Public Health Agency of Canada Quarterly Financial Report for the quarter ending June 30, 2023
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 2023-24 Departmental Plan and the 2023-24 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 2023-24 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 June 30, 2023 and June 30, 2022 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of June 30, 2023, PHAC had a total of $4,918.7 million in authorities available for spending compared to $10,319.5 million on June 30, 2022. PHAC's year-to-date expenditures as of June 30, 2023 were $828.2 million compared to $883.3 million on June 30, 2022.
2.1 Significant changes to authorities
| Authorities available (in millions of dollars) | 2022-23 | 2023-24 | Variance |
|---|---|---|---|
| Vote 1 – Operating expenditures | 9,281 | 4,196 | -5,085 |
| Vote 5 – Capital expenditures | 24 | 41 | 17 |
| Vote 10 – Grants and contributions | 634 | 467 | -167 |
| Statutory | 380 | 214 | -166 |
| Total authorities | 10,319 | 4,918 | -5,401 |
The Agency's total authorities available for use decreased from $10,319.5 million to $4,918.7 million compared to the first quarter of 2022-23. This year-to-date net reduction of $5,400.8 million is explained by decreases in funding for the following initiatives:
- $2,869.6 million for the procurement of COVID-19 vaccines and deployment operations;
- $1,993.9 million for COVID-19 therapeutics;
- $371.2 million for surge capacity;
- $345.6 million for border and travel measures and isolation sites for COVID-19;
- $143.2 million for payments for proof of vaccination fund;
- $92.6 million for the Sero-Surveillance Consortium;
- $57.1 million for the procurement of medical supplies and equipment, including personal protective equipment;
- $14.7 million for innovative research and procurement of testing technologies related to the COVID-19 pandemic;
- $11.9 million for influenza vaccines;
- $9.6 million for the Pan-Canadian vaccine injury support program; and
- $1.0 million for mental health support related to COVID-19 including support for distress centers, post-traumatic stress disorder and the Kids Help Phone.
The decreases are offset by increases in the following initiatives:
- $309.2 million for the response to the mpox outbreak in Canada;
- $165.4 million for the surveillance and risk assessment initiative;
- $11.0 million for the Center for Aging and Brain Health Innovation;
- $6.3 million for special immigration measures for Ukrainian nationals;
- $2.0 million for the childhood vaccination ad campaign;
- $1.7 million for health assessments for Afghan Refugees; and
- $18.4 million for various other initiatives.
2.2 Authorities used analysis
| Year-to-date expenditures (in millions of dollars) | 2022-23Footnote * | 2023-24 | Variance |
|---|---|---|---|
| Vote 1 – Operating expenditures | 707 | 584 | -123 |
| Vote 5 – Capital expenditures | 0 | 2 | 2 |
| Vote 10 – Grants and contributions | 159 | 193 | 34 |
| Statutory | 16 | 49 | 33 |
| Total year-to-date expenditures | 883 | 828 | -54 |
|
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Total net budgetary expenditures amounted to $828.2 million as of June 30, 2023, compared to $883.3 million in 2022-23, representing a decrease of $54.0 million. This variance is primarily due to the following events:
- Quarterly spending for utilities, materials and supplies in 2023-24 decreased by $60.3 million compared to same period in 2022-23. This variance is primarily due to reduced spending in 2023-24 related to the procurement of domestic influenza vaccines, COVID-19 vaccines and therapeutics, and the procurement of medical supplies and equipment, including personal protective equipment. This was partially offset by an increase in spending for other pharmaceutical products.
- Quarterly spending for transfer payments increased by $34.3 million in 2023-24 compared to the same quarter in 2022-23. This variance is primarily related to increased spending to support activities related to the Mental Health of those most affected by COVID-19, Distress Centres, Indigenous Early Learning and Child Care Transformation Initiative, Pan-Canadian Vaccine Injury Support Program, and National Collaborating Centres for Public Health. These increases are partially offset by reduced spending in other areas of Mental Health programs, including Post-Traumatic Stress Disorder and Trauma in those most affected by COVID-19, Kids Help Phone, and in the Immunization Partnership Fund.
- Quarterly spending in Statutory expenditures increased by $32.7 million in 2023-24 compared to the same quarter in 2022-23. This variance is primarily related to spending on proof of vaccination fund pursuant to the Economic and Fiscal Update Implementation Act, 2021. This increase is partially offset by a decrease in spending for contributions to employee benefit plans due to a reduction in personnel expenditures.
- Quarterly spending for professional and special services decreased by $26.7 million in 2023-24 compared to the same period in 2022-23. This variance is primarily due to no spending related to border testing, travel and quarantine measures in 2023-24. This decrease is partially offset by increases due to timing of payments related to the Shared Services Partnership with Health Canada.
- Quarterly spending for rentals decreased by $13.9 million in 2023-24 compared to the same period in 2022-23. This variance is due to no spending for rental facilities related to quarantine measures.
- Quarterly spending for personnel decreased by $9.7 million in 2023-24 compared to the same quarter in 2022-23. This decrease is primarily due to a reduction in full-time equivalents as a result of removing all COVID-19 entry restrictions.
- Quarterly spending for information decreased by $5.4 million in 2023-24 compared to the same period in 2022-23. This variance is primarily due to a reduction in spending for the COVID-19 public education campaigns.
- Quarterly spending for acquisition of machinery and equipment increased by $2.3M in 2023-24 compared to the same quarter in 2022-23. This variance is primarily due to an increase in spending associated with the purchase of stand-up freezers related to mpox, the purchase of Enterprise servers and products related, as well as replacement equipment for the National Microbiology Laboratory.
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. While the Agency transitions from its peak COVID-19 pandemic response activities and funding, it plans to support the stabilization of its core activities in the coming fiscal years. In addition to this stabilization, the Agency will undergo an organizational realignment to ensure its structure and functions are maintained. This will help support its commitment to the mandate of protection, prevention, and promotion, for the most pressing public health needs and priorities.
4. Significant changes in relation to operations, personnel and programs
On February 27, 2023, Prime Minister, Justin Trudeau announced the appointment of Heather Jeffery to the position of President of the Public Health Agency of Canada. Also in February 2023, Nancy Hamzawi joined the Agency as the Executive Vice-President.
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. As the situation has evolved, the Agency has scaled down initiatives related to COVID-19 with the expiry of temporary budgetary authorities related to the COVID-19 response. 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:
Nancy Hamzawi,
Acting 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)
| no data | Fiscal year 2023-24 | Fiscal year 2022-23 | ||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Total available for use for the year ending March 31, 2024Table 3 footnote * | Used during the quarter ended June 30, 2023 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2023Table 3 footnote * | Used during the quarter ended June 30, 2022 | Year to date used at quarter-end |
| Vote 1 - Operating expenditures | 4,196,336 | 583,853 | 583,853 | 9,281,009 | 707,470 | 707,470 |
| Vote 5 - Capital expenditures | 41,347 | 2,003 | 2,003 | 24,150 | 479 | 479 |
| Vote 10 - Grants and contributions | 466,905 | 193,166 | 193,166 | 634,303 | 158,853 | 158,853 |
| Statutory Authorities | ||||||
| (S) Contributions to employee benefit plans - Program | 45,773 | 11,443 | 11,443 | 65,933 | 16,483 | 16,483 |
| (S) Spending of proceeds from the disposal of surplus Crown assets | 878 | 0 | 0 | 662 | 0 | 0 |
| (S) Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 0 | 0 | 13,413 | 0 | 0 |
| (S) Payments in connection with Economic and Fiscal Update Implementation Act, 2021 | 154,024 | 37,733 | 37,733 | 300,000 | 0 | 0 |
| Total authorities | 4,918,676 | 828,198 | 828,198 | 10,319,470 | 883,285 | 883,285 |
7. Agency budgetary expenditures by Standard Object (unaudited)
| no data | Fiscal year 2023-24 | Fiscal year 2022-23 | ||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2024Table 4 footnote * | Expended during the quarter ended June 30, 2023 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2023Table 4 footnote * | Expended during the quarter ended June 30, 2022 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Personnel | 355,039 | 83,373 | 83,373 | 514,693 | 92,961 | 92,961 |
| Transportation and communications | 7,844 | 1,458 | 1,458 | 35,004 | 2,416 | 2,416 |
| Information | 19,531 | 612 | 612 | 20,786 | 5,969 | 5,969 |
| Professional and special services | 244,030 | 40,588 | 40,588 | 681,974 | 66,338 | 66,338 |
| Rentals | 2,526 | 610 | 610 | 2,607 | 14,541 | 14,541 |
| Purchased repair and maintenance | 2,528 | 596 | 596 | 2,623 | 573 | 573 |
| Utilities, materials and supplies | 3,608,933 | 469,927 | 469,927 | 8,093,317 | 530,198 | 530,198 |
| Acquisition of lands, buildings and works | 0 | 39 | 39 | 0 | 12 | 12 |
| Acquisition of machinery and equipment | 56,409 | 3,345 | 3,345 | 32,761 | 1,057 | 1,057 |
| Transfer payments | 620,929 | 230,900 | 230,900 | 934,303 | 158,853 | 158,853 |
| Other subsidies and payments | 1,557 | -3,047 | -3,047 | 2,052 | 10,633 | 10,633 |
| Total gross budgetary expenditures | 4,919,326 | 828,401 | 828,401 | 10,320,120 | 883,551 | 883,551 |
| Less revenues netted against expenditures: | ||||||
| Services of a Non-Regulatory Nature | 650 | 203 | 203 | 650 | 266 | 266 |
| Total Revenues netted against expenditures | 650 | 203 | 203 | 650 | 266 | 266 |
| Total net budgetary expenditures | 4,918,676 | 828,198 | 828,198 | 10,319,470 | 883,285 | 883,285 |
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