Question Period Note: 2021-22 health canada public accounts

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• The Public Accounts of Canada were tabled on October 27, 2022.
• My Department is committed to ensuring that public funds are spent effectively, and in a transparent manner.
• Health Canada has strong internal financial controls designed to detect and minimize errors and financial losses.
• The Department also regularly audits its internal controls to make sure they are up to date and effective, and takes action to recover any inappropriate spending or financial losses.

IF PRESSED ON SPENDING LAPSE …
• Health Canada works to ensure that the resources at its disposal are fully and efficiently utilized in order to improve the health of Canadians.
• For the 2021-22 fiscal year, Health Canada experienced a spending lapse of $3.4 billion. This is mainly the result of requesting $2.5 billion through both statutory (Bill C-10) and voted spending authorities (Supplementary Estimates C) allowing for flexibility for the procurement of critical and time-sensitive additional COVID-19 rapid tests. The expenditures were charged against the statutory authority in this case, and the appropriations were frozen and allowed to lapse to ensure that funding was not spent twice.
• Additionally, the lapse includes a reprofile from 2021-22 to 2022-23 of $575 million related to supporting emergency measures related to the pandemic (COVID-19).

IF PRESSED ON MINISTER EXPENSES …
• Our Government is firmly committed to engaging and consulting with Canadians, and as Minister of Health this often requires travel to all of Canada’s regions to discuss their health needs.
• The expenses found in the Public Accounts line up with those that are released regularly through the proactive disclosure process.

IF PRESSED ON LOSSES OF PUBLIC MONEY OR PUBLIC PROPERTY …
• Health Canada handles a high number of financial transactions every year and takes all losses of public money or property seriously.
• As losses are discovered, an investigation is launched on each case and we seek to recover taxpayers’ money through all available means, including involving law enforcement agencies if needed.

IF PRESSED ON DEBT WRITE-OFF …
• Departmental debt write-offs tend to fluctuate year over year.
• In all cases, we seek to get the best possible value for Canadian taxpayers, including through debt collection actions where warranted.

IF PRESSED ON CLAIMS AGAINST THE CROWN …
• The Department attempts to limit all situations where claims against the Crown may arise.
• However when claims do arise, they are reviewed in depth by Department of Justice officials to ensure that any settlements made are in the best interest of the Crown.

IF PRESSED ON INTERNAL AUDIT REPORTING OF 35,000 MISSING COMPUTERS AS OF THE END OF 2019 …
• The scope of the audit included the examination and assessment of all relevant systems, records, personnel, and physical properties related to HC and PHAC IT assets up to June 2019, while the Public Accounts cover FY 2021-22. As such, the finding and the subject matter are not part of the public accounts reporting.
• Since 2017, all IT assets that have financial (beyond a nominal low dollar threshold) or business value (all procured assets that could contain data, including computing and storage devices) are being tagged and tracked in a single, integrated system.
• The Department’s analysis of the audit findings has determined that the inability to confirm the existence and location of these computers and devices is largely a result of data discrepancies on the number of assets, rather than missing devices.

The Public Accounts of Canada is the report of the Government of Canada prepared annually by the Receiver General, as required by section 64 of the Financial Administration Act. It covers the Government fiscal year, which ends on March 31.

The information in the report originates from two sources of data:
• the summarized financial transactions presented in the accounts of Canada, maintained by the Receiver General; and
• the detailed records, maintained by departments and agencies.

Each department and agency is responsible for reconciling its accounts to the control accounts of the Receiver General, and for maintaining detailed records of the transactions in its accounts.

The Public Accounts report the financial transactions of the Government during the year. In certain cases, Parliamentary authority to undertake transactions was provided by legislation approved in earlier years.

Each year, the President of the Treasury Board tables a detailed report of the financial transactions of all government departments and agencies, entitled the Public Accounts of Canada. Responsibility for the form and content of the Public Accounts rests with the President of the Treasury Board and the Minister of Finance.

The Deputy Head and Chief Financial Officer sign the Letter of Representation to the Office of the Auditor General and Deputy Receiver General. The Letter of Representation acknowledges management’s responsibility with regard to departmental system of internal control and accuracy of the financial information.

The Public Accounts normally do not generate much attention at the departmental level. However, losses of public money and other financial transactions have received some attention in the past for other departments. The following areas have been of interest in recent years:

Spending
The Department’s authorities used (spending) for the 2021-22 fiscal year was $6.04 billion. Total authorities received were $9.45 billion. The resulting lapse is $3.40 billion, or 36.0 %.

Compared with 2020-21 authorities used of $3.12 billion, there was an increase in spending of 94.0%.

Remissions and Debt Write-offs
Debt write-offs are accounting entries to remove from the accounts of a department, a debt or, a part of a debt, which is determined to be uncollectable. Health Canada did not report any significant remissions or debt write-offs.

Losses of Public Money and Property
Heath Canada did not have any significant new cases to report and provided updates on five cases previously reported.

Claims Against the Crown
Claims are generally in relation to the settlement of grievances and other employment-related issues, which includes Phoenix pay system related claims.

35,000 Missing Computers as of 2019
A recent internal audit report has identified that the department was unable to confirm the existence and location of approximately 35,000 computing devices as of 2019. Health Canada’s analysis determined that the audit findings are largely a result of data discrepancies on the number of assets, rather than missing devices. Technologies are in place that mitigate the risk of information being mishandled.

• The Department’s authorities used (spending) for the 2021-22 fiscal year was $6.04 billion. Total authorities received were $9.45 billion. The resulting lapse is $3.40 billion, or 36.0%. Compared with 2020-21 authorities used of $3.12 billion, there was an increase in spending of 94.0%.