Public Health Agency of Canada Quarterly Financial Report - For the quarter ended June 30, 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

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.

Comparison of budgetary authorities and expenditures as of June 30, 2020 and June 30, 2021
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:

Offset by:

Vote 5 - Capital

The Agency's vote 5 increased by $96.0 million or 1,883 percent, mainly due to:

Vote 10 - Grants and Contributions

The Agency's vote 10 increased by $611.1 million or 262 percent, mainly due to:

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:

Offset by:

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

Statement of Authorities (unaudited)
(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
Note de bas de page 1

Includes only authorities available for use and granted by Parliament at quarter end.

Retour à la référence de la note de bas de page *

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada
For the quarter ended June 30, 2021

Table 1: Agency budgetary expenditures by Standard Object (unaudited)
(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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