Patented Medicine Prices Review Board - 2024-25 Departmental financial statements

Table of Contents

• Statement of management responsibility including internal control over financial reporting
• Statement of financial position (Unaudited)
• Statement of operations and departmental net financial position (Unaudited)
• Statement of change in departmental net debt (Unaudited)
• Statement of cash flows (Unaudited)
• Notes to the financial statements (Unaudited)
• Annex A: Internal control over financial reporting

Statement of management responsibility including internal control over financial reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2025, and all information contained in these financial statements rests with the management of the Patented Medicine Prices Review Board (PMPRB). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the PMPRB's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the PMPRB's Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities, and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the PMPRB and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments. A risk-based assessment of the system of ICFR for the year ended March 31, 2025 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The financial statements of the PMPRB have not been audited.

Original signed by Anie Perrault
Anie Perrault LL.L, ASC
Acting Chairperson
Ottawa, Canada
Date: September 9, 2025

Original signed by Manon Souligny
Manon Souligny, CPA
Chief Financial Officer
Ottawa, Canada
Date: September 9, 2025

Statement of financial position (Unaudited)

As at March 31

(in dollars)	2025	2024
Liabilities
Accounts payable and accrued liabilities (note 4)	$ 1,673,872	$ 953,947
Vacation pay and compensatory leave	654,648	614,142
Employee future benefits (note 6)	265,420	262,354
Total net liabilities	2,593,940	1,830,443
Financial assets
Due from Consolidated Revenue Fund	1,633,066	908,551
Accounts receivable and advances (note 7)	192,615	269,743
Total gross financial assets	1,825,681	1,178,294
Financial assets held on behalf of Government
Accounts receivable and advances (note 7)	(151,759)	(224,347)
Total financial assets held on behalf of Government	(151,759)	(224,347)
Total net financial assets	1,673,922	953,947
Departmental net debt	920,018	876,496
Non-financial assets
Tangible capital assets (note 8)	166,782	86,061
Total non-financial assets	166,782	86,061
Departmental net financial position	$ (753,236)	$ (790,435)

The accompanying notes form an integral part of these financial statements.

Original signed by Anie Perrault
Anie Perrault LL.L, ASC
Acting Chairperson
Ottawa, Canada
Date: September 9, 2025

Original signed by Manon Souligny
Manon Souligny, CPA
Chief Financial Officer
Ottawa, Canada
Date: September 9, 2025

Statement of operations and departmental net financial position (Unaudited)

For the Year Ended March 31

(in dollars)	2025 Planned Results	2025 Actual	2024 Actual
Expenses
Regulate patented medicine prices	$ 15,705,973	$ 10,993,918	$ 11,552,225
Internal services	3,653,773	4,388,570	4,270,101
Expenses incurred on behalf of Government	-	(44,593)	(22,111)
Total expenses	19,359,746	15,337,895	15,800,215
Revenues (note 5)
Sales of goods and services	-	643,592	651,693
Miscellaneous revenues	-	1,504	12,320
Revenues earned on behalf of Government	-	(643,592)	(663,693)
Total revenues	-	1,504	320
Net cost of operations before government funding and transfers	19,359,746	15,336,391	15,799,895
Government funding and transfers
Net cash provided by Government of Canada		12,926,017	13,666,573
Change in due from Consolidated Revenue Fund		724,515	259,785
Services provided without charge by other government departments (note 9)		1,748,868	1,764,728
Transfer of assets and liabilities (to) / from other government departments		(25,810)	8,295
Net cost of (revenue from) operations after government funding and transfers		(37,199)	100,514
Departmental net financial position - Beginning of year		(790,435)	(689,921)
Departmental net financial position - End of year		$ (753,236)	$ (790,435)

Segmented information (note 10)

The accompanying notes form an integral part of these financial statements.

Statement of change in departmental net debt (Unaudited)

For the Year Ended March 31

(in dollars)	2025	2024
Net cost of (revenue from) operations after government funding and transfers	$ (37,199)	$ 100,514
Change due to tangible capital assets
Acquisition of tangible capital assets	106,383	58,918
Amortization of tangible capital assets	(25,662)	(22,386)
Total change due to tangible capital assets	80,721	36,532
Increase (decrease) in departmental net debt	43,522	137,046
Departmental net debt - Beginning of year	876,496	739,450
Departmental net debt - End of year	$ 920,018	$ 876,496

The accompanying notes form an integral part of these financial statements.

Statement of cash flows (Unaudited)

For the Year Ended March 31

(in dollars)	2025	2024
Operating activities
Net cost of operations before government funding and transfers	$ 15,336,391	$ 15,799,895
Non-cash items:
Amortization of tangible capital assets	(25,662)	(22,386)
Services provided without charge by other government departments (note 9)	(1,748,868)	(1,764,728)
Variations in Statement of financial position:
Decrease (increase) in accounts payable and accrued liabilities	(719,925)	(151,246)
Decrease (increase) in vacation pay and compensatory leave	(40,506)	(96,829)
Decrease (increase) in employee future benefits	(3,066)	(40,217)
Increase (decrease) in accounts receivable and advances	(4,540)	(108,539)
Transfer of assets and liabilities (to) / from other government departments	25,810	(8,295)
Cash used in operating activities	12,819,634	13,607,655
Capital investing activities
Acquisitions of tangible capital assets	106,383	58,918
Cash used in capital investing activities	106,383	58,918
Net cash provided by Government of Canada	$ 12,926,017	$ 13,666,573

The accompanying notes form an integral part of these financial statements.

Notes to the financial statements (Unaudited)

For the year ended March 31, 2025

1. Authority and objectives

The Patented Medicine Prices Review Board (PMPRB) is an independent quasi-judicial body established by Parliament in 1987 under the Patent Act.

Although the PMPRB is part of the Health Portfolio, it carries out its mandate at arm's length from the Minister of Health. It also operates independently of other bodies such as Health Canada, which approves drugs for safety and efficacy, and public drug plans, which approve the listing of drugs on their respective formularies for reimbursement purposes.

Core responsibility: Regulate patented medicine prices
The PMPRB regulates the prices of patented medicines by setting non-excessive price ceilings and taking enforcement action before the Board in the event of non-compliance.

Internal services
Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 8 categories of internal services: management and oversight services; human resources management services; financial management services; information management services; information technology services; real property management services; materiel management services; and acquisition management services.

Note that the PMPRB includes communications services and legal services under its core responsibility.

2. Summary of significant accounting policies

These financial statements are prepared using the PMPRB's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Parliamentary authorities
The PMPRB is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the PMPRB 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 Statement of financial position and the Statement of operations and departmental net financial position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of operations and departmental net financial position are the amounts reported in the Future-oriented statement of operations included in the 2024-25 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of operations and departmental net financial position and in the Statement of change in departmental net debt because these amounts were not included in the 2024-25 Departmental Plan.

(b) Net cash provided by Government
The PMPRB operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the PMPRB is deposited to the CRF, and all cash disbursements made by the PMPRB are paid from the CRF. The net cash provided by the Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.

(c) Amounts due from the Consolidated Revenue Fund
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 the PMPRB is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues
Revenues are comprised of revenues earned from non-tax sources. They include exchange transactions where goods or services are provided for consideration where a performance obligation exists, and non-exchange transactions where no performance obligations exist to provide a good or service. These transactions can be recurring or non-recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonable expected to be earned again in future years.

Other revenues are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the PMPRB's liabilities. While the Acting Chairperson is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues. Revenues earned on behalf of Government consist of sale of services and gains on the sale of assets. These are recognized when earned.

(e) Expenses
Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

Services provided without charge by other government departments for accommodation and employer contributions to the health and dental insurance plans are recorded as operating expenses at their carrying value.

(f) Employee future benefits

1. Pension benefits: Eligible employees participate in the Public Service Pension Plan (the "Plan"), a multiemployer pension plan administered by the Government. The PMPRB's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The PMPRB'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.
2. Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Financial instruments
A contract establishing a financial instrument creates, at its inception, rights, and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. The PMPRB recognizes a financial instrument when it becomes a party to a financial instrument contract.

Financial instruments consist of accounts receivable, and accounts payable and accrued liabilities.

All financial assets and liabilities are recorded at cost or amortized cost. Any associated transaction costs are added to the carrying value upon initial recognition. For financial instruments measured at amortized cost, the effective interest method is used to determine interest revenue or expense.

Accounts receivable are initially recorded at cost and, where necessary, are discounted to reflect their concessionary terms. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

(h) Non-financial assets
The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in note 8. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable, and intangible assets.

(i) Contingent liabilities
Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued, and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(j) Contingent assets
Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in the notes to the financial statements.

(k) Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, the liability for employee future benefits, allowance for doubtful accounts and the useful life of tangible capital assets.

Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

(l) Related party transactions
Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis, and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

The PMPRB receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of financial position and the Statement of operations and departmental net financial position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the PMPRB has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year authorities used

(in dollars)	2025	2024
Net cost of operations before government funding and transfers	$ 15,336,391	$ 15,799,895
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(25,662)	(22,386)
Services provided without charge by other government departments	(1,748,868)	(1,764,728)
Decrease (increase) in vacation pay and compensatory leave	(40,506)	(96,829)
Decrease (increase) in employee future benefits	(3,066)	(40,217)
Refund/adjustment of prior years' expenditures	46,358	28,703
Bad debt expense	(44,593)	(22,111)
Other	36,988	15,404
Total items affecting net cost of operations but not affecting authorities	(1,779,349)	(1,902,164)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	106,383	58,918
Proceeds from disposal of Crown assets	116	23
Increase in salary overpayments to be recovered	23,559	87,473
Total items not affecting net cost of operations but affecting authorities	130,058	146,414
Current year authorities used	$ 13,687,100	$ 14,044,145

(b) Authorities provided and used

(in dollars)	2025	2024
Authorities provided:
Vote 1 - Program expenditures	$ 17,220,939	$ 17,213,824
Statutory amounts	1,289,215	1,387,286
Less:
Authorities available for future years	(116)	-
Lapsed authorities	(4,822,938)	(4,556,965)
Current year authorities used	$ 13,687,100	$ 14,044,145

4. Accounts payable and accrued liabilities

The following table presents details of the PMPRB’s accounts payable and accrued liabilities:

Accounts payable and accrued liabilities

(in dollars)	2025	2024
Accounts payable - Other government departments and agencies	$ 138,120	$ 43,172
Accounts payable - External parties	200,849	139,098
Total accounts payable	338,969	182,270
Accrued liabilities	1,334,903	771,677
Total accounts payable and accrued liabilities	$ 1,673,872	$ 953,947

5. Revenues

The PMPRB has the following major types of revenues: Sales of goods and services, miscellaneous revenues, and revenues earned on behalf of the Government. Sales of goods and services are recorded when they are earned. Miscellaneous revenues include gain on disposal of crown assets, and other fees and charges. These are recorded when performance obligations are satisfied.

Disaggregated revenues

(in dollars)	2025	2024
Revenues
Sales of goods and services
Voluntary compliance undertaking (exchange)	$ 643,592	$ 651,693
Total sales of goods and service	643,592	651,693
Miscellaneous revenues
Gain on disposal of crown assets (exchange)	116	23
Other fees and charges (exchange and non-exchange)	1,388	12,297
Total miscellaneous revenues	1,504	12,320
Revenues earned on behalf of Government (exchange and non-exchange)	(643,592)	(663,693)
Total revenues	$ 1,504	$ 320

6. Employee future benefits===============

(a) Pension benefits
The PMPRB's employees participate in the Public Service Pension Plan (the "Plan"), which is sponsored and administered by the Government of Canada. 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 PMPRB contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

Pension expense

(in dollars)	2025	2024
Expense for the year	$ 826,828	$ 821,262

For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2023-24) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2023-24) the employee contributions.

The PMPRB's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

Severance benefits provided to the PMPRB's employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2025, substantially all settlements for immediate cash out were completed.  Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Accrued benefit obligation

(in dollars)	2025	2024
Accrued benefit obligation - Beginning of year	$ 262,354	$ 222,137
Expense for the year	10,982	40,217
Benefits paid during the year	(7,916)	-
Accrued benefit obligation - End of year	$ 265,420	$ 262,354

7. Accounts receivable and advances

The following table presents details of the PMPRB's accounts receivable and advances balances:

Accounts receivable and advances

(in dollars)	2025	2024
Accounts receivable - Other government departments and agencies	$ 40,856	$ 44,896
Employee advances	218,463	246,958
Subtotal	259,319	291,854
Allowance for doubtful accounts	(66,704)	(22,111)
Gross accounts receivable and advances	192,615	269,743
Accounts receivable held on behalf of Government	(151,759)	(224,347)
Net accounts receivable and advances	$ 40,856	$ 45,396

8. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Amortization period by asset class

Asset class	Sub-asset class	Amortization period
Machinery and equipment	Computer equipment	3-5 years
	Computer software	3 years
	Machinery and equipment	8-12 years

Tangible capital assets (in dollars)

Cost	Opening balance	Acquisitions	Disposals/write-offs	Closing balance
Machinery and equipment	$ 382,823	$ 106,383	-	$ 489,206
Total	$ 382,823	$ 106,383	-	$ 489,206
Accumulated amortization	Opening balance	Amortization	Disposals/ write-offs	Closing balance
Machinery and equipment	$ 296,762	$ 25,662	-	$ 322,424
Total	$ 296,762	$ 25,662	-	$ 322,424
Net book value	Net book value 2024			Net book value 2025
Machinery and equipment	$ 86,061			$ 166,782
Total	$ 86,061			$ 166,782

9. Related party transactions

The PMPRB is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The PMPRB enters into transactions with these entities in the normal course of business and on normal trade terms.

(a) Common services provided without charge by other government departments
During the year, the PMPRB received services without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded at the carrying value in the PMPRB's Statement of operations and departmental net financial position as follows:

Common services provided without charge by other government departments

(in dollars)	2025	2024
Accommodation	$ 917,129	$ 904,916
Employer's contribution to the health and dental insurance plans	831,739	859,812
Total	$ 1,748,868	$ 1,764,728

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 Services and Procurement Canada and audit services provided by the Office of the Auditor General are not included in the PMPRB's Statement of operations and departmental net financial position.

(b) Other transactions with other government departments and agencies

Other transactions with other government departments and agencies

(in dollars)	2025	2024
Expenses	$ 528,664	$ 410,451

Expenses disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

10. Segmented information

Presentation by segment is based on the PMPRB's core responsibility. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main core responsibilities by major object of expense and by major type of revenue. The segment results for the period are as follows:

Segmented information

(in dollars)	Regulate Patented Medicine Prices	Internal Services	2025 Total	2024 Total
Expenses
Salaries and employee benefits	$ 8,572,585	$ 3,401,775	$ 11,974,360	$ 12,178,991
Information services	928,405	21,942	950,347	915,585
Accommodation	652,128	265,001	917,129	904,916
Professional and special services	730,659	167,623	898,282	907,045
Rentals	1,700	280,536	282,236	194,138
Utilities, materials and supplies	5,600	134,305	139,905	128,801
Travel and relocation	80,103	7,899	88,002	60,802
Bad debts	-	44,593	44,593	22,111
Communications	130	38,774	38,904	67,105
Amortization of tangible capital assets	-	25,662	25,662	22,386
Other	22,608	(1,156)	21,452	413,042
Repair and maintenance	-	1,616	1,616	7,404
Expenses incurred on behalf of Government	-	(44,593)	(44,593)	(22,111)
Total expenses	10,993,918	4,343,977	15,337,895	15,800,215
Revenues
Sales of goods and services	-	643,592	643,592	651,693
Miscellaneous	1,322	182	1,504	12,320
Revenues earned on behalf of Government	-	(643,592)	(643,592)	(663,693)
Total revenues	1,322	182	1,504	320
Net cost of operations before government funding and transfers	$ 10,992,596	$ 4,343,795	$ 15,336,391	$ 15,799,895

Annex: Internal control over financial reporting

A.1 Introduction

In support of an effective system of internal control, the Patented Medicine Prices Review Board conducted self-assessments of key control areas that were identified to be assessed in the 2024 to 2025 fiscal year. A summary of the assessment results and action plan is provided in subsection A.2.

The Patented Medicine Prices Review Board will assess all key control areas over a five-year period. The assessment plan is provided in subsection A.3.

A.2 Assessment results for the 2024 to 2025 fiscal year

The Patented Medicine Prices Review Board completed the assessment of key control areas as indicated in the following table. A summary of the results, action plans, and additional details are also provided.

Assessment results for the 2024 to 2025 fiscal year

Key control areas	Remediation required	Summary results and action plan
Pay administration	No	Pay administration is functioning as intended, no action plan required.
Financial management governance	No	Financial management governance is functioning as intended, no action plan required.

With respect to the key control areas of pay administration and financial management governance, for the most part, controls related to these areas were functioning well and form an adequate basis for the department’s system of internal control.

A.3 Assessment plan

The Patented Medicine Prices Review Board will assess the performance of its system of internal controls by focusing on key control areas over a cycle of years as shown in the following table.

Assessment plan

Key control areas	2022 to 2023 fiscal year	2023 to 2024 fiscal year	2024 to 2025 fiscal year	2025 to 2026 fiscal year	2026 to 2027 fiscal year
Delegation	Yes	No	No	No	No
Contracting	No	Yes	No	No	No
Year-end payables	No	Yes	No	No	No
Pay administration	No	No	Yes	No	No
Financial management governance	No	No	Yes	No	No
Acquisition cards	No	No	No	Yes	No
Leave	No	No	No	Yes	No
Special financial authorities	No	No	No	Yes	No
Travel	No	No	No	No	Yes
Hospitality	No	No	No	No	Yes
Accountable advances	No	No	No	No	Yes