Canadian Heritage’s quarterly financial report for the quarter ended June 30, 2024

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 June 30, 2024 [PDF version - 480 KB]

1. Introduction

This first quarterly financial report should be read in conjunction with the 2024-25 Main Estimates and Supplementary Estimates A along with the 2023-24 Main Estimates and Supplementary Estimates A. 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 Departmental Audit Committee has reviewed the report.

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 2024-25 Departmental Plan and the 2024-25 Main Estimates.

1.2. Basis of presentation

This first 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 for the 2024-25 fiscal year.

The authority of Parliament is required before the Government can spend money. 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 2024-25 authorities available for use at the end of June 2024 decreased by $52.6 million compared to last year, from $1,959.8 million in 2023-24 to $1,907.2 million at the end of this quarter. More specifically, the total authorities available for use decreased by $81.3 million in Vote 5 - Grants and Contributions, increased by $28.2 million in Vote 1 - Operating expenditures and increased by $0.5 million in Statutory authorities.

The overall decreased in authorities is mainly due to the decrease in funding to support Indigenous communities in their efforts to reclaim, revitalize, maintain, and strengthen Indigenous languages and to support Indigenous organizations in their ongoing engagement on the implementation of the Indigenous Languages Act and by reductions announced in Budget 2023 to refocus government spending. Also explaining the decrease is the sunsetting of multiple temporary funding and a return to pre-COVID-19 departmental program activity levels.

The decrease is partially offset by an increase in the Official Languages programs with new funding for Intergovernmental collaboration on Official Languages and for the Action Plan for Official languages 2023-28 and by new funding received for Canada’s Anti-Racism Strategy 2023-28 and to support the work of the Special Representative on Combatting Islamophobia.

The reduction in authorities could be alleviated by new funding announced in Budget 2024. As such, Canadian Heritage will receive a total of $723.4 million over five years for initiatives related to supporting festivals, live events and performing arts; building museums and cultural centres; promoting access to books, news and journalism; supporting Indigenous languages and cultures; countering hate; supporting official languages; supporting sport; and building diverse and safe communities. The work to access the funding has started and the funding should be reflected in future main or supplementary estimates.

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 first quarter of 2024-25 increased by $84.7 million compared to the first quarter of last year, representing an increase in expenditures of 24%.

The increase in expenditures is mainly noted in transfer payments, which increased by $81.3 million (from $295.6 million in 2023-24 to $376.9 million in 2024-25). The increase is mainly explained by variations in payment calendars as well as the signing of multi-year agreements in 2023-24, allowing earlier payments in 2024-25.

The increase in expenditures is also explained by $4.8 million in personnel costs to reflect employees’ salary increases from collective bargaining ratifications (from $52.0 million in 2023-24 to $56.8 million in 2024-25), representing an increase of 9% for this quarter.

As shown in the table below, PCH has spent 23% of its authorities in the first quarter of 2024-25, compared to 18% in the first quarter of 2023-24.

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

-	2024-25	2023-24
Total available for use	1,907 (100%)	1,960 (100%)
Used during the quarter	439 (23%)	354 (18%)
Year-to-date used	439 (23%)	354 (18%)

3. Risks and uncertainties

Spending reductions resulting from Government expenditure restructuring efforts will have an impact on most sectors served by the Department and could strain departmental capacity. The Department aims to mitigate these risks by supporting recipients through active communication intended to help them understand changes in impacted programs and funding processes and highlighting alternative measures or funding mechanisms available where applicable. The risk to departmental capacity to deliver is being managed through governance and oversight of both risk-based financial management strategies and implementation of departmental spending reduction plans.

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

Effective May 6, 2024, Andrew Brown has joined PCH as Associate Deputy Minister of Canadian Heritage. Previously, he was Associate Deputy Minister of Employment and Social Development (ESDC).

5. Approval by senior officials

Approved by:

Original signed
Isabelle Mondou, Deputy Minister

Gatineau, Canada
Date: August 26, 2024

Original signed
Véronique Côté, Chief Financial Officer

Gatineau, Canada
Date: August 23, 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