Quarterly Financial Report for the quarter ended June 30, 2025

Statement outlining results, risks and significant changes in operations, personnel and programs

Introduction

This first quarterly financial report for fiscal year 2025-26 was prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. The report should be read in conjunction with the 2025-26 Main Estimates. The report has not been subject to an external audit or review.

Mandate of the Canada Water Agency

The Canada Water Agency (CWA) improves federal collaboration on fresh water in Canada and develops and coordinates whole-of-government approaches for Freshwater Stewardship; advances the protection and restoration of freshwater ecosystems, as informed by science and Indigenous knowledges; and proactively collaborates on freshwater opportunities and challenges. This is achieved by building relationships and working closely with partners (e.g. other federal departments and agencies, provinces, territories, and Indigenous peoples) and stakeholders to carry out these responsibilities. 

The CWA delivers on key elements of the strengthened Freshwater Action Plan to:

• improve freshwater outcomes;
• restore, protect, and manage waterbodies of national significance; and
• improve freshwater quality.

The Freshwater Action Plan builds on proven approaches to deliver regionally responsive Freshwater Ecosystem Initiatives in waterbodies of national significance:

• the Great Lakes
• Lake Winnipeg
• Lake of the Woods
• St. Lawrence River
• Wolastoq/Saint John River
• Fraser River
• Mackenzie River
• Lake Simcoe

Additionally, the CWA:

• provides policy leadership and develops whole-of-government approaches to freshwater challenges and opportunities;
• makes it easier for Canadians and decision-makers to find federal freshwater resources;
• promotes federal-provincial-territorial collaboration;
• supports Canada-U.S. collaboration on transboundary waters;
• provides opportunities and funding to support Indigenous inclusion and participation in freshwater activities;
• leverages freshwater science and data to improve policy and program outcomes;
• reports regularly on the state of freshwater quality, quantity, availability and use in Canada; and
• supports the development of the National Freshwater Data Strategy in collaboration with key partners and stakeholders, which will provide guidance for the management of freshwater data and ultimately enable decision-makers to better use data for timely and effective decision making.

The CWA is leading preparations for a review of the Canada Water Act to reflect Canada’s freshwater realities, including climate change and the rights of Indigenous peoples. It also supports the implementation of important initiatives such as the National Adaptation Strategy.

A summary description of the CWA’s Raison d’être and core responsibility can be found in Part II of the 2025-26 Main Estimates and the 2025-26 Departmental Plan.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament, and those used by the department consistent with the Main Estimates for the 2025-2026 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

The CWA launched as a standalone agency in October 2024. Comparative financial information on the preceding fiscal year for both the quarter and year to date are therefore not available for the first quarter.

Significant changes in relation to operations, personnel and programs

The CWA was launched on October 15, 2024. Fiscal year 25-26 is the first full fiscal year for the CWA, and as a result, this report is the Agency’s first quarterly financial report.

The following personnel change occurred near the first quarter:

• On March 17, 2025, Mark Fisher was appointed as President of the CWA.       

Risks and Uncertainties

The CWA launched as a standalone agency in October 2024. In its first year, the CWA continues to stand up its policies and programs. For example, the Agency will develop its Corporate Risk Profile as a priority during the first year of operation.

A range of internal and external factors have the potential to affect the CWA’s ability to deliver optimal and timely results for Canadians. The Agency will closely monitor all programs with a focus on management excellence and will proactively manage all risks.

To provide service to Canadians, the Agency collaborates closely with various partners and stakeholders including federal, provincial, territorial, Indigenous, and international partners, among others. Achieving the Agency’s objectives can be at risk if goals are not shared or efforts are not well-coordinated. Amid evolving external expectations and economic, social, and environmental shifts, the Agency is strengthening alignment between the CWA’s priorities and those of its partners and stakeholders. This is achieved by cultivating new relationships and enhancing existing ones through refreshed and emerging governance mechanisms.

The government-wide priorities outlined in the Prime Minister’s Mandate Letter of May 21, 2025 present financial risks and opportunities for the CWA. The government’s commitment to reducing operational spending may increase financial challenges associated with implementing expanded or new freshwater initiatives. At the same time, an emphasis on fiscal restraint creates opportunities for the CWA to demonstrate its existing focus on cost-effective approaches such as innovative program and organizational design, streamlined engagement, and external partnerships.

Approval by Senior Officials

This section provides the approval of Senior Officials, as required by the Policy on Financial Management as follows:

Approved by: