Public Health Agency of Canada Quarterly Financial Report For the quarter ending June 30, 2022

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 grants and contributions 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.

Comparison of budgetary authorities and expenditures as of June 30, 2021 and June 30, 2022
Figure 1. Text version below.
Figure 1 - Text description

The graph above provides a comparison of the net budgetary authorities and expenditures as of June 30, 2022 and June 30, 2021 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of June 30, 2022, PHAC had a total of $10,319.5 million in authorities available for spending compared to $13,147.5 million on June 30, 2021. PHAC's year-to-date expenditures as of June 30, 2022 were $883.3 million compared to $1,096.5 million on June 30, 2021.

2.1 Significant changes to authorities

Authorities available (in millions of dollars) 2021-22 2022-23 Variance
Vote 1 – Operating expenditures 12,120 9,281 -2,839
Vote 5 – Capital expenditures 101 24 -77
Vote 10 – Grants and contributions 844 634 -210
Statutory 82 380 298
Total authorities 13,147 10,319 -2,828

The Agency's total authorities available for use decreased from $13,147.5 million to $10,319.5 million compared to the first quarter of 2021-22. This year-to-date reduction of $2,828.0 million is explained by decreases in funding for the following initiatives:

The decreases are offset by increases in the following initiatives:

2.2 Authorities used analysis

Year-to-date expenditures (in millions of dollars) 2021-22 2022-23 Variance
Vote 1 – Operating expenditures 951 707 -243
Vote 5 – Capital expenditures 2 0 -1
Vote 10 – Grants and contributions 128 159 31
Statutory 16 16 0
Total year-to-date expenditures 1,097 883 -213

Total net budgetary expenditures amounted to $883.3 million as of June 30, 2022, as compared to $1,096.5 million in 2021-22. This represents a year-to-date decrease of $213.2 million primarily due to the following 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 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 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:

Jaime Caceres,
Acting, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date:

6. Statement of Authorities (unaudited)

  Fiscal year 2022-2023 Fiscal year 2021-2022
(in thousands of dollars) Total available for use for the year ending March 31, 2023Footnote 1 Used during the quarter ended June 30, 2022 Year to date used at quarter-end Total available for use for the year ended March 31, 2022Footnote 2 Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Vote 1 - Operating expenditures 9,281,009 707,470 707,470 12,119,974 950,609 950,609
Vote 5 - Capital expenditures 24,150 479 479 101,100 1,509 1,509
Vote 10 - Grants and contributions 634,303 158,853 158,853 844,334 128,043 128,043
Statutory Authorities
Statutory - Contributions to employee benefit plans - Program 65,933 16,483 16,483 68,639 16,362 16,362
Statutory - Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets 662 0 0 38 4 4
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 in connection with
Economic and Fiscal Update Implementation Act, 2021

300,000 0 0 0 0 0
Total authorities 10,319,470 883,285 883,285 13,147,498 1,096,527 1,096,527

Footnotes

Footnote 1

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

Return to footnote 1 referrer

Footnote 2

Amounts in this column include frozen and reprofile funding that was originally excluded in the Quarterly Financial Report ending June 30, 2021.

Return to footnote 2 referrer

7. Agency budgetary expenditures by Standard Object (unaudited)

  Fiscal year 2022-2023 Fiscal year 2021-2022
(in thousands of dollars) Planned expenditures for the year ending March 31, 2023 Footnote 1 Expended during the quarter ended June 30, 2022 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2022 Footnote 2 Expended during the quarter ended June 30, 2021 Year to date used at quarter-end
Expenditures:
Personnel 514,693 92,961 92,961 530,800 83,319 83,319
Transportation and communications 35,004 2,416 2,416 67,443 3,508 3,508
Information 20,786 5,969 5,969 48,907 33,472 33,472
Professional and special services 681,974 66,338 66,338 1,288,223 102,449 102,449
Rentals 2,607 14,541 14,541 36,673 13,138 13,138
Purchased repair and maintenance 2,623 573 573 4,313 1,008 1,008
Utilities, materials and supplies 8,093,317 530,198 530,198 9,776,944 717,502 717,502
Acquisition of lands, buildings and works 0 12 12 68,984 0 0
Acquisition of machinery and equipment 32,761 1,057 1,057 477,802 2,831 2,831
Transfer payments 934,303 158,853 158,853 844,334 128,043 128,043
Other subsidies and payments 2,052 10,633 10,633 3,725 11,443 11,443
Total gross budgetary expenditures 10,320,120 883,551 883,551 13,148,148 1,096,713 1,096,713
Less revenues netted against expenditures:
Services of a Non-Regulatory Nature 650 266 266 650 186 186
Total Revenues netted against expenditures 650 266 266 650 186 186
Total net budgetary expenditures 10,319,470 883,285 883,285 13,147,498 1,096,527 1,096,527

Footnotes

Footnote 1

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

Return to footnote 1 referrer

Footnote 2

Amounts in this column include frozen and reprofile funding that was originally excluded in the Quarterly Financial Report ending June 30, 2021.

Return to footnote 2 referrer

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