Public Health Agency of Canada (PHAC) quarterly financial report, quarter ended September 30, 2019
Table of contents
- 1.0 Introduction
- 2.0 Highlights of Fiscal Quarter Results
- 3.0 Risks and Uncertainty
- 4.0 Significant Changes in Relation to Operations, Personnel and Programs
- 5.0 Approval by Senior Officials
- 6.0 Statement of Authorities (unaudited)
- 7.0 Agency Budgetary Expenditures by Standard Object (unaudited)
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 the Agency 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.
The Agency 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.
The Agency 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 Core Responsibilities, including:
- Health Promotion and Chronic Disease Prevention;
- Infectious Disease Prevention and Control; and
- Health Security.
The Agency 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 2019-20 Departmental Plans and the 2019-20 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 the Agency consistent with the Main Estimates for the 2019-20 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 money 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.
The Agency 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 decrease in resources available for the year, as well as a net decrease in actual expenditures for the second quarter of 2019-20, ending September 30, 2019.
The following graph provides a comparison of the net budgetary authorities and expenditures as of September 30, 2018 and September 30, 2019 for the Department’s combined Vote 1, Vote 5, Vote 10 and Statutory Votes.
Figure 1 text description
The graph above provides a comparison of the net budgetary authorities and expenditures as of September 30, 2019 and September 30, 2018 for the Agency's combined Vote 1, Vote 5, Vote 10 and Statutory Votes. September 30, 2019, PHAC had a total of $642.3 million in authorities available for spending compared to $679.4 million on September 30, 2018. PHAC's expenditures on September 30, 2019 were $137.5 million compared to $227.3 million on September 30, 2018.
As at September 30, 2019, the Agency had a total of $642.3 million in authorities available for spending compared to $679.4 million on September 30, 2018. The Agency’s expenditures as at September 30, 2019 were $137.5 million compared to $227.3 million on September 30, 2018. Both authorities and expenditures fluctuate as the year progresses to reflect additional funding received throughout the fiscal year.
2.1 Significant Changes to Authorities
When compared to the second quarter of the previous fiscal year, the authorities available for spending for the year have decreased by $37.1 million or 5 percent, from $679.4 million to $642.3 million. This change in authorities is comprised of a decrease in Vote 10 - Grants and Contributions ($42.0 million), an increase in Vote 1 – Operating Expenditures ($1.2 million), an increase in Vote 5 – Capital ($3.0 million) as well as an increase in Budgetary Statutory Authorities ($0.8 million).
Vote 1 – Operating Expenditures
There have been no significant changes in Authorities in relation to operations, personnel and programs during this quarter.
Vote 5 – Capital Expenditures
The Agency’s Vote 5 increased by $3.0 million or 48 percent, mainly due to:
- A vote transfer from Operating to Capital for investments in science informatics and scientific equipment;
- Funding from the Capital Budget Carry Forward;
Vote 10 - Grants and Contributions (G&C)
The Agency’s Vote 10 decreased by $42.0 million or 15 percent, mainly due to:
- A decrease in funding due to the sunset of the Healthy Seniors Pilot Project in New Brunswick;
- A reduction in funding to support the Centre for Aging and Brain Health Innovation;
Offset by:
- An increase in funding for Taking Action to Prevent and Address Gender-Based Violence, Harassment and Discrimination;
- An increase in funding for Support for Canadians Affected by Autism Spectrum Disorder;
- An increase in funding for ParticipACTION – Funding to Increase Physical Activity Among Canadians;
- An increase in funding for Building a Pan-Canadian Suicide Prevention Service;
- An increase in funding for Supporting Canada's Official Languages; and
- An increase in funding for the Indigenous Early Learning and Child Care Transformation Initiative.
2.2 Significant Changes to Expenditures
The second quarter expenditures decreased by $89.8 million, or 39 percent, in 2019-20, compared to 2018-19, from $227.3 million to $137.5 million.
This overall decrease in spending is mainly due to a:
- A decrease in Vote 10 – Grants and Contributions of $96.7 million (from $121.0 million to $24.3 million).
- An increase in Vote 1 – Operating Expenditures of $4.8 million (from $96.4 million to $101.2 million);
- An increase in Vote 5 – Capital Expenditures of $1.8 million (from $0.4 million to $2.2 million)
Vote 1 – Operating Expenditures
The Agency’s Vote 1 second quarter 2019-20 expenditures increased by $4.8 million over the same quarter in 2018-19 mainly due to increased staffing.
Vote 5 – Capital Expenditures
The Agency’s Vote 5 second quarter 2019-20 expenditures increased by $1.8 million over the same quarter in 2018-19 mainly due to the acquisition of computer and lab equipment.
Vote 10 - Grants and Contributions (G&C)
The Agency’s Vote 10 second quarter 2019-20 expenditures decreased by $96.7 million over the same quarter in 2018-19 mainly due to the sunset of the Healthy Seniors Pilot Project in New Brunswick as well as a decrease in spending for other ongoing Grants and Contributions agreements.
3.0 Risks and Uncertainty
The dominant financial risks faced by the Agency 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, the Agency 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 the second quarter.
5.0 Approval by Senior Officials
Approved by:
Tina Namiesniowski, 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 September 30, 2019
| (in thousands of dollars) | Fiscal year 2019-2020 | Fiscal year 2018-2019 | ||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2020Footnote * | Used during the quarter ended September 30, 2019 | Year to date used at quarter-end | Total available for use for the year ended March 31, 2019Footnote * | Used during the quarter ended September 30, 2018 | Year to date used at quarter-end | |
| Vote 1 - Operating expenditures | 344,940 | 101,213 | 165,544 | 343,743 | 96,451 | 150,775 |
| Vote 5 - Capital expenditures | 9,157 | 2,190 | 2,743 | 6,191 | 431 | 553 |
| Vote 10 - Grants and contributions | 244,860 | 24,312 | 125,146 | 286,843 | 120,992 | 192,838 |
| (S) Contributions to employee benefit plans | 29,886 | 7,412 | 14,823 | 29,072 | 7,268 | 14,536 |
| (S) Spending of proceeds from the disposal of surplus Crown assets | 79 | 0 | 0 | 89 | 12 | 43 |
| (S) Refunds of amounts credited to revenues in previous years | 1 | 1 | 1 | 0 | 0 | 0 |
| (S) Spending of revenues pursuant to section 4.2 of the Department of Health Act | 13,413 | 2,420 | 2,420 | 13,413 | 2,180 | 2,180 |
| Total authorities | 642,336 | 137,548 | 310,677 | 679,351 | 227,334 | 360,925 |
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7.0 Agency Budgetary Expenditures by Standard Object (unaudited)
Public Health Agency of Canada
For the quarter ended September 30, 2019
| (in thousands of dollars) | Fiscal year 2019-20 | Fiscal year 2018-2019 | ||||
|---|---|---|---|---|---|---|
| Expenditures: | Planned expenditures for the year ending March 31, 2020 | Expended during the quarter ended September 30, 2019 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2019 | Expended during the quarter ended September 30, 2018 | Year to date used at quarter-end |
| Personnel | 245,175 | 54,304 | 103,431 | 228,463 | 51,414 | 97,381 |
| Transportation and communications | 7,254 | 1,693 | 3,287 | 7,560 | 1,748 | 3,029 |
| Information | 16,007 | 1,752 | 12,763 | 16,797 | 1,269 | 1,539 |
| Professional and special services | 76,998 | 44,560 | 47,493 | 97,480 | 43,758 | 46,644 |
| Rentals | 2,114 | 1,175 | 2,077 | 2,818 | 919 | 1,980 |
| Repair and maintenance | 2,878 | 1,444 | 2,063 | 3,169 | 766 | 1,633 |
| Utilities, materials and supplies | 24,142 | 3,739 | 8,770 | 22,414 | 3,566 | 11,857 |
| Acquisition of lands, buildings and works | 0 | 135 | 189 | 0 | 9 | 25 |
| Acquisition of machinery and equipment | 12,666 | 2,875 | 3,625 | 12,061 | 861 | 1,486 |
| Transfer payments | 244,860 | 24,313 | 125,146 | 286,843 | 120,992 | 192,838 |
| Other subsidies and payments | 10,764 | 1,752 | 2,168 | 2,270 | 2,174 | 2,777 |
| Total gross budgetary expenditures | 642,858 | 137,742 | 311,012 | 679,875 | 227,476 | 361,189 |
| Less revenues netted against expenditures: Services Non-Regulatory |
522 | 194 | 335 | 524 | 142 | 264 |
| Total Revenues netted against expenditures | 522 | 194 | 335 | 524 | 142 | 264 |
| Total net budgetary expenditures | 642,336 | 137,548 | 310,677 | 679,351 | 227,334 | 360,925 |
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