Quarterly Financial Report - Statement outlining results, risks and significant changes in operations, personnel and programs - For the quarter ended September 30, 2025

1. Introduction

This quarterly report has been prepared by management 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 Privy Council Office (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.

1.1 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’s key priorities are to:

• Provide non-partisan advice to the Prime Minister, PCO’s portfolio ministers, Cabinet, and Cabinet committees on matters of national and international importance;
• Support the smooth functioning of the Cabinet decision-making process to help implement the Government’s agenda;
• Ensure Canada is safe and secure, and promote a fair, transparent, and democratic government; and
• Foster an effective, diverse, inclusive, and innovative public service.

1.2 Basis of presentation

This quarterly report has been prepared by management 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 2025-26 Main Estimates and Supplementary Estimates (A). 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.

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.

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

2. Highlights of fiscal quarter results 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 September 30, 2025.

PCO spent approximately 38% of its authorities available for use at the end of the second quarter of 2025-26, compared to 47% at the end of the same quarter of 2024-25 (see graph 1 below).

Graph 1: Comparison of total authorities available for use and total net budgetary expenditures as of Q2 2025-26 and 2024-25

2.1 Significant changes to authorities

Further to graph 2 below and Annex A, presented at the end of this document, as of September 30, 2025, PCO has authorities available for use of $285.7 million in 2025-26 compared to $250.9 million as of September 30, 2024, for a net increase of $34.8 million or 14%. The net increase in authorities is mainly explained by funding allocated in 2025-26 for the provision of candidate security services during the federal electoral process and election or post-election related costs, the establishment of the Major Projects Office, and the enhancement of PCO’s security posture. This is partially offset by a decrease in funding stemming from the conclusion of the core mandate of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on February 11, 2025. Commissions of Inquiry are independent organizations but are reported under PCO’s financial statements.

Graph 2: Variance in authorities as of September 30, 2025

2.2 Significant changes to quarter expenditures

The second quarter expenditures totaled $52.5 million for a net decrease of $10.2 million (16%) when compared to $62.7 million spent during the same period in 2024-25. Table 1 below presents budgetary expenditures by standard object.

Table 1

Professional and special services

The decrease of $4.5 million in professional and special services is mainly due to reduced spending on legal and other professional services for the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions, which completed its core mandate on February 11, 2025, as well as the timing of invoicing for other legal services.

Rentals

The decrease of $1.6 million in rentals is mainly due to the timing of invoicing for software licensing.

Repair and maintenance

The increase of $0.3 million in repair and maintenance is mainly due to increased office building repair and maintenance projects in 2025-26.

Transfer payments

The decrease of $0.1 million in transfer payments is mainly due to the conclusion of the core mandate of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on February 11, 2025.

Other subsidies and payments

The decrease of $0.4 million in other subsidies and payments is mainly due to a decrease in expenditures related to claims against the crown.

Revenues netted against expenditures

The increase of $3.1 million in revenues netted against expenditures is due to the timing of collection of revenue, that was postponed in first quarter because of the delayed approval of the first appropriation act for 2025–26 (caused by the dissolution Parliament) which granted authority for departments to re-spend revenues. The postponement of revenue collection in the first quarter resulted in increased revenue collection in the second quarter.

2.3 Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $108.5 million for a net decrease of $9.4 million (8%) when compared to $117.9 million spent during the same period in 2024-25. Table 2 below presents budgetary expenditures by standard object.

Table 2

Personnel

The increase of $2.4 million in personnel spending is mainly due to transition-related costs following the 45th federal general election held on April 28, 2025.

Professional services and special services

The decrease of $7.2 million in professional and special services is mainly due to reduced spending on legal and other professional services for the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions, which completed its core mandate on February 11, 2025, as well as the timing of invoicing for other legal services.

Rentals

The decrease of $2.5 million is mainly due to the timing of invoicing for software licensing.

Repair and maintenance

The increase of $0.4 million in repair and maintenance is mainly due to office building repair and maintenance projects in 2025-26.

Transfer payments

The decrease of $0.4 million in transfer payments is due to the conclusion of the core mandate of the Public Inquiry into Foreign Interference in Federal Electoral Processes and Democratic Institutions on February 11, 2025.

3. 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.

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

Personnel

Michael Sabia was appointed Clerk of the Privy Council and Secretary to the Cabinet on July 7, 2025, following the retirement of his predecessor, John Hannaford, on June 11, 2025.

On August 29, 2025, Dawn Farrell was appointed as the Chief Executive Officer (CEO) of the Major Projects Office at PCO.

Effective September 2, 2025, Eric Costen, previously Associate Deputy Minister of Health, became Deputy Secretary to the Cabinet (Operations). Tushura Williams, who previously held this position, became Deputy Secretary to the Cabinet (Plans and Consultations).

Operations

Effective July 7, 2025, PCO’s AI Secretariat moved to the Innovation, Science and Economic Development (ISED) portfolio. The move follows the Prime Minister’s June 20, 2025, announcement that Mark Schaan, PCO Deputy Secretary to the Cabinet (Artificial Intelligence), would provide direct support to the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation.

On August 29, 2025, the Prime Minister announced the creation of a new Major Projects Office to serve as a single point of contact to get nation-building projects built faster and build a stronger, more competitive, and prosperous economy for Canada. PCO’s Clean Growth Office has integrated into the Major Projects Office to provide direct support.

5. Approval by senior officials

Ottawa, Canada
Friday November 28, 2025

6. Annexes A & B

Annex A

Privy Council Office
Quarterly Financial Report
For the quarter ended September 30, 2025
Statement of authorities (unaudited) (note 2)

Annex B

Privy Council Office
Quarterly Financial Report
For the quarter ended September 30, 2025
Departmental budgetary expenditures by Standard Object (unaudited) (note 2)