Public Health Agency of Canada Quarterly Financial Report – For the quarter ended June 30, 2016

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 Treasury Board (TB) Accounting Standard 1.3. 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 program activities, including:

  • Public Health Infrastructure;
  • Health Promotion and Disease Prevention; 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 2016-17 Report on Plans and Priorities and the 2016-17 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 and Supplementary Estimates for the 2016-17 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.

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 increase in resources available for the year as well as actual expenditures for the first quarter of 2016-17, ending June 30, 2016.

The following graph provides a comparison of the net budgetary authorities and expenditures as of June 30, 2015 and June 30, 2016 for the Department's combined Vote 1, Vote 5, Vote 10 and Statutory Votes.

Comparison of Budgetary Authorities and Expenditures as at June 30, 2016 and June 30, 2015

The following paragraph describes the information given in this chart

As at June 30, 2016, the Agency had a total of $591.5M in authorities available for spending compared to $566.8M on June 30, 2015. The Agency's expenditures as at June 30, 2016 were $154.2M compared to $154.1M on June 30, 2015. 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 first quarter of the previous fiscal year, the authorities available for spending for the year have increased by $24.6 million or 4.3%, from $566.8 million to $591.5 million. This change in authorities is comprised of an increase in Vote 1 - Operating Expenditures ($17.3 million), an increase in Vote 5 - Capital ($0.1 million) and an increase in Vote 10 - Grants and Contributions ($6.8 million) as well as small increase in Budgetary Statutory Authorities ($0.4 million).

Vote 1 - Operating Expenditures

The Agency's Vote 1 increased by $17.3 million or 5.5 percent, mainly due to:

  • An increase of in funding to acquire medical countermeasures for smallpox and anthrax preparedness;
  • An increase of to support the Infectious Diseases and Climate Change Program;
  • An increase of due to the reprofile of 2015-16 funding for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad;
  • An increase of in funding for Aboriginal Head Start Urban and Northern Communities;

Offset by:

  • A decrease of in sunset funding for Ebola Preparedness and Response Initiatives to protect Canadians at home and abroad; and
  • A decrease of in sunset funding for the Government of Canada's provision of essential federal services to the Toronto 2015 Pan American and Parapan American Games.

Vote 5 - Capital Expenditures

The Agency's Vote 5 increased by $0.1 million or 2.6 percent.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10 increased by $6.8 million or 3.4 percent, mainly due to:

  • An increase of for the establishment of the Canadian Centre for Aging for Brain Health Innovation;
  • An increase of in funding for Aboriginal Head Start Urban and Northern Communities; and

Offset by:

  • A decrease of due to sunset of funding for the installation of automated external defibrillators and associated training in recreational hockey arenas across Canada.

Budgetary Statutory Authorities

The increase of $0.4 million or 1 percent in 2016-17 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 first quarter expenditures increased by $0.1 million, or 0.1 percent, in 2016-17, compared to 2015-16, from $154.1 million to $154.2 million.

This overall decrease in spending is a combination of a

  • 9% increase in Vote 1 - Operating Expenditures of $4.5 million (from $48.8 million to $53.3 million);
  • 47% increase in Vote 5 - Capital Expenditures of $0.1 million (from $0.2 million to $0.3 million);
  • 5% decrease in Vote 10 - Grants and Contributions of $4.6 million (from $97.6 million to $93.0 million); and
  • 2% increase in Statutory Expenditures - EBP, Proceeds from Disposal of Crown Assets and Respendable Revenue of $0.2 million (from $7.4 million to $7.6 million.)

Vote 1 - Operating Expenditures

The Agency's Vote 1 first quarter 2016-17 expenditures increased by $4.5 million over the same quarter in 2015-16 mainly due to timing issues on an installment payment to Health Canada through the Shared Services Partnership Agreement.

Vote 5 - Capital Expenditures

The Agency's Vote 5 first quarter 2016-17 expenditures increased by $0.1 million over the same quarter in 2015-16 mainly due to the timing of minor capital purchases.

Vote 10 - Grants and Contributions (G&C)

The Agency's Vote 10 first quarter 2016-17 expenditures decreased by $4.6 million over the same quarter in 2015-16 mainly resulting from holdbacks for contribution agreements sunsetting in the current fiscal year.

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 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 June 30, 2016

STATEMENT OF AUTHORITIES (unaudited)
(in thousands of dollars)
  Fiscal year 2016-2017 Fiscal year 2015-2016
Total available for use for the year ending March 31, 2017* Used during the quarter ended June 30, 2016 Year to date used at quarter-end Total available for use for the year ended March 31, 2016* Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Vote 1 - Operating expenditures 334,720 53,306 53,306 317,412 48,826 48,826
Vote 5 - Capital expenditures 5,854 258 258 5,705 176 176
Vote 10 - Grants and contributions 206,779 93,011 93,011 199,999 97,647 97,647
(S) Contributions to employee benefit plans 30,669 7,630 7,630 29,780 7,445 7,445
(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 20 3 3 11 3 3
(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 0 0 13,938 0 0
Total authorities 591,455 154,208 154,208 566,845 154,097 154,097
* Includes only authorities available for use and granted by Parliament at quarter end.

7.0 Agency Budgetary Expenditures by Standard Object (unaudited)

Public Health Agency of Canada
For the quarter ended June 30, 2016

Departmental Budgetary expenditures by Standard Object (unaudited)
(in thousands of dollars)
  Fiscal year 2016-2017 Fiscal year 2015-2016
Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended June 30, 2016 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended June 30, 2015 Year to date used at quarter-end
Expenditures:
Personnel 216,988 46,344 46,344 215,316 46,391 46,391
Transportation and communications 7,089 1,526 1,526 10,810 1,404 1,404
Information 13,266 481 481 11,058 152 152
Professionals and special services 103,279 8,029 8,029 94,357 4,126 4,126
Rentals 3,489 920 920 1,106 324 324
Repair and maintenance 3,497 672 672 3,188 643 643
Utilities, materials and supplies 27,073 1,918 1,918 20,036 2,631 2,631
Acquisition of lands, buildings and works 0 0 0 0 0 0
Acquisition of machinery and equipment 9,068 845 845 9,321 909 909
Transfer payments 206,779 93,594 93,594 199,887 97,647 97,647
Other subsidies and payments 1,451 56 56 2,290 16 16
Total gross budgetary expenditures 591,979 154,385 154,385 567,369 154,243 154,243
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 524 177 177 524 146 146
Services Regulatory 0 0 0 0 0 0
Total Revenues netted against expenditures 524 177 177 524 146 146
Total net budgetary
expenditures
591,455 154,208 154,208 566,845 154,097 154,097

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