Quarterly Financial Report: Quarter ended June 30, 2024

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 2024–25 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, 2024, 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 2024-25 is $16,530.6 million which is comprised of the Department's 2024-25 Main Estimates of $10,913.2 million and the Supplementary Estimates (A) of $5,617.4 million. The most significant adjustment that was made to CIRNAC's authority during the first quarter was the Supplementary Estimates (A), which funded key initiatives, including:

• Agricultural benefits claims ($1,767.7 million);
• Federal Indian Day Schools Settlement (McLean) and Indian Residential Schools Day Scholars Settlement (Gottfriedson) ($1,482.2 million); and,
• Specific Claims Settlement Fund ($1,000 million).

2.1.1 Highlights of changes in authorities available for use (2024-25 compared to 2023-24)

At the end of the first quarter in 2024-25, CIRNAC's total budgetary authorities available for use is $16,530.6 million which is $825.7 million (5%) lower than the same period in 2023-24. This total decrease mainly consists of a decrease of $1,903.6 million in Vote 1 – Operating offset by an increase of $1,082 million in Vote 10 – Grants and Contributions. The changes in authorities can be attributed to:

Vote 1 - Operating (-$1,903.6 million)

• Funding for the Federal Indian Day Schools Settlement (McLean) (+$959.1 million); and
• Funding for the Gottfriedson Band Class Settlement Agreement (-$2,894.5 million).

Vote 10 - Grants and Contributions (+$1,082 million)

• Funding for agricultural benefits claims (+$1,508 million);
• Funding for the compensation related to the past annuity payments with Treaty 8 First Nations (+$554.4 million);
• Funding for the Settlement of Historical Claims (+$447.9 million);
• Funding to settle land-related claims and litigation (+$393.1 million); and
• Funding for Specific Claims Settlement Fund (-$1,743.8 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, 2024 (in thousands of dollars)

(In thousands of dollars)

Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
2024-25	3,844,383	75	12,686,151	16,530,609
2023-24	5,747,979	4,208	11,604,148	17,356,335
Variance	(1,903,596)	(4,133)	1,082,003	(825,726)

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, 2024, was $2,836.9 million as compared to $4,863.5 million last year for the same period, representing a decrease of $2,026.5 million (58%). The variance can be mainly attributed to the following:

Vote 1 – Operating

• A decrease in Operating expenditures of $2,653.5 million, mainly due to the decrease in payments of claims, more specifically, in the compensation payments for the Gottfriedson Band Class Settlement (-$2,850.0 million).

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