ARCHIVED - RPP 2006-2007
Canadian Food Inspection Agency

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Section III: Supplementary Information

3.1 Organizational Information

The CFIA is headed by a President, who reports to the Minister of Agriculture and Agri-Food. The following organizational chart depicts the reporting structure within the CFIA.

The CFIA has an integrated governance structure whereby all Vice Presidents and Executive Directors have specific accountabilities that contribute to the achievement of each of the CFIA's strategic objectives.

 

3.2 Financial Tables

Table 1: Agency Planned Spending ($millions) and Full Time Equivalents
	Forecast Spending 2005-06	Planned Spending 2006-07	Planned Spending 2007-08	Planned Spending 2008-09
Food Safety and Public Health	288.9	350.1	316.3	287.7
Science and Regulation	125.2	132.0	128.4	128.5
Animal and Plant Resource Protection	98.9	117.5	117.2	116.1
Public Security	26.0	26.9	26.6	26.6
Budgetary Main Estimates (gross)	539.0	626.5	588.5	558.9
Less: Respendable revenue	50.0	55.0	55.0	55.0
Total Main Estimates1	489.0	571.5	533.5	503.9
Adjustments:
Governor General Special Warrants:2
Operating budget carry forward	18.3	0	0	0
Measures by the CFIA to address the Bovine Spongiform Encephalopathy (BSE) Recovery Program by Facilitating the Transition for the Cattle and Other Ruminant Industries	1.8	0	0	0
Immediate Steps for Avian and Pandemic Influenza Preparedness	5.2	31.0	72.0	32.0
Extension of funding for the Canadian Biotechnology Strategy	0.8	0	0	0
Smart Regulations Implementation Strategy	0.3	0	0	0
Invasive Alien Species	3.0	0	0	0
National Aquatic Animal Health Program (NAAHP)	1.3	0	0	0
Measures by the CFIA to address the Bovine Spongiform Encephalopathy (BSE) Recovery Program by Repositioning the Canadian beef and cattle industry and strengthening animal feed restrictions	33.1	0	0	0
Corporate Administrative Shared Services	0.4	0	0	0
Expenditure Review Committee Reductions	(3.6)	0	0	0
Expenditure Review Committee Reductions — Procurement Savings	(0.4)	(1.9)	0	0
Paylist Shortfalls (severence pay, maternity and parental benefits, vacation credits payable upon termination of employment with the Public Service)	14.0	0	0	0
Collective Bargaining	48.4	0	0	0
Other:
Justice Canada	(3.7)	0	0	0
Slaughterhouse inspection	0	35.0	25.0	25.0
Campaign — Be aware and Declare	0	2.0	0	0
Total Adjustments	118.9	66.1	97.0	57.0
Total Planned Spending	607.9	637.6	630.5	560.9
Total Planned Spending	607.9	637.6	630.5	560.9
Less: Non-respendable revenue	1.1	1.1	1.1	1.1
Plus: Cost of services received without charge	51.2	56.9	52.0	50.8
Net Cost of Agency	658.0	693.4	681.4	610.6
Full Time Equivalents	6,360	6,401	6,061	5,861

Notes:

¹ The 2006-2007 Main Estimates for the Canadian Food Inspection Agency is $571.5 million, a net increase of $82.5 million from the previous year. The major changes are as follows: an increase of $30.3 million for collective bargaining; an increase of $45.1 million for activities to mitigate the impact of the Bovine Spongiform Encephalopathy (BSE) crisis; an increase of $9.6 million for implementation of the Invasive Alien Species Strategy for Canada; an increase of $5.8 million for the National Aquatic Animal Health Program (NAAHP); a decrease of $5.1 million related to the Expenditure Review Committee reductions; a decrease of $3.8 million related to the decrease in Employee Benefit Plans from 20% to 19%.

² The adjustments for the Governor General Special Warrants above do not include the impact of Employee Benefit Plan (EBP) charges in 2005-2006.

Table 2: Program Activities 2006-2007 ($ millions)
Program Activity	Operating	Capital	Contributions and Other Transfer Payments	Gross	Respendable Revenue	Total Main Estimates	Adjustments (Planned Spending not in Main Estimates	Total Planned Spending
Food Safety and Public Health	349.0	1.0	0.1	350.1	31.3	318.8	34.7	353.5
Science and Regulation	125.0	7.0	0.0	132.0	12.6	119.4	0.2	119.6
Animal and Plant Resource Protection	114.2	1.7	1.6	117.5	10.9	106.6	0.1	106.7
Public Security	21.9	5.0	0.0	26.9	0.2	26.7	31.1	57.8
Total	610.1	14.7	1.7	626.5	55.0	571.5	66.1	637.6

 

Table 3: Voted and Statutory Items listed in Main Estimates 2006-2007 ($ millions)
Vote or Statutory Item	Truncated Vote or Statutory Wording	Current Main Estimates	Previous Main Estimates
30	Operating Expenditures and Contributions	482.4	406.6
35	Capital Expenditures	14.7	14.5
(S)	Compensation Payments	1.5	1.5
(S)	Contributions to employee benefit plans	72.9	66.4
	Total Agency	571.5	489.0

 

Table 4: Services Received Without Charge ($ millions)
	2006-2007
Accommodation provided by Public Works and Government Services Canada (PWGSC), border crossings, airports and other government departments (OGD)	23.9
Contributions covering employers' share of employees' insurance premiums and expenditures paid by Treasury Board of Canada Secretariat (excluding revolving funds) Employer's contribution to employees' insured benefits plans and expenditures paid by TBS	28.8
Worker's compensation coverage provided by Human Resources and Skills Development Canada*	0.0
Office of the Auditor General - Estimated cost for the audit	0.2
Salary and associated expenditures of legal services provided by the Department of Justice Canada	4.0
2006-2007 Services received without charge	56.9

*Amount is less than $50K, therefore is not shown on this table.

 

Table 5: Summary of Capital Spending by Program Activity ($ millions)
	Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Food Safety and Public Health	7.0	1.0	1.0	1.0
Science and Regulation	3.6	7.0	7.0	7.0
Animal and Plant Resource Protection	5.3	1.7	1.8	1.5
Public Security	2.7	10.1	30.0	5.2
Total	18.6	19.8	39.8	14.7

Note: The 2005-2006 Forecast Spending by Strategic Outcome varies from the 2006-2007 Planned Spending due to changes in priority for capital investments. The allocation changes from year to year depending on which Strategic Outcome(s) the capital investment is supporting.

 

Table 6: Source of Respendable and Non-Respendable Revenue ($ millions)
	Forecast Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009
Respendable Revenue
Food Safety and Public Health Vote-netted Revenue	31.3	31.3	31.3	31.3
Science and Regulation Vote-netted Revenue	12.6	12.6	12.6	12.6
Animal and Plant Resource Protection                Vote-netted Revenue	10.9	10.9	10.9	10.9
Public Security                 Vote-netted Revenue	0.2	0.2	0.2	0.2
Total Respendable Revenue	55.0	55.0	55.0	55.0
Non-Respendable Revenue
Food Safety and Public Health                   Administrative Monetary Penalties	0.6	0.6	0.6	0.6
Interest on Overdue Accounts Receivable	0.1	0.1	0.1	0.1
Proceeds from sale of Crown Assets	0.4	0.4	0.4	0.4
Science and Regulation	0.0	0.0	0.0	0.0
Animal and Plant Resource Protection	0.0	0.0	0.0	0.0
Public Security	0.0	0.0	0.0	0.0
Total Non-Respendable Revenue	1.1	1.1	1.1	1.1
Total Respendable and Non-Respendable Revenue	56.1	56.1	56.1	56.1

 

Table 7: Resource Requirement by Branch 2006-2007 ($ millions)
	Food Safety and Public Health	Science and Regulation	Animal and Plant Resource Protection	Public Security	Total Planned Spending
Operations	218.2	32.2	37.7	14.8	302.9
Programs	29.9	13.9	20.6	5.6	70.0
Science	37.0	34.3	24.1	11.1	106.5
Corporate Branches	52.5	29.5	18.8	12.0	112.8
Subtotal Operating	337.6	109.9	101.2	43.5	592.2
Capital	1.0	7.0	1.7	10.1	19.8
EBP	46.2	15.3	13.2	4.4	79.1
Statutory	0.0	0.0	1.5	0.0	1.5
Gross Planned Spending	384.8	132.2	117.6	58.0	692.6
Less: Respendable Revenue	31.3	12.6	10.9	0.2	55.0
Total	353.5	119.6	106.7	57.8	637.6

 

Table 8: Details on Project Spending

Over the next three years, the following projects, which have either already received Effective Project Approval (EPA) or will require Effective Project Approval, have or are expected to exceed their original delegated project approval level:

Headquarters complex for the Agriculture Portfolio — Ottawa, ON

Saskatoon Laboratory, mid-life retrofit — Saskatoon, SK

Ottawa Laboratory (Fallowfield), mid-life retrofit — Ottawa, ON

Ottawa Laboratory (Fallowfield), Level 3 Animal Wing, construction — Ottawa, ON

Lethbridge Laboratory, structural building reinforcement — Lethbridge, AB

Lethbridge Laboratory, mid-life retrofit — Lethbridge, AB

Burnaby Laboratory, mid-life retrofit — Burnaby, BC

St-Hyacinthe Laboratory, mid-life retrofit — St-Hyacinthe, PQ

For further information on the above-mentioned projects see www.tbs-sct.gc.ca/est-pre/estime.asp

 

3.3 Major Regulatory Initiatives

The CFIA enforces 42 sets of regulations related to the 13 Acts that form the Agency's legislative mandate. There are twelve major regulatory initiatives that are ongoing. When significant regulatory initiatives are proposed, a major cost-benefit analysis is completed. Proposed major regulatory initiatives are listed below.

Major Regulatory Initiatives 2006-0726
Enhanced Feed Ban (Health of Animals Regulations, Feeds Regulations, Meat Inspection Regulations and Fertilizers Regulations)	Modifications to the existing feed ban regulations are being considered to further prevent the potential spread of BSE to humans and other animals (i.e. remove exemptions and permitted practices in current ban, etc.).
Medicated Feeds Regulations (Health of Animals Act)	New regulations are being developed under the Health of Animals Act that will regulate how feeds are manufactured and will implement manufacturing to ensure that finished products meet regulatory standards. These regulations will apply to both commercial and non-commercial manufacturing operations that wish to manufacture any kind of medicated feed on their premises.
Humane Transport of Animals (Health of Animals Regulations)	The purpose of Part XII of the Health of Animals Regulations is to regulate animal transportation in Canada by setting reasonable standards of care that address the welfare of animals in transit. The regulations require strengthening and clarification. This regulatory proposal requires that carriers involved in the transport of live animals have knowledge of the species being transported. It identifies animal transportation risk factors, and requires that these be assessed prior to transport, and that remedial action be taken to address any factors which may result in injury, suffering or death to the animals. The internet is being used as a major avenue for consultation in preparation for the publication of Gazette I.
Meat Inspection Regulations — Re-write (Meat Inspection Act)	The purpose of the Meat Inspection Act and Regulations is to regulate the import, export and inter-provincial trade in meat products, the registration of establishments, the inspection of animals and meat products in registered establishments and the standards for animals slaughtered and for meat products prepared in those establishments. It is proposed that the Meat Inspection Regulations will be re-written to support a National Meat Inspection System. This would allow for a two-tier meat inspection system where both Tiers would require QA/HACCP system in place.
Review of Animal Health Compensation Program	In consultation with AAFC and industry, the review of the animal health compensation program will involve revising current methodology to estimate and establish new maximum amounts of compensation under the Animal Health Compensation program.
Processed Products Regulations — Re-write	The objective of this re-write is to propose revisions to the Processed Products Regulations to reflect the following: address inconsistencies with international standards, particularly CODEX standards of identity, in the existing regulations to improve market access; address current consumer needs; address current industry practices and latest technology; streamline administrative requirements; ease the requirements for bulk sizes; and update the list of compositional standards.
Fresh Fruit and Vegetable Regulations/Licensing and Arbitration Regulations — Regulatory Review	The fresh fruit and vegetable industry is becoming increasingly concerned about a possible erosion of confidence in the fresh fruit and vegetable industry due to a number of factors including: i. Unethical business practices ii. Grade standards for fresh fruits and vegetables which do not reflect current market practices iii. Lack of timely delivery of CFIA destination inspection services. A review of the Licensing and Arbitration Regulations as well as the Fresh Fruit and Vegetables Regulations will be undertaken in consultation with Canadian stakeholders and foreign partners. This initiative is intended to enhance the current Canadian regulatory regime governing product grade and trading standards, dispute resolution and fraud prevention.
Organic Certification Regulations (Canada Agricultural Products Act)	Organic certification regulations are proposed under the authority of the Canada Agricultural Products Act. These regulations are being developed in part to satisfy European Union (EU) organic certification import requirements. The regime will incorporate existing private and provincial accreditation and certification infrastructure in Canada and will be based on International Standards Organization (ISO) criteria; enforcement activities, including import control, will be incorporated into the existing activities of the CFIA.
Seed Streamlining and Variety Registration Amendment (Seeds Regulations)	Under authority of the Seeds Act a proposed regulatory amendment is designed to increase the ability of the variety registration system to respond to evolving agri-food sector needs. This initiative is also designed to strengthen the regulatory framework and facilitate the modernization of regulations, programs and associated consultative processes governing, in particular, the production, import and sale of seed. Changes to the variety registration system are targeted for March 2007.
Importation of Animals (Health of Animals Regulations)	A proposed amendment to the Health of Animals Regulations will bring the requirements for imports from the U.S. in line with the requirements from other countries. It is proposed to require a permit for the importation of the majority of bovine animals, and products derived from them, from the U.S. The Import Reference Document would be revised to remove the conditions allowing importation of cattle without a permit--with a few exceptions. It is still proposed to allow cattle for immediate slaughter to be imported from the U.S. without a permit. This regulation will change the basis for animal health risk decisions set out in section 7 of the Health of Animals Regulations. There will also be a number of consequential amendments in other CFIA regulations to reflect the new wording.
Enhanced Regulation of Fertilizers and Supplements (Fertilizers Regulations)	The purpose of this regulatory initiative is to improve the identification, assessment, mitigation and management of risk in relation to the efficacy, safety and labelling of fertilizer and supplement products, and to propose changes to the product registration process. The establishment of a permanent consultative framework will result in strengthened coordination among federal departments and agencies, increased transparency, and improved stakeholder engagement in regulatory process. Consultation and development of proposed new product registration service standards are targeted for March 2007.
Bluetongue Reportable Diseases Regulations (Health of Animals Regulations)	The CFIA is proposing to change bluetongue from being a reportable disease to immediately notifiable. Adding bluetongue to the immediately notifiable list meets international (OIE) requirements as well as trade requirements and validates scientific assumptions that there are no competent vectors for this disease in Canada. This change reflects the appropriate level of effort on the part of the Agency to implement control measures against this disease. In order to remove bluetongue from the import requirements for live animals from the USA, bluetongue must be removed from the Reportable Diseases Regulations.

For more information, visit the CFIA's Web site at: www.inspection.gc.ca/english/reg/rege.shtml

²⁶ According to the Treasury Board definition, a major regulatory initiative is one that costs more than $50M or costs between $100K and $50M and has a low degree of public acceptance.

 

3.4 Horizontal Initiatives

As per TBS guidelines, a horizontal initiative, for the purposes of this table, is an initiative in which partners from two or more organizations have received program funding and have formally agreed (e.g. Memoranda to Cabinet, Treasury Board Submissions, and federal/provincial agreements) to work together to achieve shared outcomes. The following table outlines the CFIA's horizontal initiatives for 2006-07.

Initiative	Profile	Partners
Public Security and Anti-terrorism (PSAT) Initiative	In the 2001 Budget, the government allocated $7.7 billion in new funds to be spent over the next five years on the PSAT initiative to enhance security for Canadians. As a contributing Agency, the CFIA will: deliver all federal food inspection, animal health, and plant protection measures; and, respond to outbreaks of pests and diseases in plants and animals. More information on this initiative can be found in Section 2.4.	Provinces/ Territories Canada Border Service Agency
Chemical, Biological Radiological and Nuclear (CBRN) Research and Technology Initiative (CRTI)	The events of September 11, 2001 moved the issues of counter terrorism and national security to the forefront of the nation's concerns. CRTI represents the federal science community's response and commitment to providing science solutions to these issues. Through the creation of laboratory networks across the federal government that collaborate with industry, academia and first responder communities, and through key research and technology development initiatives, the CFIA will provide new knowledge, technology, and capacity necessary for CBRN prevention preparedness and response. As well, the CFIA will continue to co-chair the biological cluster of federal laboratories with the Public Health Agency of Canada.	Agriculture and Agri-Food Canada Canadian Nuclear Safety Commission Canadian Security and Intelligence Service Defence Research and Development Canada Fisheries and Oceans Canada Environment Canada Health Canada Public Health Agency of Canada National Research Council Natural Resources Canada Public Safety and Emergency Preparedness Canada Royal Canadian Mounted Police Transport Canada
Canadian Regulatory System for Biotechnology	The Canadian Regulatory System for Biotechnology (CRSB) aims to develop an efficient, credible and well-respected regulatory system that safeguards the health of all Canadians and the environment and permits safe and effective products. The CRSB departments and agencies will be conducting a summative evaluation in 2006-07 to examine whether the expected results are being achieved. The CRSB will also continue to adapt to emerging novel applications of biotechnology as guided by Smart Regulation principles and by a strengthened horizontal governance mechanism for shared regulatory policy development and decision making. More information on this initiative can be found in Section 2.3.	Health Canada Environment Canada Industry Canada Fisheries and Oceans Canada Natural Resources Canada
AAFC-CFIA MOU on the Agricultural Policy Framework (APF)	On December 2, 2003, the President of the CFIA and the Deputy Minister of AAFC signed a Memorandum of Understanding between the CFIA and AAFC on the APF. The MOU sets out general terms, roles and responsibilities for the management of the following initiatives funded under the APF and implemented by the CFIA: Medicated Feed Regulations; and On-Farm Food Safety Recognition Program. A total amount of $27.0 million is provided to the CFIA under the APF to cover the two initiatives over a five-year period, starting on April 1, 2003.	• Agriculture and Agri-Food Canada

More information on horizontal initiatives can be found at: www.tbs-sct.gc.ca/est-pre/20062007/p3a-eng.asp

 

3.5 Internal Audits and Evaluations

Internal Audit or Evaluation	Expected completion date
Audit of Human Resources	in 2006-07
Audit of Feed Program	in 2006-07
Audit of Physical Security	in 2006-07
Evaluation of Public Security and Anti-Terrorism initiative	in 2006-07
Audit of CFIA's Hazard Analysis Critical Control Point (HAACP) Program	in 2006-07

Other audits will be undertaken in 2006-07 following an update of the CFIA's risk-based audit plan and further direction from the Office of the Comptroller General for government-wide internal audits. The CFIA will also continue to work on the implementation of all elements of the revised Policy on Internal Audit.

 

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