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Public Health Agency of Canada Quarterly Financial Report for the quarter ending December 31, 2017

Table of contents

1.0 Introduction

This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act, in the form and manner prescribed by the Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report.  This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates.  Please note that this quarterly financial report has not been subject to an external audit or review.

1.1 Authority, Mandate and Program

The Public Health Agency of Canada was created within the federal Health Portfolio in September 2004.  The core mandate of PHAC is to deliver on the Government of Canada's commitment to increase its focus on public health in order to help protect and improve the health and safety of all Canadians and to contribute to strengthening public health capacities across Canada. 

PHAC has the responsibility to:

  • contribute to the prevention of disease and injury, and the promotion of health;
  • enhance the quality and quantity of surveillance data and expand the knowledge of disease and injury in Canada;
  • provide federal leadership and accountability in managing national public health events;
  • strengthen intergovernmental collaboration on public health and facilitate national approaches to public health policy and planning;
  • serve as a central point for sharing Canada's expertise with international partners and to translate international knowledge and approaches to inform and support Canada's public health priorities and programs.

PHAC aims to achieve a strategic outcome of protecting Canadians and empowering them to improve their health by providing strategic policy advice and support to the Minister of Health on a range of program activities, including:

  • Public Health Infrastructure;
  • Health Promotion and Disease Prevention; and
  • Health Security.

PHAC also delivers a number of grant and contribution programs related to these programs.

Further information on the mandate, roles, responsibilities and program of the Agency can be found in the 2017-18 Departmental Plans and the 2017-18 Main Estimates.

1.2 Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting.  The accompanying Statement of Authorities (Section 6.0) includes the Agency's spending authorities granted by Parliament, or received from Treasury Board Central Votes, and those used by PHAC consistent with the Main Estimates and Supplementary Estimates for the 2017-18 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities

The authority of Parliament is required before moneys 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.

PHAC 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. 

2.0 Highlights of Fiscal Quarter Results

This section highlights the significant items that contributed to the net increase in resources available for the year, as well as a net increase in actual expenditures for the third quarter of 2017-18, ending December, 2017.

The following graph provides a comparison of the net budgetary authorities and expenditures as of December 31, 2016 and December 31, 2017 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. 

Comparison of Budgetary Authorities and Expenditures as at December 31, 2017 and December 31, 2016
Text description

The graph above provides a comparison of the net budgetary authorities and expenditures as of December 31, 2016 and December 31, 2017 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. As at December 31, 2017, PHAC had a total of $626.7 million in authorities available for spending compared to $602.0 million on December 31, 2016. PHAC's expenditures as at December 31, 2017 were $414.8 million compared to $394.5 million on December 31, 2016.

As at December 31, 2017, PHAC had a total of $626.7 million in authorities available for spending compared to $602.0 million on December 31, 2016.  PHAC's expenditures as at December 31, 2017 were $414.8 million compared to $394.5 million on December 31, 2016.  Both authorities and expenditures fluctuate as the year progresses to reflect additional funding received throughout the fiscal year as well as increased actual expenditures. 

2.1 Significant Changes to Authorities

When compared to the third quarter of the previous fiscal year, the authorities available for spending for the year have increased by $24.7 million or 4.1%, from $602.0 million to $626.7 million.  This change in authorities is comprised of an increase in Vote 1 – Operating Expenditures ($13.0 million), an increase in Vote 5 – Capital ($1.6 million) and an increase in Vote 10 - Grants and Contributions ($12.5 million) as well as a decrease in Budgetary Statutory Authorities ($2.4 million).     

Vote 1 – Operating Expenditures

PHAC's Vote 1 increased by $13.0 million or 3.8 percent, mainly due to:

  • An increase in funding to improve immunization coverage rates in Canada, harmonize concussion management guidelines across Canada, and help raise awareness of men's health issues; and
  • An increase in funding to support the Infectious Diseases and Climate Change Program;
  • An increase in funding for Adapting to the Impacts of Climate Change;
  • An increase in funding related to Government advertising programs;
  • An increase in funding for the Collective Bargaining Agreements;
  • An increase due to reprofile of funding for Reinvestment of royalties from intellectual property.

These increases are partially offset by:

  • Transfer of funding to Treasury Board Secretariat for the Government wide Budget 2016 reduction on professional services, advertising and travel.

Vote 5 – Capital Expenditures

PHAC's Vote 5 increased by $1.6 million or 24.5 percent, mainly due to:

  • An increase due to reprofile for Reinvestment of royalties from intellectual property.

Vote 10 – Grants and Contributions (G&C)

PHAC's Vote 10 increased by $12.5 million or 5.9 percent, mainly due to:

  • An increase in funding profile of the Canadian Centre for Aging for Brain Health Innovation;
  • An increase in funding for Indigenous Early Learning and Child Care Infrastructure and Programming;
  • An increase in funding to improve Immunization Coverage Rates in Canada, Harmonize Concussion Management Guidelines Across Canada, and help raise awareness of Men's Health Issues;
  • An increase in funding for Adapting to the Impacts of Climate Change;
  • An increase due to new funding for Strengthening the Canadian Drugs and Substances Strategy.

These increases are partially offset by:

  • A decrease due to transfer to Global Affairs Canada for the assessed contributions for the International Health Grant Program; and
  • A decrease due to transfer to the Canadian Institutes for Health Research to support the Canadian Immunization Research Network.

Budgetary Statutory Authorities

The decrease of $2.4 million or 7.9 percent in 2017-18 is, for the most part, related to the Employee Benefit Plans (EBP) costs associated with the change in the Agency budgetary requirements for salary.

2.2 Significant Changes to Expenditures

The third quarter expenditures increased by $8.0 million, or 7.0 percent, in 2017-18, compared to 2016-17, from $114.7 million to $122.7 million. 

This overall increase in spending is mainly due to a

  • 4.1% increase in Vote 1 – Operating expenditures of $2.9 million (from $71.6 million to $74.5 million);
  • 13.1% increase in Vote 5 – Capital expenditures of $0.1 million (from $1.1 million to $1.2 million); and
  • 16.7% increase in Vote 10 – Grants and Contributions of $5.3 million (from $31.7 million to $37.0 million).

Vote 1 – Operating Expenditures

PHAC's Vote 1 third quarter 2017-18 expenditures increased by $2.9 million over the same quarter in 2016-17 mainly due to the timing of payments for health consultants and pharmaceutical and other medicinal products and due to retroactive salary payments for the current and previous year made in 2017-18.

Vote 10 – Grants and Contributions (G&C)

PHAC's Vote 10 third quarter 2017-18 expenditures increased by $5.3 million over the same quarter in 2016-17 mainly due to the timing of contribution agreements payments in the third quarter.

3.0 Risks and Uncertainty

The dominant financial risks faced by PHAC relate to the nature of its mandate and the need to respond to unforeseeable events such as an influenza pandemic. Significant surge capacity would need to be activated in these instances.

To manage this financial risk, the Agency continues to strengthen its preparation and responsiveness to public health emergencies and public health capacity. In an emergency situation, PHAC would first consider internal re-allocation of resources in order to address unforeseeable events. The federal government also has systems and processes in place for departments to access funds, should an emergency arise.

4.0 Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during this quarter.

5.0 Approval by Senior Officials

Approved by:

Dr. Siddika Mithani, President
Public Health Agency of Canada
Ottawa, Canada
Date:

Carlo Beaudoin, Chief Financial Officer
Public Health Agency of Canada
Ottawa, Canada
Date:

6.0 Statement of Authorities (unaudited)

Public Health Agency of Canada

For the quarter ended December 31, 2017

STATEMENT OF AUTHORITIES (unaudited)
(in thousands of dollars) Fiscal year 2017-2018 Fiscal year 2016-2017
Total available for use for the year ending March 31, 2018Footnote * Used during the quarter ended December 31, 2017 Year to date used at quarter-end Total available for use for the year ended March 31, 2017Footnote * Used during the quarter ended December 31, 2016 Year to date used at quarter-end
Vote   1 - Operating expenditures 354,297 74,544 236,665 341,219 71,625 224,078
Vote   5 - Capital expenditures 8,097 1,211 1,424 6,504 1,071 2,330
Vote 10 - Grants and contributions 222,323 37,056 150,001 209,849 31,747 140,446
(S) Contributions to employee benefit plans 28,513 7,065 21,196 30,949 7,630 22,890
(S) Minister of Health - Salary and motor car allowance 0 0 0 0 0 0
(S) Spending of proceeds from the disposal of surplus Crown assets 88 23 45 47 16 30
(S) Refunds of amounts credited to revenues in previous years 0 0 0 0 0 0
(S) Collection agency fees 0 0 0 0 0 0
(S) Court awards 0 0 0 0 0 0
(S) Spending of revenues pursuant to section 4.2 of the Department of Health Act 13,413 2,761 5,398 13,413 2,600 4,762
Total authorities 626,731 122,660 414,729 601,981 114,689 394,536

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada

For the quarter ended December 31, 2017

Table 1: Departmental budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)

Fiscal year 2017-2018

Fiscal year 2016-2017
Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended December 31, 2017 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended December 31, 2016 Year to date used at quarter-end
Expenditures:
Personnel 236,862 58,894 165,776 227,165 56,420 153,523
Transportation and communications 7,341 1,840 4,524 7,403 1,923 5,113
Information 14,992 1,582 3,988 13,808 2,074 12,796
Professional and special services 102,405 11,618 56,446 105,312 7,494 55,291
Rentals 2,665 967 2,907 3,609 625 2,067
Repair and maintenance 3,321 1,052 2,508 3,619 1,071 2,607
Utilities, materials and supplies 22,162 8,125 23,667 20,616 10,611 15,654
Acquisition of lands, buildings and works 0 55 58 0 45 53
Acquisition of machinery and equipment 13,013 1,755 2,924 9,673 1,630 4,433
Transfer payments 222,323 37,056 150,001 209,849 31,747 140,446
Other subsidies and payments 2,171 -96 2,475 1,451 1,210 3,065
Strategic Review Savings, Not Allocated 0 0 0 0 0 0
Total gross budgetary expenditures 627,255 122,848 415,274 602,505 114,850 395,048
Less revenues netted against expenditures:
Other Fees and Charges 0 0 0 0 0 0
Rights and Privileges 0 0 0 0 0 0
Services Non-Regulatory 524 188 545 524 161 512
Services Regulatory 0 0 0 0 0 0
Total Revenues netted against expenditures 524 188 545 524 161 512
Total net budgetary expenditures 626,731 122,660 414,729 601,981 114,689 394,536
Footnote 1

Includes only authorities available for use and granted by Parliament at quarter end.

Return to footnote * referrer

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