Canadian Heritage’s quarterly financial report for the quarter ended December 31, 2023

On this page

• 1. Introduction
  • 1.1. Authority, mandate and programs
  • 1.2. Basis of presentation
  • 1.3. Canadian Heritage financial structure
• 2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results
  • 2.1. Statement of authorities
  • 2.2. Departmental budgetary expenditures by standard object
• 3. Risks and uncertainties
• 4. Significant changes in relation to operations, personnel and programs
• 5. Approval by senior officials
• Statement of authorities (unaudited)
• Departmental budgetary expenditures by standard object (unaudited)

Alternate format

Canadian Heritage’s quarterly financial report for the quarter ended December 31, 2023 [PDF version - 501 KB]

1. Introduction

This third quarterly financial report should be read in conjunction with the 2023-24 Main Estimates, the 2023-24 Supplementary Estimates A and B along with the 2022-23 Main Estimates and Supplementary Estimates A (nil for PCH) 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 report has been reviewed by the Departmental Audit Committee.

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 the 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 2023-24 Departmental Plan and the 2023-24 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 the Supplementary Estimates A and B for the 2023-24 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 2023-24 authorities available for use at the end of December 2023 decreased by $182.0 million compared to last year, from $2,368.5 million in 2022-23 to $2,186.5 million at the end of this quarter. More specifically, the total authorities available for use decreased by $193.5 million in Vote 5 - Grants and Contributions, increased by $9.8 million in Vote 1 - Operating expenditures and increased by $1.7 million in Statutory authorities.

The overall decrease in authorities is mainly explained by the sunsetting of various time-limited funding announced in the 2020 and 2021 Fall Economic Statements, and in Budgets 2021 and 2022, to promote recovery from the pandemic for Heritage, Arts and Sport sectors and to promote Official Languages.

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.

The total expenditures during the third quarter of 2023-24 decreased by $227.4 million compared to the third quarter of last year. The decrease in expenditures is mainly noted in transfer payments, which decreased by $238.3 million (from $524.8 million in 2022-23 to $286.5 million in 2023-24), representing a decrease of 45% for this quarter.

That net decrease in expenses is aligned with the variance in authorities, reflecting the sunsetting of multiple time-limited funding that promoted recovery from the pandemic for Heritage, Arts and Sport sectors, partially offset by additional authorities particularly with respect to Indigenous Languages and Culture.

As shown in the table below, PCH has spent 17% of its authorities in the third quarter of 2023-24, compared to 25% in the third quarter of 2022-23. The spending rate has returned to a level that is more in line with pre-pandemic levels.

Expenditures compared to annual authorities (in millions of dollars) - text version

-	2023-24	2022-23
Total available for use	2,186 (100%)	2,368 (100%)
Used during the quarter	362 (17%)	590 (25%)
Year-to-date used	1,049 (48%)	1,368 (58%)

3. Risks and uncertainties

As the arts, heritage, sports, and cultural sectors emerge from the COVID-19 pandemic, organizations funded through Canadian Heritage programs continue to face challenges related to the delivery of their activities.

The current year may see increased risks posed by global economic uncertainty, specifically inflation. Rapid inflation may put at risk events and projects due to significant cost increases. To mitigate the risks, PCH remains accommodating in supporting organizations as they adapt so that they continue to offer events and activities during and beyond the recovery period.

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

On January 29, 2024, the Prime Minister, Justin Trudeau, announced that Canadian Heritage Associate Deputy Minister Mala Khanna, becomes Deputy Secretary to the Cabinet (Governance), Privy Council Office, effective February 12, 2024.

5. Approval by senior officials

Approved by:

Original signed
Isabelle Mondou, Deputy Minister

Gatineau, Canada
Date: February 28, 2024

Original signed
Véronique Côté, Chief Financial Officer

Gatineau, Canada
Date: February 15, 2024

Statement of authorities (unaudited)

Departmental budgetary expenditures by standard object (unaudited)

©His Majesty the King in Right of Canada, represented by the Minister of Canadian Heritage, 2024.
Catalogue No. CH2-4E-PDF
ISSN 2816-2730