Public Health Agency of Canada Quarterly Financial Report: For the quarter ending December 31, 2021
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 2021-22 Departmental Plan and the 2021-22 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 2021-22 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
The following graph provides a comparison of the Agency's net budgetary authorities and expenditures.

Figure 1 - Text description
The graph above provides a comparison of the net budgetary authorities and expenditures as of December 31, 2021 and December 31, 2020 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of December 31, 2021, PHAC had a total of $13,152.4 million in authorities available for spending compared to $20,983.2 million on December 31, 2020. PHAC's year-to-date expenditures as of December 31, 2021 were $4,994.8 million compared to $5,886.1 million on December 31, 2020.
2.1 Significant changes to authorities
Authorities available (in millions of dollars) | 2020-21 | 2021-22 | Variance |
---|---|---|---|
Vote 1 – Operating expenditures | 9,459 | 12,127 | 2,668 |
Vote 5 – Capital expenditures | 83 | 106 | 23 |
Vote 10 – Grants and contributions | 363 | 837 | 474 |
Statutory | 11,078 | 82 | -10,996 |
Total authorities | 20,983 | 13,152 | -7,831 |
When compared to the third quarter of 2020-21, the Agency's authorities available for use decreased from $20,983.2 million to $13,152.4 million. This year-to-date reduction of $7,830.8 million is explained by decreases in funding for the following COVID-19 related initiatives:
- $5,836.1 million for the procurement of personal protective and medical equipment;
- $3,094.0 million for medical research and vaccine development;
- $681.9 million for medical countermeasures;
- $507.0 million for the Safe Restart Agreement for federal investments in testing, contact tracing and data management;
- $251.8 million for Canada's initial and enhanced response to COVID-19;
These decreases are offset by increases in funding in the following COVID-19 initiatives:
- $1,392.6 million to fund the border and travel measures and isolation sites;
- $498.9 million for innovative research and procurement of testing technologies related to the pandemic;
- $431.1 million for surge capacity;
- $80.0 million for additional Human Health Resources;
- $38.8 million increase in contributions to employee benefit plans;
- $34.1 million for mental health and to address substance use;
- $27.0 million to strengthen pre-clinical and medical countermeasures in Canada;
- $19.0 million for the Pan-Canadian vaccine injury support program;
- $15.2 million for the sero-surveillance research program;
- $12.5 million for Government Advertising initiatives; and
- $11.4 million for operating and capital funding carried forward into 2021-22 and other regular programming adjustments.
Year-to-year variances between statutory and voted authorities are primarily due to receipt of initial COVID-19 funding in 2020-21 as a statutory authority under the Public Health Events of National Concern Payments Act. The act was repealed effective December 31st, 2020 and COVID-19 related funding is appropriated under voted authorities for 2021-22.
2.2 Authorities used analysis
Total net budgetary expenditures amounted to $4,994.8 million as of December 31st, 2021 and $1,661.4 million for the third quarter as compared to $5,886.1 million and $2,469.7 million respectively for the same periods in 2020-21. This represents a year-to-date decrease of $891.3 million and a third quarter decrease of $808.3 million primarily due to the following variances:
- Quarterly spending for utilities, materials and supplies for 2021-22 decreased by $1,064.2 million compared to the third quarter of 2020-21. A similar decrease of $1,368.5 million is observed for 2021-22 year-to-date expenditures when compared to the end of the third quarter of 2020-21. This is primarily due to reduced expenditures in 2021-22 related to advanced purchase agreements for the COVID-19 vaccines and for the procurement of personal protective equipment. This was offset by increased expenditures related to payments following the receipt of vaccines and therapeutics.
- Quarterly spending for professional and special services increased by $242.1 for 2021-22 compared to the third quarter of 2020-21. An increase of $510.2 million is also observed for the 2021-22 year-to-date expenditures compared to the end of the third quarter of 2020-21. These variances are a result of increased expenditures in 2021-22 related to contracted services for border testing operations, storage and warehousing of personal protective equipment and the timing of payments related to the Shared Services Partnership Agreement with Health Canada.
- Quarterly spending for transfer payments increased by $42.8 million for 2021-22 compared to the third quarter of 2020-21. A similar increase of $138.8 million is observed for 2021-22 year-to-date expenditures when compared to the end of the third quarter of 2020-21. This variance is primarily due to increased expenditures in 2021-22 related to Safe Voluntary Isolation sites, serological surveillance through the COVID-19 Immunity Task Force, Immunization Partnership Fund and for the national dementia strategy.
- Quarterly spending for personnel increased by $36.8 million compared to the same quarter in 2020-21 as a result of the Agency's human resources growth to sustain its pandemic response. This also resulted in a $112.8 million increase in year-to-date spending compared to the end of the third quarter of 2020-21.
- Quarterly spending on machinery and equipment decreased by $7.7 million compared to the same quarter in 2020-21 largely due to investments made in medical and laboratory equipment for the National Microbiology Laboratory at the onset of the pandemic in 2020-21. This also largely contributed to the $244.0 million decrease in 2021-22 year-to-date spending when compared to the end of the third quarter of 2020-21.
Variances between voted and statutory expenditures are primarily due to the large majority of COVID-19 related expenditures being charged against statutory authorities (Public Health Events of National Concern Payments Act) during the first three quarters of 2020-21. Spending related to COVID-19 is charged against voted authorities in 2021-22.
3. Risks and Uncertainty
The dominant financial risks faced by the Agency relate to the nature of its mandate and the need to respond to events such as the COVID-19 pandemic. In order to address financial risks and uncertainties, the Government of Canada has provided significant temporary funding to support the Agency's response to the COVID-19 pandemic. 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:
Dr. Harpreet S. Kochhar,
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)
Fiscal year 2021-2022 | Fiscal year 2020-2021 | |||||
---|---|---|---|---|---|---|
(in thousands of dollars) | Total available for use for the year ending March 31, 2022 | Used during the quarter ended December 31, 2021 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2021* | Used during the quarter ended December 31, 2020 | Year to date used at quarter-end |
Vote 1 - Operating expenditures | 12,126,682 | 1,561,574 | 4,623,537 | 9,458,760 | -3,536 | 265,306 |
Vote 5 - Capital expenditures | 106,260 | 535 | 3,592 | 83,354 | 1,935 | 2,227 |
Vote 10 - Grants and contributions | 837,341 | 80,555 | 313,853 | 363,173 | 32,498 | 149,689 |
Contributions to employee benefit plans - Program | 68,639 | 16,361 | 49,085 | 29,766 | 7,383 | 22,149 |
Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets | 67 | 0 | 4 | 1 | 0 | 0 |
Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 2,352 | 4,683 | 13,413 | 0 | 2,121 |
Payments related to Public Health Events of National Concern and income support | 0 | 0 | 0 | 11,034,719 | 2,431,382 | 5,444,650 |
Total Statuatory Authorities | 82,119 | 18,713 | 53,772 | 11,077,889 | 2,438,765 | 5,468,920 |
Total authorities | 13,152,402 | 1,661,377 | 4,994,754 | 20,983,186 | 2,469,662 | 5,886,142 |
* Amounts in this column include frozen and reprofile funding that was orginally excluded in the Quarterly Financial Report ending December 31, 2020. |
7. Agency budgetary expenditures by Standard Object (unaudited)
Fiscal year 2021-2022 | Fiscal year 2020-2021 | |||||
---|---|---|---|---|---|---|
(in thousands of dollars) | Planned expenditures for the year ending March 31, 2022 | Expended during the quarter ended December 31, 2021 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2021* | Expended during the quarter ended December 31, 2020 | Year to date used at quarter-end |
Expenditures: | ||||||
Personnel | 532,788 | 111,186 | 313,006 | 274,535 | 74,343 | 200,203 |
Transportation and communications | 68,673 | 9,388 | 31,958 | 42,208 | 24,905 | 46,600 |
Information | 48,907 | 8,390 | 80,103 | 151,024 | 1,283 | 63,440 |
Professional and special services | 1,285,435 | 283,682 | 627,564 | 532,363 | 41,637 | 117,332 |
Rentals | 36,673 | 16,272 | 48,072 | 14,056 | 16,244 | 53,108 |
Purchased repair and maintenance | 4,314 | 1,246 | 2,880 | 5,877 | 620 | 2,474 |
Utilities, materials and supplies | 9,776,972 | 1,146,553 | 3,551,068 | 19,393,650 | 2,210,758 | 4,919,590 |
Acquisition of lands, buildings and works | 68,984 | 2 | 2 | 68,600 | 6 | 6 |
Acquisition of machinery and equipment | 489,240 | 2,541 | 9,463 | 53,249 | 10,270 | 253,516 |
Transfer payments | 837,341 | 80,555 | 313,853 | 444,381 | 37,732 | 175,016 |
Other subsidies and payments | 3,725 | 1,744 | 17,349 | 3,893 | 52,068 | 55,392 |
Total gross budgetary expenditures | 13,153,052 | 1,661,559 | 4,995,318 | 20,983,836 | 2,469,866 | 5,886,677 |
Less revenues netted against expenditures: | ||||||
Services Non-Regulatory | 650 | 182 | 564 | 650 | 204 | 535 |
Total Revenues netted against expenditures | 650 | 182 | 564 | 650 | 204 | 535 |
Total net budgetary expenditures | 13,152,402 | 1,661,377 | 4,994,754 | 20,983,186 | 2,469,662 | 5,886,142 |
* Amounts in this column include frozen and reprofile funding that was orginally excluded in the Quarterly Financial Report ending December 31, 2020. |
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