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Departmental Link to Government of Canada Outcomes

Program Activity	Actual Spending 2007-2008	Alignment to Government of Canada Outcome Area
Strategic Outcome 1: Strengthened Knowledge Base to Address Health and Health Care Priorities
Health Policy, Planning and Information	1,357.2	Healthy Canadians
Strategic Outcome 2: Access to Safe and Effective Health Products and Food and Information for Healthy Choices
Health Products and Food	307.9	Healthy Canadians
Strategic Outcome 3: Reduced Health and Environmental Risks from Products and Substances, and Safer Living and Working Environments
Healthy Environments and Consumer Safety	334.4	Healthy Canadians
Pest Control Product Regulation	58.9	Healthy Canadians
Strategic Outcome 4: Better Health Outcomes and Reduction of Health Inequalities between First Nations and Inuit and Other Canadians
First Nations and Inuit Health Programming and Services	2,227.6	Healthy Canadians
Total	4,286.0

Table 1: Comparison of Planned to Actual Spending (incl. FTEs)

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

The $8.4 million increase from Main Estimates to Planned Spending was due to anticipated funding for Indian Residential Schools Resolution Health Support Program and implementation of the Internal Audit Policy.

The $1,364.2 million increase from Planned Spending to Total Authorities is due to new program initiatives and sustainability funding which was received through Supplementary Estimates, which included compensation for individuals infected with the Hepatitis C virus through the Canadian blood supply before 1986 and after 1990, as well as funding for Canada Health Infoway and the Canadian Institute for Health Information (CIHI).

The $114.9 million decrease between Total Authorities and Actual Spending was mainly the result of:

• lapse in the Health Council special purpose allotment;
• delays in Indian Residential Schools Program;
• lapse of frozen allotment which includes:
  • Implementation of the Clean Air Regulatory Agenda reprofile
  • Drug Strategy and Community Initiatives Fund reprofile
  • Canadian Strategy for Cancer Control (Part II) reprofile
  • Follow-up to the Special Meeting of First Ministers and Aboriginal Leaders reprofile
  • Access to Medicines Regime

Comparison of Planned to Actual Spending (incl. FTEs) - (Millions of Dollars)

Program Activities	2005-2006 Actual Spending	2006-2007 Actual Spending	2007 - 2008
			Main Estimates	Planned Spending (1)	Total Authorities (2)	Actual Spending (2)
Health Policy, Planning and Information	375.1	290.4	263.7	263.7	1,399.2	1,357.2
Health Products and Food	256.9	262.3	257.2	257.4	316.5	307.9
Healthy Environments and Consumer Safety	277.9	294.1	333.5	333.8	357.0	334.4
Pest Control Product Regulation	54.6	62.7	50.8	50.9	62.8	58.9
First Nations and Inuit Health	1,927.5	2,088.0	2,123.1	2,130.9	2,265.4	2,227.6
Total	2,892.0	2,997.5	3,028.3	3,067.7	4,400.9	4,286.0
Less: Non-respendable revenue	(19.8)	(51.8)	0.0	(8.9)	(8.9)	(48.5)
Plus: Cost of services received without charge*	85.6	91.9	0.0	81.6	81.6	80.3
Net cost of Department	2,957.8	3,037.6	3,028.3	3,109.4	4,473.6	4,317.8
Full-time Equivalents	8,544	8,686	8,825	8,825	9,178	8,899

1. from 2007-2008 Report on Plans and Priorities
2. from 2007-2008 Public Accounts

* Services received without charge include accommodation provided by PWGSC, the employer's share of employees' insurance premiums, Workers' Compensation coverage provided by Social Development Canada, and services received from the Department of Justice.

Table 2: Voted and Statutory Items - (Millions of Dollars)

VOTE	2007 - 2008
	Main Estimates	Planned Spending (1)	Total Authorities (2)	Actual Spending (2)
Health Canada
1 Operating expenditures	1,691.0	1,691.8	1,880.5	1,823.3
5 Grants and contributions	1,225.8	1,233.3	1,315.3	1,258.0
(S) Minister's car allowance and salary	0.1	0.1	0.1	0.1
(S) Payments for insured health services and extended health care services	-	-	0.0	0.0
(S Spending of proceeds from the disposal of surplus Crown assets	-	-	0.5	0.1
(S) Refunds from previous year's revenue	-	-	0.3	0.3
(S) Collection agency fees	-	-	0.0	0.0
(S) Court awards	-	-	0.0	0.0
(S)Hepatitis C virus through the Canadian blood supply before 1986 and after 1990	-	-	1,023.5	1,023.5
(S) Canada Health Infoway Inc.	-	-	38.7	38.7
(S) Implementation Act	-	-	30.0	30.0
(S) Contributions to employee benefit plans	111.4	111.5	112.0	112.0
Total Department	3,028.3	3,036.7	4,400.9	4,286.0

1) from 2007-2008 Report on Plans and Priorities
2) from 2007-2008 Public Accounts
S) indicates expenditures the Department is required to make that do not require an appropriation act.

Table 3: Sources of Respendable and Non-Respendable Revenue - (Millions of Dollars)

A variety of respendable revenues are collected which include Medical Devices, Radiation Dosimetry, Drug Submission Evaluation, Veterinary Drugs, Pest Management Regulation, Product Safety, hospital revenues resulting from payments for services provided to First Nations and Inuit Health hospitals, which are covered under provincial or territorial plans, and for the sale of drugs and health services for First Nations communities.

Respendable Revenues

	2005-2006	2006-2007	2007-2008
	Revenus réels	Actual Revenues	Main Estimates	Planned Revenues	Total Authorities	Actual Revenues
Program Activity / Branch
Health Products and Food
Health Products and Food Branch	37.7	40.7	41.2	41.2	41.2	40.7
Healthy Environments and Consumer Safety
Healthy Environments and Consumer Safety Branch	12.0	12.5	15.7	15.7	15.7	14.7
Pest Control Product Regulation
Pest Management Regulatory Agency	5.9	7.4	7.0	7.0	7.0	8.2
First Nations and Inuit Health
First Nations and Inuit Health Branch	3.4	3.2	5.4	5.4	5.4	4.1
Total Respendable Revenues	58.9	63.8	69.3	69.3	69.3	67.7

Non-Respendable Revenues

	2005-2006	2006-2007	2007-2008
	Revenus réels	Actual Revenues	Main Estimates	Planned Revenues	Total Authorities	Actual Revenues
Program Activity / Branch
Main Classification and Source
Non-tax revenues:
Refunds of expenditures	10.0	40.2				32.0
Sales of goods and services	2.6	3.5				5.8
Other fees and charges	7.0	7.9		8.9	8.9	10.4
Proceeds from the disposal of surplus Crown assets	0.2	0.2				0.3
Miscellaneous non-tax revenues	0.0	0.0
Total Non-Respendable Revenues	19.8	51.8	0.0	8.9	8.9	48.5
Total Revenues	78.7	115.6	69.3	78.2	78.2	116.2

This table excludes amounts related to the Public Health Agency of Canada (PHAC).

Table 4b: Policy on Service Standards for External Fees

1 - Healthy Environments and Consumer Safety Branch (HECS)

External Fee	Service Standard	Performance Result	Stakeholder Consultation
National Dosimetry Services Product, Services and Fee Structure (NDS P, S&F)	Provide timely, responsive and reliable customer services to 95,000 workers in 12,700 groups: i) Registration and inspections of incoming dosimeters within 48 hours ii) Exposures over regulatory limits reported within 24 hours iii) Dosimeters leave NDS premises 10-13 working days prior to exchange date iv) Message call backs (phone, e-mail) within 24 hours v) Updated account information within 48 hours vi) Additional request dosimeters shipped within 24 hours vii) Exposure Reports for regular service sent out within 10 days of dosimeter receipt	Provided timely, responsive and reliable customer services to 95,000 workers in 12,700 groups.  The standards were met as follows: i) > 99% Registration & inspection of incoming dosimeters within 48 hours ii) 100%Exposures over regulatory limits reported within 24 hours iii)   >  99% Dosimeters leave NDS premises 10-13 working days prior to exchange date iv) >  99% Message call backs done within 24 hours v)   > 99% Account information updated within 48 hours vi) >  99% Additional request dosimeters shipped within 24 hours vii) 65% Exposure Reports sent out within 10 days of dosimeter receipt	NDS staff engage clients on a daily basis through the Call Centre system using phone, e-mail and other communication tools. Nearly 51,000 interactions were completed for purposes of updating client requirements. These interactions allowed NDS to measure levels of service satisfaction as well as gain insight into new requirements for products and services. NDS staff document and assess customer feedback (compliments and criticism) using a centralized electronic database that is accessible by Customer Service staff. Additional information on service is obtained during regular contact sessions with the client and, as required, through exit questionnaires. This year, NDS will be engaging selected clients in a service specific questionnaire. On a basis of over 510,000 dosimeter readings annually, NDS satisfaction rate is more than 99.9%.
Ship Sanitation Certificate Services (Formerly known as Deratting Services)	Health Canada provides 7-day service in designated ports and all requests are responded to within 48 hours. See Note 1 below.	100% of requests received were responded to within 48 hours or less.	There were no changes to service standards. Health Canada has implemented a more comprehensive inspection service to comply with the revised International Health Regulations. The costing analysis was completed.
Cruise Ship Inspection Program	Periodic inspections done a minimum of once a sailing season on ships in Canadian waters. Final reports submitted within 10 working days. Re-inspection done on any ships with scores of less than 85%.	See Notes 2 and 3 below. 100%	There were no changes to service standards. Health Canada meets with stakeholders on an annual basis to review and discuss any proposed changes to service standards. The standards are consistent with the CDC/VSP (Vessel Sanitation Program) administrative guideline and criteria for inspections, and any changes would be synchronized to harmonize the process with the U.S.
Common Carrier Inspection (e.g. trains, ferries, airports/airlines, seaports)	See Note 3 below.	See Note 4 below.	Service standards are negotiated and included in MOUs/contracts; service standards/MOUs remained unchanged. Stakeholders were consulted at the annual HC-industry meeting.
Employee Assistance Services (EAS) (Fees are charged through contractual or formally-based agreements between HC and other departments, agencies and federally-regulated organizations.) Services provided for fees include: Employee Assistance Programs (EAP) Specialized Organizational Services (SOS)	As per formal agreement, varies depending on customer organization's requirements, needs and EAS capacity to meet service levels. Service Standards include: Less than 5% of incoming calls to the Crisis and Referral Centre go to voicemail; First contact between mental health professional and client is within 48 hours; First appointment is within 3 to 5 business days; Client receives follow-up from counsellor 2 to 3 weeks after the last session.	EAS is an accredited service (EASNA). Voluntary satisfaction surveys, customer surveys, telephone surveys and follow-ups with clients and customers are done on a regular basis. Results are shared at year-end with each customer (Annual Review and Program Plan), as per formal agreement. Other performance assessments are completed regularly (audits, capacity assessments, strategic review, etc.)	Customer survey and meeting with customer are conducted at least once a year. Formal agreement to renew contract (MOU, ILA, Service Agreement), is done annually (or every two to three years) for EAP and individually for SOS. Utilization data is provided every six months (minimum) to each customer.
Medical Marihuana Dried marihuana ($5.00 / gram) Cannabis seeds ($20.00 / packet of 30 seeds)	Dried marihuana Health Canada provides tested dried marihuana lots prior to distribution to authorized persons. Cannabis seeds Health Canada provides tested marihuana seed lots prior to distribution to authorized persons. Processing time Health Canada's processing time for orders is 14 working days (from the time the order is received to the delivery of the shipment to the recipient).	Dried marihuana Test result requirements were met for all 14 lots distributed. Quality control test results are posted on the Health Canada website. The number of pouches distributed is 8,672. The number of returned pouches is 263. Return rate due to product non-satisfaction is 0.78%. Cannabis seeds Test result requirements were met for the two lots distributed. The number of seed packets distributed is 400. The number of returned seed packets is 19. Return rate is 4.75%. (Note that the return rate for seeds may not necessarily be due to non-satisfaction.) Processing time Processing time was below the service standard of 14 working days for all shipment orders of dried marihuana (2,948 shipment orders) and Cannabis seeds (208 shipment orders).	1MMAD staff engage clients on a daily basis through the Call Centre system using phone, e-mail and other communication tools. Nearly 21,000 interactions were completed for purposes of responding to client requirements. These interactions allowed MMAD to assess the level of service and product satisfaction and gain insight into requests for new and/or different products. MMAD staff document and assess customer feedback (compliments and criticism) using a centralized electronic database. There were no changes to service standards. The Medical Marihuana Access Program surveyed qualitatively physicians supporting an application to access marihuana for medical purposes. The results of the survey indicate that participating physicians support the use of marihuana as a compassionate use medication. Many physicians mentioned that they lack knowledge about marihuana. In 2008-2009, Health Canada will consult physicians on the findings of this report and other aspects of the program.

Note 1: Derat certificates were replaced by Ship Sanitation Certificates in June 2007. Total: 136 Derat certificates and 556 Ship Sanitation Certificates.

See table below for details on service standards.

Service standards

Day of the Week	Prior Notification Required
Weekday Service - Designated Ports	24 hours
Weekend Service - Designated Ports	48 hours
Regular Weekend Service - Designated Ports	For service on Saturday, notice must be received Thursday by 1300 hours local time. For service on Sunday, notice must be received Friday by 1300 hours local time.
Holiday Weekend Service - Designated Ports	When Friday is the statutory holiday for service on Friday, notice must be received Wednesday by 1300 hours local time; for service on Saturday or Sunday, notice must be received Thursday by 1300 hours local time. When Monday is the statutory holiday for service on Saturday, notice must be received Thursday by 1300 hours local time; for service on Sunday or Monday, notice must be received Friday by 1300 hours local time.
Prior Notice for Service - Non-designated Ports	72 hours prior notice is requested for service at non-designated ports.

NOTE: The fee for short notice service i.e. less than 24 hours for weekdays, less than 48 hours for weekends, at both designated and non-designated ports, will be the normal fee plus a 25% surcharge.

Note 2: Health Canada publishes scores obtained from the Cruise Ship Inspection Program

Note 3: In regards to service standards, Cruise Ship and Common Carrier Inspections are performed following procedures and protocols that have been published and distributed to clients. Health Canada's protocols are consistent with programs in other countries. Copies of the inspection protocols for these programs may be requested by e-mail from: phb_bsp@hc-sc.gc.ca.

Note 4: Service Standards for Conveyance Inspection Program

Service Standards for Conveyance Inspection Program

Conveyance Inspection Program	Service Standard	Performance Result
Passenger Train - On Board	Periodic inspection is done on each passenger train line as determined by MOU between Health Canada and passenger train industry. Final inspection report is provided to industry within 10 working days.	100% of reports are provided within 10 working days.
Passenger Train - Off Board	Sanitation inspection is done twice a year. Final report is provided to industry within 10 working days	100% of reports are provided within 10 working days.
Flight Kitchen	Scheduled number of announced audits per year is based on the number of meals prepared by the kitchen. Final audit inspection report is provided within 10 working days of inspection.	100% of reports are provided within 10 working days.
Ferry - On Board Food	Unannounced inspections are made as per predetermined contractual obligations. Final inspection report is provided within 10 working days of inspection.	100% of reports are provided within 10 working days.
Ferry - Potable Water	Unannounced inspections are made as per predetermined contractual obligations. 100% of reports are provided within 10 working days.	100% of reports are provided within 10 working days.

B. Other Information

National Dosimetry Services (NDS)
NDS plans to update their products, services and fee schedule in 2008-2009 to address introduction of new dosimeter products, as well as impacts from financial performance (i.e. cost of living), business capacity (i.e. competition), and client demands/expectations for enhanced levels of other products and services.
Medical Marihuana Program

The Medical Marihuana Program was included in the Auditor General of Canada's audit in 2007-2008 for the Management of Fees in Selected Departments and Agencies. In response to the audit findings, Health Canada has committed to:

• Apply the Corporate Cost Allocation Model to determine the full cost of the Medical Marihuana Program and to establish a schedule on which the full cost of the program will be recalculated; 
• Review the medical marihuana fee including consideration of changing program costs and the portion of the fee that should accrue to fee payers and taxpayers respectively; and 
• Consider developing a longer term approach to the fee structure; review the performance information available for the Medical Marihuana Program - what is relevant and how it should be reported. 

As established pursuant to the Policy on Service Standards for External Fees:

• Service standards may not have received Parliamentary review; and 
• Service standards may not respect all performance standard establishment requirements under the User Fees Act  (UFA) (e.g. international comparison; independent complaint address) 
• Performance results are not legally bound to section 5.1 of the UFA regarding fee reductions for underachieved performance. 

2 - Health Products and Food Branch

A. External Fee	Service Standard	Performance Result	Stakeholder Consultation
Authority to Sell Drugs Fees	120 calendar days to update the Drug Product Database following notification	100% within 120 calendar days	The Health Products and Foods Branch (HPFB) is actively engaging stakeholders in the development of a cost recovery framework, including relevant service standards. An initial framework of cost recovery fees and service standards was developed in 2006-2007 and presented for consultation in April 2007. Consultations continued in 2007-2008 including the Cost Recovery Framework: Official Notice of Fee Proposal for Human Drugs and Medical Devices followed by a complaints process and the establishment of two Independent Advisory Panels. The proposed fees and service standards are targeted to be tabled in Parliament in the fall of 2008 with implementation in the 2009-2010 fiscal year.
Certificates of Pharmaceutical Product (Drug Export) Fees	5 working days to issue certificate	95% certificates issued within 5 working days
Drug Establishment Licensing Fees	250 calendar days to issue / renew licence	90% licenses issued/renewed within 250 calendar days
Drug Master File Fees	30 calendar days	100% within 30 calendar days
Drug Submission Evaluation Fees (Pharmaceuticals & Biologic Products)	Review 1 (average time in calendar days) NDS: Priority NAS = 180 NDS: NOC-C NAS = 200 NDS: NAS = 300 NDS: Clin/C&M=300 NDS: Comp / C&M = 180 NDS: Labelling only = 60 ANDS: C&M/Labelling = 180 ANDS: Comp/C&M = 180 SNDS: Priority Clin Only = 180 SNDS: NOC-c Clin/ C&M = 300 SNDS: NOC-c Clin Only = 200 SNDS: Clin/C&M = 300 SNDS: Clin only = 300 SNDS: Comp/C&M = 180 SNDS: C&M/ Labelling = 180 SNDS: Rx to OTC New INDIC = 300 SNDS: Labelling only = 60 SNDS-C: Clin only =300 SANDS: Comp / C&M = 180 SANDS: C&M / Labelling = 180 SANDS: Labelling only = 60 DINA with data = 210 DINA form only = 180 DIND with data = 210 DIND form only = 180 NDS: Priority NAS = 180 NDS: Priority Clin/C&M = 180 NDS: NOC-C NAS = 200 NDS: NAS = 300 NDS: Clin/C&M=300 SNDS: Clin/C&M = 300 SNDS: Clin only = 300 SNDS: C&M/ Labelling = 180 DINB with data = 210 DINB form only = 180	Review 1 (average time in calendar days) Pharmaceutical Products NDS: Priority NAS = 178 NDS: NOC-C NAS = 199 NDS: NAS = 279 NDS: Clin/C&M = 259 NDS: Comp / C&M = 180 NDS: Labelling only = 34 ANDS: C&M/Labelling = 170 ANDS: Comp/C&M = 174 SNDS: Priority Clin Only = 180 SNDS: NOC-c Clin/ C&M = 295 SNDS: NOC-c Clin Only = 197 SNDS: Clin/C&M = 281 SNDS: Clin only = 257 SNDS: Comp/C&M = 169 SNDS: C&M/ Labelling = 151 SNDS: Rx to OTC New INDIC = 299 SNDS: Labelling only = 54 SNDS-C: Clin only = 268 SANDS: Comp / C&M = 176 SANDS: C&M / Labelling = 176 SANDS: Labelling only = 84 DINA with data = 356 DINA form only = 197 DIND with data = 204 DIND form only = 153 Biologic Products NDS: Priority NAS = 180 NDS: Priority Clin/C&M = 180 NDS: NOC-C NAS = 200 NDS: NAS = 292 NDS: Clin/C&M = 275 SNDS: Clin/C&M = 265 SNDS: Clin only = 263 SNDS: C&M/ Labelling = 157 DINB with data = 87 DINB form only = 185
Medical Device Licence Application Fees	Review 1 (average time in calendar days) Class II = 15 Class II amendment = 15 Class II Private Label = 15 Class II Private Label amendment = 15 Class III = 60 Class III amendment = 60 Class IV = 75 Class IV amendment = 75	Review 1 (average time in calendar days) Class II = 11 Class II amendment = 9 Class II Private Label = 12 Class II Private Label amendment = 8 Class III = 49 Class III amendment = 48 Class IV = 74 Class IV amendment = 66
Fees for Right to Sell a Licensed Medical Device	20 calendar days from deadline for receipt of annual notification to update the Medical Devices Active License Listing (MDALL) database	100% within 20 calendar days
Medical Device Establishment Licensing Fees	120 calendar days to issue / renew licence	98% licenses issued/renewed within 120 calendar days
Veterinary Drug Evaluation Fees	Review time to first decision (calendar days) NDS 300 ABNDS = 300 SNDS = 240 SABNDS = 240 Admin = 90 DIN = 120 NC = 90 IND/ESC = 60 Labels = 45 Emergency Drug Release = 2	Average review time to first decision (calendar days) NDS = 562 ABNDS = 474 SNDS = 334 SABNDS = 439 Admin = 43 DIN = 132 NC = 140 IND/ESC = 48 Labels = 47 100+% within 2 days	Revised fees and service standards related to veterinary drug product activities are under development, but no specific proposals have been presented to stakeholders.
B. Other Information:

3 - Pest Management Regulatory Agency (PMRA)

A. External Fee	Service Standard	Performance Result	Stakeholder Consultation
Fees to be paid for Pest Control Product Application Examination Service	Target is 90% of submissions in all categories to be processed within time shown. Category A Standard - 550 days User Request Minor Use Registration (URMUR) - 365 days Category B Standard/priority - 365 days Category C Standard - 180 or 225 days Category D IMEP - 32 days OUI - 56 days URMULE - 60 days Master Copy -; 21 days Category E New Active - Food - 365 days New Active - Non-food - 165 days	Category A = 48% Category B = 72% Category C = 88% Category D (Minor Use only) = 93% Category E = 43% In the first half of 2007-2008, PMRA registered more new active ingredients (Category A) than in all of 2006-2007. There was also a 40% increase in the number of Category A submissions received. The size and complexity of submissions have increased due to the number of minor uses added to a new active ingredient, as well as the evolving science.	Stakeholder consultation conducted annually when required.
Fees to be paid for the right or privilege to manufacture or sell a pest control product in Canada and for establishing a Maximum Residue Limit (MRL) in relation to a pest control product.	Target is 100% of fees for the right or privilege to manufacture or sell a pest control product in Canada to be invoiced by April 30 of each fiscal year.	100% of fees were invoiced by April 30.	All stakeholders have been consulted on the proposed service standard for invoicing clients.
B. Other Information: N/A

4- Corporate Services Branch (CSB)

A. External Fee	Service Standard	Performance Result	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. ATIA	The Department responded within 30 days or less in 626 (38.1%) of completed cases. Response times for the remaining cases were 280 (17.0%) within 31 to 60 days, 400 (24.3%) within 61 to 120 days, and 337 (20.5%) in 121 or more days.	Service standards are prescribed by law in the Access to Information Act and the Privacy Act, compliance with which is overseen by the Office of the Information Commissioner. The Treasury Board is also a stakeholder as it is the guardian of the policy and directives around Access to Information and Privacy. The legislation requires the Department to report to Parliament annually.

Table 5: Status Report on Major Crown Projects

1. Description

Health Information and Claims Processing Services (HICPS) Major Crown Project (MCP).

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program. It supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients.

The HICPS MCP was established to conduct a competitive procurement to replace the existing HICPS contract, to manage the implementation of the new service contract and to ensure a smooth transition from the current incumbent to the new contractor. The HICPS contract was awarded on December 4, 2007 to ESI Canada. The new HICPS System will be put into production on December 1, 2009.

2. Project Phase

The HICPS MCP is now in the project's Pre-Implementation Phase, which started upon contract award to ESI Canada on December 4, 2007. In accordance with Treasury Board (TB) policy on the Management of Major Crown Projects, this phase will end on November 30, 2010, after one full year of normal contract operations under the new HICPS Contract.

3. Leading and Participating Departments and Agencies

This subsection lists the participants (departments) associated with the HICPS MCP.

Lead Department or Agency: Health Canada
Contracting Authority: Public Works and Government Services Canada
Participating Departments and Agencies: Indian and Northern Affairs Canada

4. Prime and Major Subcontractor

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada
Major Subcontractors: Resolve Corporation, Toronto, Ontario, Canada

5. Major Milestones

Major Milestones

Major Milestones	Date
Initial meetings with Contractor, coordination of the pre-implementation phase project plan	From Contract Award (December 4, 2007) until January 2008
Business Requirements Gathering and System Design	February 2008 to August 2008
HICPS System Development	September 2008 to April 2009
HICPS Testing and Acceptance	May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training	September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision)	December 1, 2009
Project Close-Out Phase: Evaluation of the HICPS Project and lessons learned.	December 2010 to March 2011

6. Progress Report and Explanations of Variances

The definition phase of the HICPS MCP (including the Request For Proposal (RFP) process through bid evaluation and ultimately contract award on December 4, 2007) was concluded on budget, and the project pre-implementation phase is now underway.

A detailed Pre-Implementation Plan has been approved, and the Project's governance committees have been established. As of March 31, 2008 the Project is in the midst of the process to gather and define the business requirements for the new HICPS system, and work is proceeding such that the first milestone will be achieved on-time and on budget.

The Project's schedule and budget are consistent with the project authorities granted.

7. Industrial Benefits

HICPS supports the delivery of much-needed health benefits for over 800,000 eligible First Nations and Inuit clients. As such, the Industrial Regional Benefits model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal Benefit Requirement (ABR) which is unique to the HICPS MCP.

The development of the ABR approach for the HICPS MCP was informed by industry feedback through two Request for Information consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required to ensure a mandatory and substantial Aboriginal benefits requirement representing direct or indirect benefits to Aboriginal businesses or individuals.

Table 6: Details on Transfer Payment Programs (TPPs)

Health Policy, Planning and Information
Health Care Strategies and Policy Contribution Program
Contribution Program to Improve Access to Health Services for Official Language Minority Communities
Grant to Health Council of Canada
Named Grant to Canadian Agency for Drugs and Technologies in Health
Grant to Canadian Patient Safety Institute
Grant to Canadian Partnership Against Cancer
Health Products and Food
Grant to Canadian Blood Services: Blood Safety and Effectiveness and Research and Development
Healthy Environments and Consumer Safety
Payments to provinces and territories to assist in ensuring access for Canadians to effective alcohol and drug treatment and rehabilitation programs and services
Drug Strategy Community Initiatives Fund
Grant to the Canadian Centre on Substance Abuse
First Nations and Inuit Health
Nunavut Medical Travel Fund
Grant for Territorial Health Access Fund and Operational Secretariat
Payments to Indian bands, associations or groups for control and provision of health services
Contributions for First Nations and Inuit Health Governance and Infrastructure Support
Contributions for First Nations and Inuit Community Programs
Contributions for First Nations and Inuit Health Facilities and Capital Program
Contributions for First Nations and Inuit Health Benefits
Contributions for First Nations and Inuit Health Protection
Contributions for First Nations and Inuit Primary Health Care
Contributions for Bigstone Non-Insured Health Benefits Pilot Project
Contributions to the Organization for the Advancement of Aboriginal Peoples' Health
Contribution for the Indian Residential Schools Resolution Health Support Program

Table 7: Conditional Grants (Foundations)

1) Name of Foundation: Canada Health Infoway Inc. (Infoway)

2) Start Date: March 9, 2001

3) End Date: N/A

4) Total Funding: $1.6 B*

*Infoway received $1.2 B as lump-sum grants between 2001 and 2004. The $400 M allocated in 2007 was subject to new conditions - these funds flow to Infoway on an as-needed basis.

5) Description

Canada Health Infoway Inc. (Infoway) is a federally funded, independent, not-for-profit corporation with a mandate to foster and accelerate development and adoption of electronic health information communication technologies with compatible standards on a pan-Canadian basis.

Funding has been allocated to Infoway on four occasions: $500 million in 2001 in support of the September 2000 First Ministers' Action Plan for Health System Renewal to strengthen a Canada-wide health infostructure (with the electronic health record - EHR - as a priority); $600 million in the First Ministers' Health Accord of February 2003, to accelerate implementation of the EHR and Telehealth; $100 million as part of Budget 2004 to support development of a pan-Canadian health surveillance system; and $400 million as part of Budget 2007 to support continued work on EHRs and wait times reductions.

It is anticipated that Infoway's approach, where federal, provincial and territorial (F/P/T) governments participate as equals, toward a goal of modernizing the health information system, will reduce costs through coordination of effort and avoidance of duplication. Infoway estimates that preferred pricing agreements and other procurement efforts have helped save between $135 and $165 million to date.

6) Strategic Outcome:

Strengthened knowledge base to address health and health care priorities

7) Summary of Results Achieved:

Investment Strategy - Infoway is a strategic investor, with a funding formula covering up to 100% of territorial and 75% of provincial project development and implementation costs. Infoway provides a portion of system development costs and supports project oversight while P/T partners are responsible for actual system development, implementation and overall funding, including ongoing operational costs. Infoway approved $311.5 million in new projects, bringing its cumulative value of investments to $1.457 billion. By the end of the year, 99 projects had been completed and 155 were under way, for a total of 254 projects since Infoway's inception.

Electronic Health Records - Infoway's goal for EHRs, endorsed by all jurisdictions, was expanded to include mention of health information systems, and to specify a year for 100% population coverage: "By 2010 every province and territory and the populations they serve will benefit from new health information systems that will help transform their health care systems. Further that by 2010, 50% of Canadians and by 2016, 100% of Canadians will have their electronic health record available to their authorized health professionals."

Key components of an EHR include: Diagnostic Imaging, Drug Information and Laboratory Information Systems, as well as Client and Provider Registries, all of which will ultimately be connected by Interoperable EHR systems. These component systems are being rolled out by P/Ts. Infoway reported the following rates of population coverage for EHR components: 71% for Client Registries, 29% for Provider Registries, 64% for Diagnostic Imaging Systems, 24% for Drug Information Systems, and 30% for Laboratory Information Systems. An estimated 7% of the population was covered by an EHR.

Telehealth - Infoway's goal is that by 2010, Canadians residing in northern, rural, remote and official language communities, in all jurisdictions, will benefit from telehealth solutions. There has been acceleration on telehealth by P/Ts working with Infoway to improve access for citizens living in remote and rural communities. Telehealth strategic plans are in place in most jurisdictions, with the goal of implementation by all jurisdictions by December 31, 2009. Infoway continued to invest in telehealth initiatives, with a focus on Aboriginal, official language minority, and northern and remote communities. Infoway had over 40 telehealth projects under way, representing a cumulative investment of $78.2 million.

Public Health Surveillance - Infoway continues to support development and implementation of a pan-Canadian Public Health Surveillance System (Panorama). Panorama will facilitate identification, management and control of infectious diseases that pose a threat to the public's health, by providing public health professionals with software tools to manage cases, outbreaks, immunization, materials/vaccine inventories, notifications and workload. The goal is that by 2010, Canadians in every jurisdiction will benefit from public health surveillance solutions. Progress was made on Panorama development, public health surveillance standards and jurisdictional implementation planning. Infoway approved a cumulative total of $122.7 million for surveillance projects.

Patient Access to Quality Care - As a result of the 2007 budget, Infoway created a new, $50 million investment program. Patient Access to Quality Care is intended to support management of wait times, primarily through funding demonstration projects featuring information management systems. Projects are expected to begin in 2008-2009.

	8) Actual Spending 2005-06*	9) Actual Spending 2006-07*	10) Planned Spending 2007-08	11) Total Authorities 2007-08	12) Actual Spending 2007-08*	13) Variance between 10) and 12)
14) Program Activity	0	0	$38.7 M	$38.7 M	$38.7 M	0

15) Comment(s) on Total Authority and Variance:

The federal government has invested $1.6 billion in Infoway to date, $1.2 billion of which was provided as lump-sum grants between 2001 and 2004. As part of Budget 2007, $400 million was earmarked in the fiscal framework for 2006-2007. These funds were payable on passage of the Budget Implementation Act 2007 and Royal Assent, authorizing the Minister of Health to make a statutory payment directly from the Consolidated Revenue Fund. Payment is made on an as-needed basis, on receipt of Infoway's annual Cash Flow Statement. In 2007-2008, one payment was made for $38.7 million out of the $400 million.

* The pace at which funding is expended is at the discretion of Infoway and is largely driven by the rate of progress of its P/T partners. Annual spending is as follows:

• $117.8 M in 2005-2006
• $174.6 M in 2006-2007
• $271.7 M in 2007-2008

16) Significant Audit and Evaluation Findings and URL to Last Audit and/or Evaluation:

Financial and compliance audits were completed by independent third parties. Financial auditor Ernst and Young stated that the financial statements fairly represented Infoway's financial position, and the results of its operations and cash flows. The annual compliance report was carried out by Mallette and the auditor stated that Infoway complied with the main terms and conditions of funding agreements. As well, Health Canada's Audit and Accountability Bureau began an internal audit and results will be finalized in 2008-2009.

17) URL to Foundation:

http://www.infoway-inforoute.ca/en/Home/home.aspx

18) URL to Foundation's Annual Report:

http://www.infoway-inforoute.ca/Admin/Upload/Dev/Document/Infoway_Annual_Report_2007-2008_Eng.pdf?ireff=13

1) Name of Foundation: Canadian Health Services Research Foundation (CHSRF)

2) Start Date: 1996-1997

3) End Date: N/A

4) Total Funding: $151.5 M

5) Description:

Total federal funding for the CHSRF is as follows (CHSRF's programs also receive funding from other sources):

• 1996-2001 - $66.5 M endowment (received over five years) to establish the Foundation;
• 1999 - $25 M for a 10-year program to develop capacity for research on nursing recruitment, retention, management, leadership and issues emerging from health system restructuring: Nursing Research Fund (NRF); and $35 M to support the Foundation's participation in the Canadian Institutes of Health Research (CIHR);
• 2003 - $25 M grant to enhance the skills of health system managers in using research to increase evidence-based decision-making: Executive Training for Research Application (EXTRA) over a 13-year period.

CHSRF's mission is to support evidence-informed decision-making in the organization, management and delivery of health services through funding research, building capacity and transferring knowledge.

Strategic objectives:

• create high-quality new research that is useful for health service managers and policy makers (especially in the Foundation's priority theme areas: managing for quality and safety; management of the health care workplace; primary health care; nursing leadership, organization and policy; and managing and adapting to change);
• increase the number and nature of applied health services and nursing researchers;
• get needed research into the hands of health-system managers and policy makers in the right format, at the right time, through the right channels; and
• help health-system managers, policy makers and their organizations to routinely acquire, appraise, adapt and apply relevant research in their work.

6) Strategic Outcome:

CHRSF's work contributes to Health Canada's objective of strengthening the knowledge base to address health and health care priorities.

7) Summary of Results Achieved:

Research granting and commissioned research

In 2007, the CHSRF held two successful research competitions: the 2007 Research, Exchange and Impact for System Support (REISS) program grants and the 2007 Postdoctoral Awards. The CHSRF also completed six commissioned research projects (e.g. primary health care, knowledge transfer training needs, work-life environments and public reporting of health care quality). Three commissioned research projects were initiated on: a competency framework for health leaders, deliberative processes; and governance for quality and safety. One synthesis project was completed in 2007 on managing continuity, and another synthesis project was initiated on interprofessional teams and primary health care.

The third Listening for Direction consultations were undertaken in spring 2007, resulting in identification of 11priority health services research themes. There were eight national funding partners in this round (two more than for LfD II in 2004). In addition to the five regional and one national consultation workshops, Health Canada provided funding to conduct workshops in the territories for the first time - in Whitehorse, Iqaluit and Yellowknife. Key findings were incorporated into the national report; a separate report on the northern dialogues was prepared. The two reports will be published in 2008.

In 2007, the CHSRF identified four of the LfD priority themes to guide its research and knowledge exchange programming over the next three to five years: change management; values-based decision-making; quality and safety; and health care work force and work environment.

With respect to the NRF, in 2007, the Fund contributed:

• $300,000 to one program of research funded under the Foundation's "nursing leadership, organization, and policy" priority theme as part of the 2007 REISS competition;
• $195,000 in matching funds for two successful projects in the 2007 Partnerships for Health System Improvement (PHSI) competition administered by CIHR; and
• $535,000 to the Nursing Care Partnership Fund for research on nursing care, administered by the Canadian Nurses Foundation. The Nursing Care Partnership also continued to leverage existing funding by creating new partnerships that support research on nursing care issues. Each Nursing Care Partnership dollar spent leveraged $1.85 in partnership funding.

Building research capacity

The NRF sponsored two nursing-related postdoctoral students, continued to support five nursing-specific CHSRF/CIHR chairs and two nursing-related chairs (10-year awards), and two CHSRF/CIHR Regional Training Centres (10-year awards).

The CHSRF/CIHR Regional Training Centres collaborated on a special issue of the Healthcare Policy Journal on the training centres (released in spring 2008). The CHSRF/CIHR Chairs launched a major book project in 2007 that will be completed in 2008-2009. The aim is to collectively document the experience, contributions and impact of the Chairs' training programs and various approaches to capacity development in applied health services and policy research.

The CHSRF signed the Healthy Healthcare Leadership Charter from the Quality Worklife-Quality Healthcare Collaborative in December 2007, and provided leadership and guidance to the Knowledge Exchange Working Group.

Decision maker capacity building, knowledge exchange and transfer

In 2007, the EXTRA Program saw a noticeable increase in requests for applications (96 in 2007, up from 61 in 2006). CHSRF enrolls 24 senior fellows annually in the two-year EXTRA training program. In 2007, a decision was made to admit up to four fellows from policy environments, on a marginal cost-recovery basis. The Merit Review Panel selected the first organizational application (three "linked" fellows) - a program stream incorporated into the 2007 call. The CHSRF also formalized a Community of Practice for the post-program fellows. In addition, in 2007, the EXTRA Program was formally accredited by the Université de Montréal and Royal Roads University. Accreditation discussions are under way with the University of Toronto and a curriculum module of the EXTRA program was developed by the National Institute of Public Health in Mexico.

In 2007, the CHSRF produced and released four Mythbusters publications and published these in the Journal of Health Services Research and Policy . As well, the CHSRF developed the Mythbusters Teaching Resource for university academics interested in using Mythbuster s to teach graduate-level students in health service administration and nursing how to deliver plain-language research summaries that increase the uptake of evidence. The CHSRF also produced and released four Evidence Boost summaries under the new Evidence Boost for Quality sub-series, focusing on patient decision aids for "grey zone" decision-making (e.g. self-management education for the chronically ill; lay health workers; and visiting-specialist services for isolated populations). CHSRF launched a new series, Insight and Action , which attempts to link people undertaking knowledge exchange with evidence-informed resources. Tools to Help Organizations Create, Share and Use Knowledge was launched with 47 resources and another 70 new resources are under review. In addition, the Promising Practices in Research Use inventory has grown to include 16 stories about organizational innovation in this area. Five of the articles showcased intervention projects by fellows in the EXTRA program. Other targeted dissemination activities included production of four columns in Healthcare Quarterly , three special journal issues featuring a 28 articles on EXTRA intervention projects, and the launch of two Electronic Video Documentaries (EVD).

In the area of knowledge exchange, the NRF funded development of Stories for Safety: Sharing the evidence about nursing and patient safety electronic video documentary (EVD) on nurse staffing and patient safety, a Nurse Staffing and Patient Safety Knowledge Exchange in Charlottetown, and participation in various conferences.

In 2007, the CHSRF continued to provide opportunities for researchers and decision makers to dialogue on health systems issues, including funding five exchanges bringing together researchers and decision makers around issues such as knowledge transfer, new practices in nursing, translating information into action and healthy workplaces; launching "Researcher on Call," a one-hour series that links participants by teleconference with researchers and decision makers who are making progress in improving health care; and hosted Research Use Week (Northeastern Ontario) in Sudbury, Ontario. Eight organizations partnered with CHSRF to co-sponsor the event, providing $32,000 in sponsorship support.

Leveraging of federal investments

The total amount of CHSRF funds spent on partnership-eligible programming in 2007 was $4.9 million. This includes payments towards ongoing multi-year activities as well as new activities for which 2007 payments were made. The total amount of partnership contributions on these same activities was $9.16 million. In other words, for every $1 of Foundation funding, $1.87 was contributed by partners. Considering that total CHSRF program spending was $23.7 million, and partner contributions were $9.2 million, the CHSRF's net draw on the endowment of $9.5 million yielded a leveraged ratio of 1:2.49; that is, $2.36 was spent on the Foundation's objectives for every $1 spent from the Foundation's capital in its endowment.

In 2007, the CHSRF partnered with 50 direct partners and entered into 42 new partnership agreements, with an additional nine under negotiation at the end of the year.

For the second year in a row, the CHSRF was named by Canadian Business magazine as one of the "Best Workplaces in Canada," recognizing the organization's commitment to a healthy work-life balance and family-friendly policies that promote a work environment that focuses on quality of work done, positive performance management, and a culture of respect.

	8) Actual Spending 2005-2006	9) Actual Spending 2006-2007	10) Planned Spending 2007-2008	11) Total Authorities 2007-2008	12) Actual Spending 2007-2008	13) Variance(s) between 10) and 12)
14) Program Activity:	0	0	0	0	0	0

15) Comments on Variance(s) :

The conditional grant was paid to CHSRF in instalments prior to the 2005-2006 reporting period.

16) Significant Evaluation Findings and URL(s) to Last Evaluation(s)/Future Plans:

The second five-year international review of the CHSRF was completed in 2007

[ http://www.chsrf.ca/about/ga_accountability_impact_ol_e.php ] and findings were discussed by the Board of Trustees. Actions to respond to the findings will be undertaken in consultation with the research and decision maker communities, and under the leadership of the incoming President and Chief Executive Officer, in 2008.

An overall evaluation of the components of the Capacity for Applied and Developmental Research and Evaluation (CADRE) in Health Services and Nursing Program was undertaken and the final report was completed in 2007. Recommendations were addressed by CADRE awardees and by CHSRF staff.

A team has been commissioned to conduct an evaluation of the NRF to determine the lessons and consequences of investments made through the NRF since its inception in 1999 to the end of 2007. The evaluation was commenced in 2007 and will be completed in 2008.

The evaluation report on the second EXTRA cohort revealed a continued high level of satisfaction from fellows, and confirmed that the program is highly valued by the fellows and their organizations.

Copies of these reports are available upon request.

17) Significant Audit Findings and URL(s) to Last Audit(s)/Future Plans:

The second compliance audit report of funded programs and projects, completed in March 2007, revealed that all files selected were in compliance with grants, awards, partnership, and finance policies and procedures, and that the recommendations from the first compliance audit had been implemented. Additional recommendations from the second compliance audit are to be implemented in 2008.

A three-month and a six-month evaluation of the managed payroll system were conducted in 2007 to ensure that the system addressed segregation of duties and other related objectives.

A preliminary 2007 external financial audit was completed in October 2007 and showed no major concerns. The full external financial audit was conducted in February/March 2008.

The Foundation's pension plan was audited in February 2007 and showed no major concerns. The going concern liability in the January 2006 valuation report was funded by the CHSRF to ensure the pension plan can meet its forward commitments.

Copies of these reports are available upon request.

In late 2007, CHSRF participated in a Health Canada compliance audit. This audit was part of Health Canada's Multi-Year Risk-Based Audit Plan. The audit report will be shared with CHSRF in 2008.

2007 Audited Financial Statements:
http://www.chsrf.ca/about/documents/CanadianHealthServicesResearchFoundation-english-fs07.pdf
http://www.chsrf.ca/about/documents/CanadianHealthServicesResearchFoundation-french-fs07.pdf

18) URL to the Foundation site:

www.chsrf.ca

19) URL to the Foundation's Annual Report:

http://www.chsrf.ca/other_documents/annual_reports/documents/WEB2011354_chsrf_ar_e_final.pdf
http://www.chsrf.ca/other_documents/annual_reports/documents/WEB2011354_chsrf_ar_f_final.pdf

http://www.chsrf.ca/nursing_research_fund/documents/NursingReport_E_rev3_FINAL.pdf
http://www.chsrf.ca/nursing_research_fund/documents/NursingReport_Fr_rev4_FINAL.pdf

http://www.chsrf.ca/extra/documents/EXTRAReport_E_rev3_FINAL.pdf
http://www.chsrf.ca/forces/documents/EXTRAReport_Fr_rev3_FINAL.pdf

Table 8: Horizontal Initiatives

1. Name of Horizontal Initiative: Chemicals Management Plan

2. Name of Lead Department(s): Health Canada/Environment Canada

3. Start Date of the Horizontal Initiative: FY 2007-2008

4. End Date of the Horizontal Initiative: FY 2010-2011

5. Total Federal Funding Allocation: $299.2 M

6. Description of the Horizontal Initiative:

The Chemicals Management Plan (CMP) is part of the Government's comprehensive environmental agenda and is managed jointly by Health Canada (HC) and Environment Canada (EC). The activities identified in this plan build on Canada's position as a global leader in the safe management of chemical substances and those chemicals contained in products, and focus upon timely action on key threats to health and the environment.

The CMP also generates a higher level of responsibility for industry through realistic and enforceable measures, stimulate innovation, and augment Canadian competitiveness in an international market that is increasingly focussed on the safety of chemicals and products.

HC and EC manage CMP funding collectively and ensure that it is aligned with the highest priorities for action to protect human health and the environment.

Within the CMP model, the regulatory management of chemical substances can be implemented through a number of legislative instruments including Food and Drugs Act (F&DA), Pest Control Products Act (PCPA), Hazardous Products Act (HPA) and Canadian Environmental Protection Act (CEPA) . The first three Acts are administered by Health Canada and CEPA is jointly administered by Health Canada and Environment Canada.

The following program areas are involved in CMP activities:

In Health Canada :

• Health Products and Food Branch:
  • Food Directorate
  • Policy, Planning, and International Affairs Directorate
• Healthy Environments and Consumer Safety Branch:
  • Product Safety Programme
  • Safe Environments Programme
• Pest Management Regulatory Agency

In Environment Canada :

• Environmental Stewardship Branch
  • Chemical Sectors Directorate
  • Legislative and Regulatory Affairs Directorate
  • Public and Resources Sectors Directorate
  • Public & Resources Sector Directorate
  • Energy and Transportation Directorate
  • Environmental Protection Operations Directorate
• Science and Technology Branch
  • Science and Risk Assessment Directorate
  • Water Science and Technology Directorate
  • Wildlife and Landscape Science Directorate
  • Atmospheric Science and Technology Directorate
• Enforcement Branch
• Strategic Policy Branch
  • Economic Analysis Directorate

7. Shared Outcome(s):

High-level CMP outcomes include:

• Canadians and their environment are protected from the harmful effects of chemicals;
• Risk identification, evaluation, reduction, elimination, prevention or improved management of chemicals substances and their uses are effectively implemented;
• Direction, collaboration and coordination of science and management activities are realized;
• Biomonitoring and environmental monitoring of toxic substances are timely and responsive;
• Stakeholders and Canadian public are engaged so that they are better informed and can provide information to the Government for more effective risk management approaches.
• In accordance with the Cabinet Directive on Streamlining Regulation that came into effect on April 1, 2007, the Government is committed to (i) use available international standards, guidelines, and recommendations as a basis for technical regulations and for conformity assessment procedures where they achieve the intended regulatory objective (thereby avoiding making uniquely 'Made in Canada' Regulations to the extent possible and (ii) promote a fair and competitive market economy that encourages industry entrepreneurship, investment, and innovation

8. Governance Structure(s):

Health Canada shares the lead on the CMP with Environment Canada. The CMP consists of five inter-related program elements (listed below) to be planned, delivered and evaluated within an integrated framework, managed jointly by these two Departments

Within the federal government, the CMP governance is to be established through a joint HC/EC Assistant Deputy Ministers Committee (ADM Committee) and an interdepartmental Chemicals Management Executive Committee (CMEC).

The mandate of CMEC is to ensure that all chemical management issues are optimally managed and that activities under the CMP are delivered in an integrated manner, using a suite of legislations, including CEPA, PCPA, F&DA and the HPA.

Core work elements focusing on key CMP activities (Risk Assessment, Risk Management, Research/Science, Monitoring & Surveillance and Policy & Program Management) are currently in place to support the above governance structures.

9. Federal Partners Involved in each Program	10. Names of Programs	11. Total Allocation	12. Forecasted Spending for FY 2007-08	13. Actual Spending in FY 2007-08
Health Canada	Risk Assessment	$27.0 M	$3.2 M	$3.0 M
Environment Canada		$22.6 M	$2.1 M	$2.1 M
		$49.6 M (total)	$5.3 M (total)	$5.1 M (total)
Health Canada	Risk Management	$94.9 M	$12.7 M	$12.1 M
Environment Canada		$64.9 M	$9.1 M	$8.4 M
		$159.8 M (total)	$21.8 M (total)	$20.5 M (total)
Health Canada	Research/Science	$30.2 M	$3.3 M	$3.3 M
Environment Canada		$2.1 M	$0.6 M	$0.6 M
		$32.3 M (total)	$3.9 M (total)	$3.9 M (total)
Health Canada	Monitoring & Surveillance	$35.2 M	$3.4 M	$3.4 M
Environment Canada		$16.9 M	$4.4 M	$4.4 M
		$52.1 M (total)	$7.8 M (total)	$7.8 M (total)
Health Canada	Program Management	$5.4 M	$0.9 M	$0.8 M
		$5.4 M (total)	$0.9 M (total)	$0.8 M (total)
		Total $299.2 M	Total $39.7 M	Total $38.1

Planned Results for FY 2007-2008 (From FY 2007-2008 Report on Plans and Priorities):

Risk Assessment: Identifying the impact and evaluating the risks of substances to human health and the environment (e.g., complete assessment of about 200 highest priority substances within 3 years)

Risk Management: Effective controls and informed stakeholders and the Canadian public. (e.g., complete implementation of mandatory pesticide incident reporting system and pesticide sales database by 2009)

Research: Understanding of the relative risks of toxic substances (e.g., complete development of human exposure data and trend analysis methodologies)

Monitoring & Surveillance: Information on the effectiveness of control actions (e.g., define scientific information to be collected by 2008)

Program Management: Direction collaboration and coordination of science and management activities (e.g., initiatives implemented by 2009 to ensure proper results to resources management and stewardship )

Achieved Results for FY 2007-2008:

A key component of the CMP is taking immediate action on the highest priority chemicals. Information is being collected that will be used to make decisions regarding the best approach to protect Canadians and their environment from risks that certain substances may pose. The initiative, known as the "Challenge", includes the identification of approximately 200 substances of highest priority that have been divided up into a number of smaller groups of substances, to be addressed sequentially.

Under the Challenge, requests for information under s. 71 of CEPA for Batches 2, 3, 4 and 5 were published. Substance Profiles were developed for Batches 2-5. New regulations have been developed (e.g. 31 CEPA toxics and 3 other chemicals of concern have had their regulations amended) and a work plan for dealing with petroleum stream substances of high concern has also been completed.

The development of risk management options for Challenge substances is on track. Scientific, legal and economic analyses and enforcement advice is being taken into consideration. Consultations with affected industry stakeholders and the Canadian public will continue throughout the program's life-cycle. A Challenge Advisory Panel (Experts) and CMP Stakeholder Advisory Council (NGO / Industry) have also been established. The Panel's mandate is to provide third party advice on the application of the precautionary principle and the weight of evidence during the risk assessment of the Challenge substances. The Council serves as a forum for NGO and industry members to provide advice and other input to the government on various issues related to the implementation of the CMP.

The Domestic Substances List (DSL) is an inventory of approximately 23 000 substances manufactured in, imported into or used in Canada on a commercial scale. It is based on substances present in Canada, under certain conditions. When a proposed activity or use of a certain DSL substance is different from the one identified in its current use/exposure pattern, the Significant New Activity (SNAc) provisions of CEPA provides for information gathering and assessment prior to the commencement of this significamt new activity or use. A notice is developed which defines the new activity or use, the information to be provided, when it is to be provided, and a period within which it is to be assessed. The outcome of that assessment will inform whether any risk management measures may then be appropriate. The implementation of SNAcs for approximately 56 substances that are no longer in commerce in Canada is currently underway.

Plans for the improvement and expansion of the CMP Portal/Web Site have been developed and the development of additional communication products is underway, including documents to translate scientific information to a non-technical audience (Background documents). A joint CMP HC-EC Integrated Management Accountability Framework (IMAF) has also been developed and quarterly tracking of commitments is on-going.

Other CMP activities undertaken in FY 2007-2008 included:

• identification of consumer products that may contain potentially harmful chemical substances and developing strategies to best manage the risk associated with these products on the Canadian marketplace;
• significant progress on a draft framework for appropriate Environmental Assessment Regulations for new medicinally active ingredient substances in pharmaceuticals, veterinary drugs, medical devices and radio-pharmaceuticals;
• important progress on two Scientific and Regulatory Considerations (SARC) documents that serve as a starting point for discussions with respect to the development of appropriate Environmental Assessment Regulations, one SARC for new substances in Cosmetic Products and the other SARC for new substances in Natural Health Products;
• initiation of draft SARC documents for the remaining commodity groups (Food Additives and Novel Foods, and Biologics) which are expected to be completed by end of FY 2008-09;
• finalization of draft human pharmaceuticals Best Management Practices (BMP) research paper, significant progress on veterinary pharmaceuticals BMP research paper and the initiated development of Cosmetics BMP research paper;
• determination of the human health and ecological risk posed by the environmental presence of some 9,000 substances in products subject to the Food and Drugs Act that have entered the Canadian marketplace between 1987 and 2001;
• participation of the In Commerce Substances Unit (ICSU) in multi-stakeholder consultations on the revision of the In Commence List (ICL) and organization of four face-to-face meetings to develop a framework for the nomination of substances to the revised ICL. The proposed framework was presented to the Environmental Assessment Working Group in June 2008 and received approval The chemical identity of approximately 1,800 substances on the current ICL were and will be placed on the revised list. Requests from industry for the addition of approximately 30 microorganisms to the current ICL were assessed and the companies were informed of the need to submit additional information to complete the reviews. The ICSU is developing a guidance document for industry, a database tracking system, and a communications plan
• completion of rapid screening assessment of 1200 low-concern substances;
• amendment of Human Risk Assessments ( HRA) for selected POPs (e.g. PCBs) in support of changes to food standards;
• progress on the re-evaluation of older pesticide ingredients. As of March 31, 2008, 274 of the 401 of pesticide active ingredients have been addressed;
• assessment of analytical results of mercury levels in various commercial predatory fish species;
• an updated risk management strategy for mercury in fish;
• development of a draft discussion paper on assessment options for genotoxic carcinogens;
• finalization of the health risk assessment of Bisphenol A from a food packaging perspective, including an international peer review of the assessment document;
• completion of a Departmental Report on toxicity research studies on Perfluorooctane Sulfonate;
• activities related to the collection of nationally representative biomonitoring data for the Canadian Health Measures Survey (CHMS) and the Maternal Infant Research on Environmental Contaminants (MIREC) to support evidence-based decision-making on identification of vulnerable populations, and understanding of risks and exposures, and how they might best be managed;
• identification of research priorities and allocation of research funds; and
• establishment of a horizontal science framework to manage Research funds collectively and align annually to CMP priority research.

16. Comments on Variances:

17. Results Achieved by Non-federal Partners: N/A

18. Contact Information:

Francois Dignard, HC
(613) 941-0590
francois_dignard@hc-sc.gc.ca
Mark Cuddy, EC
(819) 994-7467
mark.cuddy@ec.gc.ca

19. Approved by:

20. Date Approved:

1. Name of Horizontal Initiative: Federal Strategy on Early Childhood Development for First Nations and Other Aboriginal Children (referred to as ECD)

2. Name of Lead Department(s): Health Canada

3. Lead Department Program Activity:

First Nations and Inuit Health Programming and Services

(Additional funding to ECD Programs from:
Enhancing Early Learning and Child Care (referred to as ELCC) for First Nations Children Living on Reserve and Working Towards the First Phase of a Single Window)

5. End Date of the Horizontal Initiative:

ECD - 2006-07 and Ongoing

ELCC Single Window - 2007-08 and Ongoing

6. Total Federal Funding Allocation (start to end date):

As a result of the Federal Strategy on Early Childhood Development for First Nations and Other Aboriginal Children (referred to as ECD) announced in October 2002, $320 million over five years (and ongoing) is dedicated to enhancing and expanding various federal ECD programs. In December 2004, Cabinet approved Enhancing Early Learning and Child Care (referred to as ELCC) for First Nations Children Living on Reserve and Working Towards the First Phase of a Single Window which provided an additional $45 million over three years (2005-06 through 2007-08, $14 million ongoing beginning 2008-09) to increase integration and coordination, access and quality of two federal ECD/ELCC programs (Aboriginal Head Start On Reserve and the First Nations and Inuit Child Care Initiative). This funding also included a training component.

7. Description of the Horizontal Initiative (including funding agreement):

The Federal Strategy on Early Childhood Development for First Nations and Other Aboriginal Children was announced on October 31, 2002. The strategy provides $320 million over five years to: improve and expand existing ECD programs and services for Aboriginal children; expand ECD capacity and networks; introduce new research initiatives to improve understanding of how Aboriginal children are doing; and work towards the development of a "single window" approach to ensure better integration and coordination of federal Aboriginal ECD programming. In December 2004, as the first phase of a "single window", Cabinet approved an additional $45 million over three years (2005-06 through 2007-08, $14 million ongoing beginning 2008-09) to improve integration and coordination of two ECD programs - Aboriginal Head Start On Reserve and the First Nations and Inuit Child Care Initiative - beginning in 2005-06. The objectives of these funds are to increase access to and improve the quality of ELCC programming for First Nations children on reserve, and improve integration and coordination between the two programs through joint planning, joint training and co-location. Joint planning will also include INAC-funded child/day care programs in Alberta and Ontario.

8. Shared Outcome(s): The Federal Strategy on Early Childhood Development for First Nations and Other Aboriginal Children complements the September 2000 First Ministers F/P/T ECD Agreement. It seeks to address the gap in life chances between Aboriginal and non-Aboriginal children by improving the developmental opportunities to which Aboriginal children (and their families) are exposed at an early age (birth to under 6 years of age).

The funding approved in December 2004 for ELCC for First Nations Children Living on Reserve and Working Towards the First Phase of a "Single Window" complements funding released to provinces and territories under the March 2003 Multilateral Framework for Early Learning and Childcare (ELCC) to improve access to ELCC programs and services.

Health Canada, Public Health Agency of Canada, Indian and Northern Affairs Canada and Human Resources and Social Development Canada work co-operatively on this horizontal initiative.

10.Federal Partners	11.Federal Partner Program Activity	12.Names of Programs for Federal Partners	13. Total Allocation over 5 years ($ in Thousands)*	14. Planned Spending for 2007-2008 ($ in Thousands)	15. Actual Spending for 2007-2008	16. Expected Results for 2007-2008	17. Results Achieved in 2007-2008
1. Health Canada   Electronic Links: http://www.hc-sc.gc.ca/fnihb-dgspni/fnihb/cp/ahsor/index.htm   http://www.hc-sc.gc.ca/fnih-spni/famil/preg-gros/intro_e.html	First Nations and Inuit Health Programming and Services	a. Aboriginal Head Start On Reserve	(ECD)$107,595 (total for 2002-03 through to 2006-07); $21,519 ongoing	(ECD)$21,519 (and ongoing) - committed in 2002	$19,595,041	(ECD) Program expansion and enhancement	See notes
			(ELCC)$21,000(total for 2005-06 through to 2007-08; $6,500 ongoing	(ELCC) $7,000 in 2005-06 through to 2007-08 with $6,500 in 2008-09 and ongoing -committed in 2004	$5,925,540	(ELCC) Increase integration, coordination, access and quality, and training
		b. Fetal Alcohol Spectrum Disorder - First Nations and Inuit Component	(ECD) $ 70,000 (total for 2002-03 through to 2006-07) and $15,000 ongoing	(ECD) $10,000 in 2002-03 and $15,000 thereafter (and ongoing) - committed in 2002	$13,973,500	Program expansion and enhancement	See notes
		c. Capacity Building and Networks	$5,075 (total for 2002-03 through to 2006-07); $1,015 ongoing	$1,015 (and ongoing) - committed in 2002	$1,099,488	Increased capacity	See notes
		d. Horizontal Training	(ELCC) $3,000 (total for 2005-06 to 2007-08) and $1,000 ongoing	(ELCC) $500 in 2005-06; $1,300 in 2006-07; and $1,200 in 2007-08 ($1,000 ongoing committed in 2004)	$1,150,000	ELCC - increased integration, coordination, access and quality	See notes
2. Public Health Agency of Canada Electronic Link: http://www.phac-aspc.gc.ca/dca-dea/programs-mes/ahs_main_e.html	Child and Adolescent Health Promotion	a. Aboriginal Head Start in Urban and Northern Communities	$ 62,880 (total for 2002-03 through to 2006-07)	$12,576 (and ongoing) - committed in 2002	$11,445,000	Program expansion and enhancement	See notes
		b. Capacity Building	$2,500 (total for 2002-03 through to 2006-07)	$500 (and ongoing) - committed in 2002	$176,000	Increased capacity	See notes
3. Human Resources and Social Development Canada	Learning and Labour Market	a . First Nations and Inuit Child Care Initiative (FNICCI)	(ECD)$ 45,700 (total for 2002-03 through to 2006-07)	(ECD)$ 9,140 (and ongoing) committed in 2002	$16,140,000	Program expansion and enhancement	8538 spaces in 482 First Nations and Inuit sites through 58 Aboriginal Human Resource Development Agreement Holders
			(ELCC)$21,000 (total for 2005-06 through to 2007-08)	(ELCC)$7,000 (and $6,500 ongoing) - committed in 2005		Increase integration, coordination, access and quality
		b. Aboriginal Children's Survey	(ECD) $17,300 (total for 2003 through to 2007) and $3,440 ongoing.	(ECD) $3,540 (and $3,440 ongoing) - committed in 2002	$01	Data processing dissemination strategy; documentation of processes used to develop and implement the survey for 2011; Initial planning for on-reserve component of ACS	See details below
		c. Understanding the Early Years - Aboriginal Component	(ECD) $3,500 (total for 2002-03 through to 2006-07) and $700 ongoing	(ECD) $700 (and ongoing) - committed in 2002	$485,000	ECD Research and Knowledge	As a result of the 2006 UEY Call for Proposals, one Aboriginal proposal was funded with Prince Albert Grand Council, Saskatchewan. Some funds were also allocated to the management and outreach in several other UEY projects which include Aboriginal children.
4. Indian and Northern Affairs Canada	Lifelong Learning - Early Learning and Childcare	a. "Single Window" Work and Capacity Building	(ECD) $5,050 - (Total for 2002-03 through to 2006-07) and $1,010 ongoing	$1,010 (and ongoing) - committed in 2002	$592,146	Increased capacity and development of "single window"	See notes
			Total - ECD: $320,000	Total - ECD: $60,000 in 2002-03 and $65,000 thereafter	Total: $70,581,715
			Total - ELCC: $45,000	Total - ELCC: $14,500 in 2005-06; $15,300 in 2006-07; $15,200 in 2007-08; and $14,000 ongoing

18. Comments on Variances

¹Spending figure is $0 as previous years savings were used to cover 2007-08 fiscal year expenses.
²Understanding the Early Years (UEY) Aboriginal component: In late 2004, when the national UEY initiative was announced and assigned to HRSDC's Income Security and Social Development Branch, the management of the Aboriginal component of UEY was also transferred, along with an allocation of $700K on an ongoing basis. The implementation of Aboriginal UEY was intended to coincide with the fielding of the first data collection of the Aboriginal Children's Survey (ACS). Since the ACS was not fielded until fall 2006, the Aboriginal component of UEY was delayed.

19. Results to be Achieved by Non-federal Partners (if applicable): N/A

20. Contact Information :

Marcia Armstrong, Program Officer,
ECD Strategy Unit,
First Nations and Inuit Health Branch,
Health Canada
Postal Locator 1920D, Tunney's Pasture, Ottawa
Telephone: (613) 946-4621
Fax: (613) 952-5244

Aboriginal Head Start on Reserve

The Aboriginal Head Start On Reserve program serves over 9,000 children in over 300 First Nations communities. The majority of AHSOR funding in 2007/08 was used for First Nations community based program service delivery and development including training and minor capital. In 2007/08 work continued in key areas, including:

• Integration of sites and cooperation between different early childhood programs such as Health Canada's AHSOR, HRSDC's FNICCI, INAC's daycare as well as local and provincial programs at the community, regional, and national levels;
• Organization of training events based on regional training needs that included workers from other ECD programs to help maintain and improve the quality of AHSOR and other community based ECD programming;
• Enhancement of AHSOR capital infrastructure (buildings and facilities) through support of minor capital projects;
• Support for training of AHSOR outreach and home visiting workers for un-served and under-served communities; and
• Improvement of reporting and communications between HC and communities.

Fetal Alcohol Spectrum Disorder - First Nations and Inuit Component:

Key accomplishments for 07/08 include: Mentoring projects have been established in 40 sites across Canada (an increase of 10 from last year); 2 National mentor/supervisor training sessions were held; Community Coordinator positions have been established in 18 communities (an increase of 7 from last year); A broad consultation and scan was completed on evidence-based family support programs to inform the Community Coordinator framework development; and, a study was conducted and report written on improving linkages to women's addictions services.

Capacity Building and Networks:

As part of the 2002 Federal Strategy's capacity-building component, Health Canada provides funds annually to the five national Aboriginal organizations: the Assembly of First Nations, Inuit Tapiriit Kanatami, Congress of Aboriginal Peoples, Métis National Council, and Native Women's Association of Canada. As well, Indian and Northern Affairs Canada is providing annual funding to Pauktuutit Inuit Women of Canada. In 2007-08, this funding enabled these national Aboriginal organizations to contribute to the development of the Federal Strategy through strategic planning and capacity building in their own organizations. Note: the Métis National Council was not funded during 2007-08.

Funding from the Federal Strategy also continued to support the development of an Aboriginal service providers' network, which is called the Aboriginal Children's Circle of Early Learning (ACCEL). During 2007-08, ACCEL was reorganized and new material and web links were added throughout the year. An e-newsletter was distributed three times during the year. Discussions were undertaken with the National Aboriginal Health Organization to assume responsibility for ACCEL in 2008-09.

Horizontal Training:

Most of this funding goes to the regions to support training for ECD workers in AHSOR and FNICCI sites. A working group has been established with representation from AFN, INAC, HC and HRSDC and is working to develop a laddered ECD training strategy that will lead to culturally appropriate certification of providers of early learning and child care programming for First Nations children living on reserve, as well as supporting improved coordination between AHSOR, FNICCI and INAC funded daycares in Alberta and Ontario. A survey of training requirements of ECD workers in communities was completed and the results will inform the development of a training strategy to be completed in 2008-09.

Aboriginal Head Start in Urban and Northern Communities

BC region:
Special needs training and support services.
Development of elder's and language guides. Enhanced Services Assessment.

Alberta Region:
Quality assurance through accredited training and ongoing education of the frontline staff.
Regional training and FASD training.
Improvements to services for children with special needs.

MB/Sask. Region (SK)
Evaluation and Curriculum activities.
Training on Building Capacity, Streamline Reporting and community assessment. Resources on Capacity Building.

MB/Sask. Region (MB)
Accredited training, Ages and Stages pre- and post assessment tools training, educational resources. increase capacity through database technology to streamline reporting requirements.

Quebec Region
Educational training, FASD training and resources for special speech therapy needs.

Atlantic Region:
Accredited training, Knowledge transfer and education initiative led to an increase in community capacity for language and culture, elder involvement

Northern Region:
Pan Territorial training event including CAPC, CPNP and AHS. Longitudinal evaluations,

Capacity Building activities within AHSUNC

Partnering/Collaborating with the Centres of Excellence ECD - Updating on-line encyclopedia
Partnering/Collaborating with the Centres of Excellence - Special needs resources

National Aboriginal Collaborating Centre - ECD curriculum research

Two North of 60 Case Studies on integration of AHSUNC and FNICCI programming to complement the Demonstration Projects in 17 First Nations communities across Canada.

Aboriginal Children's Survey

In fiscal year 2007-08, the majority of the data processing was done and a dissemination strategy was created. Work began to document the processes used to develop and implement the survey for future use in the 2011 survey development process. Initial planning for an on-reserve component of the ACS was undertaken in order to expand the survey to include children on-reserves.

Single Window Work and Building Capacity

In 2007-08, Indian and Northern Affairs Canada (INAC), Human Resources and Social Development Canada (HRSDC), and Health Canada (HC) implemented the Early Childhood Development (ECD) Single Window Service Delivery Demonstration Projects. These projects tested three elements including: a single funding mechanism; streamlined reporting and community development coordination/integration.

The ECD Horizontal Working Group sponsored the ECD Success Stories initiative which showcased best practices of coordination and integration of ECD programs in First Nations communities. ECD programs include: HC's Aboriginal Head Start On Reserve, HRSDC's First Nations and Inuit Child Care Initiative, Public Health Agency of Canada's Aboriginal Head Start in Urban and Northern Communities and INAC funded Ontario and Alberta Day Care programs.

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

Lead Department: Health Canada

Start Date: 2002-2003

End Date: 2008-2009

Total Funding Allocated : $155M rounded up from $154.96M

Description:

The initiative is a part of the federal government's commitments as outlined in the Treasury Board submission Building Public Confidence in Pesticide Regulation and Improving Access to Pest Management Products . The Treasury Board submission and its associated Results-based Management and Accountability Framework (RMAF) describe the integrated approach by which initiatives will be measured, managed and reported throughout their life cycle. An important element of the commitments made through the Treasury Board submission is that stakeholders and public will be kept informed through a transparent management system. The participating departments will work together for shared outcomes; measure performance on delivery; and review progress achieved. 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, and to increase the competitiveness of the agri-food and forestry sectors. Research and monitoring in the area of pesticides is being coordinated with their regulation.

Under this initiative, the presence and effects of pesticides in the environment, in marine and freshwater ecosystems, and in the forest environment are being monitored. The initiative enhances monitoring and enforcement of pesticide residue limits in foods, in feed, of pesticide residues in fertilizers, and pesticide guarantee verification for fertilizer-pesticide combinations. Reduced-risk pesticides and biological pesticides for forestry are being developed and their use facilitated. Commodity-based risk reduction strategies for the agriculture and agri-food sector are being developed and implemented. Programs improving access to agricultural minor-use pesticides and reduced-risk pesticides for agricultural use are being established. Research to support the introduction of minor-use pesticides that pose a reduced risk to the environment is being conducted. A reporting system to track adverse effects of pesticides has been developed, and information on these effects will be collected and recorded. Collectively, this work is being conducted to achieve public confidence in increased conservation and protection of human health and the environment while contributing to the competitiveness of Canada's agricultural sector.

The information presented in this table has been organized along the following three main themes of this initiative:

1. Research and Monitoring, carried out by Agriculture and Agri-food Canada (AAFC), the Canadian Food Inspection Agency (CFIA), the Department of Fisheries and Ocean (DFO), Environment Canada (EC), Health Canada's PMRA, and Natural Resources Canada (NRCan)
2. Developing and Implementing of Commodity Specific Risk Reduction Strategies, carried out by AAFC and Health Canada's Pest Management Regulatory Agency (PMRA).
3. Generation of Data to Support the Registration of Reduced Risk and Minor Use Pesticides for the Agricultural and Agri-food Sector and Reduced Risk Pesticides and Biopesticides for Forestry, carried out by AAFC, HC's PMRA and NRCan

Shared Outcomes:

Immediate Outcomes:

• Increased knowledge by the PMRA about pesticides and alternatives
• Registration of reduced-risk and minor-use pesticides
• Access to safer pest management practices and products
• Compliance for safer food, feed, fertilizers and fertilizer-pesticide combinations

Intermediate Outcomes:

• A regulatory system that better protects health and environment and contributes to the competitiveness of the agri-food and forestry sectors
• Use of safer pest management practices and products
• Increased transparency of pesticide regulation

Final Outcome:

Increased public and stakeholder confidence in pesticide regulation, protected health and environment as well as increased competitiveness of the agri-food and forestry sectors

Governance Structures:

• Health Canada -Executive Director of PMRA
• Environment Canada (HC) - Director General, Conservation Strategies Directorate and Director General, National Programs Directorate
• Department of Fisheries and Oceans (DFO) -Director General, Fisheries, Environment and Biodiversity Science
• Natural Resources Cananad (NRCan)-Director General, Science Branch, Canadian Forest Service
• Agriculture and Agri-Foods Canada (AAFC)-Assistant Deputy Minister of the Farm Financial Programs Branch and Assistant Deputy Minister of Research Branch, Executive Director, Pest Management Centre
• Canadian Food Inspection Agency (CFIA)-Vice President, Programs
• Deputy Minister Committee-Deputy Minister from Health and AAFC
• AAFC/PMRA Joint Management Committee: Assistant Deputy Minister of the Farm Financial Programs Branch, AAFC, Assistant Deputy Minister of Research Branch, AAFC, Executive Director, PMRA, Health Canada, Treasury Board Secretariat (ex-officio member)

I. Research and monitoring

AAFC	(a) Conducting research to support the introduction of minor-use pesticides that pose a reduced risk to the environment.	$8.0 M	$3.0M	$1.3M	Final reports and next steps for technology transfer of research results from 16 projects completed as of March 2007 On-going support for 12 projects initiated in April 2006 to be completed March 2008 Progress reports from 1 year of research work on these projects initiated in April 2006 Support for new projects selected for funding under November 2006 Call for Proposals Continued work and support for activities to improve access to and adoption of low risk minor use pesticides, including biopesticides Continued research planning and coordination with MOU Research WG and Interdepartmental WG on Pesticides	Reviewed final reports for 13 projects completed as of March 2007, extended time lines into FY 07-08 for 3 projects in order that work could be satisfactorily completed. Project outputs include: scale up, efficacy & non-target data to support eventual commercialization/ registration of reduced-risk pest control products/applications; bait and kill strategies for key pests; refined laboratory insecticide screening protocols; degree-day models for key pests; and pest biology / behaviour information for pest species. Continued support and oversight for 12 projects initiated April 2006 + 3 projects as noted above (92% of projects have met milestones as of March 2008) Established Statements of Work and initiated funding and oversight of 23 new projects selected under Nov 2006 call for Proposals Biopesticide submission support activities resulted in submissions for registration or label expansion for 4 products Contributed to 6NR integrated work plan and discussions related to 6NR MOU regarding pesticide research and monitoring Additional Result: Screening trials conducted resulted in identification of potential solutions for 3 key pest issues for which no solutions were known.
CFIA	(b) Enhanced monitoring and enforcement of pesticide residue limits in food and feed.	$2.7M	$0.25M	$0.25M	Identify food commodities consumed by targeted subgroup (children) Lab testing of an approximate 1500 samples per year Follow-up inspections for non-compliant test sample results Publish annual report of the findings of the National Chemical Residues Monitoring Program (NCRMP) Food recalls, as required, for risk mitigation and removal of hazardous foods from marketplace	The objectives were to assess the compliance of foods consumed by children aged 3 to 15 years. The foods tested represented a random selection of foods marketed to, consumed in greater quantity by, or first eaten by children in the targeted age group. The pesticide residue results showed a high level of compliance with established limits (>98%). There was no trend observed in pesticide levels with commodity, brand name, residue or country of origin.
CFIA	(c) Enhanced monitoring and enforcement of pesticide residues in fertilizers and pesticide guarantee verification in fertilizer-pesticide combinations.	$2.4M	$0.25M	$0.193M	Develop monitoring and surveillance policies and processes to guide and advise operational staff on fertilizer-pesticide combinations and pesticide contaminated fertilizers. Increase interaction with the PMRA to obtain the most up-to-date pesticide safety and labelling information. Update the Compendium of Fertilizer-Use Pesticides, which contains information regarding registration, guarantees and proper labelling. Work to develop regulatory changes to facilitate updating of the Compendium more regularly, and, if successful, provide Compendium updates more regularly to the producers of mixtures and to the CFIA's inspection staff.	Inspection Memorandum I-4-93, a document identifying inspection activities and sample quotas for the year, was provided to inspection staff. To facilitate label verification in the field and maintain consistency, a list of all registered fertilizer-pesticides and labels were updated and distributed to inspectors. Inspectors were guided on appropriate non-compliance follow-up when needed. The pesticide guarantee verification program has been redesigned, with the assistance of stakeholders, in order to improve compliance rates. CFIA's tolerance for pesticide residues in fertilizers was reviewed and amended. Enforcement procedures in response to non-compliance were developed through a National Training Initiative to promote consistency in enforcement actions across Canada. CFIA and PMRA collaborated to develop policies and processes for joint review of products subject to regulation under both the Fertilizers Act and Pest Control Products Act . CFIA is participating in the Building Public Confidence TB Initiative Evaluation Working Group. CFIA is participating in the 6NR Pesticides and Pest Management Working Group. The 3 rd edition of the CFUP is pending publication in Canada Gazette II . CFIA is exploring regulatory changes and expedited mechanisms to allow for more frequent updates. A new format is being created to facilitate public availability, and updates were distributed. A regulatory change to update the definition of the CFUP so that it references the third edition is currently pending apporval. Advise CFIA Operations on appropriate follow-up procedures and recommendations regarding the significance of sample analytical results. Sample fertilizer-pesticide combinations to verify guarantees. Sample fertilizers suspected to be contaminated with pesticides. Verify fertilizer-pesticide labels. Conduct investigation and compliance activities (anticipated based on sampling and inspection frequencies). Analyze samples submitted by inspectors.
DFO	(d) Monitor and research the presence and effects of pesticides in marine and freshwater ecosystems.	$7.9 M	$1.0M	$1.0M	DFO will provide the PMRA with final reports on regional National Fund projects. These research projects will be focused to address key research knowledge gaps, as they were in 2006-2007, after consultation with PMRA. DFO will provide the PMRA with a yearly report from DFO's Centre for Environmental Research on Pesticides (CERP). CERP will conduct laboratory and field based studies to quantify impacts of exposure to priority pesticides on fish and fish habitat. Impacts will be quantified in terms of reproductive success, growth and energy metabolism. Priority research will be identified in consultation with PMRA. After consultation with the PMRA and other agencies, DFO will design and initiate new research projects related to the theme "Potential Impacts of Pesticides on Fisheries Resources".	Final report is ongoing. Anticipated delivery to PMRA is October 2008 for the 2007-08 projects. CEPR has conducted laboratory exposures of fathead minnows to environmentally relevant concentrations of glyphosate, chlropyralid, chlropyrifos and atrazine. Growth and survival have been measured and fish are being reared to reproductive age to assess reproductive potential. A summary of these studies will be included in the October report to PMRA. After consultation with PMRA, it was determined that DFO could provide useful results regarding the effects of mixtures of chlopyralid, chrlopyrifos and glyphosate on fish and fish habitat. Benthic invertebrates were specified as a useful surrogate measure of fish habitat quality.
EC	(e) Monitor and research on presence and effects of pesticides in the environment.	$7.16M	$1.0M	$1.0M	EC will: maintain coordination of research and monitoring projects in cycle 2 of the EC-Pesticide Science Fund (PSF) support 10 new research and monitoring project themes to determine the environmental concentrations and impacts of in-use pesticides in the environment; produce an annual report and make it available to the PMRA; provide science advice to meet regulatory data gaps and knowledge deficiency as well as to improve risk assessment methods; provide support and advice to PMRA on pesticide related science policy and issue management Based on cycle 1 results, EC has set out to deliver on a second cycle of research and monitoring of pesticide presence and impacts in the environment. The EC-Pesticide Program Coordinating Committee (PPCC) was presented with project highlights and advice from PSF recipients of the first cycle of projects (2003-2006). The PPCC (has PMRA membership) then developed a new set of priorities for pesticide science at EC has set out to deliver on 10 new research projects that are linked to regulatory decision-making priorities. In 2007-2008, status updates will be given to the following: Air surveillance: Investigations on low level impacts of compounds that are deemed to have a high toxicity and conducting research in sensitive regions that are closer to emission sources Water surveillance: Focus on high risk priority watersheds. Linking water monitoring to watershed modelling ( i.e ., NAESI) providing for wider results coverage through an increase in predictive power and assisting in the rationalization of water monitoring sampling designs. Focus on specific issues, e.g ., wetlands, urban areas, source waters, agriculture and priority pesticides (through previous monitoring and with interpretation tools such as the modified APPLES, a prioritization tool developed with the PMRA). Establishing trends especially as they relate to performance outcomes ( e.g ., through linking with CESI the Canadian Environmental Sustainability Indicators program) Aquatic effects: Integration of aquatic and terrestrial effects (incl. multitrophic-level) with exposure (incl. fate). Comparative assessments ( e.g ., amphibian and fish). Species, populations and community resiliency. Impacts of mixtures (link to NAESI) and cumulative effects investigations ( e.g ., nutrients). Impact assessments with chronic and pulse exposures. Studies and investigations furthering the amphibian test protocol. Terrestrial effects: For birds and mammals focus on SARA and spp. of concern. Comparisons between non-oral routes and oral routes of exposure (dermal and inhalation). Focus on high exposure areas with "lethal" potential. For plants, focus on risk assessment with validation through in situ research. In order to better integrate and coordinate EC research with regulation, EC will continue to work with the PMRA in the implementation of the EC/PMRA MOU. The MOU has four components, Science Policy, Knowledge Generation, Issue Management and Compliance Promotion and Enforcement EC will continue working on providing leadership in the development and implementation of a federal, co-ordinated pesticides science strategy for research and monitoring through the Interdepartmental Committee. As well EC will continue to contribute to PMRA's pesticide assessments where appropriate, will coordinate with PMRA on the development of environmental quality guidelines and will continue to provide science/policy advice on key Government of Canada policies as they relate to pesticide management and use in Canada.	EC was able to meet its commitments under the BPC initiative. EC's Pesticide Science Program now resides under the "Risk to Canadians" Result stream while continuing to be coordinated by the EC PPCC. We have maintained and are continuing activities addressing the following areas: science policy; research and monitoring; issue management and communications; enforcement and compliance promotion. EC: maintained its coordination efforts for the second year in the second cycle of the PSF to further support research and monitoring projects on the presence and effects of pesticides in the environment. Supported the 10 on-going research and monitoring project themes with projects building on existing knowledge from previous and related projects. Negotiated an Interdepartmental Letter of Agreement with the PMRA for additional financial support to ensure the timely completion of ongoing projects for this fiscal year. Produced an annual report of PSF activities with respect to the status and updates of air and water surveillance, as well as aquatic and terrestrial effects. This report was submitted to PMRA. Currently participating in the Building Public Confidence Memorandum to Cabinet - Treasury Board Summative Evaluation. Providing science advice to PMRA to meet regulatory data gaps, reduce knowledge deficiencies, and improve risk assessment methods. EC provided significant input into PMRA's activities regarding: Environmental risk assessment and Track 1 assessment for Trifluralin and Lindane. Re-evaluation note on the uses of Diazinon and Atrazine. Pesticide concentrations in surface water, current monitoring practices, new initiatives, and trends of commonly found pesticides. Coordinated PSF projects with national agri-environmental standards initiative, an initiative under the Agricultural Policy Framework ( NAESI) projects (PSF water monitoring data used with NAESI watershed modelling, NAESI performance standards used to create Canadian Council of Ministers of the Environment (CCME) water quality guidelines). Showcased PSF achievements at national and international venues in order to facilitate the exchange of information that will help achieve PSF objectives and use of this information to inform decision makers and Canadians. Presented PSF at the Society of Environmental Toxicology and Chemistry ( SETAC) and the Aquatic Toxicity Workshop at special session on Pesticides Presented PSF to Senior EC management. Several meetings were held between senior management at EC, PMRA and AAFC in an ongoing effort to further efficiencies and coordination between departments. EC hosted a workshop (2007 EC Pacific Yukon Region (PYR) Pesticide Information Exchange) pertaining to communicating pesticide information in the PYR. EC hosted a water monitoring workshop in February 2008 to present current data and to better link with PMRA needs. Assisted the PMRA in the planning and hosting of the 6NR workshop on Protection of Terrestrial and Aquatic Habitats. Several EC escperts were invited as key participants. Met with industry to promote development of Canadian Environmental Quality Guidelines of pesticides. Currently chairs the CCME pesticide sub-committee involving key partners (PMRA, industry and the jurisdictions). Largely through EC's efforts, the sub-committee has proposed a revised water quality guideline for chlorpyrifos and has successfully implemented a streamlined approach for pesticide guideline approval. Drafting of new 6NR MOU and work plans to establish mechanisms that facilitate the exchange of scientific information and advice and to promote strong working relationships among six federal partners. In terms of publications, EC scientists continue to produce a number of scientific peer-reviewed publications and presentations.
HC (PMRA)	(f) Linking pesticide regulation and research.	$4.2M	$0.8M	$0.8M	Identify PMRA's research and monitoring priorities annually and communicate to 5NR partners through regular meetings and other avenues as needed. Facilitate discussion among the 5NR on identifying actions to address specific priorities, including collaborative research. Discuss with the 5NR how the results of their research and monitoring are used in regulatory decisions to build better linkages between research and regulation. Facilitate the two-way communication and coordination between regulation and research between governments within Canada (through PMRA's FPT Committee) and internationally as well as with the private and academic sectors, through presentations linking research and regulation at regional, national and international meetings.(e.g., through SETAC, CSA, IUPAC). To strengthen the framework in linking pesticide research and monitoring, develop a MOU amongst the 5NR on linking research to regulation. Continue to improve and expand the use of probabilistic risk assessments.	An integrated research and monitoring workplan was developed among the 6NR partners in 2007-2008. The process involved PMRA identifying the areas of research that would enhance its capacity to effectively regulate pesticides from the point of view of human and environmental health. Areas identified to date include monitoring levels of pesticides in the environment, effects of pesticides on the environment, the development and peer review of the science used in risk assessments of pesticides, and the development of risk reduction strategies. 6NR partners in turn identified the research initiatives to be undertaken over the next several years that would address some of these research gaps. Since many of the research and monitoring gaps identified by the PMRA are being undertaken by 6NR partners as ongoing initiatives, or as part of 3-4 year research cycles, the integrated workplan is considered a living document that will updated, as required, when priorities change among the participating 6NR partners. The PMRA tracks when results of research and monitoring are used in our regulatory decisions. When the results of 6NR research are pivotal in a regulatory decision the PMRA contacts the partner providing the information to confirm that the information is being used in an appropriate manner, that the results are being interpreted correctly, and to help identify possibilities for future research. In 2007-2008 the PMRA presented its methodologies and research needs at numerous regional, national and international meetings (e.g., OECD, NAFTA, PMRA FPT Committeee, Conferences, etc) . In addition, the PMRA made presentations to stakeholders explaining how research results are used in pesticide regulation. A 6NR MOU was developed in 2007-2008 and signed by the responsible Director Generals/ Executive Directors of the 6NR departments/agencies. This MOE clearly delineates the various roles and responsibilities of the partners with respect to information sharing and maintaining the confidentiality of unpublished materials. The MOU also establishes a DG level committee to coordinate an integrated approach to establishing research and monitoring priorities with the aim of strengthening pesticide regulation in Canada. A probabilistic risk assessment working group has been established within the PMRA. This group has and will continue to receive training in advanced risk assessment methods including probabilistic risk assessments. The group also has and will continue to meet with counterparts in other jurisdictions (EPA, EU) to exchange information, tools, and approaches for advanced risk assessments including the use of probabilistic methods. The working group will act as a resource to other scientists within the PMRA when advanced risk assessment methods are required
HC (PMRA)	(g) Conducting research to support the introduction of minor-use pesticides that pose a reduced risk to the environment.	$3.5M	$1.2M	$1.2M	Advance risk assessment methodologies (e.g., occupational exposure assessment) through research to support the harmonization of risk assessment methodology with international partners (US EPA; California Department of Pesticide Regulation). Develop/expand on crop grouping schemes to incorporate additional minor use crops (NAFTA/CODEX Initiative). This will facilitate dietary risk assessment of minor use crops. Validate recently updated agricultural data that are being used to develop crop field trials for setting Maximum Residue Limits on both major and minor use crops.	In 2007-08, the PMRA participated in meetings with international partners regarding data development for use in further estimating occupational exposures to pesticides. Mixer/loader/applicator exposure data was completed and submitted to the PMRA and other international regulatory partners for use in exposure assessments for agricultural workers. 4 crop grouping schemes were approved in 2007-08. Revisions to other crop grouping schemes are ongoing. Validation of the agricultural data was completed in 2007-08. A Regulatory Proposal was issued on Guidelines for the Registration of Low-Risk Biochemicals and other Non-Conventional Pesticides.
NRCan	(h) Research and monitor pesticides in the forest environment.	$3.5M	$0.5M	$0.3M	Review the final reports and publications of research work for four projects. Provide results to clients/stakeholders and PM RA. The completed research projects are: Potential environmental effects of imidacloprid as a systemic insecticide for control of exotic wood boring insect pests such as the emerald ash borer, Development of a biological treatment for control of root rot pathogen and impact on microbial biodiversity, Monitoring impacts of pest control products on key microbial communities of forest soils, Development and validation of "Spray Advisor"- A Decision Support System for aerial pesticide applications.	Reviewed final reports and publications and provided information to stakeholders and regulators through the 2007 National Forest Pest Forum, SERG-International (Feb 2008) workshops, etc. The potential environmental effects were conducted on Neem (Azadirachtin) as a systemic insecticide against the emerald ash borer. This was in place of imidacloprid, due to urgency and availability. The results of this study indicate that applications of azadirachtin do not have deleterious effects on aquatic and terrestrial microbial species. An updated final report is pending receipt of additional data on actual azadirachtin concentrations from collaborators. Current work on the prevention of annosus root rot with the pathogenic fungus Phlebiopsis gigantea is at the licensing stage. The Enhanced Pest Management Methods (EPMM) funding was focused on environmental impacts of systemic insecticides for invasive insect control. The latest insecticide was azadirachtin. The experimental work is completed and the data have been analysed. The previous work on imidacloprid produced four scientific journal papers and four presentations at conferences. The technological developments and scientific knowledge generated through the "Spray Advisor" project are captured through reports to funding agencies, journal publications and through direct technology transfer initiatives including a full demonstration site and workshops targeted for transfer of the Decision Support System (DSS) to foresters, aerial applicators and regulators.

II. Developing and implementing commodity specific risk reduction strategies

AAFC	(a) Commodity based risk reduction strategies.	$19.3M	$2.5M	$1.7M	Stakeholders engaged in priority setting and further development of 3 new commodity specific pesticide risk reduction strategies Up to 10 of the published profiles updated and re-published on public website Collection of data through regional focus groups for the purpose of updating profiles and tracking success of the program. Continue funding implementation projects from 2005 call for proposals Fund implementation projects funded through the 2006 call for proposals Analysis and publication of results from Crop Protection Survey Collect data through the Crop Protection Survey Continued implementation of AAFC/PMRA joint communication plan	Redirection in work plan of PMRA Risk Reduction team in the area of strategy work for FY 07-08 necessitated refocusing of AAFC Risk Reduction Program efforts in strategy development. The issue-specific strategies under development were evaluated and prioritized in light of PMRA efforts on transition strategies, and 9 were identified for focussed efforts. (Reduced reliance on OPs through alternative technologies: low bush blueberry insect pests, field crop insect pests, grape & tree fruit insect pests, wireworm in potato, wheat & corn; Biopesticide strategy for soil insect pests; White mould in various crops; Apple scab; Late blight of potato; Fusarium headblight of wheat). Updates of 7 profiles were completed and published. Data were collected through focus groups for 4 pulse crops (lentil, chickpea, dry bean, dry pea) Final reports received and reviewed for 13 projects completed as of March 2007. Project outputs include: large scale implementation of classical biological control for leafy spurge management; BMP guidelines and IPM systems for key disease and insect pests; Pesticide Free Production systems for field crops; mechanical tool for ECB control in potato crops. Continued funding and oversight of 19 projects initiated April 2006 or earlier. 89 % of projects have met milestones as of March 2008. Established statements of works and initiated funding and oversight of 19 new projects selected under Nov 2006 call for Proposals Analysis of results of Crop Protection Survey underway, with results to be published FY 08-09. No new data collected through Crop Protection Survey due to resource constraints Communication with stakeholders continued in context of AAFC/PMRA joint communication plan
HC (PMRA)	(a) Commodity based risk reduction strategies (RR).	$25.7M	$4.0M	$4.0M	Planned staffing actions in 2006-2007, indeterminate positions. Ongoing consultations with stakeholders. Work share with other government departments and 5NRs. Work on pesticide risk indicator: consult, build and validate database. Determine, together with AAFC, the next groupof priority crops for the program. Workshare with AAFC on new crop profiles and issue documents and finalising existing documents. Work with AAFC to define the scope of the program for each commodity, including ways to increase participant buy in and the development of an exit strategy which will promote maintenance of the stakeholder groups after cessation of government involvement. Risk reduction strategies have been developed for pulse crops and canola. A long term fireblight management strategy has been developed for apples. Steering committee and working groups have been meeting to explore potential solutions to identified priorities and to implement steps to resolve these issues. Substantial progress has been made in the development of strategies and the formation of steering committees to lead the strategies for a number of other crops, particularly, greenhouse vegetables, grape, peach, potato, soybean, strawberry and apple. Working groups have been set up and are building action plans to achieve solutions for identified issues. Consultations will be held this year with stakeholders of raspberry and blueberry (high bush and low bush), followed by steering committee meetings in March. In addition to work on commodity based risk reduction strategies, PMRA is working with stakeholders to develop strategies to address issues in a number of nonagricultural sectors, including forestry, the heavy duty wood preservatives industry, ornamental and landscaping, structural pest control, food processing, storage pest control and honey production.	Staffed 2 positions. The Pesticide Risk Reduction Program held consultations with stakeholders of priority crops to gain national consensus on key pest management issues for lowbush blueberry and highbush blueberry, carrot and onion, raspberry, sweet corn and strawberry. A total of 11 Steering Committee meetings were held with 9 of the priority crops and 32 working group meetings were held to build strategies toward low risk solutions for key grower issues. As part of this strategy work, PMRA facilitated communication between stakeholders (registrants, researchers, grower organizations and provincial government) and the agency on 76 products, including 16 biopesticides and 19 low risk pesticides. Through joint work with AAFC under this program a number of new reduced risk pest management practices and products are now available to agricultural growers. Risk indicator database environment completed at 100%. Database health completed at 95%. 100% expected mid May 08. Model update done at 100%, Technical publication at 70% completion expected end of May and public documentation at 100% The PMRA provided technical expertise and background information on the regulatory status of products for 15 focus group discussions and held focus group discussions for canola. Information from these focus groups was used by AAFC to develop new crop profiles and update information in existing crop profiles. Linkages were strengthened with a number of stakeholders, including growers and their associations, provincial extension, registrants, researchers and other national and international government departments through work under the Pesticide Risk Reduction Program and joint work and participation in a number of areas, such as the On Farm Food Safety Program, Canadian General Standards Board Committee on Organic Agriculture and NAFTA. These linkages help to improve stakeholder confidence is pesticide regulation through collaborative efforts and greater understanding of the regulatory framework. The PMRA is working with the Environmental Protection Agency to coordinate and harmonize North American regulatory activities pertaining to playing field for North American trade of commodities affected by the phase-out of AZM. In addition, the PMRA has begun working with Canadian stakeholders to develop strategies to transition to lower risk products and management practices from key uses being phased out through the re-evaluation process. Work is progressing in collaboration with stakeholders on the registration of new alternative for the control of bed bugs, the development of a new CSA standard for HDWP, and of a new approach to efficacy based crop grouping for ornamentals.

III. Generation of data to support the registration of reduced-risk and minor-use pesticides for the agricultural and agri-food sector and reduced-risk pesticides and biopesticides for forestry

AAFC	(a) Improving access to agricultural minor-use pesticides, and reduced-risk pesticides for agricultural use.	$33.7M $12.0M A-base	$6.5M $2.0M A-base	$5.7M $2.0M A-base	AAFC national minor use priority setting workshop will be held with stakeholders to prioritize the 2008 minor use research requirements and to select the top 36 research priorities. AAFC will select up to an additional 20 joint AAFC/IR-4 research priorities for the 2008 research season. AAFC will consult with and solicit written support from the pesticide manufactures whose pesticides are chosen for these crop-pest research priorities. AAFC will complete and forward the initial 36 presubmission consultation requests (PSCR 3.1) to PMRA by Nov 24, 2007. These will be followed by the PSCRs for the joint AAFC/IR-4 projects by Jan 31, 2008. Subsequently, data requirements (DACO) for each pest-crop pair will be issued by the PMRA to AAFC (~97 days from receipt). AAFC will convert DACOs to study plans by January 2008 (for the initial 36) and by March 2008 for the remaining DACOs AAFC will assign trials (~400) to contractors and collaborating AAFC personnel across Canada. Good Laboratory Practice (GLP) quality assurance oversight will be provided by AAFC. Data generation will take place during the 2007 growing season followed by laboratory analysis of residues for priorities selected in 2006. Analysis of data from previous years research will occur throughout the year followed by the writing of final reports and submissions to PMRA. The PMRA normally provides a decision on use within 247 days. The total process takes approximately 36 months from priority setting until final report submission to PMRA. AAFC is targeting the completion of 40 MU submissions during the year.	The 2007-2008 Minor Use (MU) Priority Setting Meeting was delayed until April 2008 (2008-2009 FY); however, 38 priorities were selected. 19 joint AAFC/US MU projects were selected during the IR-4's planning meeting (Oct 31 - Nov 1, 2007). AAFC consulted with and solicit written support from the pesticide registrants whose pesticides were chosen for the crop-pest research priorities selected. As several of the priorities selected were with unregistered pesticides and the PMRA does not accept PSCR for unregistered pesticides, AAFC could not submit for all selected priorities. Draft study plans were prepared for all projects in which trial would be conducted in 2008 prior to the 2008 Field RFP (February 2008). Over 500 field and greenhouse trials were conducted in 2007. All residue trials respected GLP requirements without any significant observations. 45 AAFC MU projects were completed and submitted to either the registrant or PMRA during the 2007-2008 FY.
HC (PMRA)	(a) Improving access to agricultural minor-use pesticides, and reduced-risk pesticides for agricultural use.	$20.8M	$4.0M	$4.0M	Product evaluation work-review presubmission proposals from AAFC and provincial coordinators and issue data requirements. Register new minor crop uses, including minor use and reduced-risk products and uses. Harmonization work and regulatory projects-Joint Reviews in collaboration with the U.S. EPA, AAFC and U.S. Department of Agriculture IR-4 Program, further work on crop groupings and on Maximum Residue Levels (MRL) promulgation. Increase communication and provide feedback to AAFC to improve the quality and use of scientific rationales.	No. of D 3.1 Received 129 Passed 90 Reviewed 96 No. of D 3.2 Received 109 Passed 91 Reviewed 93 No. C6.3 Label Review Received 95 Reviewed 89 The PMRA registered 663 new minor uses through submissions for new or amended pest control products, including 546 food uses and 117 non-food uses, thus helping to reduce the technology gap which exists between Canada and its export markets. This gap was further reduced through the initiation of PMRA/EPA Joint Reviews/Registrations of minor use label expansions which resulted in the registration of the first joint label expansions. PMRA is working with the EPA and regulatory agencies in other jurisdictions to expand the use of joint reviews and work sharing for minor uses.
NRCan	(b) Develop and facilitate the use of reduced-risk pesticides and biological pesticides for forestry.	$4.1M	$0.5M	$0.4M	Review final reports of five projects funded for one year only, and plan strategy and priorities for future funding. NRCan will continue work to integrate and coordinate activities with the other 5NR partners and stakeholders. Collaborate in the development of the "National Forest Pest Strategy". The NRCan-CFS Minor Use Advisor hired under this fund will continue to work in collaboration with AAFC at the to facilitate registration of reduced risk/minor use pest control products against pest on outdoor woody ornamentals and forests. Coordinate and report on six projects for minor use pesticides in Canada. Support for the 2007 National Forest Pest Management Forum at the Ottawa Congress Centre. Support for a new round of forest projects on reduce risk pest control products.	Results of the following projects funded under NRCan pesticides program were: The synthetic pheromone (called fuscumol) of the brown spruce longhorn beetle was formulated in biodegradable Heron flakes, and release rates were quantified. A patent application was submitted for "fuscumol" aggregation pheromone of the spruce longhorn beetle. Development and testing pheromone formulations for use in early intervention pest management strategies of the spruce budworm - The spruce budworm pheromone product, "Hercon Disrupt Micro-Flake SBW", for suppression is nearing registration. A demonstration trial was designed to familiarize end- users with the spruce budworm pest management potential of the Disrupt Micro-Flake SBW formulation and the Hercon Pod dispersal system. The Development of a Bacillus thuringiensis product for control of sawflies - Efforts to establish a laboratory colony from field-collected Diprion similis sawfly larvae was unsuccessful due to the low availability of larvae in the field. Isolates from the culture collection were obtained and cultured spore-crystal suspensions are being held until there is a sawfly colony for bioassays. Calibration of a sex pheromone monitoring and trapping system for the blackheaded budworms - In 2007, the budworm populations were very low resulting in low trap catches and very low egg deposition. Therefore, the basic trap calibration could not take place and the project is terminated until higher population levels are found. However, the pheromone lures did prove effective in detecting low numbers of the budworms. Studies are underway on the use of the pathogenic fungus Beauveria bassiana against white pine weevil and other bark beetles. The team has developed an expertise in molecular and morphological identification of fungi. The Enhanced Pest Management Methods S&T Program (EPMM) is now integrated into the National Forest Pest Strategy. The NRCan-CFS Minor Use Advisor continued to collaborate with AAFC to facilitate registration of reduced risk pest control products against pest on outdoor woody ornamentals and forests. The Advisor is involved in 17 AAFC national minor use "A" priority projects - all forestry and ornamentals related 4 uses of pesticides have been registered and another 3 were submitted to the PMRA for final review. Provided financial and research support for the 2007 National Forest Pest Management Forum which consists of stakeholders, managers, regulators, and others interested in pest management. Presentations and posters were presented on projects funded under this program.
TOTAL		$154.96M	$27.5M	$23.843M

Results to be Achieved by Non-federal Partners: n/a

Contact Information:
Grace Lewis, Project Officer
Policy, Communications and Regulatory Affairs Directorate, PMRA
613-736-3592

Approved by:
Jason Flint, A/Director General
Policy, Communications and Regulatory Affairs Directorate, PMRA
613-736-3914

Date Approved: 21 July 2008

1. Name of Horizontal Initiative: Federal Tobacco Control Strategy 2007-2011

2. Name of Lead Department: Health Canada

3. Start Date: 2001

4. End Date: 2011

5. Total Federal Funding Allocation: $361.0 M

6. Description:

The Federal Tobacco Control Strategy (FTCS) establishes a framework for a comprehensive, integrated, and multi-faceted approach to tobacco control. It focuses on four mutually reinforcing components: protection, prevention, cessation and product regulation.

The FTCS 2007-2011 is driven by the Government's longstanding commitment to reduce the serious and adverse health effects of tobacco use. The Strategy is led by Health Canada (HC) and involves several federal partners.

7. Shared Outcome:

The goal is to reduce overall smoking prevalence from 19% in 2005 to 12% by 2011.
Objectives:

• Reduce prevalence of Canadian youth (15-17) who smoke from 15% to 9%;
• Increase number of adult Canadians who quit smoking by 1.5 million;
• Reduce prevalence of Canadians exposed daily to second-hand smoke from 28% to 20%;
• Examine the next generation of tobacco control policy in Canada;
• Contribute to global implementation of the WHO Framework Convention on Tobacco Control (FCTC); and
• Monitor and assess contraband tobacco activities and enhance compliance.

8. Governance Structure:

Resources for implementation of the FTCS were allocated to a number of departments and agencies. HC is responsible for regulating the manufacture, sale, labelling and promotion of tobacco products, as well as developing, implementing and promoting initiatives that reduce or prevent the negative health impacts associated with smoking.

Partner departments and agencies are:

• Public Safety Canada (PS) (formerly Public Safety and Emergency Preparedness Canada) - administers funding for monitoring levels of contraband tobacco activity. The Department also provides policy advice and support on smuggling issues and leads Canada's delegation that is negotiating an international protocol on illicit trade in tobacco products.
• Office of the Director of Public Prosecutions (formerly Department of Justice) - is responsible for monitoring federal fines imposed in relation to tobacco and other types of offences, and for enforcing and recovering outstanding fines.
• Royal Canadian Mounted Police (RCMP) - is responsible for enforcement of laws in relation to international movement of tobacco products including illicit manufacture, distribution or possession of contraband tobacco products.
• Canada Revenue Agency (CRA) (formerly Canada Customs and Revenue Agency) - is responsible for ensuring assessment and collection of tobacco taxes and monitoring tobacco exports.
• Canada Border Services Agency (CBSA) (previously part of former Canada Customs and Revenue Agency) - is responsible for monitoring and assessing the contraband tobacco market in Canada and internationally, as well as improving the administration of assessment and collection of new tobacco taxes on imported tobacco.

9. Federal Partners Involved in each Program	10. Names of Programs	11. Total Allocation for 2007-2011	12. Forecasted Spending for 2007-2008	13. Actual Spending in 2007-2008	14. Planned Results for 2007-2008	15. Achieved Results in 2007-2008
1. HC	FTCS	$284.2 M	$56.8 M	$55.1 M	See text below.	See text below.
2. PS	FTCS	$3.0 M	$0.6 M	$0.6 M	See text below.	See text below.
3. ODPP	FTCS	$11.2 M	$2.2 M	$2.1 M	See text below.	See text below.
4. RCMP	FTCS	$8.6 M	$1.7 M	$0.8 M	See text below.	See text below.
5. CRA Assessment and Client Services (previously Assessment and Collections) Excise and GST/HST Rulings Directorate/ Legislative Policy and Regulatory Affairs Branch	FTCS	$4.0 M ($54.0 M total allotment to CRA, includes $50.0 M to Customs/CBSA and $4.0 M to CRA)	$0.8 M ($10.8 M allocated between Customs/ CBSA ($10.0 M) and two CRA areas ($0.8 M)	$0.2 M $0.6 M	See text below.	See text below.
6. CBSA Intelligence Directorate and Travellers Division	FTCS	$28.5 M for activities plus $21.5 M for loss of duty-free licensing	$5.7 M for activities plus $4.3 M for loss of duty-free licensing	$5.7 M for activities plus $4.3 M for loss of duty- free licensing	See text below.	See text below.
Total 2007-2011		Total $361.0 M	Total $72.2 M	Total $69.4 M

16. Comments on Variances:

As part of the September 2006 expenditure review, the HC, First Nations and Inuit Health Branch portion of the FTCS funding was eliminated. This reduced HC's overall budget by $8.3 M in 2007-2008, $10.8 M in 2008-2009 and ongoing.

17. Results Achieved by Non-federal Partners:

Through funding provided by the FTCS, the Akwesasne Mohawk Police (AMP) have been able to increase their surveillance and monitoring of tobacco smuggling. The AMP have reported participating in Joint Forces Operations that have led to charges and seizures, including tobacco. All tobacco seizures made by the AMP are turned over to the RCMP for prosecutions and reported through the RCMP Cornwall Detachment.

The AMP have enhanced their capacity in intelligence development and specialized criminal investigation techniques through work with Canadian and U.S. law enforcement partners in the Integrated Border Enforcement Team in the Cornwall area. In addition, they have had an opportunity to lead and participate in Joint Forces Operations related to cross-border criminal activities and organized crime.

18. Contact Information:

Brenda Paine
(613) 941-9826

19: Approved By:

20. Date Approved:

	14. Planned Results for 2007-2008	15. Results Achieved in 2007-2008
1. Health Canada	1) Protecting Canadians from inducements to smoke through development of regulations to restrict the display at retail of tobacco products, branded accessories and signs on the availability and price of tobacco products. 2) Toxicological testing of tobacco products and bio-markers of exposure to tobacco products will be undertaken. 3) The FCTS will combine an ongoing evaluation strategy built on its approved Results-based Management Accountability Framework, with cost-effectiveness studies and econometric modelling. 4) Health Canada will explore innovative risk assessment methodologies to assess whether modified tobacco products are more or less toxic than products now on the market. 5) The signing of the WHO FCTC is an opportunity to ensure that international policy and Canada's policy are mutually reinforcing. 6) Monitor the impact of tobacco control initiatives through the Canadian Tobacco Use Monitoring Survey (CTUMS).	Provinces and territories enacted legislation banning display at retail, therefore, Health Canada did not continue its regulatory requirement. The Department undertook development work on bio-markers. Results will be available in 2010. Cost-effectiveness and econometric modelling for 2007-2008 was completed. A variety of products were looked at, including smokeless tobacco and cigars, and their toxicity against cigarettes was assessed. Like cigarettes, these products are mutagenic, cytotoxic, and genotoxic. Canada participated at WHO FCTC Conference of Parties and assisted other countries with their implementation of the FCTC. Results from the CTUMS for data collected between February and June 2007, reveal that 19% of the population (just under five million Canadians) aged 15 years and older were smokers. Among youth aged 15-19 years, 15% were current smokers. The prevalence of smoking among young adults aged 20-24 years was reported at 24%.
2. PS	Enhanced partnership arrangement with Akwesasne Mohawk Police.	See Results Achieved by Non-federal Partners above. In February 2008, Public Safety led Canada's delegation that participated in the first International Negotiating Body to develop a protocol on illicit trade in tobacco products. The objective is to develop a protocol, for adoption in 2010, that will create international standards to curb illicit trade in tobacco products.
3. ODPP	1) Prioritize fine recovery for fines ordered under cigarette contraband and tobacco sales to youth convictions. 2) Increase the number of fines satisfied by a minimum of 15 percent. 3) Analyze trends and prioritize the most effective and least costly recovery methods. 4) Prioritize payment of fines over incarceration, but enhance enforcement measures when appropriate. 5) Reduce costs to client departments in regards to fees incurred for Crown counsel attending motions for extensions in the delay to pay a fine.	The Fine Recovery Program continued to focus on these priorities, adjusting its enforcement focus in accordance with changes in the volume and nature of contraband activity, resultant convictions and fines ordered. 2) Rigorous and effective pursuit of outstanding fines in all regions resulted in a significant increase in amounts collected. 3) Priority is given to the most cost-effective methods of recovery, in particular, demand letters, telephone calls and negotiating payment agreements. In addition, progress was made toward a new tool for more efficient fine collection in partnership with CRA (refund set-off). 4) Emphasis was placed on fine payments rather than incarceration, including through use of negotiated payments and civil measures to seize assets when appropriate and necessary. 5) Crown counsel assigned to Fine Recovery Units continued to oppose all motions for payment extensions heard at court, resulting in a decrease in counsel fees to client departments for these hearings, and contributing to greater compliance with fine orders.
4. RCMP	1) Provide the Department of Finance, HC and other partners with updates on illicit tobacco trade activities. 2) The RCMP monitors illegal activities at and along the Canada/U.S. border through use of strategic detection and surveillance equipment. 3) Expand cooperation with international and national law enforcement partners.	1) Regular reports on the illicit tobacco situation were provided to Finance and HC. Reports are provided to other partners and key Ministerial entities upon request. Tobacco analysts attend regular meetings to brief the Department of Finance and provided the Department with the 2006 Strategic Intelligence Assessment. The 2007 Strategic Intelligence Assessment will be submitted in August 2008. Release of the RCMP 2008 Contraband Tobacco Enforcement Strategy, whose overall goal is to nationally reduce the availability of and decrease the demand for contraband tobacco, while supporting government health objectives. 2) Improved border security through use of sophisticated technology which permits detection and monitoring of illegal border intrusions, resulting in vital intelligence and eventual enforcement actions. Joint Canada/U.S. Shiprider Operation in 2007 in Cornwall/St. Lawrence Seaway region targeted cross-border smuggling and intelligence gathering. 3) Co-hosted the 2008 Joint U.S./Canada Tobacco Diversion Workshop with American and Canadian agencies. Broad participation in the Interprovincial Tax Investigators Conference focused on contraband tobacco and other illicit tobacco issues. Involved as participant with the Department of Public Safety Task Force on Contraband Tobacco to identify potential concrete measures that will disrupt and reduce trade in contraband tobacco. Participated in 2008 at an information-sharing workshop with the U.S. Alcohol, Tobacco, Firearms and Explosives Agency on current contraband tobacco investigations. Participated in February 2008 at the WHO-FCTC negotiations on a Protocol for Tobacco Control.
5. CRA	1) Systems adjustments and maintenance to reflect legislative changes that affect rates, reporting and refunds, as well as program changes to include duty-free shops and ships' stores.	1) Systems and reporting capabilities were maintained as required to meet program requirements.
Assessment and Benefit Services (previously Assessment and Collections)	2) Verify export activity.	2) The Tobacco Enforcement Verification Program (field) effectively monitored movement of exported tobacco products.
Excise and GST/HST Rulings Directorate/ Legislative Policy and Regulatory Affairs Branch	3) Ensure compliance with legislative requirements imposed on the manufacture, sale and possession of tobacco products in Canada.	3) Excise duty officers performed audits and regulatory reviews of licensed manufacturers to ensure compliance with legislative requirements.
	4) Work with stakeholders to monitor and assess effectiveness of measures used to reduce contraband tobacco.	4) Participated on a number of committees dealing with monitoring and control of tobacco products, including those dealing with interprovincial issues. Co-hosted the Tobacco Diversion Workshop with Canadian and U.S. participation.
	5) Provide Department of Finance with advice to assist in development of policy and determination of the magnitude and timing of future tax increases.	5) Met with Department of Finance as required. Provided industry and product information.
	6) Support RCMP enforcement activity.	6) Supported RCMP enforcement activity by providing information about specific tobacco transactions as well as expert testimony and affidavits.
6. CBSA Intelligence Directorate	1) Provide advice to Department of Finance on matters that will impact the future tax structure on tobacco.	1) Attended monthly meetings with Department of Finance and partners to discuss and serve as a reference for questions on tobacco issues.
	2) Monitor and report on the contraband tobacco situation in Canada.	2) Provided monthly analysis of the national contraband situation by compiling reports received from the Regions. Partnered with RCMP in annual risk assessment of the nature and extent of tobacco contraband activity. Coordinated development of tobacco intelligence in the Regions.
	3) Expand cooperation with international and national law enforcement partners.	3) Actively participated in Joint Force Operations with law enforcement partners across the Regions. Co-hosted the Joint U.S./Canada Tobacco Diversion Workshop 2008 with American and Canadian agencies. Developed and maintained contact with international tobacco enforcement personnel.
Travellers Division	Collection of tobacco duties imposed on personal importations of returning Canadians.	CBSA front-line officers collected duties and taxes from previously exempted personal importations of tobacco.

Table 9: Sustainable Development

1) Health Canada's Sustainable Development Strategy (SDS) Goals

Health Canada's new Sustainable Development Strategy (SDS) for 2007-2010 A Path to Sustainability builds on the success of the previous strategy, maintaining identical themes;

Theme 1: Helping to create healthy social and physical environments.

Theme 2: Minimizing the environmental and health effects of the Department=s physical operations and activities.

Theme 3: Integrating sustainable development into departmental decision-making and management processes and advancing the social pillar of sustainability.

Under theme one are 37 targets relating to clean air, clean water, sustainable communities, protection of the environment and human health and food safety. Under theme two are 11 targets on fleet management, building energy, procurement, training, business travel and environmental stewardship. Under theme three are 3 targets relating to the integration of SD principles into decision making. For each target there are associated outputs and outcome measures.

2) Federal Sustainable Development Goals

To strengthen coherence and accountability across departmental SDS's, six government wide, long term sustainability goals were developed in a process led by Environment Canada. Where possible, departments were asked to align their targets to the federal goals. The design of Health Canada's strategy underlines our commitment to this coordinated federal approach: 40 of our 51 targets are aligned to federal goals.

Long term sustainability goals

Federal Goal	Number of corresponding HC Targets
I) Clean and secure water	7
II) Clean air	4
III) Reduced green house gas emissions	8
IV) Sustainable communities	17
V) Sustainable use of natural resources	1
VI) Improved decision making for SD	3

3) Departmental Expected Results, Actual Results and Measures for 2007-08

Our strategy extends over a three year period ending March 31, 2010. Each target has its own timeline for completion, some in the first year, some in the second and so forth. Some targets extend beyond the three year time frame. Below is a select list of targets by theme that were anticipated to be completed or have made significant progress by the end of the 2007-08 period.

Theme 1: Helping to create healthy social and physical environments.

Expected Results	Actual Result & Measures
Target 1.2.2: Starting April 2007, development and application of water management plans by Health Canada to reduce the risks to health on passenger conveyances. Supports Federal Goal I	Health Canada has developed and applied water management plans to reduce the risks to health on passenger conveyances. Potable Water Management Plans were approved and implemented with 9 major Canadian airline carriers, representing 80% of the Canadian industry.
Target 1.2.7: Starting April 2007, HC will coordinate tools to assist and support federal drinking water purveyor departments. Supports Federal Goal I	Health Canada has coordinated tools to assist and support federal drinking water purveyor departments, including a federal information sharing network supporting increased awareness and collaboration.
Target 1.3.1: By March 2008, Health Canada commits to promoting sustainable development and environmental management via the distribution of an awareness package to all nursing stations across the country. Supports Federal Goal IV	In 2007/08, "Taking Action for Sustainable Communities" fact sheets were distributed to all regions with nursing stations and the fact sheets were then distributed to 63 nursing stations across the country.
Target 1.3.3: By March 2010, Health Canada commits to conducting phase one environmental site assessments and environmental compliance audits at all health centres to identify and assess environmental issues as part of a broader campaign to reduce environmental and health risks at health facilities. Supports Federal Goal IV	In 2007/2008, concurrent phase one environmental site assessments and environmental compliance audits were completed at 45 Health Centres located across the country and subsequently final reports outlining the findings were developed.
Target 1.3.8: PMRA will encourage the Canadian public to report pesticide incidents by implementing a process for voluntary incidents reporting by 2007. Supports Federal Goal IV	In 2007-08 Health Canada encouraged the Canadian public to report pesticide incidents by implementing a process for voluntary incident reporting. Thus far, 1,100 incidents were reported by registrants and a web-based voluntary reporting form was recently posted on the web.
Target 1.3.12: Based on the results of CEPA categorization process, HC will undertake 5 risk management strategies from December 2006-July 2007 with the aim to complete approximately 15 risk management strategies annually thereafter to 2010. Supports Federal Goal IV	Health Canada has prepared Risk Management Scopes for substances used in the Chemical Management Plan, based on the results of Canadian Environmental Protection Agency categorization process.

Theme 2: Minimizing the environmental and health effects of the Department's physical operations and activities

Expected Results	Actual Result & Measures
Target 2.2.1: By March 2008, Health Canada commits to conducting energy audits at two health facilities to model energy fluxes in order to identify energy saving options. Supports Federal Goal III	In 2007/2008, energy audits were conducted at three health facilities subsequently final reports outlining the findings were developed.
Target 2.4.1: HC will join with other government departments and the Canada School of Public Service to design and deliver new Government of Canada Sustainable Development training material. Supports Federal Goal VI	2007-08 saw the development and launch of the first corporate SD training course at the Canada School of Public Service.  Health Canada lead the ten department initiative of the Interdepartmental Network on Sustainable Development Strategies (INSDS) to develop the curriculum. Over 50 analysts and planners have already taken the course
Target 2.6: By April 2008 Health Canada will develop a policy on responsible use of paper and a supporting action plan for implementation at the departmental level. Supports Federal Goal V	The policy on the responsible use of paper has received approval and will be presented at the next Departmental Executive Council-Operations meeting for the final approval.

Theme 3: Integrating Sustainable Development into Departmental Decision-Making and Management Processes and Advancing the Social Pillar of Sustainability

Expected Results	Actual Result & Measures
Target 3.1.1: By the end of 2008, as a pilot, HC will apply a sustainable development lens to select policies and programs. Supports Federal Goal VI	During 2007-08 a draft SD lens for assessing policies and plans from an SD perspective was developed and piloted.  The pilot was conducted on two files in the Health Policy Branch with complex social and economic dimensions. The lens was also informally piloted on early drafts of the Health Canada Science and Technology Strategy.
Target 3.1.2: By the end of 2008, Health Canada will convene a workshop on the social aspect of sustainable development to help frame SDS V.	An initial round of internal consultations for SDS V was conducted in early 2008 on topics including gender, vulnerable populations and global health security. Approximately 50 staff participated.

Table 10: Response to Parliamentary Committees and External Audits

The Common Drug Review - HESA Report released December 12, 2007; federal Response tabled April 8, 2008

Committee members heard testimony on the Common Drug Review's performance and mandate, from the pharmaceutical industry, patient groups, FPT governments, health professionals, academics, and CADTH officials. The Committee's report, released in December 2007, was generally positive about the role that the CDR plays in the public formulary listing process, while recognizing areas for improvement. The Committee made five recommendations pertaining to the issues of accountability, transparency, public involvement, appeals, and special processes for select types of drugs. The Committee recognized that the federal government is only a part owner of the CDR and as such called on the federal government to work with its PT counterparts to adress the recommendations. The federal response was tabled on April 8, 2008, in which the federal government acknowledged the importance of the issues raised in the report, and committed to discussing the report's recommendations with participating PTs, the CDR, and other stakeholders as appropriate. The response outlined federal perspectives on the recommendations, as a basis for those discussions.

Link to Report and Response

Table 11a: Internal Audits

1. Name of Internal Audit	2. Audit Type	3. Status at 08/03/31	4. Completion Date	5. Electronic Link to Report
Mental Health and Addictions Program (NNADAP)	Performance	Complete	March, 2008	To be Posted
Workplace Health - Public Health Program	Performance	Complete	November, 2007	To be Posted
Health Canada initiative for Government On Line - SSDUE II	Performance	Complete	November, 2007	To be Posted
G & C Centres of Expertise	G & C	Complete	March, 2008	To be Posted
Risk-Based Controls - Acquisition Cards	Monitoring	Complete	November, 2007	To be Posted
Risk-Based Controls - Petty Cash	Monitoring	Complete	November, 2007	To be Posted
Risk-Based Controls - Disclosure of Gs & Cs	Monitoring	Complete	September, 2007	To be Posted
Risk-Based Controls - Disclosure of Reclassifications	Monitoring	Complete	March, 2008	To be Posted
Risk-Based Controls - Overtime	Monitoring	Complete	November, 2007	To be Posted
Risk-Based Controls - Leave	Monitoring	Complete	March, 2008	To be Posted
Data Integrity - G & C System / Lotus Notes	Performance	In Progress	April, 2008	To be Posted
Data Integrity - G & C System / MCCS	Performance	In Progress	April, 2008	To be Posted
Quality Assurance Process for Recipient Audits	G & C / Monitoring	In Progress	April, 2008	To be Posted
Canadian Institute for Health Information (CIHI)	G & C	In Progress	June, 2008	To be Posted
The Way Forward Initiative - An enterprise Approach for IT	Monitoring	In Progress	June, 2008	To be Posted
Data Integrity - Standard Payment System for Internal Settlements (SPSIS)	Performance	In Progress	June, 2008	To be Posted
Data Integrity - Acquisition Card / Commitment System - (APICS)	Performance	In Progress	June, 2008	To be Posted
HR Strategies or Recruitment and Retention	Performance	In Progress	June, 2008	To be Posted
Risk-Based controls - Training and Conference Attendance	Monitoring	In Progress	June, 2008	To be Posted
Food Safety Program	Performance	In Progress	September, 2008 (est.)	To be Posted
Dental Benefits	Performance	In Progress	September, 2008 (est.)	To be Posted
Data Integrity - Health information & Claims Processing system (HICPS)	Performance	In Progress	September, 2008 (est.)	To be Posted
Electronic Health Information System (Infoway)	G & C	In Progress	September, 2008 (est.)	To be Posted
Canadian Health Services Research Foundation (CHSRF)	G & C	In Progress	September, 2008 (est.)	To be Posted
Values and Ethics	Performance	In Progress	September, 2008 (est.)	To be Posted
Risk Management	Methodology	In Progress	December, 2008 (est.)	To be Posted
Biologic and Genetic	Performance	In Progress	December, 2008 (est.)	To be Posted

Table 11b: Evaluations

Name of Evaluation	Program Activity	Evaluation Type	Status	Completion Date	Electronic Link to Report
Improving access to health services for Official Languages Minority Communities (G&C)	1.1 Canada Health System 1.1.2 Official Language Minority Community Development	Formative	Completed	December 2007	Link to Treasury Board of Canada Secretariat Audit and Evaluation Database
Improving access to health services for Official Languages Minority Communities (G&C)	1.1 Canada Health System 1.1.2 Official Language Minority Community Development	Summative	Ongoing
Primary Health Care Transition Fund (G&C)	1.1.3 Health System Renewal	Summative	Completed	April 2008
Health Care Strategies and Policy Grant and Contribution Program (G&C)	1.1.3 Health System Renewal	Summative	Completed	January 2008
Women's Health Contribution Program (2003-2004 to 2007-2008) (G&C)	1.1.5 Women's Health	Summative	Ongoing
International Health Grants Program (G&C)	1.3 International Health Affairs	Summative	Completed	February 2008
Canada's Access to Medicine Regime (Implementation Focussed Evaluation of Health Canada's Responsibilities)	2.1 Health Products 2.1.1 Pharmaceutical Human Drugs	Implementation	Completed	April 2008
Human Drugs	2.1.1 Pharmaceutical Human Drugs	Strategic	Ongoing
Therapeutics Access Strategy	2.1.1 Pharmaceutical Human Drugs	Formative	Ongoing
Canadian Regulatory System for Biotechnology	2.1.2 Biologics and radiopharmaceuticals	Summative	Completed	February 2008
Departmental Performance report on Genomics Research and Development	2.1.2 Biologics and radiopharmaceuticals	Formative	Completed	December 2007
Natural Health Products	2.1.5 Natural Health Products	Strategic	Ongoing
Food Safety and Nutrition Quality	2.2.1 Food Borne Pathogens 2.2.2 Food Borne Chemical Contaminants 2.2.3 Novel foods	Strategic	Ongoing
Border Air Quality Strategy	3.1 Sustainable Environmental Health 3.1.2 Air Quality	Summative	Completed	February 2008
Federal Contaminated Sites Action Plan	3.1.5 Contaminated Sites	Formative	Ongoing
Federal Drinking Water Compliance Program	3.3.1 Public Service Health	Evaluation	Ongoing
First Nations Inuit - Tobacco Control Strategy	4.1 First Nations and Inuit Health Programming and Services 4.1.1 First Nations and Inuit Community Programs	Implementation	Completed	March 2008
Aboriginal Diabetes Initiative, Phase One, Results of an Evaluation 1999-200 to 2004-2005	4.1.1 First Nations and Inuit Community Programs	Evaluation	Completed	March 2008
Children and Youth (Cluster) (includes G&C)	4.1.1 First Nations and Inuit Community Programs	Strategic	Ongoing
First Nations Water Management Strategy	4.1.2 First Nations and Inuit Health Protection and Public Health	Summative	Completed	January 2008
Communicable Disease Control (Cluster) (includes G&C)	4.1.2 First Nations and Inuit Health Protection and Public Health	Strategic	Ongoing
First Nations and Inuit Home and Community Care Program	4.1.3 First Nations and Inuit Primary Care	Summative	Ongoing
First Nations and Inuit - Integration and Adaptation of Health Services	4.1.5 Governance and Infrastructure Support to First Nations	Integration Pilot Projects Evaluation	Completed	February 2008
Post Doctoral Fellowship Program (G&C)	Internal Services 2.1 Science Policy and Management	Summative	Ongoing
Expenditure Review Reductions and their impact on Health Canada	Internal Services 4. Financial Management Services	Evaluation	Ongoing
Contracting for Professional and Special Services in Health Canada	Internal Services 4.Financial Management Services	Evaluation	Ongoing
Electronic Link to Evaluation Plan: N/A

Table 12: Travel Policies

Comparison to the TBS Special Travel Authorities

Health Canada follows and uses the TBS Special Travel Authority Parameters.

Comparison to the TBS Travel Directive Rates and Allowances

Health Canada follows and uses the TBS Travel Directive Rates and Allowances.

Table 13: Financial Statements

Statement of Management Responsibitliy

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 Health Canada's management. These financial statements have been prepared by management in accordance with accounting standards issued by the Treasury Board of Canada Secretariat which are consistent with Canadian generally accepted accounting principles for the public sector.

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 Health Canada's financial transactions. Financial information submitted to the Public Accounts of Canada and included in Health Canada's Departmental 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 divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout Health Canada.

Management is supported by the Departmental Audit Committee, which ensures that the Deputy Minister has independent and objective advice, guidance and assurance as to the adequacy of risk management, control and accountability processes. Currently, the Committee is comprised of the Deputy Minister (Chair) and four members external to the Government, one of them being the vice-chair.

The financial statements of Health Canada have not been audited.

 

 

Statement of Operations (Unaudited) - (in thousands of dollars)

	2008						2007
Expenses	First Nations and Inuit Health	Health Policy, Planning and Information	Health Products and Food	Healthy Environments and Consumer Safety	Pest Control Product Regulation	Total	Total
Transfer payments	1,010,464	294,311	8,740	28,361	-	1,341,876	1,555,641
Salaries and wages	283,713	52,061	252,171	192,180	53,844	833,969	805,186
Utilities, material and supplies	413,985	2,945	18,011	23,528	2,723	461,192	451,965
Professional and special services	314,381	11,154	44,785	62,495	9,033	441,848	430,972
Travel - non-insured health patient	128,922	-	-	-	-	128,922	122,676
Accommodation	20,324	3,894	18,132	12,534	3,719	58,603	52,223
Purchased repair and maintenance	17,099	2,742	11,426	13,086	2,291	46,644	38,070
Travel and relocation	24,715	2,547	6,620	9,629	1,078	44,589	37,137
Information	7,588	1,246	5,008	8,486	631	22,959	26,984
Communications	11,889	990	3,600	5,125	921	22,525	22,773
Amortization	6,325	3	6,994	6,513	242	20,077	21,134
Bad debts	5,895	213	704	743	141	7,696	623
Rentals	1,855	290	980	998	187	4,310	4,377
Other	1,354	54	721	398	19	2,546	1,021,150
	2,248,509	372,450	377,892	364,076	74,829	3,437,756	4,590,911
Revenues
Sales of goods and services
Services of a regulatory nature	-	-	24,299	50	4,375	28,724	25,754
Rights and privileges	-	-	18,918	48	3,646	22,612	21,308
Services of a non-regulatory nature	5,165	-	460	14,571	-	20,196	17,232
Lease and Use of Public Property	400	-	-	1	-	401	423
Revenues from fines	-	-	-	3,238	-	3,238	2,348
Interest	-	-	486	164	-	650	1,273
Other	498	150	3,606	2,423	1,245	7,922	8,017
	6,063	150	47,769	20,495	9,266	83,743	76,355
Net cost of operations	2,242,446	372,300	330,123	343,581	65,563	3,354,013	4,514,556

The accompanying notes are an integral part of the financial statements

Statement of Financial Position (Unaudited) - (in thousands of dollars)

Assets	2008	2007
Financial assets
Accounts receivable and advances (Note 4)	33,739	33,472
	33,739	33,472
Non-financial assets
Prepaid expenses	-	2
Tangible capital assets (Note 5)	113,078	108,116
	113,078	108,118
	146,817	141,590
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities	430,715	395,377
Vacation pay and compensatory leave	39,787	39,055
Deferred revenue	3,980	3,683
Employee severance benefits (Note 6)	141,398	134,294
Other liabilities (Note 7)	478,801	1,461,712
	1,094,681	2,034,121
Equity of Canada	(947,864)	(1,892,531)
	146,817	141,590

Contingent Liabilities (Note 8)
Contractual Obligations (Note 9)

The accompanying notes are an integral part of the financial statements

Statement of Equity (Unaudited) - (in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	(1,892,531)	(440,699)
Net cost of operations	(3,354,013)	(4,514,556)
Current year appropriations used (Note 3)	4,286,014	2,997,550
Revenue not available for spending	(15,844)	(12,597)
Change in net position in the Consolidated Revenue Fund (Note 3)	(65,999)	(14,173)
Services provided without charge by other government departments (Note 10)	94,509	91,944
Equity of Canada, end of year	(947,864)	(1,892,531)

The accompanying notes are an integral part of the financial statements

Statement of Cash Flow (Unaudited) - (in thousands of dollars)

Operating transactions

	2008	2007
Net cost of operations	3,354,013	4,514,556
Non-cash items:
Amortization of tangible capital assets (Note 5)	(20,077)	(21,134)
Gain (loss) on disposal of capital and non-capital assets	9	(31)
Services provided without charge by other government departments (Note 10)	(94,509)	(91,944)
Variations in Statement of Financial Position:
Increase in accounts receivable, advances and prepaids	265	6,114
Decrease (increase) in liabilities	939,440	(1,456,238)
Cash used by Operating Activities	4,179,141	2,951,323

Capital investment activities

	2008	2007
Acquisitions of tangible capital assets (Note 5)	25,100	19,542
Proceeds on disposal of tangible capital assets	(70)	(85)
Cash used by Investment Activities	25,030	19,457

Financing Activities

	2008	2007
Net cash provided by Government of Canada	(4,204,171)	(2,970,780)
Cash used by Financing Activities	(4,204,171)	(2,970,780)

The accompanying notes are an integral part of the financial statements

Notes to the Financial Statements (Unaudited)

1. Authority and purpose

The Department of Health was established effective July 12, 1996 under the Department of Health Act to participate in the promotion and preservation of the health of the people of Canada. It is named in Schedule I of the Financial Administration Act and reports through the Minister of Health. Priorities and reporting are aligned under the following program activities:

First Nations and Inuit Health
The First Nations and Inuit Health program activity objectives include improving health outcomes; ensuring availability of, and access to, quality health services; and supporting greater control of the health system by First Nations and Inuit. Together with First Nations and Inuit, the First Nations and Inuit Health Branch through its regional offices, delivers public health and community health programs on-reserve, these include environmental health and communicable and non-communicable disease prevention, and provision of primary health care services through nursing stations and community health centres in remote and/or isolated communities to supplement and support the services that provincial, territorial and regional health authorities provide. The First Nations and Inuit Health program activity also supports targeted health promotion programs for Aboriginal people, regardless of residency (e.g. Aboriginal Diabetes Initiative) as well as counselling, addictions and mental wellness services. The Non-Insured Health Benefits coverage of drug, dental care, vision care, medical supplies and equipment, short-term crisis intervention mental health services, and medical transportation is available to all registered Indians and recognized Inuit in Canada, regardless of residency.

Health Policy, Planning and Information
The Health Policy, Planning and Information program activity provides advice and support to the Minister, the departmental executives and to program branches in the areas of policy development, intergovernmental and international affairs, strategic planning, program delivery and review and the administration of the Canada Health Act. It also contributes to improved health outcomes for Canadians by promoting the increased and more effective use of information and communications technologies; by improving access to reliable health information; by providing policy research and analysis to support evidence-based decision-making; by working with official language minority communities and others to improve access to health services in the official language of choice; and by taking into account Canadians' privacy expectations with respect to health information.

Health Products and Food
Health Canada is responsible for a broad range of health protection and promotion activities that affect the everyday lives of Canadians. As the federal authority responsible for the regulation of health products and food, Health Products and Food Branch evaluates and monitors the safety, quality and effectiveness of thousands of drugs (human and veterinary), vaccines, blood and blood products, biologics and genetic therapies, medical devices and natural health products, as well as the safety of the foods Canadians eat. It also provides useful information about risks and benefits related to health products and food so that Canadians can make informed decisions about their health and well-being. Ongoing regulatory responsibilities span the life cycle of health products and food, from clinical trials to surveillance, compliance and enforcement. The branch is also facing challenges associated with rapid advances in technology and scientific breakthroughs that have resulted in the growth of an unprecedented number of biologics, genetic therapies and vaccines and genetically modified and other novel foods. These challenges are met by drawing on sound science and effective risk management in evidence-based decision-making. These disciplines are integrated into daily operations, and together with the branch health promotion activities, they enable timely access to safe and effective health products and food for Canadians.

Healthy Environments and Consumer Safety
Under this Program Activity, Health Canada addresses many elements of day-to-day living that have an impact on the health of Canadians. These include drinking water safety, air quality, radiation exposure, substance use and abuse (including alcohol), consumer product safety, tobacco and second hand smoke, workplace health, and chemicals in the workplace and in the environment. Health Canada is also engaged in other health and safety related activities, including the Government's public safety and anti-terrorism initiatives, inspection of food and potable water for the travelling public, and health contingency planning for visiting foreign dignitaries. The broad national mandate flows from legislation including the Food and Drugs Act, the Controlled Drugs and Substances Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, the Tobacco Act and others. Results are delivered through partnerships and by an active presence throughout every region of the country.

Pest Control Product Regulation
To help prevent unacceptable risks to people and the environment, Health Canada regulates the importation, sale and use of pesticides under the federal authority of the Pest Control Products Act (PCPA) and Regulations. The scope of work is extensive with more than 5,000 registered pesticides - including herbicides, insecticides, fungicides, antimicrobial agents, pool chemicals, microbials, material and wood preservatives, animal and insect repellents as well as insect and rodent-controlling devices. Ongoing regulatory responsibilities constitute the majority of the work under this program activity. Using internationally accepted approaches and protocols; Health Canada conducts science-based health, environmental and value assessments. Pesticides are registered only if the health and environmental risks are considered acceptable, and if the product is effective. Health Canada sets maximum pesticide residue limits for food commodities underthe Food and Drugs Act. Older pesticides are re-evaluated to determine if their use continues to be acceptable under current scientific approaches. Health Canada facilitates, encourages and maximizes compliance with the PCPA and the conditions of registration and also develops and promotes the use of sustainable pest management practices and products in cooperation with stakeholders.

The Department is responsible for the administration and enforcement of the following statutes and/or regulations, for which the Minister of Health is responsible for the Department and remains accountable to Parliament: Canada Health Act, Canadian Centre on Substance Abuse Act, Canadian Environmental Protection Act, Controlled Drugs and Substance Act, Department of Health Act, Fitness and Amateur Sport Act, Food and Drugs Act, Hazardous Materials Information Review Act, Hazardous Products Act, Patent Act, Pest Control Products Act, Pesticide Residue Compensation Act, Quarantine Act, Queen Elizabeth II Canadian Research Fund Act, Radiation Emitting Devices Act, Tobacco Act, and the Human Assisted Reproduction Act.

2. Significant accounting policies

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

Significant accounting policies are as follows:

(a) Parliamentary appropriations
The Department of Health is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the department 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 two bases of reporting.

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

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

(d) Revenues
Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. Types of revenues collected include medical devices, radiation dosimetry, drug submission evaluation, veterinary drugs, pest management regulation, product safety, hospital revenues resulting from payments for services provided to First Nations and Inuit Health hospitals, which are covered under provincial or territorial plans, and for the sale of drugs and health services for First Nations communities.

Revenues that have been received but not yet earned are disclosed as deferred revenues.

(e) Expenses
Expenses are recorded on the 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, salary and associated expenditures of legal services and the worker's compensation coverage are recorded as operating expenses at their estimated cost.

(f) Accounts receivable
Accounts receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain

(g) Employee future benefits

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

(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 department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department'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) Tangible Capital Assets
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Health Canada does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, immovable assets located on Indian Reserves and museum collections.

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

Amortization of capital assets

Asset class	Sub-asset class	Amortization Period
Buildings	Buildings	25 years
Leasehold improvements	Leasehold improvements	Lease term, max. 40 years
Machinery and equipment	Machinery and equipment	8-12 years
	Computer equipment	3-5 years
	Computer software	3 years
	Other equipment	10-12 years
Vehicles	Motor Vehicles	4-7 years
	Other Vehicles	10 years

(k) Prepaid expenses
Prepaid expenses include prepayments of operating expenses and transfer payments. Prepaid transfer payments consist of contributions advanced to recipients as of March 31 for which it is known that the costs will be incurred by the recipient in the subsequent fiscal year and the amount can be readily determined based on available information.

(l) Measurement uncertainty
The preparation of these financial statements in accordance with accounting policies issued by the Treasury Board of Canada 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, environmental liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could 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

Health Canada 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 Department has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences between net cost of operations and appropriations 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	3,354,013	4,514,556
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge by other government departments	(94,509)	(91,944)
Amortization	(20,077)	(21,134)
Employee severance benefits	(7,104)	(11,961)
Refund/adjustment of previous year's expenditures	34,864	40,390
Revenue not available for spending	15,844	12,597
Allowance for Bad Debt	(7,696)	(623)
Justice Canada legal fees	0	(11,785)
Vacation pay and compensatory leave	(731)	(1,918)
Other increase in liabilities (see Note 7)	986,302	(1,450,202)
	4,260,906	2,977,976
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
Acquisitions of tangible capital assets	25,100	19,542
Net change to accountable advances	8	32
Current year appropriations used	4,286,014	2,997,550

(b) Appropriations provided and used: (in thousands of dollars)

	2008	2007
Operating expenditures - Vote 1	1 880 453	1 805 445
Grants and Contributions - Vote 5	1 315 305	1 178 285
Statutory Amounts	1 205 147	106 333
	4,400,905	3,090,063
Less:
Appropriation available for future years	(281)	(235)
Lapsed appropriations	(114,610)	(92,278)
Current year appropriations used	4,286,014	2,997,550

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

	2008	2007
Net cash provided by Government	4,204,171	2,970,780
Revenue not available for spending	15,844	12,597
	4,220,015	2,983,377
Change in net position in the Consolidated Revenue Fund
Refund/reversal of previous year's expenses	34,864	40,390
Justice Canada legal fees	-	(11,785)
Variation in accounts receivable and advance	(267)	(6,112)
Variation in accounts payable and accrued liabilities	35,338	(7,341)
Other	(3,936)	(979)
	65,999	14,173
Current year appropriations used	4,286,014	2,997,550

4. Accounts receivable and advances

Health Canada records receivables from three main sources. As of March 31, amounts due under each of these categories are as follows:

Health Canada receivables (in thousands of dollars)

	2008	2007
Receivables from External Parties	34,432	21,623
Receivables from Other Government Departments	8,021	13,992
Employee Advances	112	106
Gross receivables	42,565	35,721
Less: Allowance for doubtful accounts on external receivables	(8,826)	(2,249)
Net accounts receivable and advances	33,739	33,472

5. Tangible capital assets

Capital assets - (in thousands of dollars)

	Opening Balance	Acquisitions	Disposals/ write-downs/ adjustments	Closing Balance
Land	1,181	-	-	1,181
Buildings	127,759	937	-	128,696
Leasehold improvements	19,273	47	-	19,320
Machinery and equipment	170,538	21,112	(341)	191,309
Vehicles	21,137	3,004	(850)	23,291
	339,888	25,100	(1,191)	363,797

Accumulated amortization - (in thousands of dollars)

	Opening Balance	Current year amortization	Disposals/ write-downs/ adjustments	Closing Balance
Buildings	81,712	4,960	0	86,672
Leasehold improvements	17,329	1,574	0	18,903
Machinery and equipment	119,351	11,620	(341)	130,630
Vehicles	13,380	1,923	(789)	14,514
	231,772	20,077	(1,130)	250,719

Tangible capital assets net book value - (in thousands of dollars)

	Opening Balance	Closing Balance
Land	1,181	1,181
Buildings	46,047	42,024
Leasehold improvements	1,944	417
Machinery and equipment	51,187	60,679
Vehicles	7,757	8,777
	108,116	113,078

Amortization expense for the year ended March 31, 2008 is $20,077 (2007 - $21,134).

6. Employee benefits

(a) Pension benefits
The department'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/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the department contribute to the cost of the Plan. The current and previous year expenses, which represent approximately 2.1 times (2.2 in 2006-07) the contributions by employees, amount to:

Current and previous year expenses - (in thousands of dollars)

	2008	2007
Expense for the year	81,684	77,728

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

Severance benefits - (in thousands of dollars)

	2008	2007
Accrued benefit obligation, beginning of year	134,294	122,332
Expense for the year	15,016	18,296
Benefits paid during the year	(7,912)	(6,334)
Accrued benefit obligation, end of year	141,398	134,294

7. Other liabilities

Other liabilities include allowances reflecting two statutory grants amounting to $471 million as announced in the Budget 2008 (Bill C-50: $110 million to Mental Health Commission of Canada) and Budget 2007 (Bill C-52: $361 million remaining to Canada Health Infoway to support the development of electronic health records). In 2007, other liabilities include allowances and contingencies reflecting $1.023 billion for Hepatitis C litigations and two statutory grants amounting to $430 million as announced in the Budget 2007; (Bill C-52: $400 million to Canada Health Infoway to support the development of electronic health records and $30 million to Rick Hansen Foundation for the Spinal Cord Injury Transitional Research Network).

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 department is obligated or likely to be obligated to incur such costs. Health Canada has identified sites where such action is possible and for which a liability has been recorded.

Approximate number of sites for which a liability has been recorded

2008	2007
14	18

Liability recorded for contaminated sites - (in thousands of dollars)

2008	2007
2,304	3,197

Health Canada's ongoing efforts 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 in the year in which they become known.

(b) Claims and litigation
In the normal course of its operations, Health Canada becomes involved in various legal actions. There are a number of claims for which a reasonable estimate of the potential liability cannot presently 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 estimated liability is accrued and an expense recorded on the department's financial statements.

9. Contractual obligations

The nature of Health Canada's activity results in multi-year contracts and obligations whereby the Department will be committed to make some future payments. Significant contractual obligations that can be reasonably estimated are as follows:

Contractual obligations - (in thousands of dollars)

	Transfer payments	Non-Insured Health Benefits	Total
2008-09	243,000	33,000	276,000
2009-10	235,000	26,000	261,000
2010-11	203,000	19,000	222,000
2011-12	193,000	19,000	212,000
2012-13 and thereafter	97,000	61,000	158,000
Total	971,000	158,000	1,129,000

10. Related party transactions

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

(a) Services provided without charge by other government departments:
During the year the department received without charge from other departments, accommodation, legal fees, worker's compensation and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the department's Statement of Operations as follows:

Services provided without charge by other government departments - (in thousands of dollars)

	2008	2007
Accommodation	41,238	34,914
Employer's contribution to the health and dental insurance plans	46,825	50,980
Worker's compensation costs	646	711
Legal services	5,800	5,339
	94,509	91,944

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

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

Accounts payable to other government departments and agencies - (in thousands of dollars)

2008	2007
24,371	18,941

11. Comparative information

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