Quarterly Financial Report for the quarter ended June 30, 2022
Table of contents
1. Introduction
This Quarterly Financial Report should be read in conjunction with the Main Estimates for fiscal year 2022-23 as well as the Supplementary Estimates (A) for fiscal year 2022- 23. It has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board Policy on Financial Management.
This report has not been subject to an external audit or review.
1.1 Authority, Mandate and Departmental Results
Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) continues to renew the nation-to-nation, Inuit-Crown, government-to-government relationship between Canada and First Nations, Inuit and Métis; modernize Government of Canada structures to enable Indigenous Peoples to build capacity and support their vision of self-determination; and lead the Government of Canada's work in the North.
The responsibility for CIRNAC is shared between the Minister of Crown-Indigenous Relations and the Minister of Northern Affairs.
Further details on CIRNAC's authority, mandate and departmental results can be found in Part II of the Main Estimates and the Departmental Plan.
1.2 Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying statement of authorities (Table1) includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates and Supplementary Estimates for the 2022–23 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 Department uses the full accrual accounting method to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
1.3 General Descriptions
The following descriptions are referred to throughout the report:
- Authority: Approvals from Parliament to spend up to a specific amount.
- Operating (Vote 1 and Statutory):
- Vote 1: Amount approved for the fiscal year for the Department to spend on operating expenditures.
- Statutory: Amount approved through an existing Act of Parliament.
- Capital (Vote 5): Amount approved for the fiscal year for the Department to spend on capital purchases or for the construction of assets.
- Grants and Contributions (G&C's) (Vote 10 and Statutory):
- Vote 10: Amount approved for the fiscal year for the Department as Grants and Contributions (G&C's) transfer payments to recipients.
- Statutory: Amount approved through an existing Act of Parliament.
- Debt Forgiveness (Vote 25): The forgiveness, as referred to in section 24.1 of the Financial Administration Act, of a debt due to Her Majesty in right of Canada.
- Standard Object (SO): Classification or coding of transactions to permit the reporting of information about the nature of transactions in the Estimates and Public Accounts.
2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results
2.1 Authorities available for use
This section highlights the financial results for the quarter and fiscal year-to date ended June 30, 2022, and provides an explanation of variances in authorities available for use compared to the same period in the prior year.
CIRNAC's total budgetary authorities available for use at the end of the first quarter in 2022-23 is $7,295.2 million which is comprised of the Department's 2022-23 Main Estimates of $5,807.6 million and the Supplementary Estimates (A) of $1,487.6 million.
2.1.1 Highlights of changes in authorities available for use (2022-23 compared to 2021-22)
CIRNAC's total budgetary authorities available for use of $7,295.2 million at the end of the first quarter in 2022-23 is $1,600.8 million (28%) higher than the same period in 2021-22, and can be attributed to the following:
- An increase of $2,833.2 million in Grants and Contributions funding, which is
mainly attributable to the following:
- Land claim settlement with the Siksika Nation ($1,300 million);
- Specific Claims Settlement Fund ($752.5 million);
- Indigenous Infrastructure Project and Housing ($427.0 million);
- Implementing Canada's contribution to the National Action Plan: the Federal Pathway – Canada's Response to Missing and Murdered Indigenous Women and Girls National Inquiry's Final Report "Reclaiming Power and Place" ($96.5 million).
Partially offset by:
- A decrease of $1,234.2 million in the Operating budget, mainly attributable to a $1,375 million decrease in funding for the Federal Indian Day Schools Settlement Agreement (McLean).
2.2 Authorities used and actual expenditures
CIRNAC's year to date expenditures for the quarter ended June 30, 2022, was $2,550.8 million compared to $1,442.2 million last year for the same period. This represents an increase of $1,108.6 million (77%). This is illustrated in the graph below.
Text alternative for: Comparison of Net First Quarter Authorities to Date Expended as of June 30, 2022, and June 30, 2021 (in thousands of dollars)
Fiscal Year | Operating1 | Capital | Grants and contributions2 | Total |
---|---|---|---|---|
FY 2022-23 | 236,207 | 0 | 2,314,547 | 2,550,754 |
FY 2021-22 | 523,068 | 54 | 919,043 | 1,442,165 |
Variance | -286,861 | -54 | 1,395,504 | 1,108,589 |
1The Operating authorities used include both voted authorities (vote 1) and statutory authorities related to operating expenditures. 2The Grants and Contributions authorities used includes both voted authorities (vote 10) and statutory authorities related to transfer payments. |
The variance in spending can be mainly attributed to the land claim settlement with the Siksika Nation (+$1,300 million) in 2022-23.
See Table 1: Statement of Authorities and Table 2: Departmental Budgetary Expenditures by Standard Object for additional details.
3. Risks and Uncertainties
The Department has in place risk management processes to identify, assess and address strategic and operational risks, including financial risks. Risk mitigation activities are in place or in development to protect the Department from exposure to these risks and the associated financial impacts. Internal controls are in place, and subject to ongoing monitoring, to effectively manage financial risks.
COVID-19 continued to have a disruptive effect on the Department in terms of its workforce, its work environment and its way of doing business. At the same time, the pandemic also allowed the Department to rethink and redesign departmental approaches based on the many lessons learned during the pandemic. Many of the risks that arose due to the pandemic were – and continue to be -- managed by CIRNAC's Workplace of the Future Strategy. The Department continues to monitor the impacts of COVID-19 on departmental spending.
In addition, the Department continues to monitor the risk that there are insufficient controls and coordination in place in the management of common funding agreements between CIRNAC and the Department of Indigenous Services Canada. To mitigate any risks pertaining to common funding agreements with the Department of Indigenous Services Canada, budget and expenditure trends are monitored closely on a regular basis including formal reviews that are presented to and discussed by senior management.
4. Significant changes in relation to Operations, Personnel and Programs
During this quarter, there were no significant changes in personnel, operations or programs.
5. Approval by Senior Officials
Approved, as required by the Treasury Board Policy on Financial Management:
____________________________
Darlene Bess, FCPA, FCA
Chief Finances, Results and Delivery Officer, Crown-Indigenous Relations and Northern Affairs
Date: _______________
City: Gatineau (Canada)
_________________________
Daniel Quan-Watson
Deputy Minister, Crown-Indigenous Relations and Northern Affairs
Date: _______________
City: Gatineau (Canada)
Fiscal year 2022-23 | Fiscal year 2021-22 | |||||
---|---|---|---|---|---|---|
Total available for use for the year ending March 31, 2023 * | Used during the quarter ended June 30, 2022 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2022* | Used during the quarter ended June 30, 2021 | Year to date used at quarter-end | |
Vote 1 - Operating expenditures | 1,266,118 | 229,935 | 229,935 | 2,500,389 | 515,709 | 515,709 |
Vote 5 - Capital expenditures | 328 | 0 | 0 | 1,821 | 54 | 54 |
Vote 10 - Grants and contributions | 5,994,858 | 2,309,346 | 2,309,346 | 3,161,609 | 913,979 | 913,979 |
Vote 25 - Debt Forgiveness | 0 | 0 | 0 | 515 | 0 | 0 |
S - Budgetary statutory authorities - Operating Expenditures: | ||||||
Contributions to employee benefit plans | 27,742 | 6,226 | 6,226 | 23,960 | 5,761 | 5,761 |
Minister of Crown-Indigenous Relations – Salary and motor car allowance | 93 | 23 | 23 | 91 | 22 | 22 |
Minister of Northern Affairs – Salary and motor car allowance | 93 | 23 | 23 | 91 | 23 | 23 |
Payments to comprehensive claim beneficiaries in compensation for resource royalties | 1,866 | 0 | 0 | 1,866 | 0 | 0 |
Grassy Narrows and Islington Bands Mercury Disability Board | 15 | 0 | 0 | 15 | 0 | 0 |
Other | 0 | 0 | 0 | 0 | 1,553 | 1,553 |
S - Budgetary statutory authorities - Transfer Payments: | ||||||
Grants to Aboriginal organizations designated to receive claim settlement payments pursuant to Comprehensive Land Claim Settlement Acts | 4,126 | 5,201 | 5,201 | 4,126 | 5,064 | 5,064 |
Total Budgetary Authorities | 7,295,239 | 2,550,754 | 2,550,754 | 5,694,482 | 1,442,165 | 1,442,165 |
Non-Budgetary Authorities: | ||||||
Loans to native claimants | 25,903 | 0 | 0 | 25,903 | 334 | 334 |
Total Non-Budgetary Authorities | 25,903 | 0 | 0 | 25,903 | 334 | 334 |
Total Authorities | 7,321,142 | 2,550,754 | 2,550,754 | 5,720,385 | 1,442,499 | 1,442,499 |
*Including only Authorities available for use and granted by Parliament at quarter-end. Note: Due to rounding, figures may not add to totals shown. |
Fiscal year 2022-23 | Fiscal year 2021-22 | |||||
---|---|---|---|---|---|---|
Planned expenditures for the year ending March 31, 2022 | Expended during the quarter ended September 30, 2021 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2021 | Expended during the quarter ended September 30, 2020 | Year to date used at quarter-end | |
1. Personnel | 204,471 | 56,815 | 56,815 | 183,230 | 54,157 | 54,157 |
2. Transportation and communications | 4,128 | 309 | 309 | 3,880 | 124 | 124 |
3. Information | 6,036 | 9 | 9 | 5,426 | 520 | 520 |
4. Professional and special services | 412,263 | 10,849 | 10,849 | 326,898 | 12,354 | 12,354 |
5. Rentals | 9,270 | 214 | 214 | 4,386 | 63 | 63 |
6. Purchased repair and maintenance | 2,287 | 19 | 19 | 1,282 | 19 | 19 |
7. Utilities, materials and supplies | 1,658 | 53 | 53 | 1,523 | 63 | 63 |
8. Acquisition of land, buildings and works | 204 | 0 | 0 | 268 | 0 | 0 |
9. Acquisition of machinery and equipment | 124 | 71 | 71 | 1,553 | 87 | 87 |
10. Transfer payments | 5,998,984 | 2,314,547 | 2,314,547 | 3,165,735 | 919,043 | 919,043 |
11. Public debt charges | 0 | 0 | 0 | 0 | 0 | 0 |
12. Other subsidies and payments | 688,881 | 167,868 | 167,868 | 2,033,368 | 455,735 | 455,735 |
Total gross budgetary expenditures | 7,328,306 | 2,550,754 | 2,550,754 | 5,727,548 | 1,442,165 | 1,442,165 |
Less: Revenues netted against expenditures | ||||||
Internal Services | (33,067) | 0 | 0 | (33,067) | 0 | |
Total Revenues netted against expenditures | (33,067) | 0 | 0 | (33,067) | 0 | 0 |
Total net budgetary expenditures | 7,295,239 | 2,550,754 | 2,550,754 | 5,694,482 | 1,442,165 | 1,442,165 |
Note: Due to rounding, figures may not add to totals shown. |