Public Health Agency of Canada Quarterly Financial Report: For the quarter ending December 31, 2021

Table of Contents

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:

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:

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. Comparison of budgetary authorities and expenditures as of December 31, 2020 and December 31, 2021
Figure 1. Text version below.
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:

These decreases are offset by increases in funding in the following COVID-19 initiatives:

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:

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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