Public Safety Canada Quarterly Financial Report for the quarter ended June 30, 2021

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending June 30, 2021 has been prepared by management as required by section 65.1 of the Financial Administration Act, in the form and manner prescribed by Treasury Board. The report should be read in conjunction with the Main Estimates and Supplementary Estimates (A).

This quarterly financial report has not been subject to an external audit or review. However, it has been reviewed by the Departmental Audit Committee prior to approval by the Deputy Minister.

Information on the mandate, roles, responsibilities and programs of Public Safety Canada can be found in the 2021-22 Departmental Plan and the 2021-22 Main Estimates.

1.1 Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities table includes the Department’s spending authorities granted by Parliament, or received from Treasury Board Central Votes, and those used by the Department consistent with the Main Estimates and the Supplementary Estimates (A) for the 2021-22 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet the information needs concerning the use of spending authorities.

The authority of Parliament is required before funds 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.

Public Safety Canada 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, as do the expenditures presented in this report.

2.0 Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

The following graph provides a comparison of the net budgetary authorities and expenditures as of June 30, 2021 and June 30, 2020 for the Department’s combined:

Comparison of Budgetary Authorities, Year to Date Expenditures and Quarterly Expenditures as of June 30, 2021 and June 30, 2020

Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department authorities are at $1,139.6 million for fiscal year 2021-22. The expenditures of $104.2 million for the period ended June 30, 2021 (i.e. first quarter) are presented under the “second” column. The “third” column in the graph depicts the 2020-21 authorities which were at $648.1 million at the end of June 2020. The Departments’ actual expenditures incurred in the first quarter of 2020-21 were $136.0 million and are shown under the “fourth” column of the graph.

Note: (1) Public Safety Canada’s appropriations have increased to $1,139M as of June 30, 2021. (2) The amount of $40.7M included in the authorities column for 2020-21 is for a statutory contribution in support of the readiness of the Canadian Red Cross for urgent relief efforts related to COVID-19 pursuant to the Public Health Events of National Concern Payments Act. (3) For the period ending June 30, 2020, the authorities provided to the Department include 9/12th of the 2020-21 Main Estimates, Supplementary Estimates (A) and a Statutory Contribution.

2.1 Significant Changes to Authorities

For the period ending June 30, 2021, the authorities provided to the Department include Main Estimates and Supplementary Estimates (A). The 2020-21 authorities for the same period included 9/12th of the 2020-21 Main Estimates, Supplementary Estimates (A) and a Statutory Contribution. The Statement of Authorities table presents a net increase of $491.5 million (75.8 percent) compared to those of the same period of the previous year (from $648.1 million to $1,139.6 million).

Operating Expenditures authorities have increased by $86.1 million (79.7 percent) (from $107.9 million to $194.0 million), which is primarily attributable to:

Grants and Contributions (G&C) authorities have increased by $403.9 million (77.0 percent) (from $524.3 million to $928.2 million), which is primarily attributable to:

These increases are primarily offset by the following decrease:

Budgetary Statutory authorities have increased by $1.6 million (9.9 percent) in 2021-22 primarily attributable to the Employee Benefits Plan associated with new salary funding received in Supplementary Estimates (A).

2.2 Significant Variances from Previous Year Expenditures

First Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended June 30, 2021 have decreased by $31.8 million (23.3 percent) (from $136.0 million to $104.2 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table.

Offset by the following decreases:

3.0 Risks and Uncertainty

COVID-19

At the onset of the COVID-19 outbreak in March 2020, with the majority of its employees transitioning to working remotely, Public Safety Canada’s (PS) primary focus was to ensure its critical services continued to be delivered. That being said, as time progresses, it has become clear that this disruptive event has not affected the department’s operations and its capacity to continue to deliver on its mandate. While the majority of PS employees are currently working from home, they have demonstrated resiliency and adaptability as they continue to perform their regular work functions. The department established a Pandemic Management Committee to ensure that timely actions are taken, that employees remain well supported, and that decisions are communicated effectively to all staff as the situation continues to evolve.

As Canada’s vaccination rate continues to increase, the department is now starting to examine future workplace options to help ensure that PS continues to effectively deliver services to Canadians.

Disaster Financial Assistance Arrangements

The Disaster Financial Assistance Arrangements (DFAA) contribution program presents a greater level of uncertainty than other PS grants and contributions programs given that it represents a significant portion of the PS budget and that it is subject to unforeseen events. The DFAA contribution program was established in 1970 to provide a consistent and equitable mechanism for federal sharing of provincial and territorial costs for natural disaster response and recovery where such costs would place an undue burden on a provincial or territorial economy.

There are currently 61* active natural disasters for which Orders in Council (OiC) have been approved, authorizing the provision of federal financial assistance under the DFAA, and for which final payments have not yet been made. Public Safety’s total outstanding share of liability under the DFAA in regards to these 61 events is $2.55 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has decreased by $160 million from $2.71 billion in the third quarter of 2020-21 to $2.55 billion in the first quarter of 2021-22. Variations in the DFAA liability are mainly attributable to:

The following are the most significant events within Public Safety Canada’s DFAA liability:

This decrease in funding is based on forecasts from provinces and territories for expected disbursements under the DFAA for 2021-22. Updates to the DFAA liability in result to changes in the estimates of the existing natural disasters are completed and approved twice a year with the last one having been conducted in Winter 2021-22 and reflected in the current Quarterly Financial Report. The next semi-annual updates will be available and presented in the December 31, 2021 Quarterly Financial Report.

*This number does not include 4 OiCs which were approved on June 24, 2021 which would increase the DFAA liability by $0.06 billion. These will be reflected in the Q2 report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

On April 15, 2021, Patrick Tanguy returned to Public Safety Canada to act as a special advisor to the Deputy Minister.

5.0 Approval by Senior Officials

Approved as required by the Policy on Financial Resource Management, Information and Reporting:

Rob Stewart
Deputy Minister
Public Safety Canada
Ottawa (Canada)

Date: August 25, 2021

Patrick Amyot, CPA, CMA
Chief Financial Officer
Public Safety Canada
Ottawa (Canada)

Date: August 24, 2021

6.0 Statement of Authorities (unaudited)

Fiscal year 2021-22 (in dollars)
  Total available for use for the year ending March 31, 2022(1) Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 193,992,029 35,520,070 35,520,070
Vote 5 - Grants and Contributions 928,170,860 64,705,809 64,705,809
Employee Benefit Plans (EBP) 17,323,729 3,982,358 3,982,358
Minister's Salary and Motor Car Allowance 90,500 22,675 22,675
TOTAL AUTHORITIES 1,139,577,118 104,230,912 104,230,912

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

Fiscal year 2020-21 (in dollars)
  Total available for use for the year ended March 31, 2021(1) Used during the quarter ended June 30, 2021 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 107,941,025 32,023,269 32,023,269
Vote 5 - Grants and Contributions 524,311,796 99,990,588 99,990,588
Employee Benefit Plans (EBP) 15,763,245 3,940,811 3,940,811
Minister's Salary and Motor Car Allowance 89,300 22,300 22,300
TOTAL AUTHORITIES 648,105,366 135,976,968 135,976,968

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

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2021-22 (in dollars)
Planned expenditures for the year ending March 31, 2022(1) Expended during the quarter ended June 30, 2021 Year to date used at quarter-end
Expenditures:
Personnel 134,519,843 33,565,587 33,565,587
Transportation and communications 3,408,048 39,239 39,239
Information 4,905,066 208,954 208,954
Professional and special services 26,797,455 4,874,230 4,874,230
Rentals 5,037,889 1,562,148 1,562,148
Repair and maintenance 1,795,211 4,841 4,841
Utilities, material and supplies 502,851 14,573 14,573
Acquisition of land, buildings and works (2) 30,709,836 - -
Acquisition of machinery and equipment 3,656,132 33,088 33,088
Transfer payments 928,170,860 64,705,809 64,705,809
Public debt charges - - -
Other subsidies and payments 2,773,927 327,578 327,578
Total gross budgetary expenditures 1,142,277,118 105,336,047 105,336,047
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 1,105,135 1,105,135
Total net budgetary expenditures 1,139,577,118 104,230,912 104,230,912

(1) Includes only planned expenditures against authorities for use and granted by Parliament at quarter end.

(2) Planned expenditures include capital funding for the relocation and accommodations for the Government Operations Center.

Fiscal year 2020-21 (in dollars)
Planned expenditures for the year ending March 31, 2021(1) Expended during the quarter ended June 30, 2020 Year to date used at quarter-end
Expenditures:
Personnel 94,500,695 32,326,849 32,326,849
Transportation and communications 2,897,515 24,634 24,634
Information 4,065,371 107,736 107,736
Professional and special services 15,106,457 3,406,622 3,406,622
Rentals 3,663,061 298,354 298,354
Repair and maintenance 2,020,812 15,857 15,857
Utilities, material and supplies 430,570 38,357 38,357
Acquisition of land, buildings and works 40,957 - -
Acquisition of machinery and equipment 3,374,859 227,813 227,813
Transfer payments 524,311,796 99,990,588 99,990,588
Public debt charges - - -
Other subsidies and payments 393,273 483,083 483,083
Total gross budgetary expenditures 650,805,366 136,919,893 136,919,893
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 942,925 942,925
Total net budgetary expenditures 648,105,366 135,976,968 135,976,968

(1) Includes only planned expenditures against authorities for use and granted by Parliament at quarter end.

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