Quarterly Financial Report - Statement outlining results, risks and significant changes in operations, personnel and programs - For the quarter ended December 31, 2024

On this page

• Introduction
• Mandate
• Basis of presentation
• Highlights of fiscal quarter and fiscal year to date results
  • Significant changes to authorities
  • Significant changes to expenditures
• Risks and uncertainties
• Significant changes in relation to operations, personnel and programs
• Approval by senior officials
• Annexes A & B

Introduction

This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the Main Estimates and previous Quarterly Financial Reports. For more information on PCO, please visit PCO's website.

This quarterly report has not been subject to an external audit or review but has been shared with and reviewed by the PCO Departmental Audit Committee.

Mandate

PCO supports the development and implementation of the Government of Canada's policy and legislative agendas, coordinates responses to issues facing the Government and the country and supports the effective operation of Cabinet. PCO is led by the Clerk of the Privy Council, who also serves as Secretary to the Cabinet and the Head of the Public Service.

PCO serves Canada and Canadians by providing advice and support to the Prime Minister, portfolio ministers, and Cabinet.

PCO has three main roles:

1. Provide professional non-partisan advice to the Prime Minister, portfolio ministers, Cabinet and Cabinet committees on matters of national and international importance.
2. Support the smooth functioning of the Cabinet decision-making process and facilitate the implementation of the Government’s agenda.
3. Foster a high-performing and accountable Public Service.

Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes PCO’s spending authorities granted by Parliament and those used by the department, consistent with the 2024-25 Main Estimates and Supplementary Estimates (A) and (B). This quarterly report has been prepared using a special purpose financial reporting framework (expenditure basis) 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. 

PCO uses the full accrual method of accounting to prepare and present its annual departmental financial statements¹ that are part of the departmental performance reporting process. The spending authorities voted by Parliament remain on an expenditure basis. 

Highlights of fiscal quarter and fiscal year to date results

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended December 31, 2024.

PCO spent approximately 71% of its authorities available for use by the end of the third quarter, compared to 72% in the same quarter of 2023-24 (see graph 1 below).

Graph 1: Comparison of total authorities available for use and total net budgetary expenditures as of Q3 2024-25 and 2023-24

Significant changes to authorities

Further to graph 2 below and Annex A, presented at the end of this document, as at December 31, 2024 PCO has authorities available for use of $261.6 million in 2024-25 compared to $231.5 million as of December 31, 2023, for a net increase of $30.0 million or 13%. The net increase in authorities of $30.0 million is mainly explained by funding related to the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions, enhancing PCO’s security posture, and support for the Clean Growth Office, Anti-Racism Secretariat and National Security Council. This is partially offset by the sunset funding for the Public Order Emergency Commission and the reduction of funding announced in Budget 2023. Commissions of Inquiry are independent organizations but are reported under PCO’s financial statements.

Graph 2: Variance in authorities as at December 31, 2024

Significant changes to quarter expenditures

The third quarter expenditures totaled $67.5 million for a net increase of $1.4 million (2%) when compared to $66.1 million spent during the same period in 2023-24. Table 1 below presents budgetary expenditures by standard object.

Table 1

Personnel

The decrease of $4.7 million in personnel spending is mainly due to compensation adjustments for employee retroactive and one-time allowance payments related to pay rate increases received in the third quarter of 2023-24, as well as spending reductions announced in Budget 2023. This is partially offset by increases in personnel spending related to the establishment of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on September 7, 2023 and expenditures to support the Clean Growth Office and the Anti-Racism, Equity, and Inclusion Secretariat.

Transportation and communications

Transportation and communications increased by $0.5 million primarily due to the establishment of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on September 7, 2023 and additional travel costs incurred compared to the same period last year.

Professional and special services

The increase of $3.4 million in professional and special services is due to legal and translations service expenses incurred for the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions established on September 7, 2023. This is partially offset by decreases due to the timing of invoicing for other legal and information technology services.

Transfer payments

Transfer payments increased by $0.4 million due to the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions.

Revenues netted against expenditures

The decrease of $1.1 million for vote netted revenue is mainly due to the timing of when PCO collected funds compared to the same period last year. However, PCO expects overall annual revenues to be consistent.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $185.5 million for a net increase of $17.8 million (11%) when compared to $167.6 million spent during the same period in 2023-24. Table 2 below presents budgetary expenditures by standard object.

Table 2

Personnel

The overall increase of $3.3 million in personnel spending is due to compensation adjustments related to pay rate increases, the establishment of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on September 7, 2023, and expenditures to support the Clean Growth Office, the Anti-Racism, Equity, and Inclusion Secretariat and the National Security Council. This is partially offset by compensation adjustments for employee retroactive and one-time allowance payments related to pay rate increases received in the third quarter of 2023-24, as well as spending reductions announced in Budget 2023.

Transportation and communications

Transportation and communications increased by $1.5 million primarily due to the establishment of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on September 7, 2023 and additional travel costs incurred compared to the same period last year.

Professional services and special services

The increase of $9.0 million in professional and special services is due to legal expenses incurred for the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions established on September 7, 2023, as well as increases of invoicing for other legal services. This was partially offset by a decrease in legal services for the Independent Special Rapporteur which concluded on June 26, 2023.

Rentals

The increase of $1.6 million is mainly due to rental of conference space for public hearings required for the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions established on September 7, 2023 and the timing of invoicing for software licensing.

Transfer payments

Transfer payments increased by $0.7 million due to the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions.

Risks and uncertainties

The principal financial risks to PCO lie in the need to reallocate departmental resources to deal with issues that may emerge unexpectedly. As part of its coordinating role, PCO must be able to address emerging issues on short notice, and either manage the necessary expenditures within its own spending authorities, or cash manage until increased spending authorities are approved. 

PCO has identified other key risks that could have an impact on the achievement of its mandate and its financial situation. These risks revolve around areas such as threats to security (cybersecurity/insider/physical), information management, increasing horizontality, complexity and scope of work, and the recruitment and retention of employees.

The department will continue to effectively manage its existing and emerging risks through cooperation, engagement and sharing of expertise and best practices with other federal departments and agencies, provincial and territorial governments, as well as community partners, the private sector, international counterparts, and its Department Audit Committee.

Significant changes in relation to operations, personnel and programs

Operations

Effective November 21, 2024, the PCO staff who supported the Minister of Emergency Preparedness were moved to Public Safety to bring stronger integration and focus to supporting Canadians through all phases of emergency management including prevention, preparedness, response and recovery.

Personnel

Christiane Fox, Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet, began serving concurrently as Deputy Minister of Intergovernmental Affairs, effective October 21, 2024.

Tushara Williams, previously Deputy Minister of Intergovernmental Affairs, was appointed Deputy Secretary to the Cabinet (Operations), effective October 21, 2024.

Kaili Levesque, previously Deputy Secretary to the Cabinet (Operations) was appointed Associate Deputy Minister of Fisheries and Oceans, effective October 21, 2024.

Kevin Brosseau, previously Associate Deputy Minister of Fisheries and Oceans, was appointed Deputy National Security and Intelligence Advisor to the Prime Minister and Deputy Secretary to the Cabinet (Emergency Preparedness), effective October 21, 2024. On November 22, 2024, Kevin Brousseau discontinued his role as the Deputy Secretary to the Cabinet (Emergency Preparedness) after the PCO staff who supported the Minister of Emergency Preparedness moved to Public Safety.

Daniel Rogers, previously Deputy National Security and Intelligence Advisor to the Prime Minister and Deputy Secretary to the Cabinet (Emergency Preparedness), was appointed Director of the Canadian Security Intelligence Service, effective October 28, 2024.

Jeffery Hutchinson, previously Deputy Secretary to the Cabinet (Public Inquiry into Foreign Interference) was appointed Associate Deputy Minister of Public Safety (Emergency Management), effective December 9, 2024.

Effective December 31, 2024, Paul Halucha, Deputy Secretary to the Cabinet (Clean Growth) and Deputy Minister of Public Lands and Housing, was appointed as Deputy Minister of Housing, Infrastructure and Communities. The Public Lands and Housing functions continue to be carried out by Paul Halucha as part of his new role as Deputy Minister of Housing, Infrastructure and Communities. PCO’s central agency oversight and coordination for the Public Lands and Housing files will be conducted by Tushara Williams, Deputy Secretary to the Cabinet (Operations).

Approval by senior officials

Ottawa, Canada
Friday February 28, 2025

Annexes A & B

Annex A

Privy Council Office
Quarterly Financial Report
For the quarter ended December 31, 2024
Statement of authorities (unaudited) (note 2)

Annex B

Privy Council Office
Quarterly Financial Report
For the quarter ended December 31, 2024
Departmental budgetary expenditures by Standard Object (unaudited) (note 2)