Patented Medicine Prices Review Board - 2023-24 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: 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, 2024, 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, 2024 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 Thomas J. Digby
Thomas J. Digby
Chairperson
Ottawa, Canada
Date:  September 13, 2024

Original signed by Devon Menard
Devon Menard
Chief Financial Officer
Ottawa, Canada
Date:  September 13, 2024

Statement of financial position (Unaudited)

As at March 31

(in dollars)	2024	2023
Liabilities
Accounts payable and accrued liabilities (note 4)	$ 953,947	$ 802,701
Vacation pay and compensatory leave	614,142	517,313
Employee future benefits (note 6)	262,354	222,137
Total net liabilities	1,830,443	1,542,151
Financial assets
Due from Consolidated Revenue Fund	908,551	648,766
Accounts receivable and advances (note 7)	269,743	363,264
Total gross financial assets	1,178,294	1,012,030
Financial assets held on behalf of Government
Accounts receivable and advances (note 7)	(224,347)	(209,329)
Total financial assets held on behalf of Government	(224,347)	(209,329)
Total net financial assets	953,947	802,701
Departmental net debt	876,496	739,450
Non-financial assets
Tangible capital assets (note 8)	86,061	49,529
Total non-financial assets	86,061	49,529
Departmental net financial position	$ (790,435)	$ (689,921)

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

Original signed by Thomas J. Digby
Thomas J. Digby
Chairperson
Ottawa, Canada
Date:  September 13, 2024

Original signed by Devon Menard
Devon Menard
Chief Financial Officer
Ottawa, Canada
Date:  September 13, 2024

Statement of operations and departmental net financial position (Unaudited)

For the Year Ended March 31

(in dollars)	2024 Planned Results	2024 Actual	2023 Actual
Expenses
Regulate Patented Medicine Prices	$  15,098,955	$ 11,552,225	$ 9,674,648
Internal Services	3,547,461	4,270,101	3,729,656
Expenses incurred on behalf of Government	-	(22,111)	-
Total expenses	18,646,416	15,800,215	13,404,304
Revenues (note 5)
Sales of goods and services	-	651,693	31,233,547
Miscellaneous revenues	-	12,320	3,384
Revenues earned on behalf of Government	-	(663,693)	(31,233,547)
Total revenues	-	320	3,384
Net cost of operations before government funding and transfers	18,646,416	15,799,895	13,400,920
Government funding and transfers
Net cash provided by Government of Canada		13,666,573	12,064,091
Change in due from Consolidated Revenue Fund		259,785	(128,971)
Services provided without charge by other government departments (note 9)		1,764,728	1,634,192
Transfer of assets and liabilities (to) / from other government departments		8,295	10,431
Net cost of (revenue from) operations after government funding and transfers		100,514	(178,823)
Departmental net financial position - Beginning of year		(689,921)	(868,744)
Departmental net financial position - End of year		$ (790,435)	$ (689,921)

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)	2024	2023
Net cost of (revenue from) operations after government funding and transfers	$ 100,514	$ (178,823)
Change due to tangible capital assets
Acquisition of tangible capital assets	58,918	33,928
Amortization of tangible capital assets	(22,386)	(30,367)
Total change due to tangible capital assets	36,532	3,561
Increase (decrease) in departmental net debt	137,046	(175,262)
Departmental net debt - Beginning of year	739,450	914,712
Departmental net debt - End of year	$ 876,496	$ 739,450

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

Statement of cash flows (Unaudited)

For the Year Ended March 31

(in dollars)	2024	2023
Operating activities
Net cost of operations before government funding and transfers	$ 15,799,895	$ 13,400,920
Non-cash items:
Amortization of tangible capital assets	(22,386)	(30,367)
Services provided without charge by other government departments (note 9)	(1,764,728)	(1,634,192)
Variations in Statement of financial position:
Decrease (increase) in accounts payable and accrued liabilities	(151,246)	150,211
Decrease (increase) in vacation pay and compensatory leave	(96,829)	134,802
Decrease (increase) in employee future benefits	(40,217)	40,461
Increase (decrease) in accounts receivable and advances	(108,539)	(21,241)
Transfer of assets and liabilities (to) / from other government departments	(8,295)	(10,431)
Cash used in operating activities	13,607,655	12,030,163
Capital investing activities
Acquisitions of tangible capital assets	58,918	33,928
Cash used in capital investing activities	58,918	33,928
Net cash provided by Government of Canada	$ 13,666,573	$ 12,064,091

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

Notes to the financial statements (Unaudited)

For the Year Ended March 31, 2022

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 10 categories of internal services:  management and oversight services; communications services; legal 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.

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 2023-24 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 2023-24 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 Chairperson is expected to maintain accounting control, he 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)	2024	2023
Net cost of operations before government funding and transfers	$ 15,799,895	$ 13,400,920
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(22,386)	(30,367)
Services provided without charge by other government departments	(1,764,728)	(1,634,192)
Decrease (increase) in vacation pay and compensatory leave	(96,829)	134,802
Decrease (increase) in employee future benefits	(40,217)	40,461
Refund/adjustment of prior years' expenditures	28,703	77,161
Bad debt expense	(22,111)	-
Other	15,404	-
Total items affecting net cost of operations but not affecting authorities	(1,902,164)	(1,412,135)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	58,918	33,928
Proceeds from disposal of crown assets	23	231
Increase in salary overpayments to be recovered	87,473	(1,836)
Issuance of advances to employees	-	420
Total items not affecting net cost of operations but affecting authorities	146,414	32,743
Current year authorities used	$ 14,044,145	$ 12,021,528

(b) Authorities provided and used

(in dollars)	2024	2023
Authorities provided:
Vote 1 - Program expenditures	$ 17,213,824	$ 16,489,500
Statutory amounts	1,387,286	1,212,803
Less:
Authorities available for future years	-	(232)
Lapsed authorities	(4,556,965)	(5,680,543)
Current year authorities used	$ 14,044,145	$ 12,021,528

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)	2024	2023
Accounts payable - Other government departments and agencies	$ 43,172	$ 26,428
Accounts payable - External parties	139,098	113,029
Total accounts payable	182,270	139,457
Accrued liabilities	771,677	663,244
Total accounts payable and accrued liabilities	$ 953,947	$ 802,701

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)	2024	2023
Revenues
Sales of goods and services
Voluntary compliance undertaking (exchange)	$ 651,693	$ 9,214,570
Settlement payments (exchange)	-	22,018,977
Total sales of goods and service	651,693	31,233,547
Miscellaneous revenues
Gain on disposal of crown assets (exchange)	23	232
Other fees and charges (exchange and non-exchange)	12,297	3,152
Total miscellaneous revenues	12,320	3,384
Revenues earned on behalf of Government (exchange)	(663,693)	(31,233,547)
Total revenues	$ 320	$ 3,384

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)	2024	2023
Expense for the year	$ 821,262	$ 774,207

For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2022-23) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2022-23) 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, 2024, 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)	2024	2023
Accrued benefit obligation - Beginning of year	$ 222,137	$ 262,598
Expense for the year	40,217	(40,190)
Benefits paid during the year	-	(271)
Accrued benefit obligation - End of year	$ 262,354	$ 222,137

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)	2024	2023
Accounts receivable - Other government departments and agencies	$ 44,896	$ 153,435
Employee advances	246,958	209,829
Subtotal	291,854	363,264
Allowance for doubtful accounts	(22,111)	-
Gross accounts receivable and advances	269,743	363,264
Accounts receivable held on behalf of Government	(224,347)	(209,329)
Net accounts receivable and advances	$ 45,396	$ 153,935

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	$ 477,554	$ 58,918	$ (153,649)	$ 382,823
Total	$ 477,554	$ 58,918	$ (153,649)	$ 382,823
Accumulated amortization	Opening balance	Amortization	Disposals/ write-offs	Closing balance
Machinery and equipment	$ 428,025	$ 22,386	$ (153,649)	$ 296,762
Total	$ 428,025	$ 22,386	$ (153,649)	$ 296,762
Net book value	Net book value 2023			Net book value 2024
Machinery and equipment	$ 49,529			$ 86,061
Total	$ 49,529			$ 86,061

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)	2024	2023
Accommodation	$ 904,916	$ 883,323
Employer's contribution to the health and dental insurance plans	859,812	750,869
Total	$ 1,764,728	$ 1,634,192

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)	2024	2023
Expenses	$ 410,451	$ 515,194

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	2024 Total	2023 Total
Expenses
Salaries and employee benefits	$ 8,843,044	$ 3,335,947	$ 12,178,991	$ 10,219,579
Information services	872,267	43,318	915,585	814,216
Professional and special services	698,401	208,644	907,045	1,002,501
Accommodation	662,000	242,916	904,916	883,323
Other	415,061	(2,019)	413,042	30,325
Rentals	1,077	193,061	194,138	188,653
Utilities, materials and supplies	6,264	122,537	128,801	96,982
Communications	325	66,780	67,105	62,367
Travel and relocation	53,786	7,016	60,802	66,804
Amortization of tangible capital assets	-	22,386	22,386	30,367
Bad debts	-	22,111	22,111	-
Repair and maintenance	-	7,404	7,404	9,187
Expenses incurred on behalf of Government	-	(22,111)	(22,111)	-
Total expenses	11,552,225	4,247,990	15,800,215	13,404,304
Revenues
Sales of goods and services	-	651,693	651,693	31,233,547
Miscellaneous	165	12,155	12,320	3,384
Revenues earned on behalf of Government	-	(663,693)	(663,693)	(31,233,547)
Total revenues	165	155	320	3,384
Net cost of operations before government funding and transfers	$ 11,552,060	$ 4,247,835	$ 15,799,895	$ 13,400,920

11. Comparative information

Certain comparative figures have been reclassified to conform to the current year’s presentation.

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 2023 to 2024 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 2023 to 2024 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 2023 to 2024 fiscal year

Key control areas	Remediation required	Summary results and action plan
Contracting	No	Contracting is functioning as intended, no action plan required.
Year-End Payables	No	Year-end payables are functioning as intended, no action plan required.

With respect to contracting, the PMPRB has two individuals whose roles include procurement; they follow all Treasury Board Secretariat and Public Services and Procurement Canada guidelines/procedures and policies. There is a contracting review committee that consists of the Senior Director, Corporate Services Branch and Chief Financial Officer, as well as the Director and General Counsel, to approve all contracts over $10,000.

The PMPRB only had seven third-party payables at year-end transactions these all met the criteria of the self-assessment.

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