The introduction of Future-oriented Financial Statements is a Parliamentary direction for departments to provide enhanced financial information to external users. Health Canada has prepared a full set of Future-oriented Financial Statements which forecast results for the 2012-13 fiscal year and update 2011-12 projections. Responsibility for the compilation, content and presentation of the Future-oriented Financial Statements for the years ended March 31, 2012 and 2013 and all information contained in this statement rests with Health Canada's management. This future-oriented information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The Future-oriented Financial Statements and accompanying notes are submitted in Part III of the Estimates (Report on Plans and Priorities), and will be used in the Departmental Performance Report to compare with actual results.
Departmental management is responsible for these Future-oriented Financial Statements, including responsibility for the appropriateness of the forecasts and future projections on which these statements are prepared. These forecasts and future projections are based upon information available and known to management at the time of development. They reflect current business and economic conditions, assume a continuation of current governmental priorities and are consistent with Health Canada's mandate and strategic objectives. Much of the future-oriented financial information uses best estimates, assumptions and judgement to derive forecasts and future projections as at December 31, 2011 and reflect the plans described in the Report on Plans and Priorities while at the same time giving due consideration to materiality. At the time of preparation of this information, management believes these best estimates and assumptions to be reasonable. However, as with any use of best estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.
The actual results achieved for the fiscal year covered in the accompanying Future-oriented Financial Statements will vary from the information presented and these variations may be material.
Glenda Yeates
Deputy Minister
Ottawa, Canada
Date: March 29, 2012
Jamie Tibbetts
Chief Financial Officer
Ottawa, Canada
Date: March 29, 2012
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Assets | ||
Financial assets: | ||
Due from Consolidated Revenue Fund | $302,976 | $273,168 |
Accounts receivable and advances (Note 6) | 25,730 | 27,090 |
Total financial assets | 328,706 | 300,258 |
Non-financial assets: | ||
Tangible capital assets (Note 7) | 142,456 | 141,344 |
Total non-financial assets | 142,456 | 141,344 |
Total assets | $471,162 | $441,602 |
Liabilities and Equity of Canada | ||
Liabilities: | ||
Accounts payable and accrued liabilities (Note 8) | $382,565 | $352,118 |
Vacation pay and compensatory leave | 40,313 | 40,717 |
Deferred revenue | 1,713 | 1,849 |
Employee future benefits (Note 9) | 135,719 | 134,548 |
Other liabilities (Note 10) | 497,678 | 419,300 |
Total liabilities | 1,057,988 | 948,532 |
Equity of Canada | (586,826) | (506,930) |
Total Liabilities and Equity of Canada | $471,162 | $441,602 |
Information for the year ending March 31, 2012 includes actual amounts from April 1, 2011 to December 31, 2011.
Contingent Liabilities (Note 11)
Contractual Obligations (Note 12)
The accompanying notes form an integral part of these future-oriented financial statements.
Component |
Estimated Results 2012 |
Planned Results 2013 |
||||
---|---|---|---|---|---|---|
Total |
A Health System Responsive to the Needs of Canadians |
Canadians are informed of and protected from health risks associated with food, products, substances and environments, and are informed of the benefits of healthy eating |
First Nations and Inuit communities and individuals receive health services and benefits that are responsive to their needs so as to improve their health status |
Internal Services |
Total |
|
Expenses | ||||||
Transfer payments | $1,422,963 | $306,819 | $64,762 | $978,478 | $ - | $1,350,059 |
Salaries and employee benefits | 938,637 | 59,244 | 473,051 | 203,376 | 229,742 | 965,413 |
Utilities, material and supplies | 555,372 | 754 | 23,566 | 414,920 | 11,988 | 451,228 |
Professional and special services | 567,652 | 9,903 | 87,954 | 302,107 | 24,691 | 424,655 |
Travel - non-insured health patient | 186,857 | - | - | 158,121 | - | 158,121 |
Accommodation | 64,450 | 3,592 | 28,165 | 13,875 | 17,899 | 63,531 |
Travel and relocation | 27,681 | 1,873 | 10,454 | 16,758 | 3,222 | 32,307 |
Amortization | 24,071 | - | 8,109 | 4,075 | 15,625 | 27,809 |
Information | 14,939 | 243 | 4,270 | 857 | 7,635 | 13,005 |
Purchased repair and maintenance | 14,657 | 59 | 3,326 | 1,419 | 5,397 | 10,201 |
Communications | 6,214 | 156 | 2,195 | 2,411 | 1,317 | 6,079 |
Rentals | 4,305 | 101 | 1,765 | 1,003 | 1,834 | 4,703 |
Other | 1,398 | (32) | 2 | (348) | 507 | 129 |
Total expenses | 3,829,196 | 382,712 | 707,619 | 2,097,052 | 319,857 | 3,507,240 |
Revenues | ||||||
Sales of goods and services: | ||||||
Services of a regulatory nature | 54,470 | - | 52,097 | - | 3,620 | 55,717 |
Rights and privileges | 52,020 | - | 48,465 | - | 4,910 | 53,375 |
Services of a non-regulatory nature | 22,067 | 8,304 | 8,117 | 5,450 | 212 | 22,083 |
Other | 639 | - | - | - | - | - |
Interest | 361 | 23 | 296 | 14 | 24 | 357 |
Total revenues | 129,557 | 8,327 | 108,975 | 5,464 | 8,766 | 131,532 |
Net cost from continuing operations | $3,699,639 | $374,385 | $598,644 | $2,091,588 | $311,091 | $3,375,708 |
Transferred operations | ||||||
Expenses | 40,429 | - | - | - | - | - |
Net cost of transferred operations | $40,429 | $ - | $ - | $ - | $ - | $ - |
Net cost of operations | $3,740,068 | $374,385 | $598,644 | $2,091,588 | $311,091 | $3,375,708 |
Information for the year ending March 31, 2012 includes actual amounts from April 1, 2011 to December 31, 2011.
The accompanying notes form an integral part of these future-oriented financial statements.
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Equity of Canada, beginning of year: | $(633,572) | $(586,826) |
Net cost of operations | (3,740,068) | (3,375,708) |
Net cash provided by Government | 3,639,213 | 3,357,023 |
Change in due from Consolidated Revenue Fund | 31,419 | (29,808) |
Services provided without charge by other government departments (Note 13) | 130,894 | 128,389 |
Interdepartmental transfer of capital assets | (3,088) | - |
Transfer of assets and liabilities to Shared Services Canada (Note 14) | (11,624) | - |
Equity of Canada, end of year | $(586,826) | $(506,930) |
Information for the year ending March 31, 2012 includes actual amounts from April 1, 2011 to December 31, 2011.
The accompanying notes form an integral part of these future-oriented financial statements.
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Operating activities | ||
Net cost of operations | $3,740,068 | $3,375,708 |
Non-cash items: | ||
Amortization of tangible capital assets (Note 7) | (30,029) | (27,809) |
Services provided without charge by other government departments (Note 13) | (130,894) | (128,389) |
Variations in Future-oriented Statement of Financial Position: | ||
Increase (decrease) in accounts receivable and advances | (2,106) | 1,360 |
Decrease in prepaid expenses (Note 15) | (19,200) | - |
Decrease in liabilities | 49,171 | 109,456 |
Cash used in operating activities | 3,607,010 | 3,330,326 |
Capital investment activities: | ||
Acquisition of tangible capital assets (Note 7) | 35,093 | 28,153 |
Adjustment to capital assets with no monetary impact | (2,890) | (1,456) |
Cash used in capital investment activities | 32,203 | 26,697 |
Net cash provided by Government of Canada | $3,639,213 | $3,357,023 |
Information for the year ending March 31, 2012 includes actual amounts from April 1, 2011 to December 31, 2011.
The accompanying notes form an integral part of these future-oriented financial statements.
For the year ending March 31
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 strategic outcomes and related program activities:
The goal of this Program Activity is to provide strategic policy advice, research and analysis, and program support to provinces and territories, partners and stakeholders on health care system issues. Mindful of long-term equity, sustainability and affordability considerations, Health Canada collaborates and targets its efforts with provinces and territories, national and international organizations, health care providers, professional associations, other key stakeholders and Canadians in order to support improvements to the health care system, such as improved access, quality and integration of health care services. These targeted efforts are in place to better meet the health needs of Canadians, wherever they live or whatever their financial circumstances. Focusing on emerging health issues enables Health Canada to strategically position itself as a proactive organization, and targeted Grants and Contribution funding to support our health partners helps to ensure Health Canada is an active player in tackling domestic and global health issues.
These specialized health services ensure continuity of services and occupational health services to public servants and work to ensure that Health Canada is prepared and able to continue services in the event of a national emergency. By working pro-actively to reduce the number of workdays lost to illness, Health Canada is promoting a productive public service thereby delivering results to Canadians. This Program Activity also ensures that Health Canada works internally and with partners to ensure that Health Canada has preparedness plans that are ready for execution in the event of a national emergency. Ensuring that organizations have plans in place that take into account all facets of their legislated responsibilities helps Health Canada continue to deliver services to Canadians at a time that they will be most needed. This includes coordination with other members of the Health Portfolio as well as partners across the Government of Canada. As part of this work Health Canada provides health services to Internationally Protected Persons when they are visiting Canada for international events such as summit meetings or international sporting events. Together, these specialized health services work to ensure continuity of services and capacity in day to day operations but as well as extraordinary and unpredictable circumstances such as a national emergency or disease outbreaks such as H1N1.
Official language minority community development involves the administration of Health Canada's responsibilities under Section 41 of the Official Languages Act committing the federal government to enhancing the vitality of English-speaking and French-speaking minority communities as well as fostering the full recognition and use of both English and French in Canadian Society and the provision of policy and program advice relating to the Act. Administration involves consulting with Canada's official language minority communities on a regular basis, supporting and enabling the delivery of contribution programs and services for official language minority communities, reporting to Parliament and Canadians on Health Canada's achievements under Section 41, and coordinating Health Canada's activities and awareness in engaging and responding to the health needs of official language minority communities.
This Program Activity is responsible for regulating a broad range of health products that affect the everyday lives of Canadians. Under the authority of the Food and Drugs Act and its Regulations, and the Department of Health Act, the Program Activity evaluates and monitors the safety, quality and efficacy of human and veterinary, biologic and genetic therapies, radio-pharmaceuticals, medical devices, and natural health products so that Canadians have access to safe and effective health products. This Program Activity also verifies, through compliance monitoring and enforcement activities, that regulatory requirements for health products are met. In addition, the program provides timely, evidence-based and authoritative information to key stakeholders including, but not limited to, health care professionals such as physicians, pharmacists, natural health practitioners and members of the public to enable them to make informed decisions about the use of health products.
The Food Safety and Nutrition program activity establishes policies, regulations and standards related to the safety and nutritional quality of food. Food safety standards are enforced by the Canadian Food Inspection Agency (CFIA) and the Program Activity assesses the effectiveness of CFIA's activities related to food safety. The legislative framework for food is found in the Food and Drugs Act and Regulations, the Canadian Food Inspection Agency Act and the Department of Health Act. The Program Activity also promotes the nutritional health and well-being of Canadians by collaboratively defining, promoting and implementing evidence-based nutrition policies and standards. As the focal point and authoritative source for nutrition and healthy eating policy and promotion, the Program Activity disseminates timely, evidence-based and authoritative information to Canadians and stakeholders to enable them to make informed decisions and healthy choices.
The environment continues to be a key determinant of health for all Canadians. This Program Activity aims to promote and protect the health of Canadians by identifying, assessing and managing health risks posed by environmental factors. The scope of activities includes: research on climate change, air quality, drinking water quality, chemical substances, and contaminated sites, clean air programming and regulatory activities, risk assessment and management of chemical substances, air pollutants, water contaminants, health impacts of climate change, products of biotechnology and products of other new and emerging technologies (including nanotechnology), and working with the passenger conveyance industry to protect the health of the travelling public.
Health Canada is committed to promoting the health and safety of Canadians by working to improve the safety of consumer products in the Canadian marketplace. Under the Consumer Products Safety Program Activity, Health Canada works to identify, assess, manage and communicate to Canadians the health and safety risks associated with consumer products that adults and children commonly use for personal family, household or garden purposes, or in recreation or sports. This is achieved through active prevention, targeted oversight and rapid response, all of which are supported by the Canada Consumer Product Safety Act. Through active prevention, Health Canada works with industry to help proactively identify and systematically assess safety risks posed by consumer products, develop standards and share best practices. Also, the Program Activity promotes awareness of new policy and regulatory activity, and provides guidance to industry on existing regulations through guidance documents, workshops and training. Through targeted oversight, the program keeps a close watch on products for which the risks are not yet fully understood or that pose the greatest potential risk to the public. Under rapid response, Health Canada can act quickly to protect the public when a problem occurs - including ensuring the removal of unsafe consumer products from store shelves. Through this Program Activity, Health Canada also helps to ensure that cosmetic products used by Canadians on a daily basis are safe and meet the requirements set out in the Food and Drugs Act and its Cosmetic Regulations. Prohibiting or restricting the use of certain ingredients in cosmetics and requiring ingredients to be listed on outer product labels allows Canadians to make informed decisions when selecting and using cosmetics.
Through regulatory, programming and educational activities, Health Canada seeks to improve health outcomes by reducing and preventing tobacco consumption and combating alcohol and drug abuse. Through the Tobacco Act and its regulations, Health Canada regulates the manufacture, sale, labelling, and promotion of tobacco products. It also leads the Federal Tobacco Control Strategy - the goal of which is to further reduce the prevalence of smoking through regulatory, programming and educational activities. Through the Controlled Drugs and Substances Act (CDSA) and its regulations, Health Canada regulates controlled substances. As a partner department under the National Anti-Drugs Strategy, Health Canada supports prevention, health promotion, and treatment initiatives with the goal of reducing substance use and abuse and its associated harms. It also provides expert advice and drug analysis services to law enforcement agencies across the country.
Health Canada aims to reduce the health and safety risks associated with different types of radiation, both naturally occurring and from artificial sources, in living and working environments. Health Canada: conducts research into the biological effects of environmental and occupational radiation, develops better methods for internal radiation dosimetry and its measurement, provides radiation safety inspections of federally regulated facilities containing radiation-emitting devices, develops regulations, guidelines, standards and safety codes pertaining to radiation-emitting devices, and provides radiation advice to other government departments, industry and the general public.
Health Canada, through the Pest Management Regulatory Agency, administers the Pest Control Products Act (PCPA) and its regulations. The primary objective of the PCPA is to prevent unacceptable risks to people and the environment from the use of pest control products. Health Canada regulates the entire life cycle of a pesticide, including: determination of value, health and environmental risk assessment, characterization and mitigation, registration of products, monitoring and enforcement activities, re-evaluation of registered pesticides on a 15-year cycle, and phase-out or cancellation of products. Pest control products are regulated in a manner to encourage the development and implementation of innovative, sustainable pest management strategies and to facilitate access to pest control products that pose lower risks. Health Canada also encourages public awareness in relation to pest control products by informing the public, facilitating access to relevant information and participating in the decision-making process. Health Canada plays a leading role in international efforts to integrate various regulatory systems around the world. International cooperation facilitates consistency and ensures the best science available supports our decision making.
The Primary Health Care Activity funds a suite of programs, services and strategies provided primarily to First Nations and Inuit individuals, families and communities living on-reserve or in Inuit communities. It encompasses health promotion and disease prevention programs to improve health outcomes and reduce health risks, public health protection, including surveillance, to prevent and/or mitigate human health risks associated with communicable diseases and exposure to environmental hazards, and primary care where individuals are provided diagnostic, curative, rehabilitative, supportive, palliative/end-of-life care and referral services.
The Non-Insured Health Benefits (NIHB) Program provides a specified range of medically necessary health-related goods and services to registered Indians (according to the Indian Act) and Inuit (recognized by one of the Inuit Land Claim Organizations in Canada) where not otherwise covered under a separate agreement (e.g. a self-government agreement) with federal, provincial or territorial governments. The benefits under the NIHB Program include the following, where not otherwise provided to eligible clients through other private or provincial/territorial programs: pharmacy benefits (prescription drugs and some over-the-counter medication), medical supplies and equipment, dental care, vision care, short term crisis intervention mental health counselling, and medical transportation benefits to access medically required health services not available on reserve or in the community of residence.
The Health Infrastructure Support Activity underpins the long-term vision of an integrated health system with greater First Nations and Inuit control by enhancing their capacity to design, manage, deliver and evaluate quality health programs and services. It provides the foundation to support the delivery of programs and services in First Nations communities and for individuals and promotes innovation and partnerships in health care delivery to meet the unique health needs of First Nations and Inuit. The funds are used for: planning and management for the delivery of quality health services, construction and maintenance of health facilities, research activities, encouraging Aboriginal people to pursue health careers, investments in technologies to modernize health services, and integrate and realign the governance of existing health services.
Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Material Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.
The Future-oriented Financial Statements have been prepared on the basis of the government priorities and the plans of the Department as described in the Report on Plans and Priorities.
The main assumptions are as follows:
These assumptions are adopted as at December 31, 2011.
While every attempt has been made to forecast final results for the remainder of 2011-12 and 2012-13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.
In preparing these Future-oriented Financial Statements, Health Canada has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Factors that could lead to material differences between the Future-oriented Financial Statements and the historical financial statements include:
Once the Report on Plans and Priorities is presented, Health Canada will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.
These Future-oriented Financial Statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2012-13 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
The Department is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the two bases of reporting.
The Department operates within the Consolidated Revenue Fund (CRF), which 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. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.
Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that Health Canada is entitled to draw from the CRF without further parliamentary expenditure authorities to discharge its liabilities.
Accounts receivable are stated at the lower of cost and net recoverable value; a valuation allowance is established for receivables where recovery is considered uncertain.
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 Future-oriented Financial Statements.
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 contingency is disclosed in the notes to the Future-oriented Financial Statements.
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 tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:
Asset Class | Sub-Asset Class | Amortization Period |
---|---|---|
Buildings | Buildings | 25 years |
Works and infrastructure | Works and infrastructure | 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 | 5-12 years | |
Vehicles | Motor vehicles | 4-7 years |
Other vehicles | 10 years | |
Assets under construction | Buildings in progress of construction | Once in service, in accordance with asset type |
Engineering works in progress of construction | ||
Work in progress for software | ||
Other construction or work in progress |
Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
The preparation of these Future-oriented Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the Future-oriented Financial Statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Actual results could significantly differ from those estimated.
Health Canada receives most of its funding through expenditure authorities provided by Parliament. Items recognized in the Future-oriented Statement of Operations and Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Department has different net results of operations for the year on a government funding basis than on an accrual accounting basis. These differences are reconciled in the following tables:
Authorities requested | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Vote 1 - Operating expenditures | $2,067,250 | $1,747,681 |
Vote 5 - Capital expenditures | 35,093 | 28,154 |
Vote 10 - Grants and contributions | 1,536,543 | 1,453,233 |
Statutory Amounts | 142,958 | 135,083 |
Forecast authorities available | $3,781,844 | $3,364,151 |
Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Net cost of operations | $3,740,068 | $3,375,708 |
Adjustments for items affecting net cost of operations but not affecting authorities | ||
Add (Less): | ||
Services provided without charge by other government departments | (130,894) | (128,389) |
Amortization of tangible capital assets | (30,029) | (27,809) |
Employee future benefits | 40,956 | 1,171 |
Refund/adjustment of previous year's expenditures | 37,894 | 36,792 |
Revenue not available for spending | 148 | 144 |
Bad debts expense | 158 | 616 |
Vacation pay and compensatory leave | 566 | (404) |
Other changes in liabilities | 87,880 | 78,165 |
Subtotal | 3,746,747 | 3,335,994 |
Adjustments for items affecting net cost of operations but affecting authorities | ||
Add (Less): | ||
Acquisitions of tangible capital assets | 35,093 | 28,153 |
Net change to accountable advances | 4 | 4 |
Forecast authorities available | $3,781,844 | $3,364,151 |
The following table presents details of Health Canada's accounts receivable and advances balances:
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Receivables from external parties | $33,341 | $33,861 |
Receivables from other government departments and agencies | 6,763 | 6,988 |
Employee advances | 102 | 102 |
Gross receivables | 40,206 | 40,951 |
Less: Allowance for doubtful accounts on receivables from external parties | 14,476 | 13,861 |
Total accounts receivable and advances | $25,730 | $27,090 |
Asset Class |
Opening Balance |
Acquisitions |
Disposals/write-downs/adjustments |
Closing Balance |
---|---|---|---|---|
Land | 1,177 | - | - | 1,177 |
Buildings | 133,528 | 500 | (397) | 133,631 |
Works and infrastructure | 1,539 | - | (103) | 1,436 |
Leasehold improvements | 27,358 | 1,653 | (32) | 28,979 |
Machinery and equipment | 189,967 | 22,331 | (857) | 211,441 |
Vehicles | 24,345 | 1,516 | (11) | 25,850 |
Assets under construction | 14,720 | 2,153 | (56) | 16,817 |
Total | $392,634 | $28,153 | $(1,456) | $419,331 |
Asset Class |
Opening Balance |
Amortization |
Disposals/write-downs/adjustments |
Closing Balance |
---|---|---|---|---|
Buildings | 105,224 | 4,907 | - | 110,131 |
Works and infrastructure | 175 | 70 | - | 245 |
Leasehold improvements | 20,380 | 744 | - | 21,124 |
Machinery and equipment | 111,771 | 19,719 | - | 131,490 |
Vehicles | 12,628 | 2,369 | - | 14,997 |
Total | $250,178 | $27,809 | $ - | $277,987 |
Asset Class |
Opening Balance |
Net change acquisitions and amortization |
Net change disposals/write-downs/adjustments |
Closing Balance |
---|---|---|---|---|
Land | 1,177 | - | - | 1,177 |
Buildings | 28,304 | (4,407) | (397) | 23,500 |
Works and infrastructure | 1,364 | (70) | (103) | 1,191 |
Leasehold improvements | 6,978 | 909 | (32) | 7,855 |
Machinery and equipment | 78,196 | 2,612 | (857) | 79,951 |
Vehicles | 11,717 | (853) | (11) | 10,853 |
Assets under construction | 14,720 | 2,153 | (56) | 16,817 |
Total | $142,456 | $344 | $(1,456) | $141,344 |
Disposals of assets under construction represent assets that are put into use in the year and transferred to other capital asset classes as applicable.
The following table presents details of Health Canada's accounts payable and accrued liabilities:
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Accounts payable to external parties | $161,296 | $150,437 |
Accounts payable to other government departments and agencies | 29,427 | 29,361 |
Subtotal | 190,723 | 179,798 |
Accrued liabilities | 191,842 | 172,320 |
Total accounts payable and accrued liabilities | $382,565 | $352,118 |
The Department's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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 forecasted expenses for 2011-12 and 2012-13, represent approximately 1.9 times the contributions by employees.
Pension expenses | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Expenses for the year | $103,665 | $97,069 |
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.
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 authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Accrued benefit obligation, beginning of year | $176,675 | $135,719 |
Expense for the year | 4,817 | 7,844 |
Expected benefits payments during the year | (45,773) | (9,015) |
Accrued benefit obligation, end of year | $135,719 | $134,548 |
The following table presents details of Health Canada's other liabilities:
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Canada Health Infoway | $490,656 | $412,492 |
Other | 7,022 | 6,808 |
Total other liabilities | $497,678 | $419,300 |
Budget 2007 announced allocation of $400 million to Canada Health Infoway Inc. Budget 2009 announced an additional allocation of $500 million to Canada Health Infoway Inc. Of this authority $488 million has been disbursed to date, $78.1 million in 2012-13 ($87.9 million in 2011-12).
The remaining other liabilities include amounts for Specified Purpose Accounts: Collaborative research projects $4.5 million ($3.0 million in 2011-12); miscellaneous federal/provincial projects $2.0 million ($1.2 million in 2011-12); and World Health Organization $0.1 million ($0.1 million for 2011-12).
Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into two categories as follows:
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. As at the date of the preparation of these Future-oriented Financial Statements, Health Canada has identified sites where such action is possible and for which a liability has been recorded.
Contaminated sites | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Approximate number of sites for which a liability has been recorded | 1 | 1 |
Liability recorded for contaminated sites (in thousands of dollars) | $225 | $225 |
Additional new sites, changes in the remediation approach or material changes in amounts accrued or not accrued are not forecasted for the future years presented in these statements. However, 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 by the Department in the year in which they become likely and can be reasonably estimated.
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.
The nature of Health Canada's activities can result in some large multi-year contracts and obligations whereby the Department will be committed to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
Fiscal Year | Transfer Payments |
Non-insured Health Benefits |
Total |
---|---|---|---|
2012-13 | $135,143 | $18,000 | $153,143 |
2013-14 | 96,000 | 19,000 | 115,000 |
2014-15 | 75,000 | 14,000 | 89,000 |
2015-16 | 42,000 | - | 42,000 |
2016-17 and thereafter | 83,000 | - | 83,000 |
Total | $431,143 | $51,000 | $482,143 |
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. During the year, Health Canada received common services which were obtained without charge from other Government departments as disclosed below.
During the year the Department receives services without charge from certain common service organizations, related to accommodation, legal services, worker's compensation coverage and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Department's Future-oriented Statement of Operations as follows:
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Employer's contribution to the health and dental insurance plans | $67,454 | $65,205 |
Accommodation | 57,516 | 57,499 |
Legal services | 5,128 | 5,128 |
Worker's compensation | 796 | 557 |
Total | $130,894 | $128,389 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included in the Department's Future-oriented Statement of Operations.
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Accounts receivable with other government departments and agencies | $6,763 | $6,988 |
Accounts payable to other government departments and agencies | 29,427 | 29,361 |
Expenses - other government departments and agencies | 105,552 | 106,058 |
Revenues - other government departments and agencies | 8,415 | 8,674 |
Effective November 15, 2011, the Department transferred responsibility for the Email, Data Centre and Network Services Unit and the Email, Data Centre and Network Services Support Unit to Shared Services Canada in accordance with Order-in-Council # 2011-1297, including the stewardship responsibility for the assets and liabilities related to the program. Accordingly, the Department transferred the following assets and liabilities related to the Email, Data Centre and Network Services Unit and the Email, Data Centre and Network Services Support Unit to Shared Services Canada on November 15, 2011.
Component | Estimated Results 2012 |
Planned Results 2013 |
---|---|---|
Assets | ||
Tangible capital assets (net book value) (Note 7) | 15,738 | - |
Total assets | $15,738 | $ - |
Liabilities | ||
Vacation pay and compensatory leave | 995 | - |
Employee future benefits (Note 9) | 3,119 | - |
Total liabilities | 4,114 | - |
Adjustment to Equity of Canada | $11,624 | $ - |
During the year, the Department adopted the proposed Treasury Board accounting policy TBAS 1.2: Departmental and Agency Financial Statements which will be effective for the Department for the 2012-13 fiscal year. The major change in the accounting policies of the Department required by the adoption of the proposed TBAS 1.2 is the removal of prepaid expenses for transfer payments as an asset from the Future-oriented Financial Position.
The adoption of the new Treasury Board accounting policies has been accounted for prospectively.