Public Safety Canada Quarterly Financial Report for the quarter ended September 30, 2025

Table of Contents

1.0 Introduction

This quarterly financial report for the period ending September 30, 2025 has been prepared by management as required by section 65.1 of the Financial Administration Act, in the form and manner prescribed by Treasury Board. The report should be read in conjunction with the Main Estimates.

This report has not been subject to an external audit or review. However, it has been reviewed by the Departmental Audit Committee prior to approval by the Deputy Minister.

Information on the mandate, roles, responsibilities and programs of Public Safety Canada can be found in the 2025-26 Departmental Plan and the 2025-26 Main Estimates.

1.1 Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities table includes the Department's spending authorities granted by Parliament, or received from Treasury Board Central Votes, and those used by the Department consistent with the Main Estimates for the 2025-26 fiscal year. This report has been prepared using a special purpose financial reporting framework designed to meet the information needs concerning 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.

Public Safety Canada uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis, as do the expenditures presented in this report.

2.0 Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

The following graph provides a comparison of the net budgetary authorities and expenditures as of September 30, 2025 and September 30, 2024 for the Department's combined:

The net budgetary authorities have increased by $526.6 million (32.0 percent), primarily due to additional funding for the Assault-Style Firearms Compensation Program (ASFCP). Furthermore, expenditures to date are $44.1 million (13.3 percent) higher compared to the same period of previous year, largely attributable to payments of various transfer payments and salary expenditures.

Figure 1: Comparison of Budgetary Authorities and Quarterly Expenditures as of September 30, 2025 and September 30, 2024 (in thousands of dollars)

Figure 1

Figure 1: Image description

Starting from the left hand side, the "first" column in the graph indicates that the Department's authorities are at $2,174,565 thousand for fiscal year 2025-26. The year-to-date expenditures of $375,911 thousand reported at the end of the second quarter of the 2025-26 fiscal year are shown under the "second" column. The expenditures of $169,429 thousand for the period ended September 30, 2025 (i.e. second quarter) are presented under the "third" column. The "fourth" column in the graph depicts the 2024-25 authorities which were at $1,647,992 thousand at the end of September 2024. The 2024-25 year-to-date expenditures of $331,798 thousand reported at the end of the second quarter of the 2024-25 fiscal year are shown under the "fifth" column. The Department's actual expenditures incurred in the second quarter of fiscal year 2024-25 were $196,744 thousand and are shown under the "sixth" column of the graph.

The following graph provides a comparison between the total of Vote 1 – Operating expenditures, Vote 5 – Subventions and contributions, and Statutory funding (Employee Benefit Plans and Minister's Salary and Car Allowance) as of September 30, 2025 and September 30, 2024. The total of Vote 1 – Operating expenditures as of September 30, 2025 includes funding received through Main Estimates as well as TB Central Vote received during the second quarter for the operating budget carry-forward ($11.6K).

Figure 2: Comparison of funding received through Main Estimates, Supplementary Estimates (A), and TB Central Vote transfers as of September 30, 2025 and September 30, 2024 (in thousands of dollars)

Figure 2

Figure 2: Image description

Starting from the left hand side, the "first" column in the graph indicates that the Department received $2,174,565 thousand in funding through Main Estimates and TB Central Vote transfers for fiscal year 2025-26. The total includes $358,288 thousand in Vote 1, $1,787,484 thousand in Vote 5 and $28,793 thousand in Statutory funding. The "second" column in the graph depicts the 2024-25 funding received through Main Estimates, Supplementary Estimates "A", and TB Central vote transfers which was $1,647,992 thousand. The total for 2024-25 includes $257,206 thousand in Vote 1, $1,367,305 thousand in Vote 5 and $23,480 thousand in Statutory funding.

2.1 Significant Changes to Authorities

For the period ending September 30, 2025, the authorities provided to the Department include Main Estimates and TB Central Vote transfers. The 2024-25 authorities for the same period included the Main Estimates, Supplementary Estimates (A) and TB Central Vote transfers. The Statement of Authorities table (Section 6.0) presents an increase of $526.6 million (32.0 percent) compared to those of the same period of the previous year (from $1,648.0 million to $2,174.6 million).

Operating Expenditures authorities (Vote 1) have increased by $101.1 million (39.3 percent) (from $257.2 million to $358.3 million), which is primarily attributable to:

These increases are primarily offset by the following decrease:

Grants and contributions (G&C) authorities (Vote 5) have increased by $420.2 million (30.7 percent) (from $1,367.3 million to $1,787.5 million), which is primarily attributable to:

These increases are primarily offset by the following decreases:

Budgetary Statutory authorities have increased by $5.3 million (22.6 percent) in 2025-26 primarily attributable to the Employee Benefits Plan associated with new salary funding received in the Main Estimates.

2.2 Significant Variances from Previous Year Expenditures

Year-to-Date Expenditures

For the period ending September 30, 2025, the Departmental Budgetary Expenditures by Standard Object table (Section 7.0) presents an increase of $44.1 million (13.3 percent) in Public Safety's year-to-date (YTD) expenditures compared to the previous year (from $331.8 million to $375.9 million). This increase is primarily attributable to:

Second Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended September 30, 2025 have decreased by $27.3 million (13.9 percent) (from $196.7 million to $169.4 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table (Section 7.0).

3.0 Risks and Uncertainty

Disaster Financial Assistance Arrangements

The Disaster Financial Assistance Arrangements (DFAA) contribution program presents a greater level of uncertainty than other Public Safety Canada grants and contributions programs given that it represents a significant portion of the Public Safety Canada budget and that it is subject to unforeseen events. The DFAA contribution program was established in 1970 to provide a consistent and equitable mechanism for federal sharing of provincial and territorial costs for natural disaster response and recovery where such costs would place an undue burden on a provincial or territorial economy.

There are currently 89 active natural disasters for which Orders in Council (OiC) have been approved, authorizing the provision of federal financial assistance under the DFAA, and for which final payments have not yet been made. Public Safety's total outstanding share of liability under the DFAA with regard to these 89 events is $4.52 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has slightly decreased by $0.41 billion from $4.93 billion in the first quarter of 2025-26 to $4.52 billion in the second quarter of 2025-26. Variations in the DFAA liability are mainly attributable to:

The following are the most significant events within Public Safety Canada's DFAA liability:

Updates to the DFAA liability as a result of changes to the estimates of the existing natural disasters, are completed and approved twice a year with the last update having been conducted in Fall 2025 and is reflected in the current Quarterly Financial Report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

The following organizational changes took place during the second quarter of 2025-26:

5.0 Approval by Senior Officials

Approved as required by the Policy on Financial Resource Management, Information and Reporting:

Tricia Geddes
Deputy Minister
Public Safety Canada
Ottawa (Canada)
Date: December 1, 2025

John McKinley, CPA, MBA
A/Chief Financial Officer
Public Safety Canada
Ottawa (Canada)
Date: December 1, 2025

6.0 Statement of Authorities (unaudited)

Table 1: Authorities for fiscal year 2025-26 (in dollars)
Authorities Total available for use for the year ending March 31, 2026Footnote 1 Used during the quarter ended September 30, 2025 Year-to-date used at quarter-end
Vote 1 – Net Operating Expenditures 358,288,154 71,681,331 127,789,469
Vote 5 – Grants and contributions 1,787,484,190 90,511,698 233,679,223
Employee Benefit Plans (EBP) 28,690,686 7,172,671 14,345,342
Minister's Salary and Motor Car Allowance 102,300 63,400 97,367
Total Authorities 2,174,565,330 169,429,100 375,911,401
Table 2: Authorities for fiscal year 2024-25 (in dollars)
Authorities Total available for use for the year ending March 31, 2025Footnote 2 Used during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Vote 1 – Net Operating Expenditures 257,206,351 58,029,416 110,007,044
Vote 5 – Grants and contributions 1,367,305,390 133,088,104 210,537,905
Employee Benefit Plans (EBP) 23,381,718 5,601,601 11,203,202
Minister's Salary and Motor Car Allowance 98,600 24,700 49,400
Total Authorities 1,647,992,059 196,743,821 331,797,551

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Table 3: Budgetary expenditures by standard object for fiscal year 2025-26 (in dollars)
Standard Object Planned expenditures for the year ending March 31, 2026Footnote 3 Expended during the quarter ended September 30, 2025 Year-to-date used at quarter-end
Expenditures:
Personnel 216,313,809 58,801,735 114,800,038
Transportation and communications 4,585,917 868,586 1,675,074
Information 12,396,244 1,333,840 2,453,380
Professional and special services 130,810,755 15,446,641 21,487,485
Rentals 12,872,141 733,502 1,601,771
Repair and maintenanceFootnote 4 5,415,908 159,623 176,404
Utilities, material and supplies 648,015 97,942 199,835
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 5,019,603 1,580,645 2,063,339
Transfer payments 1,787,484,190 90,011,697 233,179,222
Public debt charges - - -
Other subsidies and payments 1,718,748 568,889 820,704
Total gross budgetary expenditures 2,177,265,330 169,603,100 378,457,252
Less Revenue netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 174,000 2,545,851
Total net budgetary expenditures 2,174,565,330 169,429,100 375,911,401
Table 4: Budgetary expenditures by standard object for fiscal year 2024-25 (in dollars)
Standard Object Planned expenditures for the year ending March 31, 2025Footnote 5 Expended during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Expenditures:
PersonnelFootnote 6 190,253,010 51,396,070 101,431,336
Transportation and communications 1,468,709 830,787 1,564,932
Information 9,891,680 893,794 1,584,221
Professional and special services 46,085,968 9,136,431 15,275,739
Rentals 7,197,296 577,051 2,152,265
Repair and maintenanceFootnote 7 9,404,679 92,191 109,886
Utilities, material and supplies 572,525 106,353 191,609
Acquisition of land, buildings and works 10,948,057 - -
Acquisition of machinery and equipment 4,203,378 694,018 953,238
Transfer payments 1,367,305,390 133,088,104 210,537,905
Public debt charges - - -
Other subsidies and payments 3,361,367 108,322 265,403
Total gross budgetary expenditures 1,650,692,059 196,923,121 334,066,534
Less Revenue netted against expenditures:
Interdepartmental Provision of Internal Support Services 2,700,000 179,300 2,268,983
Total net budgetary expenditures 1,647,992,059 196,743,821 331,797,551
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