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3. Supplementary Information

3.1 Special Initiatives and Risk Mitigation Strategies

In addition to setting performance indicators and targets to measure progress, the CFIA’s 2007–2008 RPP set out plans for moving forward on special initiatives and risk mitigation strategies in support of specific strategic outcomes. The following tables supplement the information provided in Section 2 by highlighting CFIA’s achievements in this area, according to the expected results for each strategic outcome.

3.1.1 Strategic Outcome 1: Protection from preventable health risks related to food safety or the transmission of animal diseases to humans

Expected Result: Food leaving federally registered establishments for interprovincial and export trade or being imported into Canada is safe and wholesome.
What was planned in the 2007–2008 RPP? What was achieved?
Work with provinces and territories on the On-Farm Food Safety (OFFS) Recognition Program.
  • Successfully negotiated review processes with provinces/territories and national producer organizations.
  • Coordinated reviews and ensured standards met for steps under CFIA control: technical soundness; adherence to Hazard Analysis Critical Control Points (HACCP) principles; compliance with federal, provincial and territorial regulatory requirements; and effective documentation of management and delivery.
  • Completed three reviews under the OFFS program.
Continue to expand the HACCP approach.
  • Encouraged maintenance of HACCP systems in federally registered establishments through the Food Safety Enhancement Program.
  • 100% of federally registered meat establishments in compliance (mandatory sector).
  • HACCP implementation in the voluntary sectors up from 10% in 2006–2007 to 12% in 2007–2008.
  • New feed inspection program developed to acknowledge HACCP systems in feed mills implemented in approximately 200 of 550 commercial feed mills.
Continue to promote acceptance and implementation of good importing practices.
  • Launched import e-certification system enabling import trade functions with New Zealand.
  • Since the launch of the Import e-certification initiative with New Zealand in June 2007, 1,947 New Zealand electronic export certificates have been processed by CFIA’s e-certification system, providing a completely automated import pre-clearance process. This corresponds to 100% of all non-canned New Zealand meat exports.
Focus on developing a strategy and implementation plan for the Import Retrieval System (IRS) data sent by the Canada Border Services Agency.
  • The IRS provides information on Canadian importers and the products they import for goods regulated by the CFIA.
Develop an overall research strategy for the food sector and identify and prioritize food research needs for the CFIA.
  • Food research plan drafted. Research needs identified are focusing on method development for the detection of foodborne pathogens, chemical contaminants, drug residues, toxins, allergens, labelling, and nutrition.
leaf Enhance capability to detect a broader range of chemical compounds and organisms in a wider range of food and ingredients.
  • Developed improved methods for detecting allergens (milk proteins, gluten, hazelnuts), mycotoxins (fungal toxins) in food and antibiotics (fluoroquinolones) in eggs.
  • Developed and/or validated highly sensitive methods for detecting multiple pesticide residues in infant foods, antibiotics (quinolones and fluoroquinolones) in honey and antibiotics and their metabolites in food animal tissues and other food matrices.
  • Validated methods for detection of antibiotics in honey and raw milk.
leaf Assess alternatives to culture-based methods for detecting pathogens in food.
  • Developed and improved methods to detect pathogens of significance for public health, including Escherichia coli, salmonella, shigella, listeria, and campylobacter.
leaf Assess newer platform technology for applicability in regulatory compliance (biosensor-based technology for detecting veterinary drug residues in food).
  • Assessed a new biosensor-based technology for detecting veterinary drug residues in food, permitting CFIA to enhance its capability of detecting residues of much broader spectrum of antimicrobial drugs approved for use in food animal production and those that are banned/prohibited from use.
Expected Result: Food safety incidents in non-federally registered facilities and food products produced in them are addressed.
What was planned in the 2007–2008 RPP? What was achieved?
Implement recommendations of a recent review of the Food Safety System.
  • Work began toward implementation of the Food and Consumer Safety Action Plan.
leaf Improve inspection coverage of the non-federally registered sector by working through the Federal/Provincial/Territorial Regulatory Affairs Committee to develop and implement enhanced inspection strategies.
  • Actively participated in the Federal/Provincial/Territorial Food Safety Committee to enhance food safety surveillance of domestic and imported foods and to improve food safety coverage/measure for the non-federally registered sector.
Expected Result: Food safety recalls and incidents are contained in a timely and appropriate manner.
What was planned in the 2007–2008 RPP? What was achieved?
leaf Focus on improving food safety outreach activities including food recalls, allergy alerts, and health advisories.
  • Enhanced the recall and allergy alert e-mail system to allow users to choose the type of alerts they want to receive and continued use of live Internet feeds and e-mail for all recalls.
  • Issued seasonal press releases to educate the public on safe food handling and preparation practices, such as for back-to-school lunches, turkey preparation at Thanksgiving, and safe barbequing in the spring/summer.
Expected Result: Animal diseases that are transmissible to humans are effectively controlled within animal populations.
What was planned in the 2007–2008 RPP? What was achieved?
leaf Contribute to the implementation of the National Wildlife Disease Strategy to establish a coordinated national policy, disease response, and management framework for diseases such as avian influenza, chronic wasting disease, severe acute respiratory syndrome, tuberculosis, and lyme disease. Furthermore, the goals of the National Wildlife Disease Strategy include detecting new wildlife diseases early, preventing their emergence, responding rapidly to new diseases, managing disease effectively, and minimizing the impact of animal diseases originating in wildlife.
  • Actively pursued implementation of the strategy by leveraging engagement activities under the National Animal Health Strategy.
  • Reached agreement with the Canadian Cooperative Wildlife Health Centre to include wild fish surveillance in the strategy.
  • Participated in national workshop of wildlife health professionals from Canada and the U.S. to review how current Canadian programs contribute to meeting the goals of the National Wildlife Disease Strategy and how to improve using available resources.
leaf Contribute to the Avian and Pandemic Influenza Preparedness Strategy.
  • Established a Canadian avian influenza vaccine bank of 10M doses of both H5 and H7 subtypes.
  • Acquired mobile telecommunications vehicles for each area to allow for on-site coordination during the event of an emergency.
  • Identified a number of low pathogenicity North American strains of avian influenza through wild bird surveillance.
Enhance BSE programming.
  • Introduced EFB and implemented a feed ban task force to coordinate activities with partners.
  • Development of a more rapid sensitive molecular method (PCR) for the detection of the 5 prohibited (bovine, sheep, goat, elk and deer) and exempt (pig, horse) animal species of most relevance to the Canadian feed ban.
  • Implemented a national communication campaign, including public notices, a dedicated web page, booklets, brochures and posters for distribution.
  • Made key contribution to Canada’s successful application to the OIE for recognition as a BSE “controlled risk” country through the ban, which could result in the expansion of trade opportunities and export markets.
Assess and further develop rapid detection technologies for testing animals for zoonotic diseases.
  • Worked on rapid testing technologies for avian influenza, with one method showing proof in principle for the ability to detect antibodies related to the immune response caused by the disease.
  • Collaborated with U.S. Department of Agriculture to develop an improved real-time PCR (polymerase chain reaction), a rapid technique used to amplify a piece of DNA, a method that will be transferred to the Canadian Animal Health Surveillance Network.
Develop a web-based reporting and communications network in collaboration with the Public Health Agency of Canada to support surveillance of zoonotic diseases.
  • The parameters under which the exchange of scientific information between the provinces and universities have been established. A formal agreement is in the process of being developed.
  • Working to develop data sharing agreements with the provinces.
Working with provincial and territorial partners and other federal departments on International Rabies Management Plan.
  • The CFIA contributed to a draft National Rabies Management Plan. This plan will become part of a broader North American Rabies Management Plan to ensure a more effective and integrated control of rabies across jurisdictions.

3.1.2 Strategic Outcome 2: Protection of consumers through a fair and effective food, animal, and plant regulatory regime that supports competitive domestic and international markets.

Expected Result: The Agency contributes to the development and implementation of international rules, standards, and agreements through international negotiations.
What was planned in the 2007–2008 RPP? What was achieved?
Participate in international forums, contribute to international standard-setting, and continue to implement initiatives under the Security and Prosperity Partnership (SPP).
  • Contributed to the development of international rules and standards and advanced a number of bilateral issues through participation in various international forums.
  • The CFIA continues to play a role in identifying and pursuing practical solutions to shared challenges in North America through the SPP. Some of the key SPP initiatives delivered in 2007–2008 in which CFIA played a lead role include:
    – Harmonization of North American standards in accordance with the OIE to allow for the export of Canadian and American breeding cattle to Mexico.
    – Development of a mechanism between Canada and the United States to coordinate and exchange information on food safety investigations and follow-up activities, including test results and recalls, in response to food safety issues that may affect one another.
Expected Result: Transparent, outcome-based, and science-based domestic regulatory framework is maintained.
What was planned in the 2007–2008 RPP? What was achieved?
Address compensation issues under the Health of Animals Act.
  • Reviewed maximum levels of compensation to allow more flexibility in compensation based on specific details (species, gender, age, etc.) of the animal in question.
  • Adjusted maximum compensation levels to create a system that provides fair market value for destroyed animals.

leaf Under the Meat Inspection Reform Initiative, develop and implement a Canadian Meat Hygiene Standard and technical guidance documents.

Under the same initiative, improve inspection programs under the Compliance Verification System (Poultry Rejection Project, HACCP-based inspection for Hogs).

Continue efforts toward a Canada-Ontario integrated meat inspection system.

  • Continued development of the draft Canadian Meat Hygiene Standards and ongoing engagement of provinces and territories.
  • Implemented an HACCP-based inspection system for hogs, meeting the January 2008 deadline.
  • Implemented the Compliance Verification System (CVS) to provide inspectors with an efficient and uniform approach to verifying that industry is meeting safety standards.
To support the industry-championed Fair and Ethical Trade initiative through the initiation of the Destination Inspection Service (for fresh fruit and vegetables) and through consultations on licensing and arbitration.
  • Launched improved destination inspection services (DIS) for fresh produce, including the DIS website that enables industry to access, fill in, and submit request forms online.
  • Extended hours of services at major DIS centres such as Montreal, Toronto, Calgary, and Vancouver, to better meet industry needs.
  • Development of regulatory amendments to permit service contracts.
Build stakeholder support and implement a strategic action plan for the Fertilizer Program Modernization Initiative.
  • Continued support and cooperation with the Canadian Fertilizer Products Forum.
  • Worked on strategic action plan towards streamlining requirements so products can be brought to market more quickly.
  • Revised efficacy guidelines for fertilizer and supplement products.
  • Reviewed existing third party delivery models and assisted in the development of an industry-led quality assurance program for compost.
  • Developed new guideline and policy document for compost products.
  • Revised and updated guidelines and requirements document for conducting research
Develop a strengthened permanent consultative framework for the Seed Program Modernization Initiative (SPMI).
  • Establishing a more efficient regulatory process for seeds.
  • Consulted throughout the year with stakeholders to build awareness and understanding of the SPMI.
  • Drafted a strategic action plan and presented to stakeholders for feedback.
leaf Work with provincial and private sector certification bodies to implement the Organic Products Regulations (2006) and negotiate international accreditation-recognition and acceptance for Canada’s organic products.
  • Launched a public awareness campaign.
  • Reviewed regulations in relation to the Organic Products Standards.
  • Developed and initiated implementation of an Import Control Strategy and continued consultations with provinces.



The design of the Compliance Verification System (CVS) was initiated in fall 2005 and then introduced as a pilot project in 2006. In April 2008, it was implemented in all federally registered meat establishments.

The CVS is a tool to verify that industry is meeting safety standards. It includes detailed procedures and tasks for inspectors to follow when reviewing a plant’s safety plan and production process. CVS requires the CFIA inspector to conduct on-site assessments of the plant, as well as in depth reviews of company records and test results.


Expected Result: The Agency applies sound and current science to the development of national standards, operational methods, and procedures.
What was planned in the 2007–2008 RPP? What was achieved?

Take a lead role in monitoring implementation of recommendations for overcoming barriers to S&T collaboration.

Participate in the Enterprise initiative to develop a federal perspective on S&T and contribute to Industry Canada-led development of a federal S&T strategy.

  • Continue work towards overcoming barriers to S&T integration to enhance the federal S&T workforce and foster the development of effective collaborative partnerships and networks with stakeholders.
  • Working in collaboration with its partners in the federal S&T community, continued to promote effective S&T leadership to address national challenges.
  • Contributed to the development of the federal S&T strategy Mobilizing Science and Technology to Canada’s Advantage, led by Industry Canada, and will continue to support its implementation.
Expected Result: Deceptive and unfair market practices are deterred.
What was planned in the 2007–2008 RPP? What was achieved?
Under the auspices of the Plant Breeders’ Rights Act, the CFIA grants exclusive rights to plant breeders for their new varieties, and pursuant to Section 78 of the Act, reports on the administration of the Act.
  • The intent of this legislation is to stimulate plant breeding in Canada through the protection of intellectual property rights and to provide Canadian producers better access to foreign varieties.
  • In 2007, the CFIA received 430 applications for plant breeders’ rights; granted rights for 442 plant varieties and renewed the protection of rights for 1,392 varieties previously approved.
Expected Result: Other governments’ import requirements are met.
What was planned in the 2007–2008 RPP? What was achieved?
leaf Develop and implement electronic export certificate systems to better meet the increasing export volume, security, and documentation demands.
  • Worked with the U.S. to advance an e-certification system for meat and plant product exports.
  • Participated in efforts of the United Nations Centre for Trade Facilitation and Electronic Business to establish international standards to facilitate international trade.
leaf Improve inspection guidelines for trade of wood products in relation to the development of standards for novel heat treatment kilns.
  • Developed a technical guide to assist in the verification that wood products are treated to meet an international plant health standard (56°C/30 minutes at core), including a number of different wood species and products.
  • Developed policy and program elements for the Canadian Heat Treated Wood Products Certification Program and the Canadian Wood Packaging Certification Program, which have positioned Canada as a leader in meeting the international plant health standards for wood.

3.1.3 Strategic Outcome 3: A sustainable plant and animal resource base

Expected Result: Entry and domestic spread of regulated plant diseases and pests are controlled.
What was planned in the 2007–2008 RPP? What was achieved?
leaf Work closely with the F/P/T Regulatory Assistant Deputy Minister’s Committee to continue to scope out the components for the National Plant Health Strategy.
  • Prepared a presentation to the committee outlining National Plant (Health) Biosecurity Framework.
Finalize standards for plant pest containment for the CFIA approval of medium- to high-risk containment facilities
  • Finalized the Containment Standards for Facilities Handling Plant Pests for CFIA staff and other persons who grow, raise, culture, or produce anything that is a pest or is infected or infested with a pest. (Available at
  • Standards describe the minimum acceptable physical and operational requirements for facilities that work with plant pests and provide guidance on the operation of plant pest containment facilities such as laboratories, greenhouses, and screen houses.
Continue intergovernmental collaboration on the Invasive Alien Species (IAS) Strategy to prevent the introduction of harmful plants and plant pests, detect incursions early, respond rapidly, and effectively manage species that become established.
  • Intergovernmental collaboration, including participation in the interdepartmental committee for IAS, to ensure consistent and collaborative implementation of A National Alien Species Strategy for Canada.
  • Responded to new pest incursions in collaboration with municipalities, provinces, and other federal departments and agencies.
  • Hosted intergovernmental workshops towards the development of a Canadian invasive plant framework that would provide a roadmap to intergovernmental collaboration in addressing invasive plant threats to Canada.
  • Conducted an Invasive Alien Species Forest Pest Survey and other surveys in co-operation with other federal departments and stakeholders.
  • Participated in the Invasive Alien Species Interdepartmental Working Group and collaborated with Canadian Forest Services in the development of the National Forest Pest Strategy and in the creation of an Exotic Pest Detection Survey.
  • Collaborated with other federal government partners in the Environment Canada-led Invasive Alien Species Partnership Program, and delivered reviews as part of the Technical Review committee.
  • Participated in interdepartmental committee meetings led by Environment Canada to aid in the coordination of communications or activities relating to IAS.
  • Launched a “Don’t Move Firewood” public information campaign in Ontario to limit the spread of emerald ash borer through public education as well as the international travelers bio security campaign.
leaf Research to develop new, faster, or improved methods for pest detection, to treat commodities that harbour pests, and to control the pests themselves.
  • Developed a more rapid sensitive (real-time PCR) test for three strains of sudden oak death (Phytophora ramorum), for casual agent of bacterial wilt of alfalfa, potato viruses, and other invasive alien potato pests. Faster tests for grapevine phytoplasma and new tests for the Columbian vitera virus.
Expected Result: Entry and domestic spread of regulated animal diseases are controlled.
What was planned in the 2007–2008 RPP? What was achieved?
Under the Animal Compensation Program, the CFIA’s Disposal Working Group will continue to develop protocols and standard operating procedures (SOPs) for other methods of disposal.
  • Updated Composting Procedural Plan to guide disposal managers, contractors, and staff on composting as an effective disease control disposal option (applicable across animal species and hazards).
  • Provided guidance for composting of traditional and non-traditional livestock and poultry species and specific animal products, by-products, and related materials, such as litter, manure, and feed.
Review the Canadian Shellfish Sanitation Program (CSSP) for the safe harvesting and consumption of molluscan shellfish, to strengthen its delivery, governance, and policy framework.
  • Responded to review recommendation for strengthening governance by setting up a CSSP Secretariat with partners (Fisheries and Oceans Canada and Environment Canada).
  • Consulting on enhanced management practices to protect shellfish harvest sites that are adjacent to wastewater treatment sites to ensure that contaminated shellfish do not enter the marketplace.
Continue to lead the National Aquatic Animal Health Program to meet international standards for aquatic animal health management set by the World Organisation for Animal Health (OIE).
  • Conducted national stakeholder consultations and reviewed regulations that support the Health of Animals Act with a view to encompass aquatic animals and also reportable and notifiable diseases of concern for trade and for the productivity and sustainability of industry.
leaf Lead the development of the Integrated National Animal Health Strategy (NAHS) and continue to develop the Animal Health Science Strategy.
  • Leading the NAHS initiative to address food safety, animal health, animal welfare, and environmental protection throughout the entire life span of the animal (conception to death).
  • First documented animal health strategy in Canada and possibly the world.
  • Lead the development and application of foresight in the development of a future-focussed agenda for animal health science in Canada.
leaf Advance CFIA’s objectives within a National Livestock Traceability System and continue to develop and implement a national movement strategy for cattle identification, an age verification database for cattle, and a quality assurance program to ensure accuracy of age verification data.
  • Working on a business case for a national portal for traceability.
  • Portal to improve upon information comprehensiveness and stakeholder coordination towards better emergency management.
leaf Contribute to the implementation of a National Wildlife Disease Strategy.
  • Participated in national workshop of wildlife health professionals from Canada and the U.S. to review how current Canadian programs contribute to meeting the goals of the National Wildlife Disease Strategy and how to improve using available resources.
leaf Conduct transmissible spongiform encephalopathies (TSE) research to achieve a better understanding of the mechanisms by which chronic wasting disease (CWD) causes disease in animals.
  • Developed and implemented a small scale live animal test that enables early (pre-clinical) diagnosis of scrapie in sheep and CWD in cervids (hoofed mammals).

Conduct TSE research to determine disease markers and undertake genetic studies of scrapie in sheep to facilitate the development of better tests.

Conduct TSE research to undertake strain typing of CWD and scrapie.


  • A formal agreement with PrioNet Canada, a pan-Canadian network of centers of excellence for research into prions (the causal agent of diseases such as BSE and CWD) that formalizes collaborations to advance prion research and networking activities has been developed. (For more information regarding PrioNet, visit
  • Advancing knowledge and building supports for TSE control strategies for scrapie and BSE in small ruminents, including genetic susceptibility, transmission routes for preventing spread, timelines for infection and the tissues affected.
  • Implementing routine diagnostic tests from European reference laboratories that can distinguish between BSE and scrapie in sheep.
Conduct research on avian influenza and focus on understanding the ecology, pathogenicity, and transmission of viruses and developing rapid diagnostic tests, vaccines, and antivirals.
  • Working with the international community to further genome sequencing to provide an even better understanding of the genetic complement.
  • Continuing research on the effect of H5 and H1 strains if they were to enter Canada in Canada geese, mallards, and other avian species.
  • Published multi-year project report on the Emerging and Infectious Diseases website.
  • Working to show that one test can detect multiple subtypes of avian influenza and collaborated with USDA on redesigned assay, applied to the H7 outbreak in the fall of 2007.
Conduct research to improve testing methods for high threat animal diseases such as foot-and-mouth disease and classical swine fever.
  • Developed a tool to accurately diagnose foot-and-mouth disease in two to three hours for multiple species (sheep, goats, and cattle), implemented its use in Canada and shared it with Mexico.
  • Continuing to conduct research to develop a rapid test for classical swine fever.
  • Improved diagnostic tests for the rabies and contagious equine metritis a reportable disease in Canada and the focus of considerable international concern due to its potential to cause widespread, short term infertility in brood mares.
Expected Result: Agricultural products meet the requirements of federal acts and regulations.
What was planned in the 2007–2008 RPP? What was achieved?
Review the current legislative regime and capacity, and consult with other governments, departments and stakeholders to develop a Government of Canada policy for adventitious presence/unapproved events, plant molecular farming, and transgenic animals (and cloned animals).
  • Participated in bilateral regulatory workshops with China and India.
  • Improved communication and continued work towards harmonized approaches to addressing adventitious presence and plant molecular farming, where possible, through dialogue with the U.S. and Mexico in the North American Biotechnology Initiative forum (NABI).
  • Assisted in developing Canada’s regulatory and policy framework for plant molecular farming by chairing an interdepartmental group.
Inform the public about the CFIA’s regulatory role in biotechnology.
  • As lead department, redesigned the Government of Canada’s Bioportal, the Government of Canada’s largest and most visible website for information about biotechnology to enabling a national and international search engine resulting in over 15 million page views in 2007–2008.
  • Implementing the Notice of Submission initiative to allow the public to comment on submissions, and posting common questions on the website to explain the CFIA’s regulatory role.

3.1.4 Strategic Outcome 4: Security from deliberate threats to Canada’s food supply and agricultural resource base

Expected Result: The Agency is in a state of readiness for an effective, rapid response to emergencies.
What was planned in the 2007–2008 RPP? What was achieved?
leaf Establish a Canadian Veterinary Reserve and begin orientation and training of the initial reservists.
  • Established the CVR in partnership with the Canadian Veterinary Medial Association and trained 140 reservists (340 applications received in total).
Expected Result: The Agency has the capacity to respond to emergencies.
What was planned in the 2007–2008 RPP? What was achieved?
Continue to work on developing better methods and procedures for detecting pathogens such as viruses, parasites, and bacteria in food, and for detecting zoonotic and foreign animal diseases.
  • Conducted validation of alternative methodologies for faster detection of microbial contaminants such as E. coli and salmonella in food and validated method for detection of anthrax in food.
  • Maintained capacity to respond to foreign animal diseases of high economic impact, such as avian influenza and foot and mouth disease, by continuing to develop and assess methodologies to improve response time.
  • Collaborating with provinces, territories, and other countries to develop better science and test methodologies for emerging zoonotic diseases (laboratory containment levels 3 and 4)
  • Level 4 readiness has been maintained through the continuation of key programs such as the nipha virus, influenza viruses, and rift valley fever.
Provide new knowledge, technology, and capacity necessary for chemical, biological, radiological,-nuclear, and explosives (CBRNE) incident prevention, preparedness, and response.
  • The CFIA continued to lead and collaborate on CRTI-funded projects to provide new knowledge, technology, and capacity necessary for CBRN prevention, preparedness, and response, including:
    – The Canadian Animal Health Surveillance Network, which will better prepare Canada to deal with an agro-terrorist event or zoonotic disease outbreak.
    – The development of a rapid test to identify chemical and biological warfare agents in food.
    – Composting and safe disposal of animal carcasses in the event of a bio-terrorism attack.
    – Development of technologies to detect agro-terrorism agents by veterinarians in the field.
    – Development of Canadian diagnostic capacity for Rift Valley fever virus..
For details of progress on these projects please view the following link:
Continue to co-chair the Biological cluster of federal laboratories with the Public Health Agency of Canada
  • Continued to co-chair the cluster, which focuses on the joint needs of federal scientific laboratories and the operational community for addressing potential biological terrorist attacks.


3.2 Financial Performance

3.2.1 Reporting on Parliamentary Appropriations

Table 3–1: Comparison of Planned to Actual Spending (including FTEs)
($ millions) 2005–2006 Actual 2006–2007 Actual 2007–2008
Main Estimates Planned Spending41 Total Authorities42 Total Actuals
Food Safety and Public Health 341.5 379.6 300.6 352.4 377.7 405.9
Science and Regulation 82.4 77.1 93.6 93.7 99.3 74.0
Animal and Plant Resource Protection 139.0 140.1 111.6 111.7 140.0 160.9
Public Security 25.2 23.8 81.6 81.6 97.3 40.5
Total43 588.1 620.6 587.442 639.4 714.342,44 681.344
Less: Non-respendable revenue 0.5 0.4 N/A 1.1 N/A 0.6
Plus: Cost of services received without charge45 63.4 56.0 N/A 52.7 N/A 60.0
Total Agency Spending 651.0 676.2 587.4 691.0 714.3 740.7
Full-time Equivalents 5,692 6,098 6,248 6,464 6,492 6,327


Table 3–2: Voted and Statutory Items
Vote or Statutory Item Truncated Vote or Statutory Wording 2007–2008 ($ millions)
Main Estimates Planned Spending Total Authorities42 Total Actuals
30 Operating Expenditures and Contributions 495.1 544.8 602.0 573.6
35 Capital Expenditures 19.7 19.7 26.5 22.3
(S) Compensation Payments under the Health of Animals Act and Plant Protection Act 1.5 1.5 10.6 10.6
(S) Contributions to Employee Benefit Plans 71.1 73.4 74.1 74.1
(S) Spending of proceeds from the disposal of surplus Crown assets 0.0 0.0 1.1 0.7
  Total43 587.4 639.4 714.3 681.3


Table 3–3: Sources of Respendable and Non-respendable Revenue
Respendable Revenue
($ millions) Actual
Main Estimates Planned Revenue Total Authorities Actual
Food Safety and Public Health 34.5 32.7 31.3 31.3 32.7 32.7
Science and Regulation 15.7 17.4 12.6 12.6 19.4 19.4
Animal and Plant Resource Protection 8.2 5.9 10.9 10.9 6.3 6.3
Public Security 0.0 0.0 0.2 0.2 0.0 0.0
Total Respendable Revenue 58.4 56.0 55.0 55.0 58.4 58.4
Non-respendable Revenue
($ millions) Actual
Main Estimates Planned Revenue Total Authorities Actual
Food Safety and Public Health 0.5 0.4 N/A 1.1 N/A 0.6
Science and Regulation 0.0 0.0 N/A 0.0 N/A 0.0
Animal and Plant Resource Protection 0.0 0.0 N/A 0.0 N/A 0.0
Public Security 0.0 0.0 N/A 0.0 N/A 0.0
Total Non-respendable Revenue 0.5 0.4 N/A 1.1 N/A 0.6

Table 3–4A: User Fees Act
A. User Fee Fee Type46 Fee-
setting Auth-
Date Last Modi-fied 2007–2008 Planning Years
Forecast Revenue
Cost ($000)
Fiscal Year Forecast Revenue
Estimated Full Cost
Managing food safety risks R CFIA Act 1998 31,396 32,641 330,775 2008–
31,396 305,766
31,396 286,827
31,396 280,807
Protecting consumers and the market-place from unfair practices R CFIA Act 1998 3,741 3,761 24,956 2008–
3,741 23,069
3,741 21,640
3,741 21,186
Certifying exports R CFIA Act 1998 13,949 15,619 35,655 2008–
13,949 32,959
13,949 30,918
13,949 30,269
Protecting Canada’s crops and forests R CFIA Act 1998 3,476 3,760 89,687 2008–
3,476 82,906
3,476 77,771
3,476 76,139
Protecting Canada’s livestock R CFIA Act 1998 2,063 2,196 91,067 2008–
2,063 84,182
2,063 78,967
2,063 77,310
Assessing agricultural products R CFIA Act 1998 369 396 12,442 2008–
369 11,501
369 10,789
369 10,562
Access to Infor-mation and Privacy (ATIP) O Access to Infor-mation Act 1992 6 9 415 2008–
6 384
6 360
6 353
Total       55,000 58,382 586,095 2008–
55,000 540,767
55,000 507,272
55,000 496,626


Table 3–4B: Policy on Service Standards for External Fees
External Fee Service Standard Performance Results Stakeholder Consultation
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA) 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. Of the 416 requests completed under the ATIA last fiscal year, 274 (66%) were completed under 30 days; 49 (12%) were completed in 31 to 60 days; 81 (19%) were completed in 61 to 120 days; and 12 (3%) were completed 121 or over. The service standard is established by the ATIA and the Access to Information Regulations. Consultations with stakeholders were undertaken by the Department of Justice and the Treasury Board Secretariat for amendments done in 1986 and 1992.
Destination Inspection Service (fresh fruits and vegetables)
Goal is to achieve inspector response to 80% of the inspection requests within eight hours and 100% of requests within 24 hours by 2011. First year national results: 70% in 8 hours and 85% within 24 hours. Service standards were established for the newly created Destination Inspection Service, in consultation with Industry.

Veterinary Biologics Program Service Standards

(The service standards refer to VBS calendar days, unless specified otherwise)





In fiscal year 2007–2008, the Veterinary Biologics Section made significant progress in eliminating backlogs, and is now meeting service standards for all key indicators, with very few exceptions. To address stakeholders’ concerns about capacity and timeliness of the regulatory approval process for animal health products, the CFIA Veterinary Biologics Section has formed a Canadian Animal Health Products Regulatory Advisory Committee (CAHPRAC) in collaboration with Health Canada’s Veterinary Drugs Directorate.
Dossier Review (new submission, change in product formulation or change in label claim)   Met   
Canadian Manufacturers
1. Review initial submission and prepare response

1) Response time 4 months maximum

Average response time is 3 months

2. Review supplemental data and prepare response

2) Response time 6 weeks maximum

Average response time is 4 weeks

American Manufacturers
3. Review initial submission and prepare response

3) Response time 4 months maximum

Average response time is 3 months

4. Review supplemental data and prepare response

4) Response time 6 weeks maximum

Average response time is 4 weeks

Manufacturers from other countries
5. Review initial submission and prepare response

5) Response time 6 months maximum

Average response time is 4 months

6. Review supplemental data and prepare response

6) Response time 6 weeks maximum

Average response time is 4 weeks

Laboratory Testing
7. Each master cell line

7) Response time 4 months maximum

Average response time is 3 months

8. Each master seed culture

8) Response time 4 months maximum

Average response time is 3 months

9. Each pre-licensing serial tested, to a maximum of three

9) Response time is maximum 4 months

Average response time is 3 months

Facility Inspections/Audits
10. Canadian manufacturers

10) Annual

Average is annual.

11. Canadian importers

11) Minimum every 3 years

Average is every three years

12. American manufacturers

12) Minimum every 3 years

Average is every three years

13. Other non-Canadian manufacturers

13) Minimum every 4 years

Average is every four years

14. Issuance of Permits, Licenses and Export Certificates

14) Response time maximum 2 weeks

Average response time is 2 weeks.

Serial Release
15. If not tested

15) Response time maximum 5 days

Average response time is 2–3 days.

16. If tested

16) Response time maximum 35 days

Average response time is 2 weeks.

17. Label Review and Approval

17) Response time maximum 4 weeks

Average response time is 2 weeks.

18. Advertising Review and Approval

18) Response time maximum 4 weeks

Average response time is 2 weeks.

19. Protocol Review for Efficacy/Safety Studies

19) Response time maximum 45 days

Average response time is 30 days.

20. Production Outline Revisions

20) Response time maximum 4 weeks

Average response time is 2 weeks.

21. Suspected Adverse Reactions

21) Response time maximum 4 weeks

Average response time is 2 weeks.


Application for Feed Registration and Ingredient Approval

(i) Timeliness: For 90 percent or more of the applications received

  (a) Feed Section screens applications within ten days of receiving it. TBD  
  (b) For products requiring a review of efficacy data, a preliminary review is conducted within 10 days of the screening date, and the results of the review are communicated to the applicant. Met    
  (c) Feed Section conducts efficacy, livestock, human and environmental safety reviews and responds to applicant within 90 days. Not met    
  (d) The laboratory does a desk review of proposed method of analysis within 4 weeks of receiving it. If laboratory testing is required, it will be done within 12 weeks of receiving a suitable method and test samples depending on availability of specialized equipment. TBD    
(ii) Quality
  (a) The Feeds Regulations are consistently interpreted and applied in registration/approval decisions. Met    
  (b) Information is openly exchanged between clients and evaluation specialists. Met  
  (c) Analytical methods are evaluated for specificity, selectivity, reliability and accuracy, using internationally standardized method validation procedures. Met  


Table 3–5: Details on Transfer Payment Programs (TPPs)
1) Name of Transfer Payment Program: Statutory Compensation Payments
2) Start Date: N/A 3) End Date: N/A
4) Description: Compensation payments in accordance with requirements established by regulations under the Health of Animals Act and the Plant Protection Act, and authorized pursuant to the Canadian Food Inspection Agency Act.
5) Strategic Outcomes: To compensate Canadians, in accordance with the appropriate regulations, for animals or plants ordered destroyed for the purpose of disease control.
6) Results Achieved: Over 500 Canadians were compensated for animals and plants ordered destroyed.
($ Millions) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance(s) Between 9 and 11
13) Animal and Plant Resource Protection            
14) Total Grants 0.0 0.0 0.0 0.0 0.0 0.0
14) Total Contributions 0.0 0.0 0.0 0.0 0.0 0.0
14) Total Other Types of Transfer Payments 9.5 3.8 1.5 10.6 10.6 9.1
15) Total Animal and Plant Resource Protection 9.5 3.8 1.5 10.6 10.6 9.1
16) Comment on Variance: Actual compensation payments made to Canadians were $9.1 million higher than the $1.5 million that was earmarked in Planned Spending. This increase is due to Sudden Oak Death $7.1M (Plant Diseases), Chronic Wasting Disease $1.2M (Animal Diseases) and Emerald Ash Borer $0.7M (Plant Diseases).
17) Significant Audit and Evaluation Findings and URL (s) to Last Audit and / or Evaluation: N/A

Travel Policies

The Canadian Food Inspection Agency follows and uses the Treasury Board Secretariat’s travel policy parameters.


3.2.2 Auditor General’s Audit Opinion on Financial Statements and Audited Financial Statements


To the President of the Canadian Food Inspection Agency and the Minister of Agriculture and Agri-Food Canada

I have audited the statement of financial position of the Canadian Food Inspection Agency as at March 31, 2008 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Agency’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable 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 my opinion, these financial statements present fairly, in all material respects, the financial position of the Agency as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with Canadian generally accepted accounting principles.

Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
August 15, 2008


Financial Statements of


Year ended March 31, 2008



Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in these statements rests with the Agency’s management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General which are consistent with Canadian generally accepted accounting principles for the public sector as required under Section 31 of the Canadian Food Inspection Agency Act.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Agency’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Agency’s Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate division of responsibilities, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Agency.

The Departmental Audit Committee is responsible for ensuring that the President has independent, objective advice, guidance, and assurance as to the adequacy of the Agency’s control and accountability processes. In order to give this support to the President, the Departmental Audit Committee exercises active oversight of core areas of the Agency’s controls and accountabilities, including values and ethics, risk management, management control framework, internal audit functions, and accountability reporting.

The financial statements of the Agency have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

Carole Swan
  Gordon R. White
Vice-President, Finance, Administration and Information Technology
Ottawa, Canada
August 15th, 2008


Statement of Financial Position

As at March 31
(In thousands of dollars)
  2008 2007
Financial assets:
  Due from the Consolidated Revenue Fund $ 77,326 $ 76,644
Accounts receivable and advances (Note 4) 8,679 18,160
  86,005 94,804
Non-financial assets:
  Inventory 1,310 1,088
Tangible capital assets (Note 5) 203,190 202,265
  204,500 203,353
    $ 290,505 $ 298,157
  Accounts payable and accrued liabilities $ 81,773 $ 94,195
Vacation pay 28,051 26,919
Deferred revenue 1,611 2,384
Employee severance benefits (Note 6) 90,569 83,564
  202,004 207,062
Equity of Canada 88,501 91,095
    $ 290,505 $ 298,157

Contingent liabilities (Note 8)
Contractual obligations (Note 9)

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


Approved by:

Carole Swan

Gordon R. White
Finance, Administration and
Information Technology


Statement of Operations

Year ended March 31
(In thousands of dollars)

  2008   2007
Food Safety and
Public Health
Science and
Animal and Plant
Resource Protection
Total Total
  Inspection fees $29,093 $9,558 $4,154 $ – $42,805 $40,490
Registrations, permits, certificates 2,436 7,982 1,275 11,693 10,575
Miscellaneous fees and services 504 2,324 1,050 3,878 3,920
Establishment license fees 1,633 143 1,776 1,938
Grading 222 2 224 223
Administrative monetary penalties 288 177 57 522 371
Interest 41 24 8 73 49
Total Revenues 34,217 20,210 6,544 60,971 57,566
Operating expenses
  Salaries and employee benefits 356,531 67,121 138,337 16,488 578,477   502,955
Professional and special services 41,885 13,205 16,763 1,126 72,979 84,797
Travel and relocation 15,529 2,644 9,109 861 28,143 30,169
Amortization 14,603 2,913 5,915 693 24,124 22,301
Accommodation 13,770 2,720 5,582 650 22,722 24,793
Utilities, materials and supplies 12,933 1,903 7,165 788 22,789 23,737
Furniture and equipment 6,848 1,133 2,823 528 11,332 15,341
Communications 6,708 1,296 2,977 396 11,377 11,272
Repairs 5,704 690 2,512 982 9,888 11,656
Equipment rentals 1,087 205 954 55 2,301 2,342
Information 2,824 577 1,660 133 5,194 4,692
Loss (gain) on disposal of tangible capital assets 59 12 24 3 98 29
Miscellaneous 533 1,134 199 35 1,901 688
Total operating expenses 479,014 95,553 194,020 22,738 791,325 734,772
Transfer payments
  Compensation payments (Note 7) 10,630 10,630   3,754
Other 1,266 15 1,401 2,682 932
Total transfer payments 1,266 15 12,031 13,312 4,686
Total Expenses 480,280 95,568 206,051 22,738 804,637   739,458
Net Cost of Operations $446,063 $75,358 $199,507 $22,738 $743,666   $681,892
The accompanying notes are an integral part of these financial statements.


Statement of Equity of Canada

Year ended March 31
(In thousands of dollars)

  2008 2007
Equity of Canada, beginning of year $ 91,095 $ 96,203
Net cost of operations (743,666) (681,892)
Net cash provided by Government of Canada 679,972 612,929
Change in due from the Consolidated Revenue Fund 682 7,281
Services received without charge from other government departments (Note 10) 60,037 56,039
Assets funded by other government departments 381 535
Equity of Canada, end of year $ 88,501 $ 91,095
The accompanying notes are an integral part of these financial statements.


Statement of Cash Flow

Year ended March 31
(In thousands of dollars)

  2008 2007
Operating activities
  Cash received from:    
  Fees, permits and certificates $ (60,298) $ (58,253)
Cash paid for:    
  Salaries and employee benefits 522,065 464,359
Operating and maintenance 183,266 170,811
Transfer payments 10,040 4,582
Cash used by operating activities 655,073 581,499
Capital investment activities
  Acquisition of tangible capital assets 25,252 31,925
Proceeds from disposal of assets (353) (495)
Cash used by capital investment activities 24,899 31,430
Financing activity
Net cash provided by Government of Canada $ (679,972) $ (612,929)
Net cash used $ – $ –
The accompanying notes are an integral part of these financial statements.


Notes to the Financial Statements

Year ended March 31, 2008

1. Authority and Purposes

The Canadian Food Inspection Agency (the “Agency”) was established, effective April 1, 1997, under the Canadian Food Inspection Agency Act. The Act consolidates all federally mandated food and fish inspection services and federal animal and plant health activities into a single agency.

The Agency is a departmental corporation named in Schedule II to the Financial Administration Act and reports to Parliament through the Minister of Agriculture and Agri-Food.

The mandate of the Agency is to enhance the effectiveness and efficiency of federal inspection and related services for food, animals and plants. The objectives of the Agency are to contribute to a safe food supply and accurate product information; to contribute to the continuing health of animals and plants; and to facilitate trade in food, animals, plants, and related products.

In delivering its mandate, the Agency operates under the following program activities:

(a) Food Safety and Public Health: ensures that food is safe, consumers have appropriate information on which to base healthy food choices and prevents the transmission of animal disease to humans.

(b) Science and Regulation: provides a fair and effective regulatory regime for food, animals and plants, and maintains the integrity of the Agency’s regulatory policy, inspection and certification activities.

(c) Animal and Plant Resource Protection: protects Canada’s livestock, crops and forests from regulated pests and diseases including invasive species and regulates agricultural products, including products of biotechnology.

(d) Public Security: contributes to public security and agri-food security.

The Agency is responsible for the administration and enforcement of the following acts: Agriculture and Agri-Food Administrative Monetary Penalties Act, Canada Agricultural Products Act, Canadian Food Inspection Agency Act, Feeds Act, Fertilizers Act, Fish Inspection Act, Health of Animals Act, Meat Inspection Act, Plant Breeders’ Rights Act, Plant Protection Act, and Seeds Act.

In addition, the Agency is responsible for enforcement of the Consumer Packaging and Labelling Act and the Food and Drugs Act as they relate to food, except those provisions that relate to public health, safety, or nutrition.

The Minister of Health remains responsible for establishing policies and standards relating to the safety and nutritional quality of food sold in Canada. The Minister of Health is also responsible for assessing the effectiveness of the Agency’s activities related to food safety.

Operating and capital expenditures are funded by the Government of Canada through parliamentary appropriations. Compensation payments under the Health of Animals Act and the Plant Protection Act and employee benefits are authorized by separate statutory authorities. Revenues generated by its operations are deposited to the Consolidated Revenue Fund and are available for use by the Agency.

2. Summary of Significant Accounting Policies

The financial statements are prepared in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General which are consistent with Canadian generally accepted accounting principles for the public sector as required under Section 31 of the Canadian Food Inspection Agency Act.

Significant accounting policies are as follows:

(a) Parliamentary appropriations

The Agency is mainly financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the Agency do not parallel financial reporting according to 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 bases of reporting.

(b) Net cash provided by Government of Canada

The Agency operates within the Consolidated Revenue Fund (CRF), which is administrated 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) Due from the Consolidated Revenue Fund (CRF)

Due from the CRF represents the amount of cash that the Agency is entitled to draw from the CRF without further appropriations to discharge its liabilities. These amounts have been charged to current or prior years’ appropriations but will be paid in the future.

(d) Revenues

Revenues for fees, permits and certificates are recognized in the accounts based on the services provided in the year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. Revenue from external parties for specified purposes is recognized in the period in which the related expenses are incurred.

(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

(i) Pension benefits:

The Agency’s eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. Both the employees and the Agency contribute to the cost of the Plan. The Agency’s contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Agency. The Agency is not required under present legislation to make contributions with respect to actuarial deficits of the Public Service Pension Plan.

(ii) Severance benefits:

Eligible employees are entitled to severance benefits, as provided for under labor contracts and conditions of employment. The cost of these benefits is 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.

(iii) Other future benefit plans:

The federal government sponsors a variety of other future benefit plans from which employees and former employees can benefit during or after employment or upon retirement. The Public Service Health Care Plan and the Pensioners’ Dental Services Plan represent the two major future benefit plans available to the Agency’s employees.

The Agency does not pay for these programs as they fall under the federal government’s financial responsibilities, but the Agency records its share of the annual benefits paid under these programs as a service provided without charge by other government departments. No amount is recorded in the Agency’s financial statements with regard to either the actuarial liability of these programs at year end or the annual increase of such liabilities.

(g) Accounts receivable and advances

Accounts receivable and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(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) Environmental liabilities

Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management’s best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the Agency becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the Agency’s obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.

(j) Inventories

Inventories consist of laboratory materials, supplies and livestock held for future program delivery and not intended for re-sale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.

(k) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 ($3,000 for computer equipment and software) or more are recorded at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class Amortization Period
Buildings 20-30 years
Machinery and equipment 5-20 years
Computer equipment and software 3-10 years
Vehicles 7-10 years
Leasehold improvements Lesser of the remaining term of the lease or useful life of the improvement
Assets under construction Once in service, in accordance with asset class

(l) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General 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 contingent liabilities (include claims and litigation), 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 results 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 thousands of dollars) 2008 2007
  Net cost of operations $743,666 $681,892
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (less):    
  Services received without charge from other government departments (60,037) (56,039)
Amortization of tangible capital assets (24,124) (22,301)
Revenue not available for spending 607 412
Net changes in future funding requirements (3,520) (14,524)
Low value assets funded by other government departments (132) (219)
Gain (loss) on disposal of tangible capital assets (98) (29)
  (87,304) (92,700)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (less):    
  Acquisition of tangible capital assets 25,252 31,925
Proceeds from disposal of assets (353) (495)
  24,899 31,430
  Current year appropriations used $681,261 $620,622

(b) Appropriations provided and used:

(in thousands of dollars) 2008 2007
  Vote 30 – Operating expenditures $601,941 $564,783
Vote 35 – Capital expenditures 26,493 28,144
Statutory contributions to employee benefits plans and compensation payments 85,872 69,045
  Appropriations available for future years (386) (328)
Lapsed appropriation – operating (28,488) (34,264)
Lapsed appropriation – capital (4,171) (6,758)
Current year appropriations used $681,261 $620,622

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

(in thousands of dollars) 2008 2007
  Net cash provided by Government of Canada $679,972 612,929
Revenue not available for spending 607 412
Change in due from the Consolidated Revenue Fund    
  Variation in accounts receivable and advances 9,481 (9,444)
Variation in accounts payables and accrued liabilities (12,422) 20,808
Variation in deferred revenue (773) 595
Other adjustments 4,396 (4,678)
    682 7,281
Current year appropriations used $681,261 $620,622

4. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

(in thousands of dollars) 2008 2007
  Receivables from other government departments and agencies $2,448 $11,882
Receivables from external parties 6,731 6,540
Employee advances 150 188
  9,329 18,610
  Allowance for doubtful accounts on external receivables (650) (450)
Total $8,679 $18,160

5. Tangible Capital Assets

(in thousands of dollars)

Cost Accumulated amortization
Capital asset class Opening
Acquisi-tions Disposals
Amorti-zation Disposals
Land $3,331 $ – $ – $3,331 $ – $ – $ – $ – $3,331 $3,331
Buildings 251,862 1,330 253,192 150,229 8,813 (11) 159,053 94,139



Machinery and equipment 76,173 7,577 4,462 79,288 27,902 4,549 1,524 30,927 48,361 48,271
Computer equipment and software 44,373 6,569 2,875 48,067 34,802 4,884 2,574 37,112 10,955 9,571
Vehicles 37,296 1,353 3,571 35,078 13,981 4,848 3,370 15,459 19,619 23,315
Assets under construction 12,106 10,167 1,437 20,836 20,836 12,106
Leasehold improvements 10,256 2,941 13,197 6,218 1,030 7,248 5,949 4,038
$435,397 $29,937 $12,345 $452,989 $233,132 $24,124 $7,457 $249,799 $203,190 $202,265

Amortization expense for the year ended March 31, 2008 is $24,124 (2007 – $22,301).

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/Quebec Pension Plans benefits and are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan. In 2007-2008, the Agency contributed $54,322,000 (2007 - $47,948,000), which represents approximately 2.23 times (2007 – 2.45 times) the contributions by employees.

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 and will be paid from future appropriations. Information about the severance benefits, measured as March 31, is as follows:

(in thousands of dollars) 2008 2007
Accrued benefit obligation, beginning of year $83,564 $75,447
Expense for the year 14,127 14,806
Benefits paid during the year (7,122) (6,689)
Accrued benefit obligation, end of year $90,569 $83,564

7. Compensation Payments

The Health of Animals Act and the Plant Protection Act allow for the Minister, via the Agency, to compensate owners of animals and plants destroyed pursuant to the Acts. During the year, compensation payments incurred pursuant to these two Acts totalled $10,630,000 (2007 - $3,754,000). These payments pertained to the following diseases:

(in thousands of dollars) 2008 2007
Sudden Oak Death (new regulation) $7,052 $ –
Chronic Wasting Disease 1,180 295
Emerald Ash Borer 507 661
Avian Influenza 468 738
Potato Cyst Nematode 136 453
Other 1,287 1,607
  $10,630 $3,754

8. Contingent Liabilities

(a) Contaminated sites

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the Agency is obligated or likely to be obligated to incur such costs. There are currently no known contaminated sites identified where such action is possible. The Agency’s ongoing effort to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the Agency in the year in which they become known.

(b) Claims and litigation

Claims have been made against the Agency in the normal course of operations. Class action suits against the Agency and other defendants include those related to bovine spongiform encephalopathy (BSE) for which amounts and likelihood of liability cannot be determined. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimate of liability is accrued and an expense recorded in the financial statements. Amounts accrued for contingent liabilities as at March 31, 2008 totalled $839,000.

9. Contractual Obligations

The nature of the Agency’s activities can result in some large multi-year contracts and agreements whereby the Agency will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars) 2009 2010 2011 2012 2013 and thereafter Total
Capital projects $1,846 $ – $ – $ – $ – $1,846
Operating leases 244 199 173 172 169 957
Transfer payments 2,763 800 258 3,821
Other agreements 4,706 2,194 2,015 1,589 10,504
Total $9,559 $3,193 $2,446 $1,761 $169 $17,128

10. 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.

a) Services provided without charge from other government departments

During the year, the Agency received without charge from other departments, accommodation, legal services and the employer’s contribution to the health and dental insurance plans. These services without charge have been recognized in the Agency’s Statement of Operations as follows:

(in thousands of dollars) 2008 2007
Accommodation $22,238 $24,052
Employer’s contribution to the health and dental insurance plans 36,031 27,458
Legal services 1,586 4,354
Audit services 182 175
  $60,037 $56,039

The Government of Canada 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 cost of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included in the Agency’s Statement of Operations.

b) Receivables and payables outstanding at year-end with related parties are as follows:

(in thousands of dollars) 2008 2007
Accounts receivable from other government departments and agencies $2,448 $11,882
Accounts payable to other government departments and agencies 7,913 6,902

11. Comparative Information

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

12. Subsequent Events

On June 5, 2008, the President of the CFIA announced the decision to consolidate import document review with the creation of a single import service centre. As a result of this decision, the three existing Import Service Centres will be consolidated into the National Import Service Centre. This change will better position the CFIA to meet Government priorities by providing programs and services that are streamlined and better focused on the Agency’s core mandate.

On July 28, 2008, the Treasury Board approved the remission of certain fees that were charged to industry in 2007–2008 and the implementation of a maximum fee for animal health export certification for one year beginning on October 1, 2008. As a result of this decision, the Agency’s revenues would be reduced by $5,000,000 over the next two fiscal years.

3.3 Horizontal Initiatives

Horizontal initiatives, as defined by TBS guidelines, are initiatives in which partners from two or more organizations have received program funding and have formally agreed (e.g. Memoranda to Cabinet, Treasury Board Submissions, and federal/provincial agreements) to work together to achieve shared outcomes. The following table outlines the CFIA’s horizontal initiatives for 2007–2008.

Table 3–6: CFIA Horizontal Initiatives for 2007–2008
Initiative Profile Partners

Building Public Confidence in Pesticide Regulation and Improving Access to Pest Management Products (BPC)



This initiative incorporates efforts of six federal government partners to increase public and stakeholder confidence in the pesticide regulatory system, to protect health and environment, to increase compliance, and to increase the competitiveness of the agri-food and forestry sectors. The CFIA is delivering on two of the 13 programs:

  • Enhanced monitoring and enforcement of pesticide residue limits in foods and feed (Chemical Residues, Food Safety)
  • Enhanced monitoring and enforcement of pesticide residues in fertilizers and pesticide guarantee verification in fertilizer-pesticide combinations (Fertilizer Section, Plant Products Directorate)

A total of $5.1 million was allocated to the CFIA to cover these two programs over a seven-year period, starting in 2002–2003 and ending in 2008–2009.

A formative evaluation was conducted in 2005–2006 to assess strengths and weaknesses of the initiative and identify adjustments required to achieve the planned outcomes. In 2006–2007, a summative evaluation was initiated will be conducted in order to examine progress toward achievement of expected outcomes. An evaluation working group was established in 2007–2008 to provide input for the completion of the summative evaluation.

In 2007–2008, the CFIA continued its initiative of enhanced monitoring and enforcement of pesticide residues in fertilizer and pesticide guarantee verification in fertilizer-pesticide combinations. Improvements included increased sampling, increased awareness, increased communication with PMRA and stakeholders through consultations, working groups and forums, and enhanced targeting of non-compliant samples in order to increase future compliance.

Lead: Health Canada (Pest Management Regulatory Agency)

  • Agriculture and Agri-Food Canada
  • Department of Fisheries and Ocean
  • Environment Canada
  • Natural Resources Canada


Public Security and Anti-terrorism (PSAT) Initiative



In the 2001 federal budget, the government allocated $7.7 billion in new funds to be spent over the next five years on the PSAT initiative to enhance security for Canadians. As a contributing agency, the CFIA will

  • deliver all federal food inspection, animal health, and plant protection measures; and
  • respond to outbreaks of pests and diseases in plants and animals.

More information on this initiative can be found in Section 2.4.

Lead: Public Safety Canada

  • Provinces/ Territories
  • Canada Border Service Agency

Avian and Pandemic Influenza Preparedness: Focus on Animal and Human Health Issues



Canada is facing two major, inter-related animal and public health threats: the potential spread of avian influenza virus (H5N1) to wild birds and domestic fowl in Canada and the potential for a human-adapted strain to arise, resulting in human-to-human transmission, potentially triggering a human influenza pandemic. A coordinated and comprehensive plan to address both avian and pandemic influenza is required.

Under the umbrella of “Preparing for Emergencies,” in 2006 the CFIA obtained $195 million to be spent over five years to enhance Canada’s state of AI preparedness. Canada’s Avian Influenza Working Group was established in 2006 to update policies, protocols, operating procedures, and systems to enhance Canada’s state of preparedness – through collaborations and partnership – in five pillars of strategies and processes for prevention and early warning, emergency preparedness, emergency response, recovery, and communications.

Lead: Public Health Agency of Canada

  • Public Safety and Emergency Preparedness Canada
  • Health Canada
  • Environment Canada
  • Provinces/Territories
  • Agriculture and Agri-Food Canada

Chemical, Biological Radiological-Nuclear, and Explosives (CBRNE) Research and Technology Initiative (CRTI)



The events of September 11, 2001 moved the issues of counter terrorism and national security to the forefront of the nation’s concerns. CRTI represents the federal science community’s response and commitment to providing science solutions to these issues. Through the creation of laboratory networks across the federal government that collaborate with industry, academia and first responder communities, and through key research and technology development initiatives, the CFIA will provide new knowledge, technology, and capacity necessary for CBRNE prevention preparedness and response.

As well, the CFIA will continue to co-chair the biological cluster of federal laboratories with the Public Health Agency of Canada.

Current CRTI related research initiatives include:

  • Develop more effective rapid detection tests; including those that use high throughput techniques and nanotechnology for sensitive and more efficient detection.
  • Continue to develop surveillance and communication networks with provincial partners in order to improve early detection of high threat animal diseases and improve linkages, and with the National U.S. Animal Health Laboratory Network.


Lead: Department of National Defence

  • Agriculture and Agri-Food Canada
  • Canadian Nuclear Safety Commission
  • Canadian Security Intelligence Service
  • Defence Research and Development Canada
  • Fisheries and Oceans Canada
  • Environment Canada
  • Health Canada
  • Public Health Agency of Canada
  • National Research Council
  • Natural Resources Canada
  • Public Safety Canada
  • Royal Canadian Mounted Police
  • Transport Canada

Canadian Regulatory System for Biotechnology



The Canadian Regulatory System for Biotechnology (CRSB) aims to develop an efficient, credible and well-respected regulatory system that safeguards the health of all Canadians and the environment and permits safe and effective products. It does this by enhancing human resource capacity, improving the efficiency and effectiveness of the regulatory system, improving transparency and public awareness, and increasing knowledge to improve decision making. The CRSB will also continue to provide a bridge to adapt to emerging novel applications of biotechnology, as guided by principles outlined in the Cabinet Directive on Streamlining Regulation and by a strengthened horizontal governance mechanism for shared regulatory policy development and decision making.

The CRSB departments and agencies will be implementing the results of a summative evaluation, which identified that expected results are being achieved.

Lead: Rotating

  • Health Canada
  • Environment Canada
  • Industry Canada
  • Fisheries and Oceans Canada
  • Natural Resources Canada

AAFC-CFIA MOU on the Agricultural Policy Framework (APF)



On December 2, 2003, the President of the CFIA and the Deputy Minister of AAFC signed a Memorandum of Understanding between the CFIA and AAFC on the APF.

The MOU sets out general terms, roles, and responsibilities for the management of the following initiatives funded under the APF and implemented by the CFIA: Medicated Feed Regulations; and On-Farm Food Safety Recognition Program.

A total amount of $27.0 million is provided to the CFIA under the APF to cover the two initiatives over a five-year period, starting on April 1, 2003.

  • Agriculture and Agri-Food Canada


More information on horizontal initiatives can be found at:

3.4 Internal Audits and Evaluations

Table 3–7: Internal Audits and Evaluations
Subject of Audit/ Review/ Evaluation Status as of March 31, 2008 Electronic link
Imported Food Ongoing – Scheduled Completion Fall 2008 N/A
Food Labelling Ongoing – Scheduled Completion Fall 2008 N/A
Plant Protection Ongoing. N/A
Food Safety (non-registered sector) Deferred – Partial coverage in Audit of Imported Food; need for further work to be re-assessed. N/A
Food Safety Enhancement Program Ongoing – Scheduled Completion June 2008. To be posted.
Human Resources Management Complete – Approved October 2007.
Physical Security Complete – Approved August 2007.
Delegated Financial Authorities Complete – Approved January 2008.
Food Emergency Response Review (Follow-Up) Not completed. N/A
Canadian Regulatory Strategy for Biotechnology (Inter-departmental – Summative) Complete – Approved December 2006.
Feed Program (Formative) Complete – Approved August 2007. None.
Shellfish Sanitation Program (Formative) Complete – Approved July 2007.
Public Security and Anti-Terrorism Initiative (Formative) Ongoing. N/A
Hazard Analysis Critical Control Point Program (Formative) Ongoing. N/A
On-Farm Food Safety Program (Formative) Ongoing. N/A
Alternative Dispute Resolution Complete – Approved February 2008. None.

CFIA Audit Committee

As set out in the 2006 Internal Audit Policy, and included in the responsibilities set out in the engagement letters between the external members and the Government of Canada, one of the key responsibilities of the Audit Committee is to advise the President on the Agency’s system of internal controls and to report annually on concerns arising from this assessment. These responsibilities, in accordance with the Policy, were to be phased in over a three-year period (2006–2009). The CFIA is an early adopter of many features in the 2006 Policy, including establishing an Audit Committee with external members. The Audit Committee with external members was phased in over the past 12 months, the three external members joined the Committee on October 30, 2007. With this recent transition, the Audit Committee could only partially complete its responsibilities for fiscal year 2007–2008.

Recommendations for Improvement of Risk Management Controls and Accountability Processes

The Audit Committee has advised the President and Agency on matters related to audit reports approved (i.e. the Audits of the Management of Human Resources and Food Safety Enhancement Program), including how best to monitor and follow up on specific recommendations.

Based on the oversight work of the Committee since October 2007, no other matter has come to its attention that would cause the Committee to recommend improvements of risk management, controls and accountability processes at this time.

For supplementary information on the agency’s Internal Audits and Evaluations, please visit:

3.5 Agency Regulatory Plans

Table 3–8: Agency Regulatory Plans
Regulations Expected Results Performance Measurement Criteria

Results Achieved

Medicated Feeds Regulations (Health of Animals Act)

New regulations are being developed under the Health of Animals Act that will regulate how feeds are manufactured and will implement manufacturing to ensure that finished products meet regulatory standards. These regulations will apply to both commercial and non-commercial manufacturing operations that wish to manufacture any kind of medicated feed on their premises.



Harmonization of Canadian regulations with international standards, guidelines, and recommendations will facilitate international trade by providing Canadian exporters of medicated feeds, live animals, and animal products with increased certainty in their export markets.

Licensing and standards will reduce the risks of overmedication, which can lead to medication residues in food, and undermedication, which can lead to resistant strains of diseases.

Maintenance of access to international markets for medicated feeds, as well as products produced in Canada from livestock that may be fed medicated feeds.



Regulation not yet promulgated.



Humane Transport of Animals (Health of Animals Regulations)

The purpose of Part XII of the Health of Animals Regulations is to set reasonable standards of care to maintain the welfare of animals in transit. The regulations, now outdated, require modernisation, strengthening and clarification

Carriers will be given improved ability to apply their knowledge and expertise to achieve positive transport outcomes.

Improve the enforcement of animal welfare standards during transport.

Harmonize, where possible, with US and EU standards.

Reduction in the number of serious animal harm situations that cannot be successfully prosecuted.

Improvement in animal welfare during transport.

Maintenance of ability to meet OIE and EU standards for trade in live animals.

Regulation not yet promulgated.

Meat Inspection Regulations – Amend (Meat Inspection Act)

The purpose of the Meat Inspection Act and Regulations is to regulate the import, export and inter-provincial trade in meat products, the registration of establishments, the inspection of animals and meat products in registered establishments, and the standards for animals slaughtered and for meat products prepared in those establishments.

Reflect the adoption of mandatory HACCP in the entire sector.

Make the Regulations more outcome oriented/less-prescriptive so as to enhance the regulatory framework.

Enable Canadian industry large and small to produce safe and suitable meat for interprovincial and international trade.

Regulation not yet promulgated.

Fresh Fruit and Vegetable Regulations/Licensing and Arbitration Regulations – Regulatory Review (Canada Agricultural Products Act)

This initiative is intended to enhance the current Canadian regulatory regime governing product grade and trading standards, dispute resolution, and deceptive practices.

Require dealers who market fresh fruits and vegetables interprovincially and internationally to have a Federal Produce Licence.

Reduce administrative costs for small businesses.

Improve service in the area of Destination Inspection Service.

Regulation not yet promulgated.

Aquatic Animal Health (Health of Animals Act)

Amendments to Health of Animals Regulations and Reportable Disease Regulations to implement controls to prevent the introduction into or spread within Canada and to provide the legislative base for Canada’s National Aquatic Animal Health Program (NAAHP).

Federal oversight is required to meet international trade standards.

The proposed amendments add aquatic animals and diseases of federal and international significance to the regulatory framework currently applied to terrestrial animals.

To meet the international standards for control of diseases of aquatic animals, and protect current markets vulnerable to market closure because Canada’s infrastructure currently lags behind international standards for aquatic animal health control.

The regulatory amendments will also reduce Canada’s current vulnerability to losses by a wide range of seafood sector users due to introduction or spread of diseases.

Maintenance of access to international markets.

Meeting audits by trading partners, provided those do not exceed international standards.

Reduction in the number of outbreaks of reportable and immediately notifiable diseases.

Regulation not yet promulgated.

Seed Streamlining and Variety Registration – Amendment (Seeds Regulations)

Under authority of the Seeds Act, a proposed regulatory amendment is designed to increase the ability of the variety registration system to respond to evolving agri-food sector needs. This initiative is also designed to strengthen the regulatory framework and facilitate the modernization of regulations, programs and associated consultative processes governing, in particular, the production, import, and sale of seed.

Regulatory burden on crop sectors will be reduced by establishing new registration options that remove the impediments to timely and cost-effective variety registration associated with pre-registration testing and merit assessment.

It is expected that reduced regulatory burden would lead to more timely availability of varieties on the marketplace and would foster innovation and investment in variety development.

Eventual increase in the number and diversity of registered varieties that would better address producers’ different agronomic needs and end users’ unique quality needs.

Regulation not yet promulgated.

Enhanced Regulation of Fertilizers and Supplements (Fertilizers Regulations)

The purpose of this regulatory initiative is to modernize the regulatory framework for fertilizer and supplement products in Canada.

This initiative will strengthen the CFIA’s ability to ensure that fertilizers and supplement products offered for sale in Canada are safe and efficacious and properly labelled while ensuring a timely product assessment and approval process.

Reduced administrative burden on industry.

Enhance regulatory efficiency for regulated parties, with no compromise of health and environmental safety, including a more predictable process for industry.

Increase program efficiency and enhance service delivery.

Timely access to innovative products.

Increased industry compliance and stakeholder satisfaction.

Regulation not yet promulgated.

Toxic Substances Regulations (Health of Animals Act)

The purpose of this initiative is to allow the CFIA to enhance its ability to take regulatory action in instances where animals are suspected of being, or are known to have been, contaminated by toxic substances, and where chemicals or toxins have the potential to affect animal health, and public health via the human food chain. In order to address this, the regulations would be amended to propose a list of toxic substances.

Control and eliminate contaminants in animals to protect animal health, consumer health, food safety, consumer confidence and trade.

Provide a faster means of responding to emergency situations when animals have been contaminated with a toxic substance.

Faster and more targeted approach to identifying, controlling and mitigating instances of contamination by toxic substances.

Regulation not yet promulgated.

Hog Identification (Health of Animals Act)

Because of greater risks in animal health and food safety issues due to increased human and animal movements worldwide, high dependency on exports, and increased expectations from consumers in industrialized countries, it is important to develop a national traceability program from the birth to the slaughter of pigs.

Minimize the impacts of a foreign animal disease outbreak or a food safety crisis by

  • Identifying correctly the source of the disease or contamination, and to establish correctly the control area;
  • Reducing the response time;
  • Helping to zone Canada in addressing the guidelines of the World Organisation for Animal Health, and meeting trading partners’ expectations; and
  • Ensuring that the national traceability system is compatible with systems developed by other Canadian livestock sectors and packers.

Reduce producer losses during a disease outbreak.

Maintenance of foreign markets.

Regulation not yet promulgated.

Plant Health Compensation Framework (Plant Protection Act)

The CFIA, in consultation with its partners, is exploring a common regulatory framework which could be used for all compensation matters in cases where plant quarantine actions are taken for a specified pest.

Reduce the wait time in providing compensation.

Improve the consistency in application.

Clarify the circumstances under which compensation is granted.

Encourage reporting and compliance.

Increased reporting of plant pests.

Development ongoing.

Dairy Products Regulations (DPR) (Canada Agricultural Products Act) and Food and Drug Regulations (FDR) (Food and Drug Act)

The Regulations eliminate inconsistencies between the FDR and the DPR with respect to cheese compositional standards.

These regulations clarify and provide consistency of the ingredients which may be used in the manufacture of cheese.

The DPR also requires the licensing of cheese importers to provide for a fair and effective regulator regime and to monitor the application of safe and acceptable food handling practices.

Clear standards for the production of cheese.

Equitable rules for both domestic processors and cheese importers.

Compliance will be assessed through the review and verification of documentation.

It is too early to assess the results since the amendments will not be in force until December 2008.



41 The “Planned Spending” column reflects the figures displayed in the 2007–2008 Report on Plans and Priorities for the Planned Spending year.

42 The “Total Authorities” column refers to total spending authorities received at the beginning of the fiscal year (i.e. through Main Estimates), as well as funding received throughout the fiscal year.

The variance of $126.9 million between the 2007–2008 Main Estimates ($587.4M) and the 2007–2008 Total Authorities ($714.3M) is due to:

  • 2006–2007 carry forward (Operating $45.4M and Capital $6.7M for total of $52.1M)
  • Statutory Compensation Payments (increase of $9.1M over $1.5M based).
  • Approved TB submissions and Adjustments (increase of $21.9M for the implementation of Enhanced Animal Feed Restrictions, $16.7M from Treasury Board’s Management Reserve to relieve pressures due to a one-time retroactive payment resulting from the reclassification of meat inspector positions, $13.2M for TB Vote 23 (Paylist Shortfalls), $7.5M for TB Vote 15 (Collective Agreements) and $3.1M for Advertising Initiatives).
  • Increase in Statutory Employee Benefits Plans ($3.0M).

43 All figures are net of Respendable Revenues for the respective fiscal years ($58.4M in 2005–2006; $56.0M in 2006–2007;$55.0M for Main Estimates and Planned Spending and $58.4M for Total Authorities and Total Actuals in 2007–2008)

44 The variance of $33.0M between Total Authorities ($714.3M) and Total Actuals ($681.3M) is mainly attributable to lapsing funds in:

  • Operating Expenditures and Contributions ($28.4M)
  • Capital Expenditures ($4.2M)

45 Cost of services received without charge include accommodations provided by PWGSC at border crossings, airports and at other government departments, the employer’s share of employees’ insurance premiums and expenditures paid by TBS (excluding revolving funds), Workers Compensation coverage provided by Social Development Canada, audit services provided by the Office of the Auditor General of Canada and legal services provided by the Department of Justice Canada.

46 R = Regulating, O = Other Products and Services.

47 The full cost of the user fees activities includes all direct and indirect expenditures plus an appropriate share of the Governance and Management Expenditures. Only those costs of sub activities generating user fee revenues are disclosed in this table.

48 These figures are derived from the Planned Spending levels reported in the Report on Plans and Priorities (RPP).