Quarterly Financial Report for the Quarter Ending June 30, 2026

Statement outlining results, risks and significant changes in operations, personnel and programs

On this page

1. Introduction
2. Highlights of fiscal quarter and fiscal year-to-date results
3. Risks and uncertainties
4. Significant changes in relation to operations, personnel and programs

1. Introduction

This quarterly report has been prepared by Library and Archives Canada (LAC) as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. This quarterly report should be read in conjunction with the 2026–2027 Main Estimates.

This quarterly report has not been subject to an independent audit or review.

1.1 Library and Archives Canada’s mandate

Under the Library and Archives of Canada Act, the mandate of LAC is as follows:

• to preserve the documentary heritage of Canada for the benefit of present and future generations
• to be a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society
• to facilitate in Canada co-operation among the communities involved in the acquisition, preservation and diffusion of knowledge; and
• to serve as the continuing memory of the Government of Canada and its institutions

The Minister of Canadian Identity and Culture and Minister responsible for Official Languages is responsible for LAC.

1.2 Basis of presentation

This quarterly report has been prepared by LAC using an expenditure basis of accounting. The accompanying Statement of Authorities includes the spending authorities granted by Parliament and used by LAC, consistent with the Main Estimates for the 2026–2027 fiscal year. This quarterly report has also 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.

LAC uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain prepared on an expenditure basis.

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

2.1 Statement of Authorities

As reflected in the Statement of Authorities below, total authorities available for use as of June 30, 2026, are $184.6 million, compared to $208.2 million as of June 30, 2025. The following table provides the detailed list of authorities by fiscal year:

Authority Vote/Statutory	Description	For the quarter ended June 30, 2026	For the quarter ended June 30, 2025
Vote 1	Operating Expenditures	142,344,977	154,030,675
Vote 1	Revenue credited to the vote	(6,400,000)	(2,500,000)
Vote 5	Capital Expenditures	33,394,401	40,979,794
Statutory	Spending of proceeds from the disposal of surplus Crown assets	6,676	22,581
Statutory	Contributions to employee benefit plans	15,257,885	15,639,650
Total authorities		184,603,939	208,172,700

The net decrease of $23.6 million in funding results mainly from the following:

• A decrease of $11.1 million resulting from the Comprehensive Expenditure Review reductions announced in Budget 2025
• A decrease of $8.5 million related to the partnership between Library and Archives Canada and the Ottawa Public Library for the Ādisōke project
• A decrease of $1.8 million resulting from the Refocusing Government Spending reductions announced in Budget 2023
• A decrease of $1.5 million in temporary funding for the implementation of the Federal Framework to Address the Legacy of Residential Schools announced in Budget 2022
• A decrease of $1.3 million related to the Government of Canada’s response to the LGBT Purge Class Action Settlement
• A decrease of $1.2 million attributable to variations in planned spending for the Real Property portfolio
• These decreases are offset by a net increase of $1.8 million, resulting mainly from revenues credited to the vote, statutory adjustments, salary increases following the ratification of collective agreements, and other minor adjustments.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

As presented in the Statement of Departmental Budgetary Expenditures by Standard Object, the year-to-date expenditures totalled $33.9 million as of June 30, 2026, compared to $39.4 million as of June 30, 2025. The decrease of $5.5 million is mainly explained by the following:

• A decrease of $1.5 million in departmental expenditures related to the ‘’acquisition of land, buildings and works,’’ mainly due to the timing of payments for the Ādisōke project (partnership between LAC and the Ottawa Public Library)
• A decrease of $1.1 million in transfer payments expenditures, resulting from the termination of the Documentary Heritage Communities Program as part of the Comprehensive Expenditure Review
• A decrease of $2.9 million in other departmental budgetary expenditures, mainly attributable to the end of temporary funded initiatives, budget reductions implemented through the Refocusing Government Spending initiative and Comprehensive Expenditure Review, as well as the timing of payments between reporting periods

 

3. Risks and uncertainties

The following section presents LAC’s key risks:

• Risk 1—Access to collections
  

  If LAC does not effectively improve and maintain the services and digital systems through which it provides access to its collections, there is a risk that it will be unable to fulfill its mandate and obligations.

• Risk 2—Physical infrastructure and collections
  

  According to third-party engineering assessments, two of LAC’s six custodial facilities that house Canada’s national collections, Winnipeg and Renfrew, are currently in poor or critical condition. In addition, two other facilities require targeted investments to address deficiencies in fire protection and electrical systems to stabilize their condition. It is necessary to address and improve the condition of these facilities, as these issues pose risks to the preservation of and access to LAC’s collections. Building systems that are near the end of life and that rely on obsolete components also pose risks to the health and safety of the building occupants.

  Furthermore, LAC’s mandate to collect and preserve Canada’s ever-expanding documentary heritage means that storage and preservation capacity may become increasingly constrained in the medium term. Without adequate space, LAC risks being limited in its ability to continue growing the government records, private archives and published heritage collections or ensuring public access to them.

• Risk 3—Relevance and representativeness of LAC’s collections
  

  If LAC is not in a position to overcome the barriers in acquiring documentary heritage, there is a risk that the collections may not be relevant and representative of Canadian society.

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

Other than the budgetary decreases noted in Section 2 and their associated impacts, there were no other significant changes to the organization’s personnel, activities or programs during the first quarter, which ended on June 30, 2026.

Approval by senior officials

Original signed by:

Statement of Authorities (unaudited)

Authority	Fiscal year 2026-2027			Fiscal year 2025-2026
(in dollars)	Total available for use for the year ending March 31, 2027Footnote 1	Used during the quarter ended June 30, 2026	Year-to-date used at quarter-end	Total available for use for the year ending March 31, 2026Footnote 1	Used during the quarter ended June 30, 2025	Year-to-date used at quarter-end
Vote 1 - Operating Expenditures	135,944,977	29,762,354	29,762,354	151,530,675	33,649,671	33,649,671
Vote 5 - Capital Expenditures	33,394,401	355,392	355,392	40,979,794	1,879,108	1,879,108
Contributions to the employee benefit plans	15,257,885	3,814,472	3,814,472	15,639,650	3,909,913	3,909,913
Spending of proceeds from the disposal of surplus Crown assets	6,676	n/a-	n/a-	22,581	n/a-	n/a-
Total budgetary authorities	184,603,939	33,932,218	33,932,218	208,172,700	39,438,692	39,438,692
Non-budgetary authorities	n/a-	n/a-	n/a-	n/a-	n/a-	n/a-
Total authorities	184,603,939	33,932,218	33,932,218	208,172,700	39,438,692	39,438,692

Departmental budgetary expenditures by Standard Object (unaudited)

Expenditures	Fiscal year 2026-2027			Fiscal year 2025-2026
(in dollars)	Planned expenditures for the year ending March 31, 2027	Expended during the quarter ended June 30, 2026	Year-to-date used at quarter-end	Planned expenditures for the year ending March 31, 2026	Expended during the quarter ended June 30, 2025	Year-to-date used at quarter-end
Personnel	108,293,771	29,182,904	29,182,904	117,859,583	29,941,040	29,941,040
Transportation and communications	1,026,441	83,438	83,438	1,474,873	95,238	95,238
Information	768,401	61,590	61,590	793,401	20,626	20,626
Professional and special services	18,572,183	1,048,813	1,048,813	30,907,010	1,621,657	1,621,657
Rentals	4,643,861	1,677,126	1,677,126	3,320,835	2,024,538	2,024,538
Repair and maintenance	828,018	213,006	213,006	1,079,797	31,409	31,409
Utilities, materials and supplies	1,530,917	151,714	151,714	1,730,538	212,985	212,985
Acquisition of land, buildings and works	33,394,401	248,735	248,735	40,979,794	1,747,518	1,747,518
Acquisition of machinery and equipment	1,337,623	11,577	11,577	3,286,143	34,487	34,487
Transfer payments	288,176	71,315	71,315	1,425,000	1,183,217	1,183,217
Public debt charges	5,305,135	434,600	434,600	5,400,714	884,817	884,817
Other subsidies and payments	15,015,012	768,311	768,311	2,415,012	1,666,186	1,666,186
Total gross budgetary expenditures	191,003,939	33,953,129	33,953,129	210,672,700	39,463,718	39,463,718
Less Revenues netted against expenditures:
Respendable Revenues	6,400,000	20,911	20,911	2,500,000	25,026	25,026
Total Revenues netted against expenditures	6,400,000	20,911	20,911	2,500,000	25,026	25,026
Total net budgetary expenditures	184,603,939	33,932,218	33,932,218	208,172,700	39,438,692	39,438,692