Quarterly Financial Report Q2 Quarter ended September 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.
• Operating and Capital Budget Carry Forward: Eligible funds lapsed in the previous fiscal year brought forward to the following year.

2.1 Authorities available for use

This section highlights the financial results for the quarter and fiscal year to date ended September 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 second quarter in 2024-25 is $16,549.9 million which is comprised of the Department's 2024-25 Main Estimates of $10,913.2 million, Supplementary Estimates (A) of $5,617.4 million, as well as the allotment adjustment related to the Operating and Capital Budget Carry Forwards of $19.3 million. The key change to CIRNAC's authorities in the second quarter compared to the first quarter was the Operating and Capital Budget Carry Forwards. Specifically, CIRNAC carried forward $19.2 million in operating budget from 2023-24 to 2024-25 and $35,619 in capital budget from the same period.

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

At the end of the second quarter in 2024-25, CIRNAC's total budgetary authorities available for use is $16,549.9 million which is $823.5 million (5%) lower than the same period in 2023-24. This total decrease mainly consists of a decrease of $1,897.2 million in Vote 1 – Operating, offset by an increase of $1,082 million in Vote 10 – Grants and Contributions. The changes in authorities are mainly attributed to:

Vote 1 - Operating (-$1,897.2 million)

• Funding for the Federal Indian Day Schools Settlement (McLean) (+$959.1 million);
• Funding for the Northern Abandoned Mine Reclamation Program (+$208.0 million);
• Funding for the Sixties Scoop Settlement (-$168.2 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 September 30, 2024 (in thousands of dollars)

	(In thousands of dollars)
Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
FY 2024-25	3,863,606	111	12,686,151	16,549,868
FY 2023-24	5,764,934	4,292	11,604,148	17,373,374
Variance	(1,901,328)	(4,181)	1,082,003	(823,506)

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

Actual expenditures during this quarter were $1,849.9 million, mainly due to the following:

Vote 1 – Operating

• Compensation payment related to the Federal Indian Day School (McLean) Settlement ($350 million); and
• Payment related to the remediation and care and maintenance of contaminated sites ($132 million).

Vote 10 – Grants and Contributions

• Payment to 8 First Nations to settle various specific claims ($641.5 million); and
• Payment related to agricultural benefits claims ($381.5 million);

CIRNAC's year-to-date expenditures for the quarter ended September 30, 2024, was $4,686.9 million as compared to $6,412.9 million in 2023-24 for the same period, representing a decrease of $1,726 million (27%). This total decrease mainly consists of a decrease of $2,761 million in Vote 1 – Operating, offset by an increase of $1,036.9 million in Vote 10 – Grants and Contributions. The changes in actuals can be attributed to:

Vote 1 – Operating (-$2,761 million)

• A decrease in the compensation payments for the Gottfriedson Band Class Settlement  (-$2,850 million).

Vote 10 – Grants and Contributions (+$1,036.9 million)

• An increase in payments made for agricultural benefits claims (+$382 million);
• An increase in payments made to settle specific claims (+$379 million); and
• An increase in payments made to implement comprehensive land claims and self-government agreements (+$210 million)

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