Public Health Agency of Canada Quarterly Financial Report - For the quarter ended June 30, 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
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 1 - Text description
The graph above provides a comparison of the net budgetary authorities and expenditures as of June 30, 2021 and June 30, 2020 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of June 30, 2021, PHAC had a total of $12,770.6 million in authorities available for spending compared to $2,892.6 million on June 30, 2020. PHAC's year-to-date expenditures as of June 30, 2021 were $1,096.6 million compared to $1,911.6 million on June 30, 2020.
2.1 Significant changes to authorities
When compared to the first quarter of 2020-21, the authorities available for spending for the quarter ending June 30, 2021, have increased by $9,878.1 million or 342 percent, from $2,892.5 million to $12,770.6 million. This increase in authorities is due to the following:
Vote 1 - Operating
The Agency's vote 1 increased by $11,391.3 million or 3,239 percent, mainly due to:
- $6,467.6 million for medical research and vaccine developments;
- $1,743.5 million to acquire protective gear and medical equipment;
- $1,100.5 million for borders and travel measures, and isolation sites, testing and implementation of a border travel and health program;
- $912.4 million for medical countermeasures;
- $498.3 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, contract tracing and data management;
- $402.9 million of surge capacity;
- $65.5 million for medical countermeasures for the National Emergency Strategic Stockpile;
- $51.2 million to strengthen pre-clinical and medical countermeasures in Canada;
- $37.2 million to establish capacity for domestic production of personal protective equipment;
- $25.7 million to secure of domestic supply chain of N95 respirators; and
- $19.2 million for medical research.
Offset by:
- $376.9 million of frozen medical countermeasures and surge capacity funding.
Vote 5 - Capital
The Agency's vote 5 increased by $96.0 million or 1,883 percent, mainly due to:
- $73.5 million to strengthen pre-clinical and medical countermeasures in Canada;
- $18.8 million for surge capacity;
- $1.3 million for border and travel measures and isolation sites; and
- $0.7 million in Sero-Surveillance Consortium.
Vote 10 - Grants and Contributions
The Agency's vote 10 increased by $611.1 million or 262 percent, mainly due to:
- $206.8 million borders and travel measures, and isolation sites;
- $197.0 million for in Sero-Surveillance Consortium;
- $80.0 million for additional Human Health Resources;
- $42.0 million for mental health and to address substance use;
- $36.0 million of medical countermeasure;
- $19.0 million for the Pan-Canadian vaccine injury support program;
- $6.6 million for innovative research and procurement of testing technologies related to the pandemic;
- $3.5 million for surge capacity; and
- $3.3 million to fund the Kids Help Phone.
Statutory authority - Public Health Events of National Concern Payments Act to address the COVID-19 Pandemic
A decrease of $2,220.4 million in statutory authority related to:
- $2,259.3 million the Public Health Events of National Concern Payments Act to address the COVID-19 pandemic.
Offset by:
- $38.9 million increase in contributions to employee benefit plans mainly from funding for surge capacity and border and travel measures.
2.2 Authorities used analysis
In the first quarter of 2021-22, total budgetary expenditures amounted to $1,096.5 million compared to $1,911.6 million reported in the same quarter of 2020-21, which represents a decrease of $815.1 million or 43 percent.
Authorities used in vote 1, operating expenditures, increased by $897.8 million compared to the same quarter last year representing a variance of 1,701 percent. This increase is mainly due to operating expenditures related to COVID-19 being charged to vote 1 in 2021-22. In the first quarter of 2020-21, these types of expenditures were charged against statutory authorities (Public Health Events of National Concern Payments Act).
Authorities used in vote 5, capital expenditures, decreased by $3.0 million compared to the same quarter last year representing a variance of 67 percent. This is mainly due to decreased expenditures in the acquisition of computer and lab equipment in the National Microbiology Laboratory.
Authorities used in vote 10, grants and contributions expenditures, increased by $21.8 million compared to the same quarter last year representing a variance of 21 percent. The increase is mainly due to expenditures related to border and quarantine measures, and safe isolation sites.
Statutory authorities used decreased by $1,731.7 million in compared to the same quarter last year. The decrease is mainly due to expenditures related to COVID-19 no longer being charged to statutory authorities through the expiry of the Public Health Events of National Concern Payments Act on December 31, 2020. Instead, all COVID-19 related expenditures are being charged to voted authorities as of January 1, 2021.
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:
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 June 30, 2021
(in thousands of dollars) | Fiscal year 2021-2022 | Fiscal year 2020-2021 | ||||
---|---|---|---|---|---|---|
Total available for use for the year ending March 31, 2022Footnote * | Used during the quarter ended June 30, 2021 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2021Footnote * | Used during the quarter ended June 30, 2020 | Year to date used at quarter-end | |
Vote 1 - Operating expenditures | 11,743,066 | 950,609 | 950,609 | 351,742 | 52,770 | 52,770 |
Vote 5 - Capital expenditures | 101,100 | 1,509 | 1,509 | 5,098 | 4,523 | 4,523 |
Vote 10 - Grants and contributions | 844,334 | 128,043 | 128,043 | 233,252 | 106,204 | 106,204 |
Statutory Authorities | ||||||
Statutory - Contributions to employee benefit plans | 68,639 | 16,362 | 16,362 | 29,765 | 7,383 | 7,383 |
Statutory - Spending of proceeds from the disposal of surplus Crown assets | 38 | 4 | 4 | 0 | 0 | 0 |
Statutory - Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 0 | 0 | 13,413 | 0 | 0 |
Statutory - Payments related to Public Health Events of National Concern and Income support | 0 | 0 | 0 | 2,259,269 | 1,740,715 | 1,740,715 |
Total Statutory Authorities | ||||||
Total Authorities | 12,770,590 | 1,096,527 | 1,096,527 | 2,892,539 | 1,911,595 | 1,911,595 |
|
7.0 Agency Budgetary Expenditures by Standard Object (unaudited)
Public Health Agency of Canada
For the quarter ended June 30, 2021
(in thousands of dollars) | Fiscal year 2021-2022 | Fiscal year 2020-2021 | ||||
---|---|---|---|---|---|---|
Planned expenditures for the year ending March 31, 2022 | Expended during the quarter ended June 30, 2021 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2021 | Expended during the quarter ended June 30, 2020 | Year to date used at quarter-end | |
Expenditures: | ||||||
Personnel | 530,800 | 83,319 | 83,319 | 256,626 | 52,670 | 52,670 |
Transportation and communications | 67,443 | 3,508 | 3,508 | 185,321 | 15,171 | 15,171 |
Information | 48,907 | 33,472 | 33,472 | 100,395 | 50,505 | 50,505 |
Professional and special services | 1,261,315 | 102,449 | 102,449 | 101,296 | 8,382 | 8,382 |
Rentals | 36,673 | 13,138 | 13,138 | 13,903 | 17,471 | 17,471 |
Repair and maintenance | 4,313 | 1,008 | 1,008 | 5,636 | 1,020 | 1,020 |
Utilities, materials and supplies | 9,426,944 | 717,502 | 717,502 | 1,916,302 | 1,655,609 | 1,655,609 |
Acquisition of lands, buildings and works | 68,984 | 0 | 0 | 0 | 0 | 0 |
Acquisition of machinery and equipment | 477,802 | 2,831 | 2,831 | 36,309 | 5,113 | 5,113 |
Transfer payments | 844,334 | 128,043 | 128,043 | 273,778 | 106,204 | 106,204 |
Other subsidies and payments | 3,725 | 11,443 | 11,443 | 3,569 | -360 | -360 |
Total gross budgetary expenditures | 12,771,240 | 1,096,713 | 1,096,713 | 2,893,135 | 1,911,785 | 1,911,785 |
Less revenues netted against expenditures: | ||||||
Services Non-Regulatory | 650 | 186 | 186 | 596 | 190 | 190 |
Total Revenues netted against expenditures | 650 | 186 | 186 | 596 | 190 | 190 |
Total net budgetary expenditures | 12,770,590 | 1,096,527 | 1,096,527 | 2,892,539 | 1,911,595 | 1,911,595 |
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