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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.
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. |
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Continue to expand the HACCP approach. |
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Continue to promote acceptance and implementation of good importing practices. |
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Focus on developing a strategy and implementation plan for the Import Retrieval System (IRS) data sent by the Canada Border Services Agency. |
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Develop an overall research strategy for the food sector and identify and prioritize food research needs for the CFIA. |
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Enhance capability to detect a broader range of chemical compounds and organisms in a wider range of food and ingredients. |
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Assess alternatives to culture-based methods for detecting pathogens in food. |
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Assess newer platform technology for applicability in regulatory compliance (biosensor-based technology for detecting veterinary drug residues in food). |
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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. |
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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. |
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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? |
Focus on improving food safety outreach activities including food recalls, allergy alerts, and health advisories. |
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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? |
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. |
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Contribute to the Avian and Pandemic Influenza Preparedness Strategy. |
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Enhance BSE programming. |
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Assess and further develop rapid detection technologies for testing animals for zoonotic diseases. |
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Develop a web-based reporting and communications network in collaboration with the Public Health Agency of Canada to support surveillance of zoonotic diseases. |
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Working with provincial and territorial partners and other federal departments on International Rabies Management Plan. |
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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). |
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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. |
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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. |
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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. |
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Build stakeholder support and implement a strategic action plan for the Fertilizer Program Modernization Initiative. |
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Develop a strengthened permanent consultative framework for the Seed Program Modernization Initiative (SPMI). |
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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. |
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DID YOU KNOW? 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. |
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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. |
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Expected Result: Other governments’ import requirements are met. | |
What was planned in the 2007–2008 RPP? | What was achieved? |
Develop and implement electronic export certificate systems to better meet the increasing export volume, security, and documentation demands. |
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Improve inspection guidelines for trade of wood products in relation to the development of standards for novel heat treatment kilns. |
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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? |
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. |
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Finalize standards for plant pest containment for the CFIA approval of medium- to high-risk containment facilities |
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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. |
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Research to develop new, faster, or improved methods for pest detection, to treat commodities that harbour pests, and to control the pests themselves. |
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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. |
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Review the Canadian Shellfish Sanitation Program (CSSP) for the safe harvesting and consumption of molluscan shellfish, to strengthen its delivery, governance, and policy framework. |
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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). |
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Lead the development of the Integrated National Animal Health Strategy (NAHS) and continue to develop the Animal Health Science Strategy. |
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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. |
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Contribute to the implementation of a National Wildlife Disease Strategy. |
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Conduct transmissible spongiform encephalopathies (TSE) research to achieve a better understanding of the mechanisms by which chronic wasting disease (CWD) causes disease in animals. |
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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.
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Conduct research on avian influenza and focus on understanding the ecology, pathogenicity, and transmission of viruses and developing rapid diagnostic tests, vaccines, and antivirals. |
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Conduct research to improve testing methods for high threat animal diseases such as foot-and-mouth disease and classical swine fever. |
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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). |
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Inform the public about the CFIA’s regulatory role in biotechnology. |
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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? |
Establish a Canadian Veterinary Reserve and begin orientation and training of the initial reservists. |
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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. |
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Provide new knowledge, technology, and capacity necessary for chemical, biological, radiological,-nuclear, and explosives (CBRNE) incident prevention, preparedness, and response. |
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Continue to co-chair the Biological cluster of federal laboratories with the Public Health Agency of Canada |
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Table 3–1: Comparison of Planned to Actual Spending (including FTEs) | ||||||
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($ 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 | |||||
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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 3–4A: User Fees Act | |||||||||
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A. User Fee | Fee Type46 | Fee- setting Auth- ority |
Date Last Modi-fied | 2007–2008 | Planning Years | ||||
Forecast Revenue ($000) |
Actual Revenue ($000) |
Full
Cost ($000)47 |
Fiscal Year | Forecast
Revenue ($000) |
Estimated
Full Cost ($000)48 |
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Managing food safety risks | R | CFIA Act | 1998 | 31,396 | 32,641 | 330,775 | 2008– 2009 |
31,396 | 305,766 |
2009– 2010 |
31,396 | 286,827 | |||||||
2010– 2011 |
31,396 | 280,807 | |||||||
Protecting consumers and the market-place from unfair practices | R | CFIA Act | 1998 | 3,741 | 3,761 | 24,956 | 2008– 2009 |
3,741 | 23,069 |
2009– 2010 |
3,741 | 21,640 | |||||||
2010– 2011 |
3,741 | 21,186 | |||||||
Certifying exports | R | CFIA Act | 1998 | 13,949 | 15,619 | 35,655 | 2008– 2009 |
13,949 | 32,959 |
2009– 2010 |
13,949 | 30,918 | |||||||
2010– 2011 |
13,949 | 30,269 | |||||||
Protecting Canada’s crops and forests | R | CFIA Act | 1998 | 3,476 | 3,760 | 89,687 | 2008– 2009 |
3,476 | 82,906 |
2009– 2010 |
3,476 | 77,771 | |||||||
2010– 2011 |
3,476 | 76,139 | |||||||
Protecting Canada’s livestock | R | CFIA Act | 1998 | 2,063 | 2,196 | 91,067 | 2008– 2009 |
2,063 | 84,182 |
2009– 2010 |
2,063 | 78,967 | |||||||
2010– 2011 |
2,063 | 77,310 | |||||||
Assessing agricultural products | R | CFIA Act | 1998 | 369 | 396 | 12,442 | 2008– 2009 |
369 | 11,501 |
2009– 2010 |
369 | 10,789 | |||||||
2010– 2011 |
369 | 10,562 | |||||||
Access to Infor-mation and Privacy (ATIP) | O | Access to Infor-mation Act | 1992 | 6 | 9 | 415 | 2008– 2009 |
6 | 384 |
2009– 2010 |
6 | 360 | |||||||
2010– 2011 |
6 | 353 | |||||||
Total | 55,000 | 58,382 | 586,095 | 2008– 2009 |
55,000 | 540,767 | |||
2009– 2010 |
55,000 | 507,272 | |||||||
2010– 2011 |
55,000 | 496,626 |
Table 3–4B: Policy on Service Standards for External Fees | |||
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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) http://www.inspection.gc.ca/ english/fssa/frefra/dis/dise.shtml |
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)
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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 |
Met | |
2. Review supplemental data and prepare response | 2) Response time 6 weeks maximum Average response time is 4 weeks |
Met | |
American Manufacturers | |||
3. Review initial submission and prepare response | 3) Response time 4 months maximum Average response time is 3 months |
Met | |
4. Review supplemental data and prepare response | 4) Response time 6 weeks maximum Average response time is 4 weeks |
Met | |
Manufacturers from other countries | |||
5. Review initial submission and prepare response | 5) Response time 6 months maximum Average response time is 4 months |
Met | |
6. Review supplemental data and prepare response | 6) Response time 6 weeks maximum Average response time is 4 weeks |
Met | |
Laboratory Testing | |||
7. Each master cell line | 7) Response time 4 months maximum Average response time is 3 months |
Met | |
8. Each master seed culture | 8) Response time 4 months maximum Average response time is 3 months |
Met | |
9. Each pre-licensing serial tested, to a maximum of three | 9) Response time is maximum 4 months Average response time is 3 months |
Met | |
Facility Inspections/Audits | |||
10. Canadian manufacturers | 10) Annual Average is annual. |
Met | |
11. Canadian importers | 11) Minimum every 3 years Average is every three years |
Met | |
12. American manufacturers | 12) Minimum every 3 years Average is every three years |
Met | |
13. Other non-Canadian manufacturers | 13) Minimum every 4 years Average is every four years |
Met | |
14. Issuance of Permits, Licenses and Export Certificates | 14) Response time maximum 2 weeks Average response time is 2 weeks. |
Met | |
Serial Release | |||
15. If not tested | 15) Response time maximum 5 days Average response time is 2–3 days. |
Met | |
16. If tested | 16) Response time maximum 35 days Average response time is 2 weeks. |
Met | |
17. Label Review and Approval | 17) Response time maximum 4 weeks Average response time is 2 weeks. |
Met | |
18. Advertising Review and Approval | 18) Response time maximum 4 weeks Average response time is 2 weeks. |
Met | |
19. Protocol Review for Efficacy/Safety Studies | 19) Response time maximum 45 days Average response time is 30 days. |
Met | |
20. Production Outline Revisions | 20) Response time maximum 4 weeks Average response time is 2 weeks. |
Met | |
21. Suspected Adverse Reactions | 21) Response time maximum 4 weeks Average response time is 2 weeks. |
Met | |
Application for Feed Registration and Ingredient Approval (i) Timeliness: For 90 percent or more of the applications received |
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(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 |
Travel Policies
The Canadian Food Inspection Agency follows and uses the Treasury Board Secretariat’s travel policy parameters.
AUDITOR’S REPORT
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
CANADIAN FOOD INSPECTION AGENCY
Year ended March 31, 2008
CANADIAN FOOD INSPECTION AGENCY
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 President |
Gordon R. White Vice-President, Finance, Administration and Information Technology |
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Ottawa, Canada August 15th, 2008 |
CANADIAN FOOD INSPECTION AGENCY |
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As at March 31 (In thousands of dollars) |
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2008 | 2007 | ||
Assets | |||
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 | ||
Liabilities | |||
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) The accompanying notes are an integral part of these financial statements.
Approved by: |
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Carole Swan |
Gordon R. White |
CANADIAN FOOD INSPECTION AGENCY |
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---|---|---|---|---|---|---|---|---|
Year ended March 31 |
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2008 | 2007 | |||||||
Food Safety and Public Health |
Science and Regulation |
Animal and
Plant Resource Protection |
Public Security |
Total | Total | |||
Revenues | ||||||||
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. |
CANADIAN FOOD INSPECTION AGENCY |
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Year ended March 31 |
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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. |
CANADIAN FOOD INSPECTION AGENCY |
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---|---|---|---|---|
Year ended March 31 |
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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. |
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:
(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 | ||
Less: | ||||
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 | |||
Less: | ||||
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 balance |
Acquisi-tions | Disposals and write-offs |
Closing balance |
Opening balance |
Amorti-zation | Disposals and write-offs |
Closing balance |
2008 Net book value |
2007 Net book value |
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 | 101,633
|
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.
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:
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)
|
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
More information on this initiative can be found in Section 2.4. |
Lead: Public Safety Canada
|
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
|
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:
|
Lead: Department of National Defence
|
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
|
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. |
|
More information on horizontal initiatives can be found at: http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp |
Table 3–7: Internal Audits and Evaluations | ||
---|---|---|
Subject of Audit/ Review/ Evaluation | Status as of March 31, 2008 | Electronic link |
Audits | ||
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. | http://www.inspection.gc.ca/english/agen/eval/hrmangene.shtml |
Physical Security | Complete – Approved August 2007. | http://www.inspection.gc.ca/english/agen/eval/physece.shtml |
Delegated Financial Authorities | Complete – Approved January 2008. | http://www.inspection.gc.ca/english/agen/eval/finance.shtml |
Review | ||
Food Emergency Response Review (Follow-Up) | Not completed. | N/A |
Evaluations | ||
Canadian Regulatory Strategy for Biotechnology (Inter-departmental – Summative) | Complete – Approved December 2006. | http://www.inspection.gc.ca/english/agen/eval/rege.shtml |
Feed Program (Formative) | Complete – Approved August 2007. | None. |
Shellfish Sanitation Program (Formative) | Complete – Approved July 2007. | http://www.inspection.gc.ca/english/agen/eval/cssppccsm/shemosse.shtml |
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: http://www.inspection.gc.ca/english/agen/eval/evale.shtml
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
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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:
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:
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).