Canadian Heritage’s quarterly financial report for the quarter ended December 31, 2021

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Canadian Heritage’s quarterly financial report for the quarter ended December 31, 2021 [PDF version - 625 KB]

1. Introduction

This third quarterly financial report should be read in conjunction with the 2021-22 Main Estimates and the 2021-22 Supplementary Estimates A and B along with the 2020-21 Main Estimates and Supplementary Estimates A and B. It has been prepared by management as required by section 65.1 - Quarterly financial reports of the Financial Administration Act and is in the form and manner prescribed by the Treasury Board in accordance with the special purpose financial reporting framework described in the Directive on Accounting Standards: GC 4400 Departmental Quarterly Financial Report. The third quarterly report has not been subject to an external audit or review.

The quarterly financial report outlines the results, risks and significant changes in operations, personnel and programs and includes financial information tables for the quarter. The purpose of the quarterly financial information tables is to provide a comparison of in-year departmental spending with authorities granted by Parliament, as well as comparative financial information for the preceding year.

1.1. Authority, mandate and programs

The Department of Canadian Heritage and its Portfolio organizations play a vital role in the cultural, civic and economic life of Canadians. Our policies and programs promote an environment where Canadians can experience dynamic cultural expressions, celebrate our history and heritage, and build strong communities. The Department invests in the future by supporting the arts, our official and indigenous languages and our athletes and the sport system.

Further details on the Department of Canadian Heritage’s (PCH) authority, mandate and programs can be found in the 2021-22 Departmental Plan and the 2021-22 Main Estimates.

1.2. Basis of presentation

This third quarterly financial 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 and Supplementary Estimates A and B for the 2021-22 fiscal year.

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.

PCH 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.

1.3. Canadian Heritage financial structure

PCH has a financial structure composed of voted budgetary authorities that include Vote 1 – Operating expenditures and Vote 5 – Grants and Contributions, and Statutory authorities which are composed of contributions to employee benefits plans, Ministers’ Salary and motor car allowances and Statutory Payments for Lieutenant Governors.

2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results

2.1. Statement of authorities

Please refer to the Statement of Authorities at the end of the report for more information.

PCH’s 2021-22 authorities available for use at the end of December 2021 have increased by approximately $7.8 million, from $2,020.9 million in 2020-21 to $2,028.7 million at the end of this quarter. More specifically, the total available for use increased by $391.7 million in Vote 5 - Grants and Contributions, increased by $37.5 million in Vote 1 - Operating expenditures and decreased by $421.4 million in Statutory authorities.

To promote recovery from the pandemic for heritage, arts, and sport sectors that contribute so much to the cultural life of Canada, the 2020 Fall Economic Statement and Budget 2021 allocated unprecedented investments to Canadian Heritage for a variety of programs. These range from supports to performing arts festivals and community-based cultural events, celebrations and commemorations to support for Canadian musicians, concert venues, producers, and distributors; funding for arts and heritage institutions to help upgrade their facilities to meet public health guidelines; and funding for community sports. In addition, Budget 2021 announced the $300 million Recovery Fund to help restore immediate viability for organizations with pandemic-related financial needs and help them adapt to post-pandemic realities and $200 million Reopening Fund to support local festivals, community cultural events, outdoor theatre performances, heritage celebrations, local museums, amateur sport events, and more, while ensuring events comply with local public health measures. These measures explain the increase in authorities.

The Recovery and Reopening funds allow for continued post-pandemic efforts in the recovery for Cultural, Heritage and Sport Organizations from the exceptional Emergency Support Funds received in Statutory authorities in 2020-21, which explains the substantive variation in Statutory Authorities.

Changes in authorities observed from 2020-21 to 2021-22 at the end of the third quarter (in millions of dollars)
Items Vote 1 Vote 5 Statutory Total
New funding for Arts, Culture, Heritage and Sport Recovery Fund and Reopening Fund for Events and In-person Experiences (Budget 2021) 11.0 193.0 0.0 204.0
New funding to support arts and live events workers in response to the pandemic (COVID-19) (horizontal item) (Fall Economic Statement - 2020) 1.3 63.3 0.2 64.8
Net increase in the Indigenous Languages and Cultures Program for the purpose of preserving, promoting and revitalizing indigenous languages (Budget 2019 & Budget 2021) 1.5 60.3 0.3 62.1
New funding for Canada's Artists & Live Music Sector and Canada as Guest of Honour at the 2021 Frankfurt Book Fair (Budget 2021) 7.1 50.0 0.0 57.1
Funding for Indigenous Reconciliation and Strength for Indigenous Women and Girls through Sport for Social Development and Community Sport (Budget 2021) 0.3 42.5 0.1 42.9
Funding to support performing arts festivals, cultural events, arts and heritage institutions, celebrations, and commemorations that make communities stronger - Commemorating the History and Legacy (Budget 2021) 1.8 25.3 0.1 27.2
Net increase in funding to expand Canadian Heritage’s Community Support, Multiculturalism and Anti-Racism Initiatives Program and its Anti-Racism Action Program (Budget 2018, Budget 2019 and Fall Economic Statement - 2020) 1.8 20.6 0.7 23.1
New funding for Youth Employment and Skills Strategy (Fall Economic Statement - 2020) 0.5 15.8 0.1 16.4
Increase for negotiated salary adjustments for various groups 7.9 0.0 1.6 9.5
New funding to support digital access to heritage (Budget 2021) 0.7 4.0 0.1 4.8
Reprofile for Hosting program from 2020-21 to 2021-22 0.0 4.4 0.0 4.4
Increase in funding to support the modernization and construction of community educational Infrastructures in the provinces and territories for the Official Languages Program (Budget 2017) 0.0 4.0 0.0 4.0
Other Adjustments 4.6 (3.0) (2.1) (0.5)
Decrease in funding related to the timing of the yearly confirmation of the Canada Media Fund need to stabilize its investment in audio-visual content production at 2016-17 levels (Budget 2018). Funding is expected in the last quarter of 2021-22 0.0 (26.4) 0.0 (26.4)
Various reprofiles for the Official Languages Programs received in 2020-21. Some amounts are expected in the last quarter of 2021-22 0.0 (27.8) 0.0 (27.8)
End of the two-year funding for Expanding Support for Artists and Cultural Events, National Day for Truth and Reconciliation and 50th anniversary of the decriminalization of homosexuality in Canada (Budget 2019) (1.0) (34.3) (0.1) (35.4)
Funding received in 2020-21 only to establish a COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations and students and youth impacted by COVID-19 0.0 0.0 (422.4) (422.4)
Grand Total 37.5 391.7 (421.4) 7.8

2.2. Departmental budgetary expenditures by standard object

Please refer to the Departmental budgetary expenditures by Standard Object table at the end of report for more information.

Total expenditures during the third quarter of 2021-22 have increased by $126.9 million (38%) from $333.4 million to $460.3 million compared to the same quarter of 2020-21. The overall increase is explained by the following items:

As noted in the table below, PCH has spent 23% of its authorities in the third quarter of 2021-22, compared to last year’s consumption of 16%.

Expenditures compared to annual authorities (in millions of dollars)
Expenditures compared to annual authorities (in millions of dollars) - text version
- 2021-22 2020-21
Total available for use 2,029 (100%) 2,021 (100%)
Used during the quarter 460 (23%) 333 (16%)
Year-to-date used 1,176 (58%) 1,326 (66%)

3. Risks and uncertainties

In the current context, PCH is exposed to heightened operational risks including people risk management as the Department still closely monitors the impact of the COVID-19 crisis. As the situation related to the COVID-19 virus continues to evolve, PCH’s primary concern remains the health of its employees and their families. Canadian Heritage must also contribute to public service wide efforts to address this situation and maintain federal government services. The Department continues to monitor emerging risks.

4. Significant changes in relation to operations, personnel and programs

Since the Department’s second quarter of 2021-22, there were changes to Canadian Heritage’s senior management personnel.

Since September 2021, Gina Wilson, Senior Associate Deputy Minister of Diversity, Inclusion and Youth at Canadian Heritage has taken on a new role as Deputy Minister of Women and Gender Equality and Youth. Ms. Wilson will continue to work closely on joint initiatives as she retains her responsibility for the Youth portfolio.

Consequently, effective January 10, 2022, Mala Khanna has been appointed Associate Deputy Minister of Canada Heritage. Ms. Khanna arrives from Global Affairs Canada where she was Assistant Deputy Minister, Sub-Saharan Africa Branch.

5. Approval by senior officials

Approved by:

Original signed
Isabelle Mondou, Deputy Minister

Gatineau, Canada
Date: February 22nd, 2022

Original signed
Eric Doiron, Chief Financial Officer

Gatineau, Canada
Date: February 18th, 2022

Statement of authorities (unaudited)

Fiscal year 2021-22 and 2020-21 (in thousands of dollars)
Authorities Total available for use for the year ending March 31, 2022Footnote 1 Used during the quarter ended December 31, 2021 Year to date used at quarter-end 2021-22 Total available for use for the year ending March 31, 2021Footnote 1 Used during the quarter ended December 31, 2020 Year to date used at quarter-end 2020-21
Vote 1 - Operating expenditures 247,679 58,221 165,094 210,191 48,989 140,889
Vote 5 - Grants and contributions 1,751,477 395,205 990,353 1,359,773 263,042 744,756
Statutory - Contributions to employee benefit plans 27,398 6,424 19,272 26,333 6,250 18,750
Statutory - Minister of Canadian Heritage - Salary and motor car allowance 91 15 62 89 23 68
Statutory - Minister of State (Minister of Diversity and Inclusion and Youth) - Motor car allowance 2 0 0 2 0 0
Statutory - Salaries of the Lieutenant Governors 1,196 404 1,212 1,196 406 1,153
Statutory - Payments under the Lieutenant Governors Superannuation Act (R.S.C., 1985, c. L-8) 637 0 0 637 0 0
Statutory - Supplementary Retirement Benefits - Former Lieutenant Governors 182 0 0 182 0 0
Statutory - COVID-19 Emergency Support Fund - Support for Cultural, Heritage and Sport Organizations 0 0 0 422,445 14,705 420,430
Spending of Crown Asset Proceeds 58 0 0 12 0 0
Total Budgetary authorities 2,028,720 460,269 1,175,993 2,020,860 333,415 1,326,046
Total authorities 2,028,720 460,269 1,175,993 2,020,860 333,415 1,326,046

Departmental budgetary expenditures by standard object (unaudited)

For fiscal year 2021-22 and 2020-21 (in thousands of dollars)
Expenditures Total available for use for the year ending March 31, 2022Footnote 1 Used during the quarter ended December 31, 2021 Year to date used at quarter-end 2021-22 Total available for use for the year ending March 31, 2021Footnote 1 Used during the quarter ended December 31, 2020 Year to date used at quarter-end 2020-21
Personnel 222,397 52,292 156,060 201,388 47,782 140,823
Transportation and communications 2,512 575 791 4,932 113 419
Information 2,753 1,455 2,270 2,516 308 1,141
Professional and special services 40,957 11,018 24,549 24,728 5,904 14,437
Rentals 4,338 761 3,179 4,316 696 1,963
Repair and maintenance 1,316 543 902 1,304 394 752
Utilities, materials and supplies 3,090 306 876 2,924 587 1,118
Acquisition of machinery and equipment 6,511 944 1,239 2,320 1,866 2,529
Transfer payments 1,752,296 395,205 990,353 1,783,037 277,747 1,165,186
Other subsidies and payments 1,208 47 1,559 1,427 1 1,761
Total gross budgetary expenditures 2,037,378 463,146 1,181,778 2,028,892 335,398 1,330,129
Less revenues netted against expenditures:
Expenditures Total available for use for the year ending March 31, 2022Footnote 1 Used during the quarter ended December 31, 2021 Year to date used at quarter-end 2021-22 Total available for use for the year ending March 31, 2021Footnote 1 Used during the quarter ended December 31, 2020 Year to date used at quarter-end 2020-21
Revenue credited to the Vote -8,658 -2,877 -5,785 -8,032 -1,983 -4,083
Total Revenues netted against expenditures -8,658 -2,877 -5,785 -8,032 -1,983 -4,083
Total net budgetary expenditures 2,028,720 460,269 1,175,993 2,020,860 333,415 1,326,046

©Her Majesty the Queen in Right of Canada, 2022
Catalogue No. CH2-4E-PDF
ISSN 2816-2730

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