Public Safety Canada Quarterly Financial Report for the quarter ended June 30, 2024

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending June 30, 2024 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 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 2024-25 Departmental Plan and the 2024-25 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 2024-25 fiscal year. This 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, 2024 and June 30, 2023 for the Department’s combined:

The net budgetary authorities are $1,006.7 million (38.0 percent) lower and expenditures to date are $44.8 million (49.6 percent) higher compared to the same period of previous year. These variances are primarily attributable to a decrease in funding for the Disaster Financial Assistance Arrangements (DFAA) program based on forecasts from provinces and territories.

Comparison of Budgetary Authorities and Quarterly Expenditures as of June 30, 2023 and June 30, 2024 (in thousands of dollars)

Comparison of Budgetary Authorities, Year to Date Expenditures and Quarterly Expenditures as of December 31, 2022 and December 31, 2023 (in thousands of dollars)
Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department authorities are at $1,640.1 million for fiscal year 2024-25. The year-to-date expenditures of $135.1 million reported at the end of the first quarter of the 2024-25 fiscal year are shown under the “second” column. The “third” column in the graph depicts the 2023-24 authorities which were at $2,646.8 million at the end of June 2023. The 2023-24 year-to-date expenditures of $90.3 million reported at the end of the first quarter of the 2023-24 fiscal year are shown under the “fourth” column.

The following graph provides a comparison between the total of Vote 1, Vote 5 and Statutory funding as of June 30, 2024 and June 30, 2023.

Comparison of funding received through Main Estimates and Supplementary Estimates (A) as of June 30, 2023 and June 30, 2024 (in thousands of dollars)

Comparison of funding received through Main Estimates and Supplementary 
Estimates (A) as of June 30, 2023 and June 30, 2024 (in thousands of dollars)
Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department received $1,640.1 million in funding through Main Estimates and Supplementary Estimates "A" for fiscal year 2024-25. The total includes $249.3 million in Vote 1, $1,367.3 million in Vote 5 and $23.5 million in Statutory funding. The "second" column in the graph depicts the 2023-24 funding received through Main Estimates which was $2,646.8 million. The total for 2023-24 includes $204.5 million in Vote 1, $2,421.8 million in Vote 5 and $ 20.5 million in Statutory funding.

2.1 Significant Changes to Authorities

For the period ending June 30, 2024, the authorities provided to the Department include Main Estimates and Supplementary Estimates (A). The 2023-24 authorities for the same period included the Main Estimates. The Statement of Authorities table presents a net decrease of $1,006.7 million (38.0 percent) compared to those of the same period of the previous year (from $2,646.8 million to $1,640.1 million).   

Operating Expenditures authorities have increased by $44.8M (21.9 percent) (from $204.5 million to $249.3 million), which is primarily attributable to:

These increases are primarily offset by the following decrease:

Grants and Contributions (G&C) authorities have decreased by $1,054.5 million (43.5 percent) (from $2,421.8 million to $1,367.3 million), which is primarily attributable to:

These decreases are primarily offset by the following increases:

Budgetary Statutory authorities have increased by $3.0 million (4.3 percent) in 2024-25 primarily attributable to the Employee Benefits Plan associated with new salary funding received in the Main Estimates and 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, 2024 have increased by $44.8 million (49.6 percent) (from $90.3 million to $135.1 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.

Following the Spring 2024 Semi-Annual Accounting exercise, there are currently 76 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 76 events is $5.25 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has slightly increased by $0.32 billion from $4.93 billion in the third quarter of 2023-24 to $5.25 billion in the first quarter of 2024-25. 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 Spring 2024 and is reflected in the current Quarterly Financial Report. Furthermore, following the Spring Semi-Annual Accounting exercise, there were 12 natural disaster events for which PS received requests of financial assistance but are still pending approval. Consequently, estimated liabilities for these events are not reflected in this 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

Budget 2024 proposed funding, starting in 2024-25, to Public Safety (PS) to support the creation of a Federal Policing Task Force to establish a new vision of federal policing that will ensure that the RCMP has the resources, organizational structure, funding, and legislative authorities needed to better meet the challenges of a complex and evolving 21st century threat environment. A Treasury Board Submission is currently underway to access this funding.

The Government of Canada decided to provide funding, starting in 2024-25 and ongoing, to PS to establish the Foreign Influence Transparency and Accountability Regime. This Regime would impose disclosure requirements for individuals and entities acting on behalf of a foreign principal and includes a civil sanctions regime administered by an independent Commissioner of Foreign Influence Transparency to ensure compliance. While the office of the Commissioner overseeing the Foreign Influence Transparency and Accountability Act (FITAA) will be housed within Public Safety Canada, the Commissioner has authority to administer and enforce the Act independently from the Minister.

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: August 26, 2024

Patrick Amyot, CPA
Chief Financial Officer
Public Safety Canada
Ottawa (Canada)
Date: August 16, 2024

6.0 Statement of Authorities (unaudited)

Fiscal year 2024-25 (in dollars)
Total available for use for the year ending March 31, 2025Footnote 1 Used during the quarter ended June 30, 2024 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 249,324,865 51,977,628 51,977,628
Vote 5 - Grants and Contributions 1,367,305,390 77,449,801 77,449,801
Employee Benefit Plans (EBP) 23,381,718 5,601,601 5,601,601
Minister's Salary and Motor Car Allowance 98,600 24,700 24,700
Total Authorities 1,640,110,573 135,053,730 135,053,730
Fiscal year 2023-24 (in dollars)
Total available for use for the year ended March 31, 2024Footnote 2 Used during the quarter ended June 30, 2023 Year to date used at quarter-end
Vote 1 - Net Operating Expenditures 204,526,475 48,951,713 48,951,713
Vote 5 - Grants and Contributions 2,421,776,944 36,120,442 36,120,442
Employee Benefit Plans (EBP) 20,444,116 5,162,457 5,162,457
Minister's Salary and Motor Car Allowance 94,700 23,700 23,700
Total Authorities 2,646,842,235 90,258,312 90,258,312

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2024-2025 (in dollars)
  Planned expenditures for the year ending March 31, 2025Footnote 3 Expended during the quarter ended June 30, 2024 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 4 189,457,842 50,035,266 50,035,266
Transportation and communications 1,311,046 734,145 734,145
Information 8,924,546 690,427 690,427
Professional and special services 42,846,741 6,139,308 6,139,308
Rentals 6,405,378 1,575,214 1,575,214
Repair and maintenanceFootnote 4 8,369,883 17,695 17,695
Utilities, material and supplies 515,485 85,256 85,256
Acquisition of land, buildings and works 10,939,665 - -
Acquisition of machinery and equipment 3,743,081 259,220 259,220
Transfer payments 1,367,305,390 77,449,801 77,449,801
Public debt charges - - -
Other subsidies and payments 2,991,516 157,081 157,081
Total gross budgetary expenditures 1,642,810,573 137,143,413 137,143,413
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 2,089,683 2,089,683
Total net budgetary expenditures 1,640,110,573 135,053,730 135,053,730
Fiscal year 2023-24 (in dollars)
Planned expenditures for the year ending March 31, 2024Footnote 5 Expended during the quarter ended June 30, 2023 Year to date used at quarter-end
Expenditures:
Personnel 155,039,582 44,724,662 44,724,662
Transportation and communications 1,700,385 515,719 515,719
Information 8,386,536 870,544 870,544
Professional and special services 27,394,529 5,800,351 5,800,351
Rentals 7,322,908 604,008 604,008
Repair and maintenanceFootnote 6 1,501,713 9,697 9,697
Utilities, material and supplies 605,202 59,475 59,475
Acquisition of land, buildings and works 18,893,082 - -
Acquisition of machinery and equipment 4,072,578 754,968 754,968
Transfer payments 2,421,776,944 36,120,442 36,120,442
Public debt charges - - -
Other subsidies and payments 2,848,776 1,264,566 1,264,566
Total gross budgetary expenditures 2,649,542,235 90,724,432 90,724,432
Less Revenues netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 466,120 466,120
Total net budgetary expenditures 2,646,842,235 90,258,312 90,258,312
Date modified: