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Public Health Agency of Canada Quarterly Financial Report - For the quarter ended September 30, 2017

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 PHAC 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.

PHAC 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.

PHAC 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.

PHAC 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 2017-18 Departmental Plans and the 2017-18 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 PHAC consistent with the Main Estimates and Supplementary Estimates for the 2017-18 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.

PHAC 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 decrease in resources available for the year, as well as a net increase in actual expenditures for the second quarter of 2017-18, ending September 30, 2017.

The following graph provides a comparison of the net budgetary authorities and expenditures as of September 30, 2016 and September 30, 2017 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes.

Comparison of Budgetary Authorities and Expenditures as at September 30, 2017 and September 30, 2016
Figure 1 text description

The following graph provides a comparison of the net budgetary authorities and expenditures as of September 30, 2016 and September 30, 2017 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As at September 30, 2017, PHAC had a total of $604.0 million in authorities available for spending compared to $606.1 million on September 30, 2016. PHAC's expenditures as at September 30, 2017 were $292.1 million compared to $279.8 million on September 30, 2016.

As at September 30, 2017, PHAC had a total of $604.0 million in authorities available for spending compared to $606.1 million on September 30, 2016. PHAC's expenditures as at September 30, 2017 were $292.1 million compared to $279.8 million on September 30, 2016. 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 second quarter of the previous fiscal year, the authorities available for spending for the year have decreased by $2.1 million or 0.3%, from $606.1 million to $604.0 million. This change in authorities is comprised of a decrease in Vote 1 - Operating Expenditures ($11.2 million), an increase in Vote 5 - Capital ($1.9 million) and an increase in Vote 10 - Grants and Contributions ($9.5 million) as well as a decrease in Budgetary Statutory Authorities ($2.3 million).

Vote 1 - Operating Expenditures

PHAC's Vote 1 decreased by $11.2 million or 3.2 percent, mainly due to:

  • Funding reprofile for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad;
  • Transfer of funding to Treasury Board Secretariat for the Government wide Budget 2016 reduction on professional services, advertising and travel;
  • A decrease in profile funding to acquire Medical Countermeasures for Smallpox and Anthrax Preparedness;

Offset by:

  • 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; and
  • An increase in funding to support the Infectious Diseases and Climate Change Program;

Vote 5 - Capital Expenditures

PHAC's Vote 5 increased by $1.9 million or 32.3 percent, mainly due to:

  • An increase in funding reprofile for Reinvestment of royalties from intellectual property;
  • An increase in funding reprofile for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad; and

Offset by:

  • A decrease due to sunset of funding for Single Window Initiative.

Vote 10 - Grants and Contributions (G&C)

PHAC's Vote 10 increased by $9.5 million or 4.6 percent, mainly due to:

  • An increase in funding profile of the Canadian Centre for Aging for Brain Health Innovation;
  • An increase in funding for Indigenous Early Learning and Child Care Infrastructure and Programming;
  • 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;
  • An increase in funding to expand the Nutrition North Canada Program to support all northern isolated communities;

Offset by:

  • A decrease due to transfer to Global Affairs Canada for the assessed contributions for the International Health Grant Program; and
  • A decrease due to transfer to the Canadian Institutes for Health Research to support the Canadian Immunization Research Network.

Budgetary Statutory Authorities

The decrease of $2.3 million or 5.4 percent in 2017-18 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 second quarter expenditures increased by $11.4 million or 9.0 percent in 2017-18, compared to 2016-17, from $125.6 million to $137.0 million.

This overall increase in spending is mainly due to a

  • 5.0% increase in Vote 1 - Operating expenditures of $5.3 million (from $99.1 million to $104.4 million);
  • 86.0% decrease in Vote 5 - Capital expenditures of $0.9 million (from $1.0 million to $0.1 million); and
  • 45.0% increase in Vote 10 - Grants and Contributions of $7.0 million (from $15.7 million to $22.7 million).

Vote 1 - Operating Expenditures

PHAC's Vote 1 second quarter 2017-18 expenditures increased by $5.3 million over the same quarter in 2016-17 mainly due to timing issues on installment payments to Health Canada through the Shared Services Partnership Agreement and due to retroactive salary payments for the current and previous year made in 2017-18.

Vote 5 - Capital Expenditures

The Agency's Vote 5 second quarter 2017-18 expenditures decreased by $0.9 million over the same quarter in 2016-17, mainly due to the timing of capital equipment purchases.

Vote 10 - Grants and Contributions (G&C)

PHAC's Vote 10 second quarter 2017-18 expenditures increased by $7.0 million over the same quarter in 2016-17 mainly due to the timing of contribution agreements renewal in the second quarter.

3.0 Risks and Uncertainty

The dominant financial risks faced by PHAC 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, PHAC 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 September 30, 2017

Statement of authorities (unaudited)
(in thousands of dollars) Fiscal year 2017-2018 Fiscal year 2016-2017
Total available for use for the year ending March 31, 2018Table 1 footnote 1 Used during the quarter ended September 30, 2017 Year to date used at quarter-end Total available for use for the year ended March 31, 2017Table 1 footnote 1 Used during the quarter ended September 30, 2016 Year to date used at quarter-end

Table 1 Footnotes

Table 1 Footnote 1

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

Return to Table 1 footnote 1 referrer
Vote 1 - Operating expenditures 338,210 104,385 162,121 349,387 99,147 152,453
Vote 5 - Capital expenditures 7,747 139 213 5,854 1,001 1,259
Vote 10 - Grants and contributions 216,327 22,736 112,945 206,779 15,688 108,699
(S) Contributions to employee benefit plans 28,261 7,066 14,131 30,669 7,630 15,260
(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 65 12 22 31 11 14
(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 2,637 2,637 13,413 2,162 2,162
Total authorities 604,023 136,975 292,069 606,133 125,639 279,847

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada - For the quarter ended September 30, 2017

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars) Fiscal year 2017-2018 Fiscal year 2016-2017
Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended September 30, 2017 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended September 30, 2016 Year to date used at quarter-end
Expenditures:
Personnel 226,404 61,828 106,882 225,485 50,759 97,103
Transportation and communications 7,055 1,573 2,684 7,369 1,664 3,190
Information 14,992 2,236 2,406 13,786 10,241 10,722
Professional and special services 102,112 41,669 44,828 107,356 39,768 47,797
Rentals 2,665 1,209 1,940 3,627 522 1,442
Repair and maintenance 3,321 796 1,456 3,635 864 1,536
Utilities, materials and supplies 17,089 2,779 15,542 28,146 3,125 5,043
Acquisition of lands, buildings and works 0 3 3 0 8 8
Acquisition of machinery and equipment 12,663 620 1,169 9,023 1,958 2,803
Transfer payments 216,327 22,736 112,945 206,779 15,105 108,699
Other subsidies and payments 1,919 1,886 2,571 1,451 1,799 1,855
Strategic Review Savings, Not Allocated 0 0 0 0 0 0
Total gross budgetary expenditures 604,547 137,335 292,426 606,657 125,813 280,198
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 524 360 357 524 174 351
Services Regulatory 0 0 0 0 0 0
Total Revenues netted against expenditures 524 360 357 524 174 351
Total net budgetary expenditures 604,023 136,975 292,069 606,133 125,639 279,847

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