Page 5: Health Canada – 2014–15 – Departmental Performance Report - Section III
Section III: Supplementary Information
Financial Statements Highlights
| Financial Information | 2014-15 Planned Results |
2014-15 Actual |
2013-14 Actual |
Difference (2014-15 actual minus 2014-15 planned) | Difference (2014-15 actual minus 2013-14 actual) |
|---|---|---|---|---|---|
Total expenses |
3,997,906,000 |
3,993,213,000 |
3,945,992,000 |
(4,693,000) |
47,221,000 |
Total revenues |
271,623,000 |
285,324,000 |
258,814,000 |
13,701,000 |
26,510,000 |
Net cost of operations before government funding and transfers |
3,726,283,000 |
3,707,889,000 |
3,687,178,000 |
(18,394,000) |
20,711,000 |
The Department's total expenses were $4.0 billion in 2014-15.
There was a decrease of $4.7 million when comparing actual expenditures to planned results for 2014-15. This is primarily a result of variances in accounting adjustments related to severance pay and contingent liabilities.
There was an increase of approximately $47.2 million when comparing year-over-year actual expenditures. The significant changes were:
- An increase of $96.5 million in transfer payments due primarily to disbursements made to the FNHA under the BC Tripartite Framework Agreement.
- An increase of $15.3 million in the cost of travel for non-insured health patients as a result of increasing costs of transportation and a higher demand experienced during the year as compared with the prior year.
- An increase of $8.2 million in utilities, materials and supplies reflecting an increase in expenses for pharmaceutical and medical supplies which are demand-driven and can vary from year to year.
These increases are offset by:
- A decrease of $16.4 million in salaries and employee benefits largely due to payments made during 2014-15 for retroactive adjustments and the liquidation of severance and termination benefits payable from collective bargaining agreement settlements signed in the previous year, offset by an increase in the provision for severance pay.
- A decrease of $16.6 million in professional and special services as a result of a reduction in the cost of nursing services through the establishment of centrally managed contacts for temporary nurses and the reduced utilization by regions of temporary nurses as a result of increased staffing levels.
- A decrease of $25.1 million in other expenses as a result of the reversal of a contingent liability allowance.
The Department's total revenues were $285.3 million in 2014-15 representing an increase of $26.5 million over the prior year actual revenues. This increase is primarily a result of:
- An increase of $31.2 million in services of a non-regulatory nature from the FNHA, reflecting a full year of operations under the BC Tripartite Framework Agreement to recover expenses for the NIHB Program.
- An increase of $8.2 million in services of a regulatory nature due to increased volumes of drug submissions for evaluation and annual fee increases for those evaluations.
These increases are offset by:
- A decrease of $11.3 million in rights and privileges revenue due to changes in the timing of establishment licences experienced in the prior year.
| Financial Information | 2014-15 | 2013-14 | Difference (2014-15 minus 2013-14) |
|---|---|---|---|
Total net liabilities |
546,779,000 |
651,229,000 |
(104,450,000) |
Total net financial assets |
281,644,000 |
262,364,000 |
19,280,000 |
Departmental net debt |
265,135,000 |
388,865,000 |
(123,730,000) |
Total non-financial assets |
130,776,000 |
129,386,000 |
1,390,000 |
Departmental net financial position |
(134,359,000) |
(259,479,000) |
125,120,000 |
Total net liabilities were $546.8 million at the end of 2014-15, a decrease of $104.5 million from the previous year comprised mainly of:
- A decrease of $88.1 million as a result of payments to Canada Health Infoway Inc. drawing down the liability originating from the 2007 and 2009 Budgets.
- A decrease of $33.0 million for the reversal of an accrued contingent liability.
- Offset by an increase of $14.3 million in employee future benefits due to a change in the actuarially determined rate used to calculate the liability.
The year-over-year increase in total net financial assets of $19.3 million is primarily a result of an increase in amounts due from the Consolidated Revenue Fund, reflecting changes in accounts payable and accrued liabilities.
Total non-financial assets increased $1.4 million resulting from capital spending as approved in the main estimates, net of amortization.
Financial Statements
The financial statements including the Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting can be found on Health Canada's web site.
Supplementary Information Tables
The supplementary information tables listed in the 2014-15 Departmental Performance Report can be found on the Health Canada's website.
- Departmental Sustainable Development Strategy;
- Details on Transfer Payment Programs of $5 Million or More;
- Horizontal Initiatives;
- Internal Audits and Evaluations;
- Response to Parliamentary Committees and External Audits;
- Up-Front Multi-Year Funding; and,
- User Fees, Regulatory Charges and External Fees.
Tax Expenditures and Evaluations
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.
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