Quarterly Financial Report for the quarter ended December 31, 2024

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

Table of contents

  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 funds 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 the fiscal year-to-date (YTD) results

This section:

As of the third quarter, the Department has total budgetary authorities of $27.8 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 for Q3 Year-to-date expenditures
March 31, 2025 March 31, 2024 Variance 2024-25 (December 31, 2024) 2023-24 (December 31, 2023) Variance Q3 2024-25 (April 1 to December 31, 2024) Q3 2023-24 (April 1 to December 31, 2023) Variance
Vote 1: Operating Expenditures 3,977,579 27,600,525 (23,622,946) 932,527 827,122 105,405 2,499,222 2,190,527 308,695
Vote 5: Capital Expenditures 8,925 10,823 (1,898) 2,037 1,623 414 3,415 3,273 142
Vote 10: Grants and Contributions 23,829,182 18,005,550 5,823,632 3,973,307 4,163,413 (190,106) 15,416,464 12,828,288 2,588,176
Total 27,815,686 45,616,898 (17,801,212) 4,907,871 4,992,158 (84,287) 17,919,101 15,022,088 2,897,013

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 $17.8 billion from the previous year:

  • Vote 1 authorities decreased by $23.6 billion
  • Vote 5 authorities decreased by $1.9 million
  • Vote 10 authorities increased by $5.8 billion

Vote 1 Operating expenditures

Operating authorities for the year have decreased by $23.6 billion in the third 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 $5.8 billion in the third quarter of 2024-25 compared to the same period of the previous year, mainly due to the following:

  • $2.2 billion for Child and Family Services;
  • $1.8 billion for Community Infrastructure;
  • $1.3 billion for Jordan's Principle and the Inuit Child First Initiative;
  • $203 million for Elementary and Secondary Education;
  • $176 million for Health Systems Support;
  • $120 million for Medical Travel Cost in Nunavut;
  • $70 million for Public Health Promotion and Disease Prevention;
  • $64 million for Home and Long-Term Care;
  • $46 million for Indigenous Governance and Capacity Supports;
  • $43 million for Urban Programming for Indigenous Peoples;
  • $35 million for Safety and Prevention Services;
  • $29 million for Primary Health Care;
  • $21 million for Post-Secondary Education.

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

  • $112 million for Emergency Management;
  • $95 million for Income Supports.

2.2 Expenditures analysis by standard object

Departmental Budgetary Expenditures were $4.9 billion for the quarter ended December 31, 2024.

Departmental Budgetary Expenditures were $84.3 million less than the same quarter in 2023‑24. As per the Departmental Budgetary Expenditures by Standard Object tables, the decrease 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 Q3 and 2023-24 Q3 expenditures Variance between 2024-25 year-to-date and 2023-24 year-to-date expenditures
Expenditures:
1-Personnel The increase is mainly in Human Resources management services due to the creation of a new Branch at ISC this fiscal year (services previously received from another government department). 6,707 67,476
2-Transportation and communications The increase is due to significant inflationary pressures in Supplementary Health Benefits, specifically in areas like air travel, taxis, and meals. 55,629 74,864
3-Information   (50) 103
4-Professional and special services The increase is mainly due to the timing of payments during the year. The Department has advanced payment of services to Justice Canada in Q3 this fiscal year where it was completed in Q4 in the previous fiscal year. 19,616 95,627
5-Rentals   1,168 (389)
6-Purchased repair and maintenance   34 270
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. 65,496 106,777
8-Acquisition of land, buildings and works   0 0
9-Acquisition of machinery and equipment   1,433 3,008
10-Transfer payments The decrease is mainly related to the Fire season. The Community Infrastructure program advanced a significant amount of funds last year while we had a reduction in the amount of advances requested this year. (190,106) 2,588,176
11-Public debt charges   0 0
12-Other subsidies and payments The following variance is due to a timing issue in the processing of Interdepartmental Settlement (IS) transactions this fiscal year over last year. (28,344) (23,899)
Total gross budgetary expenditures   (68,417) 2,912,013
Less Revenues netted against expenditures
Services and Benefits to Individuals   (15,870) (15,000)
Total Revenues netted against expenditures   (15,870) (15,000)
Total net budgetary expenditures   (84,287) 2,897,013

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)
(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 December 31, 2024 Year to date used at quarter-end Total available for use for the year ending March 31, 2024 Used during the quarter ended December 31, 2023 Year to date used at quarter-end
NS - Non-Statutory Authorities
Vote 1: Operating expenditures 3,851,217 899,714 2,412,371 27,482,297 798,761 2,105,807
Vote 5: Capital expenditures 8,925 2,037 3,415 10,823 1,623 3,273
Vote 10: Grants and Contributions 23,795,239 3,963,505 15,392,080 17,971,068 4,148,171 12,805,996
S- Statutory Authorities: Operating expenditures (Vote 1)
Contributions to employee benefit plan 124,264 26,785 80,356 116,133 27,922 83,764
Court awards–Crown Liability and Proceedings Act 0 5,622 5,622 0 16 279
Minister of Indigenous Services Canada – Salary and motor car allowance 99 25 74 95 24 71
Liabilities in respect of loan guarantees made of Indian for Housing and Economic Development 2,000 0 0 2,000 0 0
Other 0 381 799 0 399 606
S- Statutory Authorities: Transfer Payments (Vote 10)
Canada Community – Building Fund – Financial municipal infrastructure 31,842 9,906 21,014 32,382 15,633 18,561
Indian Annuities Treaty payments 2,100 (104) 3,370 2,100 (391) 3,731
Subtotal Statutory Authorities 160,305 42,615 111,235 152,710 43,603 107,012
Total Authorities 27,815,686 4,907,871 17,919,101 45,616,898 4,992,158 15,022,088
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 December 31, 2024 Year to date used at quarter ended December 31, 2024 Planned expenditures for the year ending March 31, 2024 Expended during the quarter ending December 31, 2023 Year to date used at quarter ended December 31, 2023
1-Personnel 970,961 263,711 712,139 995,406 257,004 644,663
2-Transportation and communications 575,701 158,215 388,633 487,354 102,586 313,769
3-Information 12,076 2,948 6,137 10,383 2,998 6,034
4-Professional and special services 1,549,495 273,126 705,109 2,006,123 253,510 609,482
5-Rentals 21,300 4,296 10,654 15,911 3,128 11,043
6-Purchased repair and maintenance 7,676 833 2,158 5,322 799 1,888
7-Utilities, materials and supplies 886,138 229,611 631,633 780,734 164,115 524,856
8-Acquisition of land, buildings and works 0 0 0 0 0 0
9-Acquisition of machinery and equipment 8,925 16,262 44,644 10,823 14,829 41,636
10-Transfer payments 23,829,182 3,973,307 15,416,464 17,374,183 4,163,413 12,828,288
11-Public debt charges 0 0 0 631,367 0 0
12-Other subsidies and payments 2,000 10,406 28,621 23,347,645 38,750 52,520
Total gross budgetary expenditures 27,863,454 4,932,715 17,946,192 45,665,251 5,001,132 15,034,179
Less Revenues netted against expenditures
Revenues netted against expenditures (47,768) (24,844) (27,091) (48,353) (8,974) (12,091)
Services and Benefits to Individuals 0 0 0 0 0 0
Total Revenues netted against expenditures (47,768) (24,844) (27,091) (48,353) (8,974) (12,091)
Total net budgetary Expenditures 27,815,686 4,907,871 17,919,101 45,616,898 4,992,158 15,022,088

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