Quarterly Financial Report for the quarter ended September 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 mandate of the Canada Water Agency (CWA) is to improve freshwater management in Canada by providing leadership, effective collaboration federally, and improved coordination and collaboration with provinces, territories, and Indigenous peoples to proactively address national and regional transboundary freshwater challenges and opportunities.

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, under the Freshwater Action Plan, 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;leverages freshwater science and data to improve policy and program outcomes;
• 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.

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 Agency’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.

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, comparative data is not available.

Risks and Uncertainties

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. We will develop a Corporate Risk Profile in 2026 and incorporate it into our 2026-27 Departmental Results Report.

To provide service to Canadians, the Agency collaborates closely with federal, provincial, territorial, Indigenous, and international and domestic 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 priorities outlined in the Prime Minister’s May 21, 2025, Mandate Letter set the direction for CWA’s work, emphasizing results over expenditures. In this period of fiscal restraint, CWA’s governance committees ensure resources are allocated effectively through informed decisions supported by robust forecasting practices. At the same time, CWA continues to adopt new technologies to improve efficiency and achieve cost savings.

Approval by Senior Officials

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

Approved by: