Public Health Agency of Canada Quarterly Financial Report - For the quarter ended December 31, 2020
Table of contents
- 1. Introduction
- 2. Highlights of Fiscal Quarter Results
- 3. Risks and Uncertainty
- 4. Significant Changes in Relation to Operations, Personnel and Programs
- 5. Approval by Senior Officials
- 6. Statement of Authorities (unaudited)
- 7. Agency Budgetary Expenditures by Standard Object (unaudited)
1. 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; and
- 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 2020-21 Departmental Plan and the 2020-21 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 2020-21 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. Highlights of Fiscal Quarter Results
Both authorities and expenditures have significantly increased in order to address the COVID-19 pandemic. The following graph provides a comparison of the Agency's net budgetary authorities and expenditures.

Figure - Text description
The graph above provides a comparison of the net budgetary authorities and expenditures as of December 31, 2020 and December 31, 2019 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of December 31, 2020, PHAC had a total of $14,988.1 million in authorities available for spending compared to $650.3 million on December 31, 2019. PHAC's year-to-date expenditures as of December 31, 2020 were $5,886.2 million compared to $439.0 million on December 31, 2019.
2.1 Significant Changes to Authorities
When compared to the third quarter of 2019-20, the authorities available for spending for the quarter ending December 31st, 2020, have increased by $14,337.8 million or 2,205 percent, from $650.3 million to $14,988.1 million. This increase in Authorities is due to the following:
Statutory Authority - Public Health Events of National Concern Payments Act to address the COVID-19 Pandemic
Increase of $11,034.7 million in Statutory Authority related to the Public Health Events of National Concern Payments Act to address the COVID-19 Pandemic:
- $5,147.1 million to acquire protective gear and medical equipment;
- $3,821.7 million to fund medical research and vaccine developments;
- $622.3 million to fund the Safe Restart Agreement for federal investments in testing, contact tracing and data management;
- $536.5 million to acquire Medical Countermeasures in Canada;
- $298.4 million to fund the development of a COVID-19 vaccine;
- $278.1 million to fund the border and travel measures and isolation sites;
- $143.1 million to fund Canada's initial response to COVID-19;
- $98.5 million to fund the Sero-Surveillance Consortium;
- $58.0 million to fund Canada's enhanced response to COVID-19;
- $13.5 million to fund additional measures to support Canada's COVID-19 response for Influenza and Pneumococcal Vaccine Procurement;
- $7.7 million to strengthen pre-clinical and material countermeasures in Canada;
- $5.3 million to boost Canada's capacity to manufacture and deploy a future COVID-19 vaccine;
- $4.2 million to fund the Kids Help Phone;
Vote 1 - Operating
Increase of $3,179.7 million (900 percent) in Operating spending authorities (Vote 1) mainly due to funding received in response to the COVID-19 pandemic pursuant to the Public Health Events of National Concern Payments Act for the following measures:
- $5,378,3 million for medical research and vaccine development;
- $2,202.9 million to acquire protective gear and medical equipment;
- $776.1 million for Medical Countermeasures in Canada;
- $320.1 million related to the Safe Restart Agreement for federal investments in testing, contact tracing and data management; and
- $196.0 million for border and travel measures and isolation sites.
Offset by:
- Reprofile of $5,000.0 million to 2021-22 for medical research and vaccine development; and,
- Reprofile of $500.0 million to 2021-22 to acquire protective gear and medical equipment.
These two reprofiles also reduced the total Authorities available for use from the previous quarterly report (second quarter of 2020-21).
Vote 5 - Capital
Increase of $5.6 million (61 percent) in Capital spending authorities (Vote 5) mainly due to funding received in response to the COVID-19 pandemic pursuant to the Public Health Events of National Concern Payments Act for the following measures:
- $7.5 million to acquire equipment to aid and assist in the pandemic response, offset by various miscellaneous items.
Vote 10 - Grants and Contributions
Increase of $118.1 million (48 percent) in Grants and Contributions spending authorities (Vote 10), mainly due to funding received in response to the COVID-19 pandemic pursuant to the Public Health Events of National Concern Payments Act for the following measures:
- $58.0 million for the Sero-Surveillance Consortium;
- $34.7 million for border and travel measures and isolation sites;
- $8.2 million for a safe restart in Indigenous communities;
- $6.8 million to acquire Medical Countermeasures in Canada;
- $5.7 million for the National Dementia Strategy;
- $4.8 million for the Dementia Community Investment;
- $3.3 million related to the Kids Help Phone initiative;
- $1.6 million to respond to the drug overdose crisis in Canada;
- $1.4 million to address the public health aspects of challenges faced by black Canadians;
- $1.3 million to support the implementation of a Pan-Canadian Suicide Prevention service;
- $1.2 million to support the Métis Nation in gathering health data and developing a strategy;
- $1.0 million related to Renewing and Enhancing the Federal Tobacco Control Strategy; and
Offset by:
- $9 million decrease following the sunset of funding for the Centre for Aging and Brain Health Innovation initiative.
2.2 Authorities Used Analysis
In the third quarter of 2020-21, total budgetary expenditures amounted to $2,469.7 million compared to $128.4 million reported in the same quarter of 2019-20, which represents an increase of $2,341.3 million or 1,823 percent.
Authorities used in Vote 1, Operating expenditures, decreased by $85.3 million compared to the same quarter last year representing a variance of approximately 104 percent between the two years. This decrease is mainly due to a timing difference in the reallocation of costs associated with COVID-19.
Authorities used in Vote 5, Capital expenditures, increased by $0.7 million compared to the same quarter last year representing a variance of approximately 51 percent between the two years. This increase is mainly due to the acquisition of laboratory and testing equipment for the National Microbiology Laboratory.
Authorities used in Vote 10, Grants and Contributions expenditures, decreased by $2.9 million compared to the same quarter last year representing a variance of approximately 8 percent between the two years. The decrease is mainly due to the sunset of funding for the Centre for Aging and Brain Health Innovation.
Statutory Authorities used increased by $2,431.4 million in compared to the same quarter last year. The increase is mainly due to Canada's response to the COVID-19 pandemic for the purchase of personal protective equipment, medical and testing supplies pursuant to the Public Health Events of National Concern Payments Act.
3. Risks and Uncertainty
The dominant financial risks faced by the Agency relate to the need to respond to events such as the COVID-19 pandemic. In order to manage these financial risks and uncertainties, the Government of Canada has introduced legislation including the Public Health Events of National Concern Payments Act to ensure mechanisms are in place to address the funding needs associated with the COVID-19 pandemic response or any other public health event of national concern. Additionally, as the Agency navigates through the uncertainty associated with the new COVID-19 operational reality, financial management practices and strategies are in place to assess, monitor and mitigate to the extent possible the impacts of these risks.
4. Significant Changes in Relation to Operations, Personnel and Programs
There continues to be significant changes in relation to operations, personnel and programs as the Agency plays its important role in the fight against the COVID-19 pandemic. This role has required the Agency to rapidly scale up and sustain its operational response capacities and to take on new priorities and work. In light of an extremely dynamic environment during the pandemic, the Agency will continue to strategically assess and tailor its COVID-19 response to best meet the needs of Canadians.
5. Approval by Senior Officials
Approved by:
Iain Stewart, President
Public Health Agency of Canada
Ottawa, Canada
Date:
Martin Krumins, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date:
6. Statement of Authorities (unaudited)
Public Health Agency of Canada
For the quarter ended December 31, 2020
(in thousands of dollars) | Fiscal year 2020-2021 | Fiscal year 2019-2020 | ||||
---|---|---|---|---|---|---|
Total available for use for the year ending March 31, 2021Footnote 1 | Used during the quarter ended December 31, 2020Footnote 2 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2021Footnote 1 | Used during the quarter ended December 31, 2019 | Year to date used at quarter-end | |
Vote 1 - Operating expenditures | 3,533,147 | -3,536 | 265,306 | 353,429 | 81,789 | 247,333 |
Vote 5 - Capital expenditures | 14,707 | 1,935 | 2,227 | 9,157 | 1,279 | 4,022 |
Vote 10 - Grants and contributions | 362,366 | 32,498 | 149,689 | 244,260 | 35,391 | 160,537 |
Statutory Authorities | ||||||
Statutory - Contributions to employee benefit plans | 29,766 | 7,383 | 22,149 | 29,912 | 7,412 | 22,235 |
Statutory - Spending of proceeds from the disposal of surplus Crown assets | 1 | 0 | 0 | 90 | 0 | 0 |
Statutory - Refunds of amounts credited to revenues in previous years | 0 | 0 | 0 | 9 | 8 | 9 |
Statutory - Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 0 | 2,121 | 13,413 | 2,532 | 4,952 |
Statutory - Payments related to Public Health Events of National Concern and Income support | 11,034,719 | 2,431,382 | 5,444,650 | 0 | 0 | 0 |
Total Statutory Authorities | 11,077,899 | 2,438,765 | 5,468,920 | 43,424 | 9,952 | 27,196 |
Total Authorities | 14,988,119 | 2,469,662 | 5,886,142 | 650,270 | 128,411 | 439,088 |
|
7. Agency Budgetary Expenditures by Standard Object (unaudited)
Public Health Agency of Canada
For the quarter ended December 31, 2020
(in thousands of dollars) | Fiscal year 2020-2021 | Fiscal year 2019-2020 | ||||
---|---|---|---|---|---|---|
Planned expenditures for the year ending March 31, 2021 | Expended during the quarter ended December 31, 2020 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2020 | Expended during the quarter ended December 31, 2019 | Year to date used at quarter-end | |
Expenditures: | ||||||
Personnel | 273,820 | 74,343 | 200,203 | 253,789 | 68,642 | 172,073 |
Transportation and communications | 758,356 | 24,905 | 46,600 | 7,236 | 2,213 | 5,500 |
Information | 1,250,289 | 1,283 | 63,440 | 15,872 | 1,419 | 14,182 |
Professional and special services | 5,709,128 | 41,637 | 117,332 | 77,380 | 6,726 | 54,219 |
Rentals | 191,488 | 16,244 | 53,108 | 2,095 | 564 | 2,641 |
Repair and maintenance | 192,456 | 620 | 2,474 | 2,872 | 660 | 2,723 |
Utilities, materials and supplies | 6,113,616 | 2,210,758 | 4,919,590 | 23,977 | 10,519 | 19,289 |
Acquisition of lands, buildings and works | 0 | 6 | 6 | 0 | -12 | 177 |
Acquisition of machinery and equipment | 52,149 | 10,270 | 253,516 | 12,666 | 2,055 | 5,680 |
Transfer payments | 443,574 | 37,732 | 175,016 | 244,260 | 35,391 | 160,537 |
Other subsidies and payments | 3,893 | 52,068 | 55,392 | 10,773 | 401 | 2,569 |
Total gross budgetary expenditures | 14,988,769 | 2,469,866 | 5,886,677 | 650,920 | 128,578 | 439,590 |
Less revenues netted against expenditures: | ||||||
Services Non-Regulatory | 650 | 204 | 535 | 650 | 167 | 502 |
Total Revenues netted against expenditures | 650 | 204 | 535 | 650 | 167 | 502 |
Total net budgetary expenditures | 14,988,119 | 2,469,662 | 5,886,142 | 650,270 | 128,411 | 439,088 |
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