Public Safety Canada Quarterly Financial Report for the quarter ended December 31, 2021

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending December 31, 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, Supplementary Estimates (A) and Supplementary Estimates (B).

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, the Supplementary Estimates (A) and the Supplementary Estimates (B) 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 December 31, 2021 and December 31, 2020 for the Department’s combined:

Comparison of Budgetary Authorities, Year to Date Expenditures and Quarterly Expenditures as of December 31, 2021 and December 31, 2020

Image description

Budgetary Authorities and Expenditures Comparison

Starting from the left hand side, the “first” column in the graph indicates that the Department authorities are at $1,279.0 million for fiscal year 2021-22. The year-to-date expenditures of $391.3 million reported at the end of the third quarter of the 2021-22 fiscal year are shown under the “second” column. The expenditures of $130.5 million for the period ended December 31, 2021 (i.e. third quarter) are presented under the “third” column. The “fourth” column in the graph depicts the 2020-21 authorities which were at $783.8 million at the end of December 2020. The 2020-21 year-to-date expenditures of $443.0 million reported at the end of the third quarter of the 2020-21 fiscal year are shown under the “fifth” column. The Departments’ actual expenditures incurred in the third quarter of 2020-21 were $224.2 million and are shown under the “sixth” column of the graph.

Note: (1) Public Safety Canada’s appropriations have increased to $1,279M as of December 31, 2021. (2) The increase in TB Central Votes funding is primarily attributable to the $27.6M Public Safety received through TB Vote 15 to cover the increase in salary expenditures for First Nations and Inuit Policing Program following the signing of the recent collective agreement. These funds will be transferred to the Royal Canadian Mounted Police (RCMP) in the fourth quarter.

2.1 Significant Changes to Authorities

For the period ending December 31, 2021, the authorities provided to the Department include the Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B) and TB Central Vote transfers. The 2020-21 authorities for the same period included the Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B), Statutory Contribution and TB Central Vote transfers. The Statement of Authorities table presents a net increase of $495.1 million (63.2 percent) compared to those of the same period of the previous year (from $783.8 million to $1,278.9 million).

Operating Expenditures authorities have increased by $53.7 million (35.0 percent) (from $153.2 million to $206.9 million), which is primarily attributable to:

Grants and Contributions (G&C) authoritieshave increased by $439.4 million (71.5 percent) (from $614.6 million to $1,054.0 million), which is primarily attributable to:

These increases are primarily offset by the following decrease:

Budgetary Statutory authorities have increased by $2.0 million (13.2 percent) in 2021-22 primarily attributable to the Employee Benefits Plan associated with new salary funding received.

2.2 Significant Variances from Previous Year Expenditures

Year-to-Date Expenditures

For the period ending December 31, 2021, the Departmental Budgetary Expenditures by Standard Object table presents a net decrease of $51.7 million (11.7 percent) in Public Safety’s year-to-date (YTD) expenditures compared to the previous year (from $443.0 million to $391.3 million). This decrease is primarily attributable to:

These decreases are primarily offset by the following increases:

Third Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended December 31, 2021 have decreased by $93.7 million (41.8 percent) (from $224.2 million to $130.5 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table.

3.0 Risks and Uncertainty

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 63 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 63 events is $2.67 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has increased by $72 million from $2.60 billion in the second quarter of 2021-22 to $2.67 billion in the third 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 increase in funding is based on forecasts from provinces and territories for expected disbursements under the DFAA for 2021-22. Updates to the DFAA liability, as a result of changes in the estimates of the existing natural disasters, are completed and approved twice a year with the last one having been conducted in Summer 2021-22 and is reflected in the current Quarterly Financial Report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

On December 13, 2021, Christine Moran was appointed Assistant Deputy Minister for the Task Force on Indigenous Policing.

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: February 20th 2022

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

Date: February 14th 2022

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 December 31, 2021 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 206,889,062 39,027,288 114,423,885
Vote 5 - Grants and Contributions 1,053,999,616 87,505,662 264,842,962
Employee Benefit Plans (EBP) 17,958,768 3,982,357 11,947,072
Minister's Salary and Motor Car Allowance 90,500 22,675 68,025
TOTAL AUTHORITIES 1,278,937,946 130,537,982 391,281,944

(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 December 31, 2020 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 153,217,780 35,265,935 99,951,744
Vote 5 - Grants and Contributions 614,643,511 184,950,320 331,128,244
Employee Benefit Plans (EBP) 15,860,616 3,940,812 11,822,434
Minister's Salary and Motor Car Allowance 89,300 22,300 66,900
TOTAL AUTHORITIES 783,811,207 224,179,367 442,969,322

(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 December 31, 2021 Year to date used at quarter-end
Expenditures:
Personnel 141,207,382 34,721,757 104,068,949
Transportation and communications 3,593,085 162,131 286,033
Information  7,577,048 1,279,770  3,428,787
Professional and special services 28,180,146 4,966,499 14,530,556
Rentals 5,305,293 833,264 3,514,996
Repair and maintenance 1,894,754 279,623 380,118
Utilities, material and supplies 530,734 47,292 146,128
Acquisition of land, buildings and works (2) 32,567,962    -     -  
Acquisition of machinery and equipment 3,854,187 578,216 862,426
Transfer payments 1,053,999,616 87,505,662 264,842,962
Public debt charges  -      -     -  
Other subsidies and payments 2,927,739 197,368 1,015,724
Total gross budgetary expenditures 1,281,637,946 130,571,582 393,076,679
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services  2,700,000 33,600 1,794,735
Total net budgetary expenditures 1,278,937,946 130,537,982 391,281,944

(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 December 31, 2020 Year to date used at quarter-end
Expenditures:
Personnel                 123,850,606                     30,467,678                   93,962,441
Transportation and communications                    4,110,455                           57,349                       133,570
Information                    5,251,075                          450,583                       986,244
Professional and special services                  24,352,172                       5,301,152                   12,678,456
Rentals                    5,196,470                       1,224,913                    2,945,609
Repair and maintenance                    2,866,753                          213,450                       266,983
Utilities, material and supplies                       610,813                           49,906                       176,049
Acquisition of land, buildings and works                         58,103                                  -                                  -  
Acquisition of machinery and equipment                    5,013,346                       1,397,130                    1,733,453
Transfer payments                 614,643,511                   184,950,320                 331,128,244
Public debt charges                                -                                    -                                  -  
Other subsidies and payments                       557,903                          281,286                       783,198
Total gross budgetary expenditures               786,511,207                 224,393,767               444,794,247
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services                    2,700,000                          214,400                    1,824,925
Total net budgetary expenditures               783,811,207                 224,179,367               442,969,322

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

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