1. Introduction

Purpose:

This document is attached to the Canadian Food Inspection Agency's (CFIA) Statement of Management Responsibilty Inclusing Internal Control over Financial Reporting for the fiscal year 2010-11. As required by the new Treasury Board Policy on Internal Control, effective April 1, 2009, for the first time, 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 of March 31, 2011, including progress, results and related action plans along with some financial highlights pertinent to understanding the control environment unique to the agency.

Key Elements:

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.

Financial highlights:

Finanical Statements (audited by the Office of the Auditor General of Canada) of the CFIA for fiscal year 2010-11 can be found in the Departmental Performance Report.

• Total expenses were $839M, 74% of which is salaries and employee benefits.
• Total revenues were $56.6M, 72% of which comes from inspection fees.
• Total assets and liabilities were $317.9M and $221.3M respectively. Tangible capital assets comprise 73% of total assets. Employee severance benefits comprise 48% of total liabilities, followed by accounts payable and accrued liabilities of 38%.
• The CFIA has a strong regional presence. There is a decentralized finance function 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 a SAP based financial system called SATURN. This system interfaces with the Stand Alone Electronic Invoicing System (STEL) to support CFIA's management of its revenues.

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.