Quarterly Financial Report: Quarter ended June 30, 2023

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 (Table 1) 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 2023–24 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.
• 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. Classifications include, for example, personnel, professional and special services, and transfer payments.

2.1 Authorities available for use

This section highlights the financial results for the quarter and fiscal year to date ended June 30, 2023, 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 2023-24 is $17,356.3 million which is comprised of the Department's 2023-24 Main Estimates of $9,133.1 million and the Supplementary Estimates (A) of $8,223.2 million.

2.1.1 Highlights of changes in authorities available for use (2023-24 compared to 2022-23)

CIRNAC's total budgetary authorities available for use of $17,356.3 million at the end of the first quarter in 2023-24 is $10,061.1 million (138%) higher than the same period in 2022-23. The increase in authorities can be mainly attributed to:

• An increase of $5,605.2 million in Grants and Contributions funding, which is mainly attributable to the following:
  • Funding to Implement the Expedited Resolution Strategy for Agricultural Benefits Claims (+$4,063.0 million);
  • Funding of new and reprofiled Specific Claims Settlement Funds (+$2,445.0 million)
• Partially offset by:
  • the sunset of the Siksika Claim settlement (-$1,300.0 million)
• An increase of $4,449.4 million in Operating expenditures funding, which is mainly attributable to the following:
  • Funding for Gottfriedson Band Class Settlement Agreement (+$2,894.5 million)
  • Funding for out-of-court settlements (+$825.0 million)
  • Funding for childhood claims including Federal Indian Day School (McLean) and Sixties Scoop settlement (+$583.2 million)
  • Funding for the Northern Abandoned Mine Reclamation Program (+$135.4 million)

The changes in authorities available for use are illustrated in graph 1 below.

Text alternative for: Comparison of Authorities Available as at June 30, 2023 (in thousands of dollars)

Fiscal Year	Operating 1	Grants and contribution 2	Total Budgetary Authorities 3
FY 2023-24	5,747,979	11,604,148	17,356,334
FY 2022-23	1,295,927	5,998,984	7,295,239
Variance	4,452,052	5,605,164	10,061,095
1 The Operating authorities available include both vote authorities (vote 1) and statutory authorities related to operating expenditures. 2 The Grants and contribution authorities available include both voted authorities (vote 10) and statutory authorities related to transfer payments. 3 Total Budgetary Authorities include Capital authorities (vote 5) that is not presented in the graph.

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.

2.2 Authorities used and actual expenditures

CIRNAC's year to date expenditures for the quarter ended June 30, 2023, was $4,863.5 million as compared to $2,550.8 million last year for the same period, representing an increase of $2,312.7 million (91%). The variance can be mainly attributed to the following in spending:

• An increase in Operating expenditures of $2,952.0 million is mainly attributable to:
  • the payments for the Gottfriedson Band Class Settlement Agreement (+$2,850.0 million) and;
  • the payments for Federal Indian Day School (McLean) settlement (+$100.0 million).
• A decrease in Grants and Contributions expenditures of $641.0 million is mainly attributable to:
  • the Siksika Claim settlement (-$1,300.0 million) paid in 2022-23.

Partially offset by:

• (+$496.0 million) for comprehensive land claim and self-government agreements, mainly due to inflation, population adjustments and timing of payments; and
• (+$57.0 million) in payments to promote Social and Political Development in the North and for northerners

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.