Public Health Agency of Canada Quarterly Financial Report for the quarter ending September 30, 2022

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:

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 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 September 30, 2021 and September 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 September 30, 2022 and September 30, 2021 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of September 30, 2022, PHAC had a total of $10,564.4 million in authorities available for spending compared to $13,169.8 million on September 30, 2021. PHAC's year-to-date expenditures as of September 30, 2022 were $2,381.7 million compared to $3,333.4 million on September 30, 2021.

2.1 Significant changes to authorities
Authorities available (in millions of dollars) 2021-22 2022-23 Variance
Vote 1 – Operating expenditures 12,137 9,518 -2,619
Vote 5 – Capital expenditures 106 32 -74
Vote 10 – Grants and contributions 844 634 -210
Statutory 82 380 298
Total authorities 13,170 10,564 -2,605

The Agency’s total authorities available for use decreased from $13,169.8 million to $10,564.4 million compared to the second quarter of 2021-22. This year-to-date net reduction of $2,605.4 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 3,062 2,129 -933
Vote 5 – Capital expenditures 3 5 2
Vote 10 – Grants and contributions 233 213 -20
Statutory 35 35 0
Total year-to-date expenditures 3,333 2,382 -951

Total year-to-date net budgetary expenditures amounted to $2,381.7 million as of September 30th, 2022 compared to $3,333.4 million for 2021-22, representing a decrease of $951.7 million. Total expenditures during the second quarter of 2022-23 amounted to $1,498.4 million, compared to $2,236.9 million for 2021-22, representing a decrease of $738.5 million. These decreases are primarily due to variances in the following areas:

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 such as the COVID-19 pandemic and monkeypox outbreak. In order to address financial risks and uncertainties, the Government of Canada has provided significant temporary funding to support the Agency’s response to these events. As the Agency navigates through the uncertainty associated with this dynamic operational environment, 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 ongoing changes in relation to operations, personnel and programs as the Agency plays its important role in the fight against the COVID-19 pandemic and other public health events. 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 public health responses 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

Martin Krumins, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada

6. Statement of Authorities (unaudited)

(in thousands of dollars) Fiscal year 2022-2023 Fiscal year 2021-2022
Total available for use for the year ending March 31, 2023Footnote 1 Used during the quarter ended September 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 September 30, 2021 Year to date used at quarter-end
Vote 1 - Operating expenditures 9,517,986 1,421,030 2,128,500 12,137,071 2,111,354 3,061,963
Vote 5 - Capital expenditures 31,996 4,182 4,661 106,260 1,548 3,057
Vote 10 - Grants and contributions 634,303 54,469 213,322 844,334 105,255 233,298
Statutory Authorities
Statutory - Contributions to employee benefit plans - Program 65,933 16,483 32,966 68,639 16,362 32,724
Statutory - Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets 737 0 0 55 0 4
Statutory - Spending of revenues pursuant to section 4.2 of the Department of Health Act 13,413 2,280 2,280 13,413 2,331 2,331
Statutory- Payments in connection with
Economic and Fiscal Update Implementation Act, 2021

300,000 0 0 0 0 0
Total authorities 10,564,368 1,498,444 2,381,729 13,169,772 2,236,850 3,333,377
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 September 30, 2021.

Return to footnote 2 referrer

7. Agency budgetary expenditures by standard object (unaudited)

(in thousands of dollars) Fiscal year 2022-2023 Fiscal year 2021-2022
Planned expenditures for the year ending March 31, 2023Footnote 1 Expended during the quarter ended September 30, 2022 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2022Footnote 2 Expended during the quarter ended September 30, 2021 Year to date used at quarter-end
Expenditures:
Personnel 541,231 130,311 223,272 530,800 118,501 201,820
Transportation and communications 35,004 3,732 6,148 68,674 19,062 22,570
Information 20,786 49,262 55,231 48,907 38,241 71,713
Professional and special services 832,981 196,700 263,038 1,297,812 241,433 343,882
Rentals 2,606 19,891 34,432 36,673 18,662 31,800
Purchased repair and maintenance 2,623 1,005 1,578 4,314 626 1,634
Utilities, materials and supplies 8,152,825 1,025,479 1,555,677 9,776,959 1,687,013 2,404,515
Acquisition of lands, buildings and works 0 7 19 68,984 0 0
Acquisition of machinery and equipment 40,607 5,200 6,257 489,240 4,091 6,922
Transfer payments 934,303 54,469 213,322 844,334 105,255 233,298
Other subsidies and payments 2,052 12,617 23,250 3,725 4,162 15,605
Total gross budgetary expenditures 10,565,018 1,498,673 2,382,224 13,170,422 2,237,046 3,333,759
Less revenues netted against expenditures:
Services of a Non-Regulatory Nature 650 229 495 650 196 382
Total Revenues netted against expenditures 650 229 495 650 196 382
Total net budgetary expenditures 10,564,368 1,498,444 2,381,729 13,169,772 2,236,850 3,333,377
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 September 30, 2021.

Return to footnote 2 referrer

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