


4. Accounts receivable and advances


(in dollars)

2007

2006

Receivables from other Federal Government departments and agencies

6,667,560

4,724,495

Receivables from external parties

1,376,712

1,142,623

Employee advances

23,546

17,810

 

8,067,818

5,884,928


5. Tangible capital assets


Cost

Opening Balance

Acquisitions

Disposals
and write offs

Closing balance

(in dollars)

 

 

 

 

Land

604,137

0

0

604,137

Buildings

71,681,239

60,000

0

71,741,239

Works and Infrastructure

564,425

0

0

564,425

Machinery and Equipment

35,725,663

3,838,279

(439,289)

39,124,653

Computer Equipment

2,957,453

116,879

0

3,074,332

Computer Software

896,107

145,954

0

1,042,061

Other Equipment

1,749,379

550,828

0

2,300,207

Motor Vehicles

129,190

0

0

129,190

Other Vehicles

84,253

0

0

84,253

 

114,391,846

4,711,940

(439,289)

118,664,497

Accumulated Amortization

Opening Balance

Acquisitions

Disposals
and write offs

Closing balance

(in dollars)

 

 

 

 

Buildings

25,795,047

2,866,990

0

28,662,037

Works and Infrastructure

24,479

22,577

0

47,056

Machinery and Equipment

20,312,096

3,069,295

(423,890)

22,957,501

Computer Equipment

1,524,612

543,163

0

2,067,775

Computer Software

571,080

182,238

0

753,318

Other Equipment

296,249

219,823

0

516,072

Motor Vehicles

41,859

16,901

0

58,760

Other Vehicles

84,253

0

0

84,253

 

48,649,675

6,920,987

(423,890)

55,146,772

Net Tangible Capital Assets

Opening Balance

 

 

Closing balance

(in dollars)

 

 

 

 

Land

604,137

 

 

604,137

Buildings

45,886,192

 

 

43,079,202

Works and Infrastructure

539,946

 

 

517,369

Machinery and Equipment

15,413,567

 

 

16,167,152

Computer Equipment

1,432,841

 

 

1,006,557

Computer Software

325,027

 

 

288,743

Other Equipment

1,453,130

 

 

1,784,135

Motor Vehicles

87,331

 

 

70,430

Other Vehicles

0

 

 

0

 

65,742,171

 

 

63,517,725


Amortization expense for the year ended March 31,2007 is $6,920,987 (2006: $6,263,550)

6. Employee benefits

(a) Pension benefits

The agency's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Qubec Pension Plans benefits and they are indexed to inflation.

Both the employees and the agency contribute to the cost of the Plan. The expense presented below represents approximately 2.2 times the contributions by employees.


(in dollars)

2007

2006

Expense for the year

17,090,105

17,052,293


The agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

The agency provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:



(in dollars)

2007

2006

Accrued benefit obligation, beginning of year

24,109,715

19,735,444

Expense for the year 5,019,311 5,268,011
Benefits paid during the year (616,348) (893,740)

Accrued benefit obligation, end of year

28,512,678

24,109,715


7. Contractual Obligations

The nature of the agency's activity results in multi-year contracts and obligations whereby the agency will be committed to make some future payments when the services/goods are received. Contractual obligations that can be reasonably estimated are as follows:


(in dollars)

 

 

 

 

 

 

 

2007

2008

2009

2010

2011 and
thereafter

Total

Transfer payments

25,800,000

4,700,000

50,650,000

4,750,000

45,900,000

131,800,000


8. Related party transactions

The agency is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The agency enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the agency received services which were obtained without charge from other Government departments as presented in part (a).

(a) Services provided without charge

During the year the agency received services without charge from other departments. These services without charge have been recognized in the agency's Statement of Operations as follows:


(in dollars)

2007

2006

Accommodation

7,800,000

7,000,000

Employer's contribution to the health and dental insurance plans

11,547,800

10,600,000

Legal services

70,394

0

 

19,418,194

17,600,000


The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the agency's Statement of Operations.

(b) Payables and receivables outstanding at year-end with related parties:

(in dollars)

2007

2006

Accounts receivable with other government departments and agencies

6,667,560

4,724,495

Accounts payable to other government departments and agencies

6,555,838

5,484,462


9. Comparative information

Comparative figures have been reclassified to conform to the current year’s presentation.

Table 11: Response to Parliamentary Committees, and Audits and Evaluations


Response to Parliamentary Committees

The Standing Committee on Health tabled a report on September 18, 2006 entitled, Even One is too Many: A call for a comprehensive action plan for Fetal Alcohol Spectrum Disorder. The four recommendations in the report focus on:

1) the development of a comprehensive federal and national FASD action plan;

2) addressing issues around leadership, coordination and implementation of an FASD plan;

3) improving data collection and incidence and prevalence reporting; and,

4) putting in place a mechanism for evaluating and reporting to Parliament on FASD activities. For more details:

http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=10481&Lang=1&SourceId=169974

On March 27, 2007, the Standing Committee on Health (HESA) tabled a report on childhood obesity, entitled Healthy Weights for Healthy Kids. Calling childhood obesity an “epidemic”, HESA seeks immediate federal action to halt and reverse the increasing number of overweight/obese children in Canada. The Report recognizes that underlying determinants of health affect children and their parents and their ability to make healthy choices.

HESA calls upon all stakeholders to collaborate on comprehensive, coordinated, multi-sectoral measures to promote healthy weights for children through increased access to healthy food choices and quality physical activity. Throughout the Report, HESA encourages the Government of Canada (GoC) to collaborate with First Nations and Inuit people (FN/I) to prevent childhood obesity.

For more details:

http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=10481&Lang=1&SourceId=199309


 


Response to the Auditor General including to the Commissioner of the Environment and Sustainable Development (CESD)

The May 2006 status report of the Auditor General included one Chapter which referred to the Public Health Agency of Canada. Chapter 6, Management of Voted Grants and Contributions. The objective of this audit was to determine the extent to which the government has ensured effective government-wide management and control of the spending of public money through grants and contributions. In terms of coverage for the Agency, the Community Action Program for Children was audited. Overall, Canadian Heritage, SSHRC and the Agency met the OAG audit criteria, and found their processes for assessing applicant’s eligibility to be satisfactory. The OAG concluded that the Agency’s progress in terms of monitoring was satisfactory.

The February 2007 status report of the Auditor General included one Chapter implicating Health Canada and the Public Health Agency of Canada. Chapter 1: Advertising and Public Opinion Research. The audit looked at a sample of advertising and public opinion research campaigns to see whether the departments administering them were exercising adequate management and control and whether changes made in response to the 2003 audit recommendations were effective.

The OAG found that in all but one case the departments had obtained the necessary approval from Cabinet before initiating the campaign. With the Public Health Agency of Canada pandemic influenza campaign, there was no Cabinet decision for the campaign. The Agency explained that a proposal was not submitted for PCO approval and that an advertising agency was hired to develop a campaign that would only be launched in case of a pandemic. The Government Advertising Committee was informed of this and acknowledged this course of action in the Committee’s records of proceedings. Due to the nature of the campaign, the OAG was satisfied with the explanation provided by the department.

There was one recommendation: Departments should ensure that the required notification of planned research is provided to PWGSC prior to contacting research firms. Agency management agrees with the recommendation and the Agency’s processes have been amended to ensure that we comply with the requirement.

External Audits (conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages.)

There was no external audit performed by the Public Service Commission or the Commissioner of Official Languages in 2006-07.


 


Internal Audits

While a number of projects were started, no Internal Audits were completed in 2006-07. The Agency’s Chief Audit Executive was hired in December 2006 and most efforts in the last quarter of 2006-07 were devoted to the infrastructure of the newly created Audit Services Division.


 


Evaluations

The following evaluations were completed in 2005-06:

  • Aboriginal Head Start in Urban and Northern Communities
  • Canadian Health Network
  • Canadian Diabetes Strategy
  • Centres of Excellence for Children's Well-Being

 Evaluations Completed in 2006-07:

  • Hepatitis C Prevention, Support and Research Program
  • National Health Surveillance Infostructure Initiative

 The status of the remaining evaluation reports are as follows:

  • Fetal Alcohol Spectrum Disorder - Scheduled for 2008-09
  • Canadian Strategy for Cancer Control - Not an Agency program, cancer-related programs are included in the Integrated Strategy for Health Living and Chronic Disease
  • Canadian Breast Cancer Initiative - Community Capacity Building Initiative - Scheduled for 2008-09
  • Bovine Spongiform Encephalopathy (BSE) – Completed. Health Canada was the lead department.
  • Falls Prevention Initiative - No longer has program authority - ended in 2004.
  • National Immunization Strategy - Scheduled for 2007-08

(Note: some evaluation reports' due dates have changed from those planned in the 2006-07 Report on Plans and Priorities)


Table 12: Sustainable Development Strategy


Topic

Departmental Input

1.   What are the key goals, objectives, and/or long-term targets of the SDS?

During 2006-07, the Agency was still contributing to the Health Canada Sustainable Development Strategy 2004-2007. Health Canada will be reporting on those goals and objectives. Under that Strategy, the Agency had one target, which was completed in 2005-2006.

Also during 2006-07, as part of its planning process and to support the federal government’s sustainable development (SD) initiative, the Agency developed and tabled in Parliament two Sustainable Development Strategies: the first in August, to meet legislative obligations; and the second, in December to offer a more robust plan and to coordinate with some 30 other departments. During the development of the SDS, the Agency assessed how best to further incorporate SD principles and values into its policy and operations.

The following SDS goals were identified:

  1. Incorporate SD considerations into the planning and implementation of Agency activities
  2. Ensure that the Agency conducts its operations in a sustainable manner.
  3. Build capacity to implement Goals 1 and 2.

2.   How do your key goals, objectives, and/or long-term targets help achieve your department’s strategic outcomes?

The focus for 2006-07 was on exploring the link between sustainable development and public health. The Agency’s SD Strategy 2007-2010 states that SD cannot be achieved without a healthy population, and the health of the population cannot be maintained without a healthy environment. The SD Strategy, therefore, supports the Agency’s 2006-07 strategic outcome: ‘Healthier population by promoting health and preventing disease and injury’.

The following objectives support the SDS goals:

1.1 Contribute to building healthy and sustainable communities

1.2 Improve the health status of Canadians by fostering preventive and collaborative approaches to SD among the Agency and its partners

2.1 Maximize the use of green procurement

2.2 Minimize the generation of hazardous waste in Agency-occupied facilities

2.3 Increase resource efficiencies in the operations of Agency buildings

3.1  Develop knowledge, commitment and action to implement SD approaches to health public policy

3.2  Develop and use the tools to support the achievement of Goal 1 and 2.

3.3. Establish management systems, roles and responsibilities, authorities and accountabilities to support SDS.

3.   What were your targets for the reporting period?

The target for the reporting period was to meet the legislated requirement to table an SDS within two years of the establishment of the Public Health Agency of Canada. This target was met on August 16.

4.   What is your progress to date?

The focus for 2006-07 was on establishing targets for the Agency’s first SD Strategy. In its full strategy, the Agency published 23 SD targets for the 2007-2010 reporting period.

5.   What adjustments have you made, if any?

Development of the Agency’s first Strategy involved analysis of past targets from the former Population and Public Health Branch and of audit findings and expectations provided by the Commissioner of the Environment and Sustainable Development. The Agency’s second Strategy built upon the first Strategy by presenting a more comprehensive set of targets and by providing a management framework with performance indicators.


Table 13: Procurement and Contracting

Information on Procurement and Contracting can be found at http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 14: Horizontal Initiatives

The Public Health Agency of Canada participates in the following horizontal initiatives:

  1. Federal Initiative to address HIV/AIDS in Canada
  2. Preparedness for Avian and Pandemic Influenza

Supplementary information on these horizontal initiatives can be found at http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 15: Travel Policies

Information on the Agency’s travel policies can be found at http://www.tbs-sct.gc.ca/est-pre/estime.asp.