Public Health Agency of Canada Quarterly Financial Report for the quarter ending September 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 authorities and expenditures.
Figure 1 - Text description
The graph above provides a comparison of the net budgetary authorities and expenditures as of September 30, 2023 and September 30, 2022 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As of September 30, 2023, PHAC had a total of $5,285.2 million in authorities available for spending compared to $10,564.4 million on September 30, 2022. PHAC's year-to-date expenditures as of September 30, 2023 were $1,619.1 million compared to $2,381.7 million on September 30, 2022.
2.1 Significant changes to authorities
| Authorities available (in millions of dollars) | 2022-23 | 2023-24 | Variance |
|---|---|---|---|
| Vote 1 – Operating Expenditures | 9,518 | 4,550 | -4,968 |
| Vote 5 – Capital expenditures | 32 | 51 | 19 |
| Vote 10 – Grants and contributions | 634 | 467 | -167 |
| Statutory | 380 | 217 | -163 |
| Total authorities | 10,564 | 5,285 | -5,279 |
The Agency's total authorities available for use decreased from $10,564.4 million to $5,285.2 million compared to the second quarter of 2022-23. This year-to-date net reduction of $5,279.2 million is explained by decreases in funding for the following initiatives:
- $2.9 billion for the procurement of COVID-19 vaccines and deployment operations;
- $2.0 billion for therapeutics;
- $382.0 million for surge capacity;
- $345.6 million for border and travel measures and isolation sites;
- $143.2 million for payments for the COVID-19 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;
- $20.0 million for mental health support related to COVID-19 including support for distress centers;
- $14.7 million for innovative research and procurement of testing technologies related to the pandemic;
- $9.6 million for the Pan-Canadian Vaccine Injury Support Program; and
- $10.5 million for various other initiatives.
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;
- $115.1 million from the Operating Budget Carry Forward;
- $22.0 million for the Distress Line Investment;
- $11.0 million for the Center for Aging and Brain Health Innovation;
- $6.3 million for special immigration measures for Ukrainian nationals;
- $4.8 million for the Type 2 Diabetes Prevention Challenge and the Framework for Diabetes in Canada; and
- $27.8 million for various other initiatives.
2.2 Authorities used analysis
| Year-to-date expenditures (in millions of dollars) | 2022-23 | 2023-24Footnote * | Variance |
|---|---|---|---|
| Vote 1 – Operating Expenditures | 2,129 | 1,302 | -827 |
| Vote 5 – Capital expenditures | 5 | 8 | 3 |
| Vote 10 – Grants and contributions | 213 | 236 | 22 |
| Statutory | 35 | 74 | 39 |
| Total year-to-date expenditures | 2,382 | 1,619 | -763 |
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As of September 30th, 2023, total year-to-date net expenditures amounted to $1,619.1 million compared to $2,381.7 million for 2022-23, representing a decrease of $762.6 million. Total expenditures during the second quarter of 2023-24 amounted to $790.9 million, compared to $1,498.4 million for 2022-23, representing a decrease of $707.5 million. These decreases are primarily due to variances in the following areas:
- Quarterly spending for utilities, materials and supplies for 2023-24 decreased by $539.3 million compared to the second quarter of 2022-23. A similar decrease of $599.6 million is observed for 2023-24 year-to-date expenditures compared to 2022-23. These decreases are primarily due to reduced expenditures relating to COVID-19 therapeutics, the response to the mpox outbreak in Canada and for the procurement of medical supplies and equipment, including personal protective equipment. These decreases are partially offset by increases related to the purchase of COVID-19 and domestic influenza vaccines.
- Quarterly spending for professional and special services decreased by $106.7 million for 2023-24 compared to the second quarter of 2022-23 and by $132.5 million in year-to-date expenditure. These decreases are primarily due to demobilization for border testing, travel and quarantine measures, reduced spending for storage services related to the handling of the National Emergency Strategic Stockpile and supporting IT systems.
- Quarterly spending for information decreased by $25.1 million for 2023-24 compared to the same quarter in 2022-23 and by $30.5 million in year-to-date spending. These decreases are primarily due to timing differences for payments related to the Shared Services Partnership with Health Canada and reductions in spending for the COVID-19 public education campaign.
- Quarterly spending on rentals decreased by $16.9 million compared to the same quarter in 2022-23. A similar decrease of $30.9 million is observed in 2023-24 for year-to-date expenditures. These variances are primarily due to no spending for rental facilities related to quarantine measures in 2023-24.
- Quarterly spending for transfer payments decreased by $10.5 million for 2023-24 compared to the same quarter in 2022-23 and year-to-date spending increased by $23.0 million. The decrease in spending is primarily related to reduced expenditures for the Immunization Partnership Fund and the Indigenous Early Learning and Child Care Transformation Initiative. This decrease is offset by increases in expenditures for the Distress Line Investment programs, the Pan-Canadian Vaccine Injury Support Program, and for Contribution funding for the Centre for Aging and Brain Health Innovation.
- Quarterly spending for other subsidies and payments decreased by $6.9 million compared to the same quarter in 2022-23 and by $20.6 million in year-to-date spending. These decreases are mainly due to less foreign exchange losses resulting from fewer transactions in foreign currency.
- Quarterly spending in Statutory expenditures increased by $5.9 million for 2023-24 compared to the same quarter in 2022-23 and by $38.5 million in year-to-date spending. Theses increases are primarily related to payments made to provinces and territories for the 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 in 2023-24.
- Quarterly spending for personnel decreased by $2.9 million compared to the same quarter in 2022-23, and by $7.5 million in year-to-date spending. These decreases are primarily due the demobilization from the COVID-19 pandemic as well as a decrease in overtime expenses.
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 is adjusting its activities, structures and organizational alignment following Budget 2023, it plans to support the stabilization of its core activities in the coming fiscal years. The Corporate Risk Profile is being revised to better reflect these adjustments. This revision will reinforce the support of the Agency's 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
The Agency is undergoing changes in relation to operations, personnel and programs as it continues to play 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 many temporary budgetary authorities related to the pandemic 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:
Heather Jeffrey, 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)
| Fiscal year 2023-24 | Fiscal year 2022-23 | |||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Total available for use for the year ending March 31, 2024Footnote * | Used during the quarter ended September 30, 2023 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2023* | Used during the quarter ended September 30, 2022 | Year to date used at quarter-end |
| Vote 1 - Operating expenditures | 4,549,779 | 717,751 | 1,301,604 | 9,517,986 | 1,421,030 | 2,128,500 |
| Vote 5 - Capital expenditures | 51,198 | 6,154 | 8,157 | 31,996 | 4,182 | 4,661 |
| Vote 10 - Grants and contributions | 466,905 | 42,419 | 235,585 | 634,303 | 54,469 | 213,322 |
| Statutory Authorities | ||||||
| (S) Contributions to employee benefit plans - Program | 45,773 | 11,443 | 22,886 | 65,933 | 16,483 | 32,966 |
| (S) Spending of amounts equivalent to proceeds from disposal of surplus moveable Crown assets | 4,078 | 2 | 2 | 737 | 0 | 0 |
| (S) Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 2,444 | 2,444 | 13,413 | 2,280 | 2,280 |
| (S) Payments in connection with Economic and Fiscal Update Implementation Act, 2021 | 154,024 | 10,731 | 48,464 | 300,000 | 0 | 0 |
| Total authorities | 5,285,170 | 790,944 | 1,619,142 | 10,564,368 | 1,498,444 | 2,381,729 |
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7. Agency budgetary expenditures by Standard Object (unaudited)
| Fiscal year 2023-24 | Fiscal year 2022-23 | |||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2024Footnote * | Expended during the quarter ended September 30, 2023 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2023Footnote * | Expended during the quarter ended September 30, 2022 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Personnel | 410,274 | 122,363 | 205,736 | 541,231 | 130,311 | 223,272 |
| Transportation and communications | 7,844 | 1,466 | 2,924 | 35,004 | 3,732 | 6,148 |
| Information | 67,244 | 24,152 | 24,764 | 20,786 | 49,262 | 55,231 |
| Professional and special services | 382,754 | 90,001 | 130,589 | 832,981 | 196,700 | 263,038 |
| Rentals | 2,526 | 2,958 | 3,568 | 2,606 | 19,891 | 34,432 |
| Purchased repair and maintenance | 2,528 | 1,711 | 2,307 | 2,623 | 1,005 | 1,578 |
| Utilities, materials and supplies | 3,713,914 | 486,197 | 956,124 | 8,152,825 | 1,025,479 | 1,555,677 |
| Acquisition of lands, buildings and works | 1,898 | 79 | 118 | 0 | 7 | 19 |
| Acquisition of machinery and equipment | 71,202 | 3,439 | 6,784 | 40,607 | 5,200 | 6,257 |
| Transfer payments | 620,929 | 53,148 | 284,048 | 934,303 | 54,469 | 213,322 |
| Other subsidies and payments | 4,707 | 5,693 | 2,646 | 2,052 | 12,617 | 23,250 |
| Total gross budgetary expenditures | 5,285,820 | 791,207 | 1,619,608 | 10,565,018 | 1,498,673 | 2,382,224 |
| Less revenues netted against expenditures: | ||||||
| Services of a Non-Regulatory Nature | 650 | 263 | 466 | 650 | 229 | 495 |
| Total Revenues netted against expenditures | 650 | 263 | 466 | 650 | 229 | 495 |
| Total net budgetary expenditures | 5,285,170 | 790,944 | 1,619,142 | 10,564,368 | 1,498,444 | 2,381,729 |
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