Archived Page 4: Health Canada – 2015-16 – Departmental Performance Report – Section II
Section II: Expenditure Overview
Actual Expenditures
| 2015-16 Main Estimates |
2015-16 Planned Spending |
2015-16 Total Authorities Available for Use |
2015-16 Actual Spending (authorities used) |
Difference (actual minus planned) |
|---|---|---|---|---|
| 3,658,770,349 | 3,658,770,349 | 3,931,578,293 | 3,881,132,152 | 222,361,803 |
Note: The increase of $272.8 million between planned spending and total authorities is mainly due to in-year funding received through Treasury Board approved initiatives, the department's operating and capital budget carry forwards, and certain statutory items that are not part of planned spending. The $50.4 million difference between total authorities and actual spending is mainly related to the reprofile for the Canada Brain Research Fund; the demand driven nature of the Indian Residential Schools Resolution Health Support Program and demand being lower than planned; as well, a portion of the operating budget was carried forward to support strategic investments in 2016-17. |
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| 2015-16 Planned |
2015-16 Actual |
2015-16 Difference (actual minus planned) |
|---|---|---|
| 9,072 | 8,740 | -332 |
Note: The variance between actual and planned FTEs is mainly due to management's efforts to stabilize and control future salary requirements through personnel departures and delays in staffing vacant positions, and resources being realigned from initial plans in order to meet program needs. In addition, the calculation of planned FTE figures is based on programs using their full revenue authority. FTE utilization is mainly due to the reflection of workforce requirements based on actual workload. |
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Budgetary Performance Summary
| Strategic Outcomes and Programs and Internal Services | 2015-16 Main Estimates | 2015-16 Planned Spending | 2016-17 Planned Spending | 2017-18 Planned Spending | 2015-16 Total Authorities Available for Use | 2015-16 Actual Spending (authorities used) | 2014-15 Actual Spending (authorities used) | 2013-14 Actual Spending (authorities used) |
|---|---|---|---|---|---|---|---|---|
| Strategic Outcome 1: A health system responsive to the needs of Canadians | ||||||||
| 1.1 Canadian Health System Policy | 260,390,118 | 260,390,118 | 260,866,701 | 238,810,074 | 345,205,119 | 329,580,184 | 334,273,289 | 353,877,280 |
| 1.2 Specialized Health Services | 19,133,053 | 19,133,053 | 18,685,517 | 18,685,517 | 17,566,176 | 15,260,199 | 13,650,940 | 16,475,781 |
| 1.3 Official Language Minority Community Development | 37,528,856 | 37,528,856 | 38,093,638 | 35,339,238 | 37,503,038 | 37,221,431 | 36,653,712 | 25,830,789 |
| Sub-Total | 317,052,027 | 317,052,027 | 317,645,856 | 292,834,829 | 400,274,333 | 382,061,814 | 384,577,941 | 396,183,850 |
| Strategic Outcome 2: Health risks and benefits associated with food, products, substances, and environmental factors are appropriately managed and communicated to Canadians | ||||||||
| 2.1 Health Products | 148,110,784 | 148,110,784 | 146,005,296 | 146,066,729 | 146,869,279 | 145,641,623 | 166,617,222 | 179,564,797 |
| 2.2 Food Safety and Nutrition | 67,838,730 | 67,838,730 | 68,562,778 | 68,557,778 | 65,987,214 | 63,941,395 | 66,365,087 | 71,238,491 |
| 2.3 Environmental Risks to Health | 100,282,109 | 100,282,109 | 72,844,578 | 72,761,578 | 91,265,498 | 87,559,410 | 97,967,114 | 101,141,190 |
| 2.4 Consumer Product and Workplace Chemical Safety | 37,689,337 | 37,689,337 | 37,562,015 | 37,343,377 | 37,389,916 | 34,513,091 | 34,325,604 | 35,535,627 |
| 2.5 Substance Use and Abuse | 86,731,215 | 86,731,215 | 87,797,766 | 87,260,678 | 86,174,613 | 84,450,294 | 69,339,368 | 88,591,578 |
| 2.6 Radiation Protection | 20,282,587 | 20,282,587 | 13,148,978 | 12,880,340 | 20,926,585 | 20,871,026 | 20,709,033 | 21,420,658 |
| 2.7 Pesticides | 40,190,336 | 40,190,336 | 40,238,976 | 39,970,339 | 42,256,130 | 41,360,034 | 44,319,169 | 46,299,835 |
| Sub-Total | 501,125,098 | 501,125,098 | 466,160,387 | 464,840,819 | 490,869,235 | 478,336,873 | 499,642,597 | 543,792,176 |
| Strategic Outcome 3: 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 | ||||||||
| 3.1 First Nations and Inuit Primary Health Care | 809,838,696 | 809,838,696 | 843,780,295 | 862,525,426 | 890,352,928 | 888,041,558 | 870,774,017 | 927,125,272 |
| 3.2 Supplementary Health Benefits for First Nations and Inuit | 1,128,474,836 | 1,128,474,836 | 1,180,001,880 | 1,125,268,883 | 1,145,042,304 | 1,138,729,982 | 1,075,694,038 | 1,071,034,484 |
| 3.3 Health Infrastructure Support for First Nations and Inuit | 635,463,846 | 635,463,846 | 683,792,972 | 715,346,893 | 672,813,984 | 672,276,324 | 640,190,204 | 525,066,806 |
| Sub-Total | 2,573,777,378 | 2,573,777,378 | 2,707,575,147 | 2,703,141,202 | 2,708,209,216 | 2,699,047,864 | 2,586,658,259 | 2,523,226,562 |
| Internal Service Sub-Total | 266,815,846 | 266,815,846 | 265,223,547 | 265,152,082 | 332,225,509 | 321,685,601 | 343,595,169 | 364,976,909 |
| Total | 3,658,770,349 | 3,658,770,349 | 3,756,604,937 | 3,725,968,932 | 3,931,578,293 | 3,881,132,152 | 3,814,473,966 | 3,828,179,497 |
At the outset of the 2015-16 fiscal year, Health Canada's planned spending was $3,658.8 million. Additional in-year funding received for Treasury Board approved initiatives and the operating and capital budget carry forwards, increased Health Canada's total authorities to $3,931.6 million. The department's actual spending for the fiscal year was $3,881.1 million.
The additional funding received during 2015-16 relates mainly to the following initiatives: funding to maintain health promotion, disease prevention and health system transformation programs for Aboriginal populations, funding to establish a Thalidomide Survivors Contribution Program, funding for the renewal of the Labrador Innu Health Programs, and funding to the Canadian Foundation for Healthcare Improvement to support innovative health care practices.
The variance of $50.4 million between total authorities and actual spending in 2015-16 is mainly the result of the reprofile for the Canada Brain Research Fund, demand for the Indian Residential Schools Resolution Health Support Program being lower than planned, and a portion of the operating budget being carried forward to support strategic investments in 2016-17.
The decrease in planned spending in 2016-17 under Strategic Outcome 2 is mainly due to the sunsetting of time-limited spending authorities relating to the following initiatives: Clean Air Regulatory Agenda, Adaptation to Climate Change under Canada's Clean Air Agenda, and funding relating to the assessment, management, and remediation of Federal Contaminated Sites.
The Government of Canada reassesses priorities, as required, and programs that are set to sunset will be considered for renewal and may in fact be renewed.
Departmental Spending Trend
Figure - Text Description
| 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 | |
|---|---|---|---|---|---|---|
| Sunset Programs - Anticipated | 0 | 0 | 0 | 124 | 170 | 179 |
| Statutory | 303 | 271 | 254 | 177 | 177 | 176 |
| Voted | 3,525 | 3,543 | 3,627 | 3,580 | 3,549 | 3,516 |
| Total | 3,828 | 3,814 | 3,881 | 3,881 | 3,896 | 3,871 |
Note: The figure above illustrates Health Canada's spending trend from 2013-14 to 2018-19.
The additions to planned voted and statutory spending reflect estimated renewals of certain sunsetting programs, which are under further review and consideration by the government.
In 2015-16, Health Canada spent $3,881 million to meet expected program results and contribute to the achievement of departmental strategic outcomes.
For the 2013-14 to 2015-16 period, the total of voted and statutory spending correspond to total authorities used as shown in the Public Accounts of Canada.
For the 2016-17 to 2018-19 period, the total of voted and statutory spending correspond to planned spending which excludes in-year funding from Supplementary Estimate processes, carry forward adjustments, and certain statutory funding.
Expenditures by Vote
For information on Health Canada's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2016 which is available on the Public Services and Procurement Canada website.
Alignment of Spending With the Whole-of-Government Framework
| Program | Spending Area | Government of Canada Outcome | 2015-16 Actual Spending |
|---|---|---|---|
| 1.1 Canadian Health System Policy | Social Affairs | Healthy Canadians | 329,580,184 |
| 1.2 Specialized Health Services | Social Affairs | Healthy Canadians | 15,260,199 |
| 1.3 Official Language Minority Community Development | Social Affairs | Healthy Canadians | 37,221,431 |
| 2.1 Health Products | Social Affairs | Healthy Canadians | 145,641,623 |
| 2.2 Food Safety and Nutrition | Social Affairs | Healthy Canadians | 63,941,395 |
| 2.3 Environmental Risks to Health | Social Affairs | Healthy Canadians | 87,559,410 |
| 2.4 Consumer Product and Workplace Chemical Safety | Social Affairs | Healthy Canadians | 34,513,091 |
| 2.5 Substance Use and Abuse | Social Affairs | Healthy Canadians | 84,450,294 |
| 2.6 Radiation Protection | Social Affairs | Healthy Canadians | 20,871,026 |
| 2.7 Pesticides | Social Affairs | Healthy Canadians | 41,360,034 |
| 3.1 First Nations and Inuit Primary Health Care | Social Affairs | Healthy Canadians | 888,041,558 |
| 3.2 Supplementary Health Benefits for First Nations and Inuit | Social Affairs | Healthy Canadians | 1,138,729,982 |
| 3.3 Health Infrastructure Support for First Nations and Inuit | Social Affairs | Healthy Canadians | 672,276,324 |
| Spending Area | Total Planned Spending | Total Actual Spending |
|---|---|---|
| Economic Affairs | ||
| Social Affairs | 3,391,954,503 | 3,559,446,551 |
| International Affairs | ||
| Government Affairs |
Financial Statements and Financial Statements Highlights
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.
Financial Statements Highlights
| Financial Information | 2015-16 Planned Results | 2015-16 Actual | 2014-15 Actual | Difference (2015-16 actual minus 2015-16 planned) | Difference (2015-16 actual minus 2014-15 actual) |
|---|---|---|---|---|---|
| Total expenses | 4,021,484,000 | 4,147,755,000 | 3,993,213,000 | 126,271,000 | 154,542,000 |
| Total revenues | 329,673,000 | 292,034,000 | 285,324,000 | -37,639,000 | 6,710,000 |
| Net cost of operations before government funding and transfers | 3,691,811,000 | 3,855,721,000 | 3,707,889,000 | 163,910,000 | 147,832,000 |
The Department's total expenses were $4.1B in 2015-16.
There was an increase of $126.3M when comparing actual expenditures to planned results for 2015-16. This is primarily a result of an increase in funding for First Nations and Inuit Health programs and services; funding relating to the implementation of the British Columbia Tripartite Framework Agreement on First Nation Health Governance; and funding to establish a Thalidomide Survivors Contribution Program.
There was an increase of approximately $154.5M when comparing year-over-year actual expenditures. The significant changes were:
- an increase of $83.5M in transfer payments due primarily to increases for First Nations and Inuit Health programs and services, implementation of the British Columbia Tripartite Framework Agreement on First Nation Health Governance, increase in payments for substance abuse programs, and the establishment of the Thalidomide Survivors Contribution Program;
- an increase of $45.8M 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;
- an increase of $24.2M in professional and special services mainly related to the Non-Insured Health Benefits (NIHB) program which are demand-driven and can vary from year to year;
- an increase of $13.7M 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; and,
- an increase of $23.2M in other expenses as a result of the reversal of a contingent liability allowance in the prior year.
These increases are offset by:
- a decrease of $20.5M in salaries and employee benefits largely due to a decrease in the provision for severance pay.
The Department's total revenues were $292.0M in 2015-16 representing an increase of $6.7M over the prior year actual revenues. This increase is primarily a result of:
- an increase of $5.6M in services of a non-regulatory nature from the First Nations Health Authority, reflecting the increase noted above in the related expenditures under the NIHB Program; and,
- an increase of $6.2M in rights and privileges revenue due to changes in the timing of billing for establishment licenses experienced.
These increases are offset by:
- a decrease of $4.0M in services of a regulatory nature due to a fluctuation experienced in the prior year in the volume of drug submissions received for evaluation.
| Financial Information | 2015-16 | 2014-15 | Difference (2015-16 minus 2014-15) |
|---|---|---|---|
| Total net liabilities | 462,633,000 | 546,779,000 | -84,146,000 |
| Total net financial assets | 283,342,000 | 281,644,000 | 1,698,000 |
| Departmental net debt | 179,291,000 | 265,135,000 | -85,844,000 |
| Total non-financial assets | 135,225,000 | 130,776,000 | 4,449,000 |
| Departmental net financial position | -44,066,000 | -134,359,000 | 90,293,000 |
Total net liabilities were $462.6M at the end of 2015-16, a decrease of $84.1M from the previous year comprised mainly of:
- a decrease of $82.7M as a result of payments to Canada Health Infoway Inc. drawing down the liability originating from the 2007 and 2009 Budgets.
The year-over-year increase in total net financial assets of $1.7M 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 $4.4M resulting from capital spending as approved in the main estimates, net of amortization.