Public Health Agency of Canada Quarterly Financial Report - For the quarter ending December 31, 2018

Table of contents

1.0 Introduction

This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act, 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 Supplementary Estimates. Please note that this quarterly financial report has not been subject to an external audit or review.

1.1 Authority, Mandate and Program

The Public Health Agency of Canada was created within the federal Health Portfolio in September 2004. The core mandate of the Agency is to deliver on the Government of Canada’s commitment to increase its focus on public health in order to help protect and improve the health and safety of all Canadians and to contribute to strengthening public health capacities across Canada.

The Agency has the responsibility to:

  • contribute to the prevention of disease and injury, and the promotion of health;
  • enhance the quality and quantity of surveillance data and expand the knowledge of disease and injury in Canada;
  • provide federal leadership and accountability in managing national public health events;
  • strengthen intergovernmental collaboration on public health and facilitate national approaches to public health policy and planning;
  • serve as a central point for sharing Canada’s expertise with international partners and to translate international knowledge and approaches to inform and support Canada’s public health priorities and programs.

The Agency aims to achieve a strategic outcome of protecting Canadians and empowering them to improve their health by providing strategic policy advice and support to the Minister of Health on a range of Core Responsibilities, including:

  • Health Promotion and Chronic Disease Prevention;
  • Infectious Disease Prevention and Control; and
  • Health Security.

The Agency also delivers a number of grant and contribution programs related to these programs.

Further information on the mandate, roles, responsibilities and program of the Agency can be found in the 2018-19 Departmental Plans and the 2018-19 Main Estimates.

1.2 Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities (Section 6.0) includes the Agency’s spending authorities granted by Parliament, or received from Treasury Board Central Votes, and those used by the Agency consistent with the Main Estimates and Supplementary Estimates for the 2018-19 fiscal year.

The authority of Parliament is required before moneys 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 Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2.0 Highlights of Fiscal Quarter Results

This section highlights the significant items that contributed to the net increase in resources available for the year, as well as a net increase in actual expenditures for the third quarter of 2018-19, ending December 31, 2018.

The following graph provides a comparison of the net budgetary authorities and expenditures as of December 31, 2017 and December 31, 2018 for the Department’s combined Vote 1, Vote 5, Vote 10 and Statutory Votes. 

Figure 1. Comparison of Budgetary Authorities and Expenditures as at December 31, 2017 and December 31, 2018

* Totals may not add due to rounding

Figure 1 - Text Equivalent

The graph above provides a comparison of the net budgetary authorities and expenditures as of December 31, 2018 and December 31, 2017 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As at December 31, 2018, PHAC had a total of $697.0 million in authorities available for spending compared to $626.7 million on December 31, 2017. PHAC's year-to-date expenditures as at December 31, 2018 were $483.9 million compared to $414.7 million on December 31, 2017.

As at December 31, 2018, the Agency had a total of $697.0 million in authorities available for spending compared to $626.7 million on December 31, 2017. The Agency’s year-to-date expenditures as at December 31, 2018 were $483.9 million compared to $414.7 million on December 31, 2017. Both authorities and expenditures fluctuate as the year progresses to reflect additional funding received throughout the fiscal year. 

2.1 Significant Changes to Authorities

When compared to the third quarter of the previous fiscal year, the authorities available for spending for the year have increased by $70.3 million or 11%, from $626.7 million to $697.0 million. This change in authorities is comprised of a decrease in Vote 1 – Operating Expenditures ($7.5 million) and an increase in Vote 10 - Grants and Contributions ($76.9 million) as well as an increase in Budgetary Statutory Authorities ($1.0 million).

Vote 1 – Operating Expenditures

The Agency’s Vote 1 decreased by $7.5 million or 2.0%, mainly due to:

  • A decrease in funding profile to Acquire Medical Countermeasures for Smallpox and Anthrax Preparedness;

Offset by:

  • An increase in funding for Addressing the Opioids Crisis.

Vote 10 - Grants and Contributions (G&C)

The Agency’s Vote 10 increased by $76.9 million or 35%, mainly due to:

  • An increase in funding for the Healthy Seniors Pilot Project.

Budgetary Statutory Authorities

The Agency’s Budgetary Statutory Authorities increased by $1.0 million or 4%, mainly due to an increase in funding profile for the Collective Bargaining Agent.

2.2 Significant Changes to Expenditures

There were no significant changes to expenditures on the Agency level during the third quarter expenditure in 2018-19, compared to 2017-18, however there were some changes by vote.

Vote 1 – Operating Expenditures

The Agency’s Vote 1 third quarter 2018-19 expenditures decreased by $3.7 million over the same quarter in 2017-18 mainly due to the payments of pharmaceutical and other medicinal products made in 2017-18.

Vote 5 – Capital Expenditures

The Agency’s Vote 5, third quarter 2018-19 expenditures decreased by $0.3 million over the same quarter in 2017-18, mainly due to the timing of capital equipment purchases.

Vote 10 - Grants and Contributions (G&C)

The Agency’s Vote 10 first quarter 2018-19 expenditures increased by $4.2 million over the same quarter in 2017-18 mainly due to the payment made for the contribution agreement to increase physical activity among Canadians - ParticipACTION.

3.0 Risks and Uncertainty

The Public Health Agency of Canada’s plans and commitments respond to, and are shaped by, changes in the domestic and global public health situation and outlook. The dominant financial risk faced by the Agency is the requirement to respond in the event of an outbreak of disease such as a pandemic influenza. During such a public health event, resources would be reallocated to support a response. The Government of Canada also has mechanisms in place for departments and agencies to access additional funds in emergency situations should they be required. The Agency relies on the skills and experience of its employees to detect, monitor and respond to changes in the health environment. The Agency also relies on close and effective collaborative relationships with local, provincial and global partners and stakeholders to ensure a coordinated response to urgent issues. The Agency continues to strengthen its preparation and response capabilities in order to prevent, detect and respond to public health events.

The Public Health Agency of Canada’s Corporate Risk Profile provides a snapshot of the key corporate risks. The Agency monitors its corporate risks and associated risk responses to identify areas of opportunity and to reflect progress made in implementing measures to mitigate risk.

4.0 Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during this quarter.

5.0 Approval by Senior Officials

Approved by:

Dr. Siddika Mithani, President
Public Health Agency of Canada
Ottawa, Canada
Date:

Carlo Beaudoin, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date:

6.0 Statement of Authorities (unaudited)

Statement of Authorities (unaudited) - Public Health Agency of Canada - For the quarter ended December 31, 2018
Statement of Authorities (unaudited)
(in thousands of dollars)
Fiscal year 2018-2019 Fiscal year 2017-2018
Total available for use for the year ending March 31, 2019Footnote * Used during the quarter ended                                December 31, 2018 Year to date used at quarter-end Total available for use for the year ended March 31, 2018Footnote * Used during the quarter ended                                     December 31, 2017 Year to date used at quarter-end
Vote   1 - Operating expenditures 346,805 70,873 221,648 354,297 74,544 236,665
Vote   5 - Capital expenditures 7,926 918 1,471 8,097 1,211 1,424
Vote 10 - Grants and contributions 299,224 41,245 234,083 222,323 37,056 150,001
(S) Contributions to employee benefit plans 29,517 7,268 21,804 28,513 7,065 21,196
(S) Spending of proceeds from the disposal of surplus Crown assets 98 9 52 88 23 45
(S) Spending of revenues pursuant to section 4.2 of the Department of Health Act 13,413 2,631 4,811 13,413 2,761 5,398
Total authorities 696,983 122,944 483,869 626,731 122,660 414,729
Footnote *

Includes only authorities available for use and granted by Parliament at quarter end.

Return to footnote * referrer

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) - Public Health Agency of Canada - For the quarter ended December 31, 2018
Departmental budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)
Fiscal year 2018-2019 Fiscal year 2017-2018
Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended December 31, 2018 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended December 31, 2017 Year to date used at quarter-end
Expenditures
Personnel 232,189 58,722 156,103 236,862 58,894 165,776
Transportation and communications 7,612 2,425 5,454 7,341 1,840 4,524
Information 16,912 1,386 2,925 14,992 1,582 3,988
Professional and special services 96,820 11,868 58,512 102,405 11,618 56,446
Rentals 2,838 730 2,710 2,665 967 2,907
Repair and maintenance 3,191 810 2,443 3,321 1,052 2,508
Utilities, materials and supplies 22,655 4,108 15,965 22,162 8,125 23,667
Acquisition of lands, buildings and works 0 131 156 0 55 58
Acquisition of machinery and equipment 13,796 1,540 3,026 13,013 1,755 2,924
Transfer payments 299,225 41,245 234,083 222,323 37,056 150,001
Other subsidies and payments 2,269 194 2,971 2,171 -96 2,475
Total gross budgetary expenditures 697,507 123,159 484,348 627,255 122,848 415,274
Less revenues netted against expenditures:
Services Non-Regulatory 524 215 479 524 188 545
Total Revenues netted against expenditures 524 215 479 524 188 545
Total net budgetary expenditures 696,983 122,944 483,869 626,731 122,660 414,729

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