Public Health Agency of Canada Quarterly Financial Report – For the quarter ended June 30, 2015

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 as well as Canada's Economic Action Plans 2012-2015. 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 the health care system.

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 2015-16 Report on Plans and Priorities and the 2015-16 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 for the 2015-16 fiscal year.

The authority of Parliament is required before funds can be spent by the Government. Approvals are given in the form of annual limits provided through Appropriation Acts or through legislation in the form of statutory spending authority for specific purposes.

As part of the departmental performance reporting process, the Agency prepares its annual departmental financial statements on a full accrual basis in accordance with the Government's accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis, as do the expenditures presented in this Report.

2.0 Highlights of Fiscal Quarter Results

This section highlights the significant items that contributed to the net decrease in resources available for the year as well as actual expenditures for the first quarter of 2015-16, ending June 30, 2015.

The following graph provides a comparison of the net budgetary authorities and expenditures as of June 30, 2014 and June 30, 2015 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes.

Comparison of Budgetary Authorities and Expenditures as at June 30, 2015 and June 30, 2014

The following paragraph describes the information given in this chart

As at June 30, 2015, the Agency had a total of $566.8M in authorities available for spending compared to $614.7 on June 30, 2014. The Agency's year-to-date expenditures as at June 30, 2015 were $154M compared to $168M on June 30, 2014. Both authorities and expenditures fluctuate as the year progresses to reflect additional funding received throughout the fiscal year as well as increased actual expenditures.

2.1 Significant Changes to Authorities

When compared to the first quarter of the previous fiscal year, the authorities available for spending for the year have decreased by $47.9 million or 7.8%, from $614.7 million to $566.8 million. This change in authorities is comprised of an increase in Vote 1 - Operating Expenditures ($4.9 million), a decrease in Vote 5 - Capital ($0.4 million) and a decrease in Vote 10 - Grants and Contributions ($53 million) as well as small increase in Budgetary Statutory Authorities ($0.7 million).

Vote 1 - Operating Expenditures

The Agency's Vote 1 increased by $4.9 million or 2 percent, mainly due to:

  • A temporary increase to support the Government of Canada's provision of essential federal services to the Toronto 2015 Pan American and Parapan American Games;
  • An increase due to temporary funding for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad;

Offset by:

  • A decrease in funding for the Pandemic Vaccine Fill Line as it nears completion; and
  • A decrease for program funding for Aboriginal Head Start in Urban and Northern Communities, which sunset in 2014-15. (This program was subsequently renewed in 2015-16 and funds will be accessible through the 2015-16 Supplementary Estimates process).

Vote 5 - Capital Expenditures

The Agency's Vote 5 decreased by $0.4 million or 6 percent. The decrease was largely the result of a planned reduction of funding for the Single Window Initiative. Work on this Initiative has been completed in accordance with the planned funding profile and workplan.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10 decreased by $53 million or 21 percent, mainly due to:

  • A decrease due to the completion and final payment of the Hepatitis C Health Care Services Program in 2014-15; and
  • A decrease as a result of Aboriginal Head Start in Urban and Northern Communities which sunset in 2014-15. (This program was subsequently renewed in 2015-16 and funds will be accessible through the 2015-16 Supplementary Estimates process).

Budgetary Statutory Authorities

The increase of $0.7 million or 2 percent in 2015-16 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 first quarter and year-to-date (YTD) expenditures decreased by $14 million, or 8 percent, in 2015-16, compared to 2014-15, from $168 million to $154 million. This decrease is due to significantly lower spending in Operating (48%) and Capital (52%) offset by increased spending in Transfer Payments (47%) in the first quarter of 2015-16.

This overall decrease in spending is a combination of a

  • 48% decrease in Vote 1 - Operating Expenditures of $45 million (from $94 million to $49 million),
  • 52% decrease in Vote 5 - Capital Expenditures of $0.2 million (from $0.4 million to $0.2 million); and
  • 47% increase in Vote 10 - Grants and Contributions of $31 million (from $66 million to $97 million).

Vote 1 - Operating Expenditures

The Agency's Vote 1 first quarter 2015-16 expenditures decreased by $45 million over the same quarter in 2014-15 mainly due to transfers to Health Canada under the Shared Services Partnership Framework Agreement paid in first quarter of 2014-15 but will be paid in future quarters in 2015-16.

Vote 5 - Capital Expenditures

The Agency's Vote 5 first quarter 2015-16 expenditures decreased by $0.2 million over the same quarter in 2014-15 mainly due to the timing of minor capital purchases.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10 first quarter 2015-16 expenditures increased by $31 million over the same quarter in 2014-15 mainly resulting from administrative changes and efficiencies in response to the Blue Ribbon Panel on Grants and Contributions.

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. Currently, the Agency is closely tracking costs related to the Ebola outbreak in West Africa; the response to which has required significant Agency resources. 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

The original printed version signed by:

Krista Outhwaite, President
Public Health Agency of Canada
Ottawa, Canada
Date: August 26, 2015

Carlo Beaudoin, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date: August 14, 2015

6.0 Statement of Authorities (unaudited)

Public Health Agency of Canada
For the quarter ended June 30, 2015

STATEMENT OF AUTHORITIES (unaudited)
(in thousands of dollars)
  Fiscal year 2015-2016 Fiscal year 2014-2015
Total available for use for the year ending March 31, 2016* Used during the quarter ended June 30, 2015 Year to date used at quarter-end Total available for use for the year ended March 31, 2015Table 1 - Footnote 1 Used during the quarter ended June 30, 2014 Year to date used at quarter-end
1Includes only authorities available for use and granted by Parliament at quarter end.
2Includes Special Purpose Allotment for PanAm Games
Vote 1 - Operating expendituresTable 1 - Footnote 2 317,412 48,826 48,826 312,527 94,242 94,242
Vote 5 - Capital expenditures 5,705 176 176 6,101 385 385
Vote 10 - Grants and contributions 199,999 97,647 97,647 253,015 66,312 66,312
(S) Contributions to employee benefit plans 29,780 7,445 7,445 29,374 7,343 7,343
(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 11 3 3 0 10 10
(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 13,938 0 0 13,680 0 0
Total authorities 566,845 154,097 154,097 614,697 168,292 168,292

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada
For the quarter ended June 30, 2015

Departmental Budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)
  Fiscal year 2015-2016 Fiscal year 2014-2015
Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended June 30, 2015 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended June 30, 2014 Year to date used at quarter-end
Expenditures:
Personnel 215,316 46,391 46,391 215,746 40,451 40,451
Transportation and communications 10,810 1,404 1,404 7,284 846 846
Information 11,058 152 152 10,795 9,461 9,461
Professionals and special services 94,357 4,126 4,126 94,060 41,135 41,135
Rentals 1,106 324 324 2,435 1,148 1,148
Repair and maintenance 3,188 643 643 3,244 815 815
Utilities, materials and supplies 20,036 2,631 2,631 16,956 1,478 1,478
Acquisition of lands, buildings and works 0 0 0 0 0 0
Acquisition of machinery and equipment 9,321 909 909 10,376 646 646
Transfer payments 199,887 97,647 97,647 253,015 66,312 66,312
Other subsidies and payments 2,290 16 16 1,360 6,165 6,165
Strategic Review Savings, Not Allocated    0 0   0 0
Total gross budgetary expenditures 567,369 154,243 154,243 615,271 168,457 168,457
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 524 146 146 574 165 165
Services Regulatory 0 0 0 0 0 0
Total Revenues netted against expenditures 524 146 146 574 165 165
Total net budgetary expenditures 566,845 154,097 154,097 614,697 168,292 168,292

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