Public Safety Canada Quarterly Financial Report for the quarter ended December 31, 2022

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending December 31, 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, 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 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, the Supplementary Estimates (A) and the Supplementary Estimates (B) 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 December 31, 2022 and December 31, 2021 for the Department’s combined:

Budgetary Authorities and Expenditures Comparison

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 $3,317.9 million for fiscal year 2022-23. The year-to-date expenditures of $1,295.7 million reported at the end of the third quarter of the 2022-23 fiscal year are shown under the “second” column. The expenditures of $123.0 million for the period ended December 31, 2022 (i.e. third quarter) are presented under the “third” column. The “fourth” column in the graph depicts the 2022-23 authorities which were at $1,278.9 million at the end of December 2021. The 2021-22 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 “fifth” column. The Departments’ actual expenditures incurred in the third quarter of 2021-22 were $130.5 million and are shown under the “sixth” column of the graph.

2.1 Significant Changes to Authorities

For the period ending December 31, 2022, the authorities provided to the Department include Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B) and TB Central Vote transfers. The 2021-22 authorities for the same period included the Main Estimates, Supplementary Estimates (A), Supplementary Estimates (B) and TB Central Vote transfers. The Statement of Authorities table presents a net increase of $2,039.0 million (159.4 percent) compared to those of the same period of the previous year (from $1,278.9 million to $3,317.9 million).    

Operating Expenditures authorities have increased by $47.6 million (23.0 percent) (from $206.9 million to $254.5 million), which is primarily attributable to:

Grants and Contributions (G&C) authorities have increased by $1,989.0 million (188.7 percent) (from $1,054.0 million to $3,043.0 million), which is primarily attributable to:

These increases are primarily offset by the following decreases:

Budgetary Statutory authorities have increased by $2.4 million (13.2 percent) in 2022-23, primarily attributable to the Employee Benefits Plan associated with new salary funding received in Main Estimates and Supplementary Estimates (B).

2.2 Significant Variances from Previous Year Expenditures

Year-to-Date Expenditures

For the period ending December 31, 2022, the Departmental Budgetary Expenditures by Standard Object table presents a net increase of $904.4 million (231.1 percent) in Public Safety’s year-to-date (YTD) expenditures compared to the previous year (from $391.3 million to $1,295.7 million). This increase is primarily attributable to:

These increases primarily offset by the following decrease:

Third Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended December 31, 2022 have decreased by $7.6 million (5.8 percent) (from $130.5 million to $123.0 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table.

Primarily offset by the following increase:

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 66 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 66 events is $4.70 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has decreased by $1.65 billion from $6.35 billion in the second quarter of 2022-23 to $4.70 billion in the third 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 related to changes in estimates for existing natural disasters are completed and approved twice a year. The most recent update was conducted in Fall 2022 and is reflected in this Quarterly Financial Report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

On October 17th 2022, Shawn Tupper was appointed as Deputy Minister of Public Safety Canada.

On October 28th, 2022, Dominic Rochon was appointed Associate Deputy Minister at Transport Canada. In the interim, Sébastien Aubertin-Giguère is Acting Senior Assistant Deputy Minister of 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:

Shawn Tupper
Deputy Minister
Public Safety Canada
Ottawa (Canada)

Date: February 20, 2023

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

Date: February 16, 2023

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 December 31, 2022 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 254,501,811 49,356,549 136,368,648
Vote 5 - Grants and Contributions 3,042,962,697 68,972,806 1,145,362,637
Employee Benefit Plans (EBP) 20,338,477 4,625,823 13,877,469
Minister's Salary and Motor Car Allowance 92,500 23,100 69, 300
Total Authorities 3,317,895,485 122,978,278 1,295,678,054

Fiscal year 2021-22 (in dollars)
Total available for use for the year ended March 31, 2022Footnote 2 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

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 December 31, 2022 Year to date used at quarter-end
Expenditures:
Personnel 155,809,600 39,590,942 118,357,740
Transportation and communications 3,912,955 881,704 1,536,935
Information 12,600,280 784,544 2,680,810
Professional and special services 31,872,468 4,880,065 15,219,176
Rentals 8,243,206 414,402 2,747,409
Repair and maintenanceFootnote 4 2,652,511 6,014,425 9,489,372
Utilities, material and supplies    748,570     102,951      202,909
Acquisition of land, buildings and works 37,976,747  0   0
Acquisition of machinery and equipment 5,847,773    1,524,211    1,929,764
Transfer payments    3,042,962,697     68,972,806    1,145,362,637
Public debt charges   0  0   0
Other subsidies and payments 17,968,678    155,632    478,768
Total gross budgetary expenditures 3,320,595,485    123,321,682 1,298,005,520
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 343,404 2,327,466
Total net budgetary expenditures 3,317,895,485    122,978,278 1,295,678,054
Fiscal year 2021-22 (in dollars)
Planned expenditures for the year ending March 31, 2022Footnote 5 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 maintenanceFootnote 6 1,894,754         279,623    380,118
Utilities, material and supplies    530,734        47,292    146,128
Acquisition of land, buildings and works 32,412,671 0 0
Acquisition of machinery and equipment 4,009,478 578,216 862,426
Transfer payments 1,053,999,616 87,505,662 264,842,962
Public debt charges   0     0   0
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
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