Public Safety Canada Quarterly Financial Report for the quarter ended June 30, 2022

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending June 30, 2022 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 2022-23 Departmental Plan and the 2022-23 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 2022-23 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, 2022 and June 30, 2021 for the Department's combined:

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 $1,707.1 million for fiscal year 2022-23. The year-to-date expenditures of $187.6 million reported at the end of the first quarter of the 2022-23 fiscal year are shown under the "second" column. The "third" column in the graph depicts the 2022-23 authorities which were at $1,139.6 million at the end of June 2021. The 2021-22 year-to-date expenditures of $104.2 million reported at the end of the first quarter of the 2021-22 fiscal year are shown under the "forth" column.

2.1 Significant Changes to Authorities

For the period ending June 30, 2022, the authorities provided to the Department include Main Estimates and Supplementary Estimates (A). The 2021-22 authorities for the same period included the Main Estimates and Supplementary Estimates (A). The Statement of Authorities table presents a net increase of $567.5 million (49.8 percent) compared to those of the same period of the previous year (from $1,139.6 million to $1,707.1 million).

Operating Expenditures authorities have increased by $7.1 million (3.7 percent) (from $194.0 million to $201.1 million), which is primarily attributable to:

These increases are primarily offset by the following expired programs for which renewal plans are underway:

Grants and Contributions (G&C) authorities have increased by $559.2 million (60.2 percent) (from $928.2 million to $1,487.4 million), which is primarily attributable to:

These increases are primarily offset by the following decrease:

Budgetary Statutory authorities have increased by $1.2 million (6.8 percent) in 2022-23 primarily attributable to the Employee Benefits Plan associated with new salary funding received in Main Estimates.

2.2 Significant Variances from Previous Year Expenditures

First Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended June 30, 2022 have increased by $83.4 million (80.0 percent) (from $104.2 million to $187.6 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table.

Primarily offset by the following decrease:

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 with regards to these 63 events is $7.17 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has increased by $4.5 billion from $2.67 billion in the third quarter of 2021-22 to $7.17 billion in the first quarter of 2022-23. Variations in the DFAA liability are mainly attributable to:

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

Updates to the DFAA liability as a result of changes to the estimates of the existing natural disasters, are completed and approved twice a year with the last update having been conducted in winter 2021-22 and is reflected in the current Quarterly Financial Report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

On May 13, 2022, Jill Wherrett retired from Public Safety Canada's role as Assistant Deputy Minister of the Portfolio Affairs and Communications Branch.

On June 20, 2022, Tricia Geddes was appointed Associate Deputy Minister of Public Safety.

On June 27, 2022, Sébastien Aubertin-Giguère was appointed as the Associate Assistant Deputy Minister for the National and Cyber Security Branch.

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 4, 2022

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

Date: July 27, 2022

6.0 Statement of Authorities (unaudited)

Fiscal year 2022-23 (in dollars)
Total available for use for the year ending March 31, 2023Footnote 1 Used during the quarter ended June 30, 2022 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 201,130,701 41,773,950 41,773,950
Vote 5 - Grants and Contributions 1,487,384,143 141,185,796 141,185,796
Employee Benefit Plans (EBP) 18,503,292 4,625,823 4,625,823
Minister's Salary and Motor Car Allowance 92,500 23,100 23,100
Total Authorities 1,707,110,636 187,608,669 187,608,669
Fiscal year 2021-22 (in dollars)
Total available for use for the year ended March 31, 2022Footnote 2 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

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2022-23 (in dollars)
Planned expenditures for the year ending March 31, 2023Footnote 3 Expended during the quarter ended June 30, 2022 Year to date used at quarter-end
Expenditures:
Personnel 141,951,074 37,718,703 37,718,703
Transportation and communications 2,806,975 257,731 257,731
Information 5,212,494 280,043 280,043
Professional and special services 22,864,997 6,642,167 6,642,167
Rentals 5,913,641 1,265,665 1,265,665
Repair and maintenance 1,902,952 6,578 6,578
Utilities, material and supplies 536,954 45,870 45,870
Acquisition of land, buildings and worksFootnote 4 34,314,444 - -
Acquisition of machinery and equipment 4,195,126 209,093 209,093
Transfer payments 1,487,384,143 141,185,796 141,185,796
Public debt charges - - -
Other subsidies and payments 2,727,836 69,024 69,024
Total gross budgetary expenditures 1,709,810,636 187,680,670 187,680,670
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 72,000 72,000
Total net budgetary expenditures 1,707,110,636 187,608,670 187,608,670
Fiscal year 2021-22 (in dollars)
Planned expenditures for the year ending March 31, 2022Footnote 5 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 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
Date modified: