Public Health Agency of Canada Quarterly Financial Report for the quarter ending December 31, 2022
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 2022-23 Departmental Plan and the 2022-23 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 2022-23 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, 2022 and December 31, 2021 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of December 31, 2022, PHAC had a total of $12,085.6 million in authorities available for spending compared to $13,152.4 million on December 31, 2021. PHAC's year-to-date expenditures as of December 31, 2022 were $4,562.9 million compared to $4,994.8 million on December 31, 2021.
2.1 Significant changes to authorities
| Authorities available (in millions of dollars) | 2021-22Table 1 footnote * | 2022-23Table 1 footnote * | VarianceTable 1 footnote * |
|---|---|---|---|
| Vote 1 – Operating expenditures | 12,127 | 10,976 | -1,151 |
| Vote 5 – Capital expenditures | 106 | 44 | -62 |
| Vote 10 – Grants and contributions | 837 | 684 | -153 |
| Statutory | 82 | 382 | 299 |
| Total authorities | 13,152 | 12,086 | -1,067 |
The Agency's total authorities available for use decreased from $13,152.4 million to $12,085.6 million compared to the third quarter of 2021-22. This year-to-date net reduction of $1,066.8 million is explained by decreases in funding for the following initiatives:
- $1,277.3 million for the procurement of personal protective equipment and medical equipment;
- $1,155.6 million for border and travel measures and isolation sites;
- $461.1 million for innovative research and procurement of testing technologies related to the pandemic;
- $444.2 million for the Safe Restart Agreement for federal investments in testing, contact tracing and data management;
- $373.2 million for the procurement of vaccines and deployment operations;
- $140.0 million for strategic international partnerships for the distribution of vaccines;
- $83.6 million for surge capacity;
- $80.0 million for additional human health resources;
- $75.9 million to strengthen pre-clinical and medical countermeasures in Canada; and
- $68.2 million for various other initiatives.
The decreases are offset by increases in the following initiatives:
- $2,071.9 million for therapeutics;
- $379.8 million for operating and capital funding carried forward into 2022-23;
- $300.0 million for payments for proof of vaccination credentials;
- $120.3 million for influenza vaccines;
- $102.7 million for the response to the mpox outbreak in Canada;
- $51.1 million for mental health support related to COVID-19 including support for distress centers, post-traumatic stress disorder and the Kids Help Phone;
- $21.6 million for the Indigenous Early Learning and Child Care program; and
- $46.3 million for various other initiatives.
2.2 Authorities used analysis
| Year-to-date expenditures (in millions of dollars) | 2021-22 | 2022-23 | Variance |
|---|---|---|---|
| Vote 1 – Operating expenditures | 4,623 | 4,213 | -410 |
| Vote 5 – Capital expenditures | 4 | 9 | 5 |
| Vote 10 – Grants and contributions | 314 | 289 | -25 |
| Statutory | 54 | 52 | -2 |
| Total year-to-date expenditures | 4,995 | 4,563 | -432 |
Total year-to-date net budgetary expenditures amounted to $4,562.9 million as of December 31, 2022, compared to $4,994.8 million for 2021-22, representing a decrease of $431.9 million. Total expenditures during the third quarter of 2022-23 amounted to $2,181.2 million, compared to $1,661.4 million for 2021-22, representing an increase of $519.8 million. These variances are primarily due to:
- Third quarter spending for utilities, materials and supplies for 2022-23 increased by $646.7 million compared to same period in 2021-22. This is primarily due to increases in expenditures for the acquisition of vaccines (COVID-19, mpox and influenza), and COVID-19 therapeutics. A decrease of $202.1 million is observed for 2022-23 year-to-date expenditures compared to 2021-22. This decrease is primarily due to the overall reduced expenditures in 2022-23 relating to the acquisition of COVID-19 vaccines, and the procurement of personal protective equipment and COVID-19 testing supplies. This was offset by year-to-date increases for the acquisition of COVID-19 therapeutics and vaccines for mpox and influenza.
- Third quarter spending for professional and special services decreased by $112.3 million for 2022-23 compared to the same period in 2021-22. A decrease of $193.1 million is also observed for the 2022-23 year-to-date expenditures compared to 2021-22. These decreases are primarily due to reduced expenditures in 2022-23 related to COVID-19 border testing operations which are partially offset by increases related to the National Vaccine Management IT platform and for services related to the handling of the National Emergency Strategic Stockpile.
- Third quarter spending for transfer payments decreased by $5.2 million for 2022-23 as compared to the same period in 2021-22. A decrease of $25.1 million is also observed for 2022-23 year-to-date expenditures when compared to 2021-22. These variances are primarily due to the realignment of expenditures from the 2021-22 COVID-19 Border Testing Measures transfer payment program to operational spending under professional and special services in 2022-23. Reduced expenditures were also noted for the Safe Voluntary Isolation Sites Program and the Sero-Surveillance Research Program. Increases in the programs to address mental health and post-traumatic stress disorder and trauma in those most affected by COVID-19, the Indigenous Early Learning and Child Care Transformation Initiative, and the Immunization Partnership Fund partially offset this decrease.
- Third quarter spending for information decreased by $6.9 million for 2022-23 compared to the same period in 2021-22. A decrease of $23.4 million is also observed for 2022-23 year-to-date expenditures when compared to 2021-22. These variances are primarily due to a reduction in spending for the COVID-19 public education campaign.
- Third quarterly spending on transportation and communication decreased by $3.2 million compared to the same period in 2021-22. A decrease of $19.6 million is also observed in 2022-23 for year-to-date expenditures. These variances are primarily due to reduced expenditures associated with the mandatory quarantine of travelers at borders and decreased shipping costs for the National Emergency Strategic Stockpile.
- Quarterly spending for personnel increased by $3.9 million compared to the same quarter in 2021-22, and by $25.4 million in year-to-date spending. This is primarily due to the growth in staffing to support the Agency's ongoing pandemic response and other public health events.
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 public health events. In order to address financial risks and uncertainties, the Government of Canada has provided significant temporary funding to support the Agency's response to these events. As the Agency navigates through the uncertainty associated with this dynamic operational environment, 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
During the third quarter of 2022-23, the Agency implemented a hybrid work model for employees to return to working from the office 2 to 3 days per week. This operational change has been carefully adopted and meets Treasury Board Secretariat's requirements regarding the common hybrid work model.
The Agency continues to undergo changes in relation to operations, personnel and programs as it plays a vital role in helping protect and improve the health and safety of all Canadians. This role has required the Agency to rapidly scale up and sustain its operational response capacities and to take on new priorities. In light of an extremely dynamic environment during the pandemic, the Agency will continue to strategically assess and tailor its public health responses 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
Martin Krumins, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
6. Statement of Authorities (unaudited)
| no data | Fiscal year 2022-23 | Fiscal year 2021-22 | ||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Total available for use for the year ending March 31, 2023Table 3 footnote * | Used during the quarter ended December 31, 2022 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2022Table 3 footnote * | Used during the quarter ended December 31, 2021 | Year to date used at quarter-end |
| Vote 1 - Operating expenditures | 10,976,037 | 2,085,279 | 4,213,779 | 12,126,682 | 1,561,574 | 4,623,537 |
| Vote 5 - Capital expenditures | 43,707 | 4,071 | 8,732 | 106,260 | 535 | 3,592 |
| Vote 10 - Grants and contributions | 684,238 | 75,397 | 288,719 | 837,341 | 80,555 | 313,853 |
| Statutory Authorities | ||||||
| (S) Contributions to employee benefit plans - Program | 67,349 | 16,484 | 49,450 | 68,639 | 16,361 | 49,085 |
| (S) Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets | 825 | 0 | 0 | 67 | 0 | 4 |
| (S) Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 0 | 2,280 | 13,413 | 2,352 | 4,683 |
| (S) Payments in connection with Economic and Fiscal Update Implementation Act, 2021 | 300,000 | 0 | 0 | 0 | 0 | 0 |
| Total authorities | 12,085,569 | 2,181,231 | 4,562,960 | 13,152,402 | 1,661,377 | 4,994,754 |
7. Agency budgetary expenditures by Standard Object (unaudited)
| no data | Fiscal year 2022-23 | Fiscal year 2021-22 | ||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2023Table 4 footnote * | Expended during the quarter ended December 31, 2022 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2022Table 4 footnote * | Expended during the quarter ended December 31, 2021 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Personnel | 568,646 | 115,099 | 338,371 | 532,788 | 111,186 | 313,006 |
| Transportation and communications | 35,847 | 6,226 | 12,374 | 68,673 | 9,388 | 31,958 |
| Information | 21,586 | 1,501 | 56,732 | 48,907 | 8,390 | 80,103 |
| Professional and special services | 1,306,378 | 171,392 | 434,430 | 1,285,435 | 283,682 | 627,564 |
| Rentals | 27,006 | 9,054 | 43,486 | 36,673 | 16,272 | 48,072 |
| Purchased repair and maintenance | 2,623 | 1,962 | 3,540 | 4,314 | 1,246 | 2,880 |
| Utilities, materials and supplies | 9,085,525 | 1,793,285 | 3,348,962 | 9,776,972 | 1,146,553 | 3,551,068 |
| Acquisition of lands, buildings and works | 0 | 27 | 46 | 68,984 | 2 | 2 |
| Acquisition of machinery and equipment | 52,318 | 5,356 | 11,613 | 489,240 | 2,541 | 9,463 |
| Transfer payments | 984,238 | 75,397 | 288,719 | 837,341 | 80,555 | 313,853 |
| Other subsidies and payments | 2,052 | 2,143 | 25,393 | 3,725 | 1,744 | 17,349 |
| Total gross budgetary expenditures | 12,086,219 | 2,181,442 | 4,563,666 | 13,153,052 | 1,661,559 | 4,995,318 |
| Less revenues netted against expenditures: | ||||||
| Services of a Non-Regulatory Nature | 650 | 211 | 706 | 650 | 182 | 564 |
| Total Revenues netted against expenditures | 650 | 211 | 706 | 650 | 182 | 564 |
| Total net budgetary expenditures | 12,085,569 | 2,181,231 | 4,562,960 | 13,152,402 | 1,661,377 | 4,994,754 |
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