Canadian Heritage’s quarterly financial report for the quarter ended June 30, 2025

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, 2025 [PDF version - 600 Kb]

1. Introduction

This first quarterly financial report should be read in conjunction with the 2025-26 Main Estimates along with the 2024-25 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 2025-26 Departmental Plan and the 2025-26 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 for the 2025-26 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.

The Government was dissolved on Sunday March 23, 2025, as a result Main Estimates were not tabled, and interim supply was not secured by March 31. To ensure sufficient funding is available to maintain government operations during the election period, Governor General special warrants were approved. Main Estimates were approved, and supply were received at the end of June 2025.

PCH’s 2025-26 authorities available for use at the end of June 2025 increased by $188.4 million compared to last year (from $1,907.2 million in 2024-25 to $2,095.6 million in 2025-26). More specifically, the total authorities available for use increased by $170.5 million in Vote 5 - Grants and Contributions, increased by $15.0 million in Vote 1 - Operating expenditures and increased by $2.9 million in Statutory authorities.

The overall increase in authorities, primarily in Grants and Contributions, is due to increased funding to support hosting of the 2026 FIFA Men’s World Cup. Other programs also received increased funding announced in Budget 2024, including the Canada Music Fund, the renewal and expansion of the Canada Arts Presentation Fund, net increase in funding profile for the Indigenous Languages Program, the Multiculturalism and Anti-racism initiatives and the additional Support for Athletes. Furthermore, the department received new funding for specific grants, including those for the Glenn Gould Foundation, the Brian Mulroney Institute, the Terry Fox Humanitarian Award, and the Hellenic Community of Vancouver.

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 2025-26 decreased by $32.3 million compared to the first quarter of last year, representing a decrease in expenditures of 7%.

Although authorities in transfer payment increased, spending decreased by $36.5 million (from $377.0 million in 2024-25 to $340.5 million in 2025-26).

During the election period and under the Governor General special warrants, the department carefully managed its budget, only allowing payments to organizations with urgent needs. This context explains the overall decrease in expenditures.

As shown in the table below, PCH has spent 19% of its authorities in the first quarter of 2025-26, compared to 23% in the first quarter of 2024-25.

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

-	2025-26	2024-25
Total available for use	2,096 (100%)	1,907 (100%)
Used during the quarter	407 (19%)	439 (23%)
Year-to-date used	407 (19%)	439 (23%)

3. Risks and uncertainties

In the Budget of 2023, the government committed to reducing spending. As part of this, Canadian Heritage identified spending reductions of $14.4 million for 2024-25, $25.2 million for 2025-26 and $39.7 million for 2026-27 and onwards to ensure responsible, cost-effective spending that delivers results for Canadians.

In July 2025, as part of its ongoing efforts to evaluate and reduce public spending, the Government of Canada launched a new comprehensive expenditure review aimed at reducing operational spending while ensuring the effective delivery of services to Canadians. The savings proposals will be implemented from 2026-27 onwards through a gradual, three-year approach.

In the context of current budget constraints and unprecedented challenges associated with the rapidly changing economic, social, and technological environment, the Department could face challenges in prioritizing initiatives and aligning its resources, to adapt to the priorities and expectations from the new Government in place and to growing needs of all Canadians, to ensure and maintain efficient and effective funding delivery. The Department is taking measures to mitigate these risks.

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

There were no significant changes in Canadian Heritage senior management since last quarterly financial report.

5. Approval by senior officials

Approved by:

Original signed
Isabelle Mondou, Deputy Minister

Gatineau, Canada
Date: August 21, 2025

Original signed
Véronique Côté, Chief Financial Officer

Gatineau, Canada
Date: August 20, 2025

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, 2025.
Catalogue No. CH2-4E-PDF
ISSN 2816-2730