Public Health Agency of Canada Quarterly Financial Report - For the quarter ended December 31, 2016

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 Treasury Board (TB) Accounting Standard 1.3. 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 program activities, including:

  • Public Health Infrastructure;
  • Health Promotion and Disease Prevention; 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 2016-17 Report on Plans and Priorities and the 2016-17 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 2016-17 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 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 decrease in actual expenditures for the third quarter of 2016-17, ending December 31, 2016.

The following graph provides a comparison of the net budgetary authorities and expenditures as of December 31, 2015 and December 31, 2016 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes.

Comparison of Budgetary Authorities and Expenditures as at December 31, 2015 and December 31, 2016

The following paragraph describes the information given in this chart

As at December 31, 2016, the Agency had a total of $601.9 million in authorities available for spending compared to $ 579.9 million on December 31, 2015. The Agency's year to date expenditures as at December 31, 2016 was $394.5 million compared to $ 397.4 million on December 31, 2015. Both authorities and expenditures fluctuate as the year progresses to reflect additional funding received throughout the fiscal year as well as net decreased actual expenditures.

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 $22 million or 3.8%, from $579.9 million to $ 601.9 million. This change in authorities is comprised of an increase in Vote 1 - Operating Expenditures ($9 million), Vote 5 - Capital ($0.4 million) and an increase in Vote 10 - Grants and Contributions ($11.9 million) as well as an increase in Budgetary Statutory Authorities ($0.7 million).

Vote 1 - Operating Expenditures

The Agency's Vote 1 increased by $9 million or 2.7% mainly due to the following:

  • An increase in funding to acquire medical countermeasures for smallpox and anthrax preparedness
  • An increase to support the Infectious Diseases and Climate Change Program
  • An increase in funding for Aboriginal Head Start Urban and Northern Communities
  • An increase in funding to improve immunization coverage rates in Canada, harmonize concussion management guidelines across Canada, and help raise awareness of men's health issues

Offset by:

  • A net decrease in funding for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad, and
  • A decrease in sunset funding for the Government of Canada's provision of essential federal services to the Toronto 2015 Pan American and Parapan American Games,

Vote 5 - Capital Expenditures

The Agency's Vote 5 increased by $0.4 million or 5.8% in 2016-17 compared to 2015-16. This is due to funding of $0.6 million received for reinvestment of royalties from intellectual property.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10 increased by $11.9 million or 6.0%, mainly due to:

  • An increase for the establishment of the Canadian Centre for Aging for Brain Health Innovation;
  • An increase in funding for Aboriginal Head Start Urban and Northern Communities;
  • An increase in funding to improve immunization coverage rates in Canada, harmonize concussion management guidelines across Canada, and help raise awareness of men's health issues;

Offset by:

  • A decrease due to sunset of funding for the installation of automated external defibrillators and associated training in recreational hockey arenas across Canada.

Budgetary Statutory Authorities

The increase of $0.7 million or 1.5% in 2016-17 is, for the most part, related to the Employee Benefit Plans (EBP) costs associated with the change in the Agency budgetary requirements for salary.

2.2 Significant Changes to Expenditures

The third quarter expenditures decreased by $4.4 million, or 3.7%, in 2016-17 compared to 2015-16, from $119 million to $114.6 million.

This overall decrease in spending is a combination of the following:

  • $11.9 million increase in Vote 1 - Operating Expenditures (from $59.7 million to $71.6 million)
  • $0.5 million increase in Vote 5 - Capital Expenditures (from $0.6 million to $1.1 million)
  • $16 million decrease in Vote 10 - Grants and Contributions (from $47.7 million to $31.7 million) and
  • $0.8 million net decrease in Statutory Expenditures - EBP, Proceeds from Disposal of Crown Assets and Respendable Revenue (from $11 million to $10.2 million.)

Overall, year-to-date expenditures as at December 31, 2016 decreased by $2.9 million or 0.7% in 2016-17 compared to 2015-16, from $397.4 million to $394.5 million

Vote 1 - Operating Expenditures

The Agency's Vote 1 third quarter 2016-17 expenditures increased by $11.9 (19.9%) million over the same quarter in 2015-16 mainly due to funding for medical countermeasures, timing issues on an installment payment to Health Canada through the Shared Services Partnership Agreement, and due to the newly implemented advanced billing model for legal services and other minor increases.

Vote 5 - Capital Expenditures

The Agency's Vote 5 third quarter 2016-17 expenditures increased by $0.5 million over the same quarter in 2015-16 mainly due to timing of purchases for the National Microbiology Lab in the third quarter of 2016-17.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10, third quarter 2016-17 expenditures, decreased by $16 million (33.5%) over the same quarter in 2015-16 mainly due to timing of payments in the current quarter.

Budgetary Statutory Expenditures

The Agency's Budgetary Statutory Expenditures decreased by $0.8 million over the same quarter in 2015-16 mainly due to a 26.8% decrease in respendable revenues in the third quarter of 2016-17. The Agency charged $2.6 million to Health Canada under the Shared Services Partnership Framework Agreement for the third quarter compared to $3.5 million in the same quarter of 2015-16

3.0 Risks and Uncertainty

The dominant financial risks faced by the Agency relate to the nature of its mandate and the need to respond to unforeseeable events such as an influenza pandemic. Significant surge capacity would need to be activated in these instances.

To manage this financial risk, the Agency continues to strengthen its preparation and responsiveness to public health emergencies and public health capacity. In an emergency situation, the Agency would first consider internal re-allocation of resources in order to address unforeseeable events. The federal government also has systems and processes in place for departments to access funds, should an emergency arise.

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)

Public Health Agency of Canada
For the quarter ended December 31, 2016

STATEMENT OF AUTHORITIES (unaudited)
(in thousands of dollars)
  Fiscal year 2016-2017 Fiscal year 2015-2016
*Includes only authorities available for use and granted by Parliament at quarter end.
  Total available for use for the year ending March 31, 2017Table 6 Footnote * Used during the quarter ended December 31, 2016 Year to date used at quarter-end Total available for use for the year ended March 31, 2016Table 6 Footnote * Used during the quarter ended December 31, 2015 Year to date used at quarter-end
Vote 1 - Operating expenditures 341,219 71,625 224,078 332,141 59,726 211,781
Vote 5 - Capital expenditures 6,504 1,071 2,330 6,149 557 1,156
Vote 10 - Grants and contributions 209,849 31,747 140,446 197,899 47,752 155,933
(S) Contributions to employee benefit plans 30,949 7,630 22,890 29,780 7,445 22,335
(S) Minister of Health - Salary and motor car allowance 0 0 0 0 0 0
(S) Spending of proceeds from the disposal of surplus Crown assets 47 16 30 23 10 15
(S) Refunds of amounts credited to revenues in previous years 0 0 0 0 0 0
(S) Collection agency fees 0 0 0 0 0 0
(S) Court awards 0 0 0 0 0 0
(S) Spending of revenues pursuant to section 4.2 of the Department of Health Act 13,413 2,600 4,762 13,938 3,552 6,251
Total authorities 601,981 114,689 394,536 579,930 119,042 397,471

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada
For the quarter ended December 31, 2016

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)
  Fiscal year 2016-2017 Fiscal year 2015-2016
Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended December 31, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended December 31, 2015 Year to date used at quarter-end
Expenditures:
Personnel 227,165 56,420 153,523 224,157 55,797 153,273
Transportation and communications 7,403 1,923 5,113 11,254 1,877 5,187
Information 13,808 2,074 12,796 11,512 503 10,461
Professionals and special services 105,312 7,494 55,291 98,231 7,224 55,051
Rentals 3,609 625 2,067 1,151 1,158 2,085
Repair and maintenance 3,619 1,071 2,607 3,319 646 1,961
Utilities, materials and supplies 20,616 10,611 15,654 20,870 3,416 10,093
Acquisition of lands, buildings and works 0 45 53 0 11 15
Acquisition of machinery and equipment 9,673 1,630 4,433 9,770 1,206 3,071
Transfer payments 209,849 31,747 140,446 197,649 47,752 155,933
Other subsidies and payments 1,451 1,210 3,065 2,541 -394 844
Total gross budgetary expenditures 602,505 114,850 395,048 580,454 119,196 397,974
Less revenues netted against expenditures:
Other Fees and Charges 0 0 0 0 0 0
Rights and Privileges 0 0 0 0 0 0
Services Non-Regulatory 524 161 512 524 154 503
Services Regulatory 0 0 0 0 0 0
Total Revenues netted against expenditures 524 161 512 524 154 503
Total net budgetary expenditures 601,981 114,689 394,536 579,930 119,042 397,471
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