Public Safety Canada Quarterly Financial Report for the quarter ended September 30, 2023

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending September 30, 2023 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.

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 2023-24 Departmental Plan and the 2023-24 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 for the 2023-24 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 September 30, 2023 and September 30, 2022 for the Department's combined:

The net budgetary authorities are $935.6 million (54.5 percent) higher and expenditures to date are $874.9 million (74.6 percent) lower compared to the same period of previous year. These variances are primarily attributable to new funding for the Disaster Financial Assistance Arrangements (DFAA) program based on forecasts from provinces and territories, as well as a decrease in advanced payment requirements related to the DFAA based on the timing of disbursements.

Comparison of Budgetary Authorities, Year to Date Expenditures and Quarterly Expenditures as of September 30, 2023 and September 30, 2022

Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department authorities are at $2,651.5 million for fiscal year 2023-24. The year-to-date expenditures of $297.8 million reported at the end of the second quarter of the 2023-24 fiscal year are shown under the “second” column. The expenditures of $207.6 million for the period ended September 30, 2023 (i.e. second quarter) are presented under the “third” column. The “fourth” column in the graph depicts the 2022-23 authorities which were at $1,715.9 million at the end of September 2022. The 2022-23 year-to-date expenditures of $1,172.7 million reported at the end of the second quarter of the 2022-23 fiscal year are shown under the “fifth” column. The Departments’ actual expenditures incurred in the second quarter of 2022-23 were $985.1 million and are shown under the “sixth” column of the graph.

2.1 Significant Changes to Authorities

For the period ending September 30, 2023, the authorities provided to the Department include Main Estimates and TB Central Vote transfers. The 2022-23 authorities for the same period included the Main Estimates, Supplementary Estimates (A) and TB Central Vote transfers. The Statement of Authorities table presents a net increase of $935.6 million (54.5 percent) compared to those of the same period of the previous year (from $1,715.9 million to $2,651.5 million).

Operating Expenditures authorities have decreased by $0.7M (0.3 percent) (from $209.9 million to $209.2 million), which is primarily attributable to:

These decreases are primarily offset by the following increases:

Grants and Contributions (G&C) authorities have increased by $934.4 million (62.8 percent) (from $1,487.4 million to $2,421.8 million), which is primarily attributable to:

These increases are primarily offset by the following expired program:

Budgetary Statutory authorities have increased by $1.9 million (10.3 percent) in 2023-24 primarily attributable to the Employee Benefits Plan associated with new salary funding received in Main Estimates.

2.2 Significant Variances from Previous Year Expenditures

Year-to-Date Expenditures

For the period ending September 30, 2023, the Departmental Budgetary Expenditures by Standard Object table presents a net decrease of $874.9 million (74.6 percent) in Public Safety's year-to-date (YTD) expenditures compared to the previous year (from $1,172.7 million to $297.8 million). This decrease is primarily attributable to:

These decreases are primarily offset by the following increases:

Second Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended September 30, 2023 have decreased by $777.5 million (78.9 percent) (from $985.1 million to $207.6 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 71 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 71 events is $4.82 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has slightly decreased by $10 million from $4.83 billion in the first quarter of 2023-24 to $4.82 billion in the second quarter. 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 Fall 2023-24 and is reflected in the current Quarterly Financial Report.

Financial impacts of the unprecedented wildfires in several Canadian provinces in 2023 are significant and are presently being estimated. Consequently, they are not reflected in this report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

On July 26th, 2023, the Prime Minister has named The Honourable Dominic LeBlanc as Minister of Public Safety, Minister Responsible for Democratic Institutions, and Minister of Intergovernmental Affairs.

On July 26th, 2023, the Prime Minister was appointed The Honourable Harjit Sajjan as President of the King's Privy Council, Minister of Emergency Preparedness and Minister for Pacific Economic Development Agency of Canada.

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: November 27, 2023

Patrick Amyot, CPA
Chief Financial Officer
Public Safety Canada
Ottawa (Canada)
Date: November 27, 2023

6.0 Statement of Authorities (unaudited)

Fiscal year 2023-24 (in dollars)
Total available for use for the year ending March 31, 2024Footnote 1 Used during the quarter ended September 30, 2023 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 209,175,456 55,559,419 104,511,132
Vote 5 - Grants and Contributions 2,421,776,944 146,863,509 182,983,951
Employee Benefit Plans (EBP) 20,444,116 5,111,029 10,273,486
Minister's Salary and Motor Car Allowance 94,700 23,700 47,400
Total Authorities 2,651,491,216 207,557,657 297,815,969
Fiscal year 2022-23 (in dollars)
Total available for use for the year ended March 31, 2023Footnote 2 Used during the quarter ended September 30, 2022 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 209,919,419 45,238,149 87,012,099
Vote 5 - Grants and Contributions 1,487,384,143 935,204,035 1,076,389,831
Employee Benefit Plans (EBP) 18,503,292 4,625,823 9,251,646
Minister's Salary and Motor Car Allowance 92,500 23,100 46,200
Total Authorities 1,715,899,354 985,091,107 1,172,699,776

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2023-24 (in dollars)
Planned expenditures for the year ending March 31, 2024Footnote 3 Expended during the quarter ended September 30, 2023 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 4 155,039,582 49,532,796 94,257,458
Transportation and communications 1,850,780 849,905 1,365,624
Information 9,075,165 348,979 1,219,523
Professional and special services 29,751,252 6,047,954 11,848,305
Rentals 7,970,603 1,232,581 1,836,589
Repair and maintenanceFootnote 5 1,634,536 3,467,689 3,477,386
Utilities, material and supplies 658,731 87,145 146,620
Acquisition of land, buildings and works 18,900,090 - -
Acquisition of machinery and equipment 4,432,789 317,319 1,072,287
Transfer payments 2,421,776,944 146,863,509 182,983,951
Public debt charges - - -
Other subsidies and payments 3,100,744 291,908 1,556,474
Total gross budgetary expenditures 2,654,191,216 209,039,785 299,764,217
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 1,482,128 1,948,248
Total net budgetary expenditures 2,651,491,216 207,557,657 297,815,969
Fiscal year 2022-23 (in dollars)
Planned expenditures for the year ending March 31, 2023Footnote 6 Expended during the quarter ended September 30, 2022 Year to date used at quarter-end
Expenditures:
Personnel 143,030,141 41,048,095 78,766,798
Transportation and communications 3,054,804 397,500 655,231
Information 5,672,708 1,616,223 1,896,266
Professional and special services 24,883,761 3,696,944 10,339,111
Rentals 6,435,760 1,067,342 2,333,007
Repair and maintenanceFootnote 7 2,070,965 3,468,370 3,474,947
Utilities, material and supplies 584,362 54,088 99,958
Acquisition of land, buildings and works 37,948,516 - -
Acquisition of machinery and equipment 4,565,516 196,460 405,553
Transfer payments 1,487,384,143 935,204,035 1,076,389,831
Public debt charges - - -
Other subsidies and payments 2,968,678 254,112 323,136
Total gross budgetary expenditures 1,718,599,354 987,003,169 1,174,683,838
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 1,912,062 1,984,062
Total net budgetary expenditures 1,715,899,354 985,091,107 1,172,699,776
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