Quarterly Financial Report for the quarter ended September 30, 2024

Statement outlining results, risks and significant changes in operations, personnel and programs

On this page

  1. Introduction
  2. Highlights of fiscal quarter and fiscal year-to-date results
  3. Risks and uncertainties
  4. Significant changes in relation to operations, personnel and programs
  5. Approval by senior officials
  6. Appendix A

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates for fiscal year 2024-25. 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. For the purposes of both the Main and Supplementary Estimates, the Department is referred to as the Department of Indigenous Services Canada.

The Department of Indigenous Services Canada (DISC) was first established by Order–in-Council (P.C. 2017-79) on November 30, 2017. The Budget Implementation Act (BIA) of 2019 established Indigenous Services Canada (ISC) with the enactment of the Department of Indigenous Services Act (DISA).

The quarterly financial report has not been subject to an external audit or review.

1.1 Authority, Mandate and Departmental Results

Indigenous Services Canada (ISC) works collaboratively with partners to improve quality of life and access to high quality services for Indigenous Peoples. Its vision is to support First Nations, Inuit and Métis to design, manage and deliver services to their communities.

The Minister of Indigenous Services is responsible for this organization.

Further details on ISC's authority, mandate and department results can be found in Part roman numeral 2 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 includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main 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 method of accounting 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.

2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results

This section

As of the second quarter, the Department has total budgetary authorities of $23.3 billion for 2024-25. Indigenous Services Canada (ISC) is composed of the following sectors: Regional Operations (RO), the Education and Social Development Program and Partnerships (ESDPP), Lands and Economic Development (LED), First Nations Child and Family Services (FNCFS), First Nations and Inuit Health Branch (FNIHB) and Internal Services.

Highlights of the fiscal quarter and the year-to-date results (Unaudited)
(In thousands dollars)
Budgetary Authority Authorities available for the year ending Expenditures as at Q2 Year-to-date expenditures
March 31, 2025 March 31, 2024 Variance 2024-25 (September 30, 2024) 2023-24 (September 30, 2023) Variance Q2 2024-25 (April 1 to September 30, 2024) Q2 2023-24 (April 1 to September 30, 2023) Variance
Vote 1: Operating Expenditures 2,956,449 27,209,816 (24,253,367) 876,401 764,570 111,831 1,566,695 1,363,406 203,289
Vote 5: Capital Expenditures 8,456 7,294 1,162 1,053 1,048 5 1,378 1,650 (272)
Vote 10: Grants and Contributions 20,326,678 17,374,182 2,952,496 4,083,400 3,976,784 106,616 11,443,157 8,664,875 2,778,282
Total 23,291,583 44,591,292 (21,299,709) 4,960,854 4,742,403 218,452 13,011,230 10,029,931 2,981,299

2.1 Statement of voted authorities

As per the highlights of the fiscal quarter and the year-to-date results table, total budgetary authorities available for use in 2024-25 decreased by $21.3 billion from the previous year:

  • Vote 1 authorities decreased by $24.2 billion
  • Vote 5 authorities increased by $1.2 million
  • Vote 10 authorities increased by $2.9 billion

Vote 1 Operating expenditures

Operating authorities for the year have decreased by $24.2 billion in the second quarter of 2024-25 compared to the same period of the previous year, mainly due to the compensation out-of-court settlement for Child and Family Services.

Vote 10 Grants and Contributions

Grants and Contributions authorities for the year have increased by $2.9 billion in the second quarter of 2024-25 compared to the same period of the previous year, mainly due to the following:

  • $1.5 billion for Community Infrastructure;
  • $800 million for Child and Family Services;
  • $694 million for Jordan's Principle and the Inuit Child First Initiative;
  • $142 million for Health Systems Support;
  • $140 million for Primary Health Care;
  • $126 million for Urban Programming for Indigenous Peoples;
  • $21 million for Safety and Prevention Services;
  • $15 million for Home and Long-Term Care;
  • $11 million for Supplementary Health Benefits.

Offset by a funding decrease for the following programs as part of the Supplementary Estimates (A):

  • $263 million for Income Supports;
  • $134 million for Public Health Promotion and Disease Prevention;
  • $60 million for Post-Secondary Education;
  • $42 million for Indigenous Entrepreneurship and Business Development;
  • $17 million for Indigenous Governance and Capacity Supports;
  • $10 million for Emergency Management Assistance.

2.2 Expenditures analysis by standard object

Departmental Budgetary Expenditures were $4.9 billion for the quarter ended September 30, 2024.

Departmental Budgetary Expenditures were $218 million higher than the same quarter in 2023-24. As per the Departmental Budgetary Expenditures by Standard Object tables, the increase for the quarter is mainly due to the changes listed below:

The following table provides a detailed explanation of these changes by standard object (Unaudited)
(In thousands dollars)
Standard Object Changes to Standard Object expenditures Variance between 2024-25 year-to-date and 2023-24 year-to-date expenditures Variance between 2024–25 year-to-date and 2023–24 year-to-date expenditures
Expenditures:
1-Personnel There are increases in Primary Health, Indigenous Governance and Capacity, Child and Family Services and Community Economic Development expenditures in order to deliver department programs. There are also increases in Human Resources Management due to the creation of a new Branch at ISC this fiscal year. (services previously received from another government department). 38,374 60,769
2-Transportation and communications There are increases in Supplementary Health Benefits facing substantial inflationary pressure, specifically, in areas like air travel, taxis, and meals. 14,426 19,235
3-Information 136 153
4-Professional and special services The increase is mainly due to the high number of requests for Jordan's Principle, Inuit Child First Initiative and Supplementary Health Benefits this fiscal year over last fiscal year. 40,039 76,011
5-Rentals (1,037) (1,557)
6-Purchased repair and maintenance (14) 236
7-Utilities, materials and supplies The increase in Supplementary Health Benefits is mainly due to an expansion in drugs listed as part of product listing agreements. 20,590 41,281
8-Acquisition of land, buildings and works 0 0
9-Acquisition of machinery and equipment (350) 1,574
10-Transfer payments Transfer payment expenditures Table note 1 106,616 2,778,283
11-Public debt charges 0 0
12-Other subsidies and payments (756) 4,445
Total gross budgetary expenditures 218,024 2,980,430
Less Revenues netted against expenditures
Services and Benefits to Individuals 428 869
Total Revenues netted against expenditures 428 869
Total net budgetary expenditures 218,452 2,981,299
Table note 1

Return to table note 1 referrer

The net increase of $107 million in transfer payment expenditures is mainly due to the following:

  • $184 million increase due to a higher number of requests for Jordan's Principle and Inuit Child First Initiative this fiscal year over last fiscal year;
  • $89 million increase for Mental Wellness and Indigenous Early Learning and Child Care programs expenditures increase due to higher funding request by the regions to better serve community's needs;
  • $86 million increase for Elementary and Secondary Education program expenditures provided to communities in order to ensure on reserve continued provincial comparability;
  • $41 million increase for Emergency Assistance program due to increased expenditures for Response and Recovery to address the needs in First Nations communities for 2023 and 2024 wildfires;
  • $13 million increase for Supplementary Health Benefits program expenditures due to the increase of payments requested this year compared to the same period last year; 
  • $12 million increase due to the renewal of Funding for the Aboriginal Entrepreneurship Program and the Métis Capital Corporations;
  • $10 million increase of Primary Health Care due to increase of payments requested by the regions and community's.

Offset by decreases for :

  • $169 million for an Child and Family Services Reform mainly due to changes in payment schedules in relation to Long Term Reform negotiations, as well as a decrease in cash flow requirements for First Nations exercising jurisdiction under an Act respecting First Nations, Inuit and Métis children, youth and families;
  • $159 million for income assistance due to the discontinuation of cost of living relief being provided to recipients experiencing financial hardship and help them cope with the increased cost of living and inflation.

Return to table note 1 referrer

3. Risks and uncertainties

For 2024-25, the Department's key risks and the proposed efforts to mitigate them are described in the 2024-25 Corporate Risk Profile (CRP). Among these risks, a rapidly increasing and evolving Indigenous population, an overburdened health care system, a lack of predictable and sustainable funding continue to be key factors which have significant impacts on the department's ability to achieve its results.

The evolving fiscal landscape along with the complexities of discretionary funding, has created difficulties in consistently supporting the essential services that are mandated or legally required, particularly those driven by demand. This situation has introduced key risks prompting various efforts to address and mitigate the uncertainties associated with securing predictable and sustainable funding for the delivery of several of ISC's core services.

The Department delivers its programs and services mainly through transfer payments to Indigenous recipients. Recipients continue to face a range of challenges including population growth, unforeseen cost increases, growing demand for services, labor shortages, and other external factors. These challenges may impact the recipients' abilities to deliver projects or spend as planned, particularly in smaller communities lacking resources to address the loss. Mitigation strategies to address these challenges, such as initiatives to harmonize transfer payment programs terms and conditions, are ongoing.

ISC is dedicated to responsible stewardship of public funds. This commitment is evident through initiatives such as the development of an Integrated Risk Management Framework, and an annual CRP and Risk Register, enhancing risk data collection, analysis, and monitoring, fostering regular risk discussions at governance committees, improving planning and cash management practices, and intensifying efforts in fraud prevention and detection.

The Department will continue to monitor risk and take action as needed to mitigate the risk of not achieving objectives and to responsibly manage public resources. Achievement of ISC's mandate and delivery of programs remains reliant on timely access to required authorities and appropriate levels of funding.

4. Significant changes in relation to Operations, Personnel and Programs

5. Approval by senior officials

Approved, as required by the Treasury Board Policy on Financial Management:

Original signed by:

__________________________
Gina Wilson
Deputy Minister, ISC
City: Gatineau (Canada)

Original signed by:

__________________________
Philippe Thompson
Chief Finances, Results and Delivery Officer
City: Gatineau (Canada)

6. Appendix A Statement of Authorities (Unaudited)

Statement of Authorities (Unaudited)
(In thousands dollars)
Statement of Authorities (Unaudited) Fiscal Year 2024–25 Fiscal Year 2023–24
Total available for use for the year ending March 31, 2025 Used during the quarter ended June 30, 2024 Year to date used at quarter-end Total available for use for the year ending March 31, 2024 Used during the quarter ended June 30, 2023 Year to date used at quarter-end
NS - Non-Statutory Authorities
Vote 1: Operating expenditures 2,841,517 849,218 1,512,657 27,092,446 736,423 1,307,046
Vote 5: Capital expenditures 8,456 1,053 1,378 7,294 1,048 1,650
Vote 10: Grants and Contributions 20,292,736 4,072,429 11,428,575 17,339,700 3,974,487 8,657,825
S- Statutory Authorities: Operating expenditures (Vote 1)
Contributions to employee benefit plan 112,833 26,786 53,571 115,275 27,922 55,843
Court awards–Crown Liability and Proceedings Act 0 0 0 0 24 263
Minister of Indigenous Services Canada – Salary and motor car allowance 99 24 49 95 23 47
Liabilities in respect of loan guarantees made of Indian for Housing and Economic Development 2,000 0 0 2,000 0 0
Other 0 373 418 0 178 207
S- Statutory Authorities: Transfer Payments (Vote 10)
Canada Community – Building Fund – Financial municipal infrastructure 31,842 11,108 11,108 32,383 2,915 2,928
Indian Annuities Treaty payments 2,100 -137 3,474 2,100 -617 4,122
Subtotal Statutory Authorities 148,874 38,154 68,620 151,852 30,445 63,410
Total Authorities 23,291,583 4,960,854 13,011,230 44,591,292 4,742,403 10,029,931
Departmental budgetary expenditures by standard object (Unaudited)
(In thousands dollars)
Expenditures Fiscal Year 2024–25 Fiscal Year 2023–24
Planned expenditures for the year ending March 31, 2025 Expended during the quarter ending June 30, 2024 Year to date used at quarter ended June 30, 2024 Planned expenditures for the year ending March 31, 2024 Expended during the quarter ending June 30, 2023 Year to date used at quarter ended June 30, 2023
1-Personnel 921,647 263,225 448,428 928,109 224,851 387,659
2-Transportation and communications 404,569 131,781 230,418 392,793 117,355 211,183
3-Information 6,958 1,946 3,189 11,072 1,810 3,036
4-Professional and special services 1,015,613 246,119 431,983 1,938,753 206,080 355,972
5-Rentals 20,523 3,650 6,358 24,259 4,687 7,915
6-Purchased repair and maintenance 6,870 732 1,325 6,810 746 1,089
7-Utilities, materials and supplies 626,037 208,277 402,022 608,728 187,687 360,741
8-Acquisition of land, buildings and works 0 0 0 0 0 0
9-Acquisition of machinery and equipment 8,456 14,999 28,382 7,294 15,349 26,808
10-Transfer payments 20,326,679 4,083,400 11,443,157 17,374,183 3,976,784 8,664,874
11-Public debt charges 0 0 0 0 0 0
12-Other subsidies and payments 2,000 8,298 18,215 23,347,644 9,054 13,770
Total gross budgetary expenditures 23,339,352 4,962,427 13,013,477 44,639,646 4,744,403 10,033,047
Less Revenues netted against expenditures
Services and Benefits to Individuals (47,769) (1,573) (2,247) (48,353) (2,000) (3,116)
Total Revenues netted against expenditures (47,769) (1,573) (2,247) (48,353) (2,000) (3,116)
Total net budgetary Expenditures 23,291,583 4,960,854 13,011,230 44,591,292 4,742,403 10,029,931

Did you find what you were looking for?

What was wrong?

You will not receive a reply. Don't include personal information (telephone, email, SIN, financial, medical, or work details).
Maximum 300 characters

Thank you for your feedback

Date modified: