Public Health Agency of Canada Quarterly Financial Report for the quarter ending June 30, 2025

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.

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 2024-25 Departmental Plan and the 2024-25 Main Estimates.

Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities section 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 2025-26 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.

Highlights of fiscal quarter results

The following graph provides a comparison of the Agency's net budgetary authorities and expenditures.

**Figure 1. Comparison of budgetary authorities and expenditures as of June 30, 2024 and June 30, 2025**

Figure 1 - Text description

Fiscal year	Budgetary authorities (in millions of dollars)	Q1 expenditures (in millions of dollars)
2024-25	1,958.4	339.9
2025-26	1,826.8	487.5

Significant changes to authorities

Available authorities from 2024-25 and 2025-26
Authorities available (in millions of dollars)	2024-25	2025-26^{Footnote a}	Variance
Vote 1: Operating expenditures	1,405	1,355	(50)
Vote 5: Capital expenditures	22	30	8
Vote 10: Grants and contributions	374	376	2
Statutory	158	66	(92)
Total authorities	1,958	1,827	(132)
Footnote a table 2 Totals may not add or may not agree with details provided elsewhere due to rounding. Return to footnote a referrer

The Agency's total authorities available for use decreased from $2.0 billion to $1.8 billion compared to the first quarter of 2024-25. This year-to-date net reduction of $131.5 million is explained by decreases in funding for the following initiatives:

$158.1 million for the surveillance and risk assessment initiative;
$77.1 million for funding to support an agile, resilient, and adaptive workforce;
$75.9 million for payments to provinces and territories for the Proof of Vaccination Fund;
$15.3 million for the purchase of COVID-19 vaccines and deployment operations;
$11.0 million for the Centre for Aging and Brain Health Innovation;
$10.0 million for COVID-19 rapid test kits;
$8.4 million for the Indigenous Early Learning and Child Care (IELCC) initiative;
$4.8 million for mental health support related to COVID-19 including support for distress centers and post-traumatic stress disorder; and
$16.3 million for various other initiatives.

The decreases are partially offset by increases in the following initiatives:

$133.0 million for a long-term approach for the renewal of the Agency - from Stabilization to Sustainability;
$24.0 million for warehousing and inventory maintenance for the National Emergency Strategic Stockpile maintenance;
$21.1 million for the 9-8-8 Suicide Crisis Helpline;
$17.5 million for the Vaccine Injury Support Program;
$10.5 million for contributions to the Employee Benefit Plan;
$9.2 million for new collective agreements and other compensation adjustments; and
$30.2 million for various other initiatives.

Authorities used analysis

Used authorities from 2024-25 and 2025-26
Year-to-date expenditures (in millions of dollars)	2024-25^{Footnote a}	2025-26	Variance
Vote 1: Operating expenditures	131	278	147
Vote 5: Capital expenditures	1	0	(1)
Vote 10: Grants and contributions	194	197	3
Statutory	14	13	(1)
Total year-to-date expenditures	340	488	148
Footnote a table 3 Totals may not add or may not agree with details provided elsewhere due to rounding. Return to footnote a referrer

Total net budgetary expenditures amounted to $487.5 million as of June 30, 2025, compared to $339.9 million in 2024-25, representing an increase of $147.7 million. This variance is primarily due to the following events:

Quarterly spending for utilities, materials and supplies in 2024-25 increased by $180.7 million compared to same period in 2024-25. This variance is primarily due to an increase in spending in 2025-26 for the first significant installment payment related to the domestic vaccine production facility, and the purchase of medical supplies and equipment for the National Emergency Strategic Stockpile. This increase is offset by a decrease in the procurement of lab supplies as well as mpox and influenza vaccines.
Quarterly spending for transfer payments increased by $2.5 million in 2025-26 compared to the same quarter in 2024-25. This variance is primarily related to increased spending to support activities related to the Indigenous Early Learning and Child Care Transformation Initiative, Preventing Family Violence, the Autism Initiative, the Mental Health Promotion Innovation Fund, Suicide Prevention Programs and 988 Operations, and Aboriginal Head Start in Urban and Northern Communities (AHSUNC). These increases are partially offset by reduced spending related to Contribution Funding for the Centre for Aging and Brain Health Innovation, the HIV and Hepatitis C Community Action Fund, and Antimicrobial Stewardship Initiatives.
Quarterly spending for professional and special services decreased by $6.9 million in 2025-26 compared to the same period in 2024-25. This decrease is mainly due to the timing of payments related to the Shared Services Partnership Agreement, a quarterly decrease in spending for storage services for the National Emergency Strategic Stockpile, as well as the timing of payments to the Department of Justice related to annual legal service fees.
Quarterly spending for information decreased by $10.8 million in 2025-26 compared to the same quarter in 2024-25. This decrease is primarily due to the timing of payments related to the Shared Services Partnership Agreement with Health Canada, offset by an increased investment towards various childhood and measles vaccination marketing campaigns.
Quarterly spending for personnel decreased by $16.4 million in 2025-26 compared to the same quarter in 2024-25 mainly due to a reduction in the number of term employees following measures implemented during the 2024-25 fiscal year to align available resources with the priorities of Canadians. Additionally, the transfer of full-time equivalents from the Office of International Affairs across the Health portfolio on April 1, 2025 also contributed to the reduction in expenses.

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 continues to transition from its expanded response activities, PHAC Renewal efforts are underway to support the stabilization of the Agency's posture and to reset priorities across its core program areas. The 2022-25 Corporate Risk Profile (CRP) has been refreshed to better reflect these adjustments. This revision will reinforce the support of the Agency's commitment to its mandate of promotion, prevention and preparation for the most pressing public health needs and priorities of Canadians.

Significant changes in relation to operations, personnel and programs

As temporary budgetary authorities related to the COVID-19 pandemic have expired, the Agency is progressively realigning its priorities and operations to reflect a post-pandemic context. Several key personnel changes occurred during the 2024-25 fiscal year and the first quarter of 2025-26: a new Deputy Chief Financial Officer was appointed effective July 29, 2024, followed by the appointment of a new Chief Financial Officer on January 16, 2025. Additional senior leadership transitions included the appointment of a new Minister of Health on May 13, 2025, and the designation of a new President and interim Chief Public Health Officer on June 23, 2025. The Agency remains committed to strategically evaluating and adapting its public health initiatives to effectively address the evolving needs of Canadians.

Approval by senior officials

Approved by:

Nancy Hamzawi,
President
Public Health Agency of Canada
Ottawa, Canada

Rod Greenough,
Vice-President and Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada

Statement of Authorities (unaudited)

Statement of authorities in thousands of dollars (unaudited)
	Total available for use for the year ending March 31, 2026^{Footnote a}	Used during the quarter ended June 30, 2025	Year to date used at quarter-end	Total available for use for the year ending March 31, 2025^{Footnote a}	Used during the quarter ended June 30, 2024	Year to date used at quarter-end
	Fiscal year 2025-26			Fiscal year 2024-25
Vote 1: Operating expenditures	1,354,815	277,522	277,522	1,404,694	130,907	130,907
Vote 5: Capital expenditures	29,450	245	245	21,580	713	713
Vote 10: Grants and contributions	376,330	196,633	196,633	373,754	194,109	194,109
Statutory Authorities
(S) Contributions to employee benefit plans - Program	52,484	13,121	13,121	55,066	13,766	13,766
(S) Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets	321	14	14	3,936	-	-
(S) Spending of revenues pursuant to section 4.2 of the Department of Health Act	13,413	-	-	13,413	-	-
(S) Payments for expenses in relation to COVID-19 tests	-	-	-	10,021	383	383
(S) Payments in connection with Economic and Fiscal Update Implementation Act, 2021	-	-	-	75,901	-	-
Total authorities	1,826,813	487,535	487,535	1,958,365	339,878	339,878
Footnote a table 4 Includes only authorities available for use and granted by Parliament at quarter end. Return to footnote a referrer

Agency budgetary expenditures by Standard Object (unaudited)

Agency budgetary expenditures by standard object in thousands of dollars (unaudited)
	Planned expenditures for the year ending March 31, 2026^{Footnote a}	Expended during the quarter ended June 30, 2025	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2025^{Footnote a}	Expended during the quarter ended June 30, 2024	Year to date used at quarter-end
	Fiscal year 2025-26			Fiscal year 2024-25
Expenditures
Personnel	403,648	78,911	78,911	462,225	95,333	95,333
Transportation and communications	12,940	901	901	7,417	1,200	1,200
Information	31,854	2,526	2,526	24,939	13,320	13,320
Professional and special services	239,284	5,612	5,612	170,451	12,477	12,477
Rentals	8,925	162	162	6,737	611	611
Purchased repair and maintenance	9,898	423	423	10,126	982	982
Utilities, materials and supplies	696,488	201,101	201,101	791,419	20,366	20,366
Acquisition of lands, buildings and works	0	21	21	0	0	0
Acquisition of machinery and equipment	42,238	1,141	1,141	30,670	1,831	1,831
Transfer payments	376,330	196,632	196,632	449,655	194,109	194,109
Other subsidies and payments	6,158	474	474	5,676	-88	-88
Total gross budgetary expenditures	1,827,763	487,904	487,904	1,959,315	340,141	340,141
Less revenues netted against expenditures
Services of a non-regulatory nature	950	369	369	950	263	263
Total revenues netted against expenditures	950	369	369	950	263	263
Total net budgetary expenditures	1,826,813	487,535	487,535	1,958,365	339,878	339,878
Footnote a table 5 Includes only authorities available for use and granted by Parliament at quarter end. Return to footnote a referrer

Page details

2025-09-15

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