Prairies Economic Development Canada’s Quarterly Financial Report for the quarter ended December 31, 2024

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ISSN 2817-2558

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

Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates (B). It has been prepared by management as required by section 65.1 of the Financial Administration Act (FAA) and in the form and manner prescribed by the Treasury Board. This quarterly report has not been subject to an external audit or review.

Authority, mandate and program activities

Prairies Economic Development Canada’s (PrairiesCan) mandate is to grow and diversify the economy of the prairie provinces and advance its interests of the region in national economic policy, programs, and projects. The department will achieve this mandate by working with clients and partners in our four roles as investor, advisor, pathfinder, and convenor.

PrairiesCan operates under the provision of the Western Economic Diversification Act, which came into force on June 28, 1988. As a federal department, PrairiesCan is headed by a Minister and a Deputy Head (President).

The Departmental Plan and Main Estimates provide further information on PrairiesCan’s authority, mandate and program activities.

Basis of presentation

This quarterly 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 (B) for the 2024-25 fiscal year. This quarterly report has 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.

The Department 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.

Financial structure

PrairiesCan manages its expenditures under two votes:

Budgetary statutory authorities represent payments made under legislation approved by Parliament, and include items such as the Government of Canada’s share of employee benefit plans and other minor items.

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

The following section highlights significant changes to fiscal quarter results as of December 31, 2024.

Statement of authorities: Vote 1 – Net operating expenditures

Total authorities available for use for fiscal year 2024-2025 are $46.2 million, a net decrease of $1.8 million, or -4%, compared to the $48.0 million for 2023-2024. The net decrease is explained by:

Total authorities used to date is $31.6 million for the quarter ended December 31, 2024, compared to $31.8 million used at December 31, 2023. The decrease in net expenditures is primarily due to the timing of the receipt of revenue netted against expenditures for internal services support provided to PacifiCan.

Graph 1 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Graph 1: Total available for use and Used for Vote 1 (in thousands of dollars)
Text version: Total available for use and Used for Vote 1 (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2024–2025 and the authorities used at quarter end and then compares them to fiscal year 2023–2024.

2024–2025

  • $46,223 represents total available for use for the year ending March 31
  • $31,550 represents total authorities used for the quarter ending December 31

2023–2024

  • $47,966 represents total available for use for the year ending March 31
  • $31,770 represents total authorities used for the quarter ending December 31

 

Statement of authorities: Vote 5 – Grants and contributions

Total authorities available for use for fiscal year 2024-2025 are $312.6 million, a net decrease of $49.4 million, or -14%, compared to the $362.0 million for 2023-2024. The net decrease is explained by:

Total authorities used for the quarter-ended December 31, 2024 increased to $134.6 million, compared to $122.9 million at December 31, 2023. The $11.7 million increase, or 10% is explained by:

Graph 2 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Graph 2: Total available for use and Used for Vote 5 (in thousands of dollars
Text version: Total available for use and Used for Vote 5 (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2024–2025 and the authorities used at quarter end and then compares them to fiscal year 2023–2024.

2024–2025

  • $312,631 represents total available for use for the year ending March 31
  • $134,576 represents total authorities used for the quarter ending December 31

2023–2024

  • $361,995 represents total available for use for the year ending March 31
  • $122,879 represents total authorities used for the quarter ending December 31

Statement of authorities: Budgetary statutory authorities

Budgetary statutory authorities available for use for fiscal year 2024-2025 are $4.7 million, a decrease of $0.1 million when compared to the $4.8 million in 2023-2024. The variance is due to minor net adjustments in funding.

Budgetary statutory authorities used for fiscal year 2024-2025 are $3.4 million, a decrease of $0.1 million when compared to the $3.5 million in 2023-2024.

Graph 3 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Graph 3: Total available for use and Used for budgetary atatutory authorities (in thousands of dollars)
Text version: Total available for use and Used for budgetary statutory authorities (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2024–2025 and the authorities used at quarter end and then compares them to fiscal year 2023–2024.

2024–2025

  • $4,713 represents total available for use for the year ending March 31
  • $3,365 represents total authorities used for the quarter ending December 31
2023–2024
  • $4,758 represents total available for use for the year ending March 31
  • $3,469 represents total authorities used for the quarter ending December 31

Statement of the departmental budgetary expenditures by standard object

Expenditures by standard object for the quarter ended December 31, 2024, were $55.7 million, which reflects a decrease of $6.5 million, or -11% from the $62.2 million at December 31, 2023.

The variance is largely due to:

Additional information can be found in the Statement of Authorities, Vote 1 and Vote 5 sections above.

Graphs 4 and 5 illustrate actual expenditures for the quarter-end.

(in thousands of dollars)

Graph 4: Actual expenditures, Quarter ended December 31, 2023 (in thousands of dollars)
Text version: Actual expenditures, Quarter ended December 31, 2024 (in thousands of dollars)

This pie chart breaks down actual expenditures for the quarter ended December 31, 2024.

  • $43,163 represents actual spending on Transfer payments, which accounts for 76% of Actual expenditures quarter ended December 31, 2024
  • $10,635 represents actual spending on Personnel, which accounts for 19% of Actual expenditures quarter ended December 31, 2024
  • $2,721 represents actual spending on Other operating costs, which accounts for 5% of Actual expenditures quarter ended December 31, 2024
Graph 5: Actual expenditures, Quarter ended December 31, 2022 (in thousands of dollars)
Text version: Actual expenditures, Quarter ended December 31, 2023 (in thousands of dollars)

This pie chart breaks down actual expenditures for quarter ended December 31, 2023.

  • $48,831 represents actual spending on Transfer payments, which accounts for 79% of Actual expenditures quarter ended December 31, 2023
  • $11,307 represents actual spending on Personnel, which accounts for 18% of Actual expenditures quarter ended December 31, 2023
  • $2,094 represents actual spending on Other operating costs, which accounts for 3% of Actual expenditures quarter ended December 31, 2023

Risks and uncertainties

PrairiesCan allocates departmental funding and resources within a well-defined framework of accountabilities, policies, and procedures. This includes a system of budgets, reporting, and internal controls to manage within available resources and Parliamentary authorities.

PrairiesCan assesses risk in all areas of departmental decision making. Executive governance committees provide departmental risk oversight for these decisions. The department also provides bi-annual risk input to the TBS Office of the Comptroller General to inform the Regional Development Agency (RDA) Risk-Based Internal Audit Plan.

The department continues to identify and mitigate enterprise-wide risks such as employee physical and mental health, cyber vulnerabilities, loan repayment, and funding programs risk.

To minimize risk, PrairiesCan employs risk-based mitigation such as:

PrairiesCan will continue to apply risk management practices and principles at all levels of the organization to support strategic priority setting, resource allocation, informed decisions, and improved results.

Significant changes in relation to operations, personnel and programs

There are no significant changes in relation to operations, personnel and programs for this reporting period.

Approval by senior officials

Approved by:

Original signed by:

________________________
Diane Gray
President

Edmonton, Canada
Date: February 13, 2025

Original signed by:

________________________
Sundeep Cheema
Chief Financial Officer


Statement of authorities (unaudited)

Fiscal year 2024–2025 (in thousands of dollars)
Authorities Total available for use for the year ending March 31, 2025* Used during the quarter ended December 31, 2024 Year-to-date used at quarter-end
Vote 1 – Net operating expenditures $46,223 $11,371 $31,550
Vote 5 – Grants and contributions 312,631 43,163 134,576
Budgetary statutory authorities:
  Employee benefit plans 4,713 1,120 3,359
  Collection agency fees 0 0 6
Total authorities $363,567 $55,654 $169,491

 

Fiscal year 2023–2024 (in thousands of dollars)
Authorities Total available for use for the year ending March 31, 2024* Used during the quarter ended December 31, 2023 Year-to-date used at quarter-end
Vote 1 – Net operating expenditures $47,966 $12,245 $31,770
Vote 5 – Grants and contributions 361,995 48,831 122,879
Budgetary statutory authorities:
  Employee benefit plans
4,758 1,156 3,469
Total authorities $414,719 $62,232 $158,118
*Includes only Authorities available for use and granted by Parliament at quarter-end.

 

Departmental budgetary expenditures by standard object (unaudited)

Fiscal year 2024–2025 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2025* Expended during the quarter ended December 31, 2024 Year-to-date used at quarter-end
Personnel $38,032 $10,635 $30,638
Transportation and communications 1,229 301 616
Information 1,738 146 205
Professional and special services 6,913 1,131 2,812
Rentals 2,040 149 694
Repair and maintenance 909 0 0
Utilities, materials and supplies 178 10 36

Acquisition of machinery and equipment

2,355 7 99
Transfer payments 312,631 43,163 134,576
Other subsidies and payments n/a 977 1,157
Total gross budgetary expenditures $366,025 $56,519 $170,833
Less revenues netted against expenditures:
Vote netted revenue (2,458) (865) (1,342)
Total net budgetary expenditures $363,567 $55,654 $169,491

 

Fiscal year 2023–2024 (in thousands of dollars)
Expenditures Planned expenditures for the year ending March 31, 2024* Expended during the quarter ended December 31, 2023 Year-to-date used at quarter-end
Personnel $39,139 $11,307 $31,488
Transportation and communications 1,571 213 631
Information 1,208 92 137
Professional and special services 10,413 1,391 3,300
Rentals 1,204 71 535
Repair and maintenance 1,305 40 86
Utilities, materials and supplies 320 26 56

Acquisition of machinery and equipment

1,364 488 508
Transfer payments 361,995 48,831 122,879
Other subsidies and payments 0 (227) 318
Total gross budgetary expenditures $418,519 $62,232 $159,938
Less revenues against expenditures:
Vote netted revenue (3,800) 0 (1,820)
Total net budgetary expenditures $414,719 $62,232 $158,118
*Includes only Authorities available for use and granted by Parliament at quarter-end.

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2025-02-28