Introduction

This document is attached to the Canadian Food Inspection Agency’s (CFIA) Statement of Management Responsibility Including Internal Control over Financial Reporting for the fiscal year 2011-12. As required by the new Treasury Board Policy on Internal Control, effective April 1, 2009, this document provides summary information on the measures taken by the CFIA to maintain an effective system of internal control over financial reporting (ICFR). In particular, it provides summary information on the assessments conducted by CFIA as at March 31, 2012, including progress, results and related action plans along with some financial highlights pertinent to understanding the control environment unique to the agency. This is the second annex produced by the CFIA.

1.1 Authority mandate and program activities

Detailed information on the CFIA’s authority, mandate and program activities can be found in the Departmental Performance Report and Report on Plans and Priorities.

1.2 Financial highlights

Financial Statements (audited by the Office of the Auditor General of Canada) of the CFIA for fiscal year 2011-12 can be found in the Departmental Performance Report.

• Total expenses were $885M, 76% of which is salaries and employee benefits.
• Total revenues were $58M, 75% of which comes from inspection fees.
• Total assets and net liabilities were $260M and $234M respectively. Tangible capital assets comprise 79% of total assets. Employee severance benefits comprise 52% of total net liabilities, followed by accounts payable and accrued liabilities of 33%.
• The CFIA has a strong regional presence. There are decentralized finance functions in area offices that initiate and approve a significant portion of operating expenses. In order to maximize operational efficiency, all accounts payable and accounts receivable transactions are processed centrally in the service centres located in Guelph, Montreal and Moncton.
• The CFIA utilizes an integrated financial system (SAP). This system interfaces with other human resources and operating systems to support CFIA’s management of its resources.

1.3 Audited financial statements

The CFIA has always received an unqualified audit opinion from the Office of the Auditor General (OAG), the auditors of the CFIA’s Financial Statements since the Agency’s creation in 1997.