Public Health Agency of Canada Quarterly Financial Report: For the quarter ending September 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 September 30, 2020 and September 30, 2021
Figure 1. Text version below.
Figure 1 - Text description

The graph above provides a comparison of the net budgetary authorities and expenditures as of September 30, 2021 and September 30, 2020 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of September 30, 2021, PHAC had a total of $12,725.5 million in authorities available for spending compared to $20,899.6 million on September 30, 2020. PHAC's year-to-date expenditures as of September 30, 2021 were $3,333.4 million compared to $3,416.5 million on September 30, 2020.

2.1 Significant changes to authorities

Authorities available (in millions of dollars) 2020-21 2021-22 Variance
Vote 1 - Operating expenditures 356 11,696 11,340
Vote 5 - Capital expenditures 6 106 101
Vote 10 - Grants and contributions 233 841 607
Statutory 20,305 82 -20,223
Total authorities 20,900 12,725 -8,174

When compared to the second quarter of 2020-21, the Agency’s authorities available for use decreased from $20,899.6 million to $12,725.5 million. This year-to-date net reduction of $8,174.1 million can be explained by decreases in funding for the following COVID-19 related initiatives:

This year-to-date reduction is offset by the following increases in authorities related to the following COVID-19 initiatives:

Year-to-year variances between statutory and voted authorities are primarily due to receipt of initial COVID-19 funding in 2020-21 as a statutory authority under the Public Health Events of National Concern Payments Act. The act was repealed effective December 31st, 2020 and the COVID-19 related funding is now appropriated under voted authorities for 2021-22.

2.2 Authorities used analysis

Year-to-date expenditures (in millions of dollars) 2020-21 2021-22 Variance
Vote 1 - Operating expenditures 216 2,111 1,895
Vote 5 - Capital expenditures -4 2 6
Vote 10 - Grants and contributions 11 105 94
Statutory 1,282 19 -1,263
Total year-to-date expenditures 1,505 2,237 732

Total net budgetary expenditures amounted to $3,333.4 million as at September 31, 2021 and $2,236.9 million for the second quarter as compared to $3,416.5 million and $1,504.9 million for the same periods in 2020-21. This represents a year-to-date decrease of $83.1 million and a second quarter increase of $732.0 million primarily due the timing of expenditures for the Agency’s COVID-19 response in the following areas:

Variances between voted and statutory expenditures are primarily due to the large majority of COVID-19 related expenditures being charged against statutory authorities (Public Health Events of National Concern Payments Act) during the first two quarters of 2020-21. Spending related to COVID-19 is charged against voted authorities in 2021-22.

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:

Original signed by Dr. Harpreet S. Kochhar,
President
Public Health Agency of Canada
Ottawa, Canada
Date: November 23, 2021

Original signed by Martin Krumins,
Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date: November 19, 2021

6. Statement of Authorities (unaudited)

Public Health Agency of Canada
For the quarter ended September 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 September 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 September 30, 2020 Year to date used at quarter-end
Vote 1 - Operating expenditures 11,696,463 2,111,354 3,061,963 356,173 216,072 268,842
Vote 5 - Capital expenditures 106,260 1,548 3,057 5,521 -4,231 292
Vote 10 - Grants and contributions 840,644 105,255 233,298 233,252 10,987 117,191
Statutory Authorities
Statutory - Contributions to employee benefit plans 68,639 16,362 32,724 29,765 7,383 14,766
Statutory - Spending of proceeds from the disposal of surplus Crown assets 55 0 4 1 0 0
Statutory - Spending of revenues pursuant to section 4.2 of the Department of Health Act 13,413 2,331 2,331 13,413 2,121 2,121
Statutory - Payments related to Public Health Events of National Concern and Income support 0 0 0 20,261,478 1,272,553 3,013,268
Total Statutory Authorities 82,107 18,693 35,059 20,304,657 1,282,057 3,030,155
Total Authorities 12,725,474 2,236,850 3,333,377 20,899,603 1,504,885 3,416,480
Footnote 1

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

Return to footnote * referrer

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada
For the quarter ended September 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 September 30, 2021 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended September 30, 2020 Year to date used at quarter-end
Expenditures:
Personnel 530,800 118,501 201,820 257,900 73,190 125,860
Transportation and communications 67,473 19,062 22,570 196,815 6,524 21,695
Information 48,907 38,241 71,713 149,798 11,652 62,157
Professional and special services 1,270,904 241,433 343,882 460,099 67,313 75,695
Rentals 36,673 18,662 31,800 13,946 19,393 36,864
Purchased repair and maintenance 4,314 626 1,634 5,679 834 1,854
Utilities, materials and supplies 9,364,460 1,687,013 2,404,515 19,331,747 1,053,223 2,708,832
Acquisition of lands, buildings and works 68,984 0 0 68,600 0 0
Acquisition of machinery and equipment 489,240 4,091 6,922 51,341 238,133 243,246
Transfer payments 840,644 105,255 233,298 360,705 31,080 137,284
Other subsidies and payments 3,725 4,162 15,605 3,569 3,684 3,324
Total gross budgetary expenditures 12,726,124 2,237,046 3,333,759 20,900,199 1,505,026 3,416,811
Less revenues netted against expenditures:
Services Non-Regulatory 650 196 382 596 141 331
Total Revenues netted against expenditures 650 196 382 596 141 331
Total net budgetary expenditures 12,725,474 2,236,850 3,333,377 20,899,603 1,504,885 3,416,480

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