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

1.0 Introduction

This quarterly financial report for the period ending June 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 June 30, 2025 and June 30, 2024 for the Department's combined:

• Vote 1: Operating Expenditures;
• Vote 5: Grants and Contributions;
• Statutory Votes:
  • Employee Benefit Plans; and
  • Minister's Salary and Car Allowance.

The net budgetary authorities have increased by $522.9 million (31.9 percent), primarily due to additional funding for the Assault-Style Firearms Compensation Program (ASFCP). Furthermore, expenditures to date are $71.4 million (52.9 percent) higher compared to the same period of previous year, largely attributable to payments of various transfer payments such as First Nations and Inuit Policing Program.

Figure 1: Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department authorities are at $2,162,989 thousand for fiscal year 2025-26. The year-to-date expenditures of $206,482 thousand reported at the end of the first quarter of the 2025-26 fiscal year are shown under the “second” column. The “third” column in the graph depicts the 2024-25 authorities which were at $1,640,111 thousand at the end of June 2024. The 2024-25 year-to-date expenditures of $135,054 thousand reported at the end of the first quarter of the 2024-25 fiscal year are shown under the “fourth” column.

The following graph provides a comparison between the total of Vote 1, Vote 5 and Statutory funding as of June 30, 2025 and June 30, 2024.

Figure 2: Image description

Starting from the left hand side, the “first” column in the graph indicates that the Department received $2,162 989 thousand in funding through Main Estimates for fiscal year 2025-26. The total includes $346,712 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 and Supplementary Estimates “A” which was $1,640,111 thousand. The total for 2024-25 includes $249,325 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 June 30, 2025, the authorities provided to the Department include Main Estimates. The 2024-25 authorities for the same period included the Main Estimates and Supplementary Estimates (A). The Statement of Authorities table (Section 6.0) presents an increase of $522.9 million (31.9 percent) compared to those of the same period of the previous year (from $1,640.1 million to $2,163.0 million).

Operating Expenditures authorities (Vote 1) have increased by $97.4M (39.1 percent) (from $249.3 million to $346.7 million), which is primarily attributable to:

• An increase of $84.2 million in funding for the Assault Style Firearms Compensation Program (ASFCP) which is primarily attributable to:
  • An increase of $108.9 million in new funding required to implement the Phase 2 of the ASFCP and completing the collection and destruction of individually-owned assault-style Firearms; and
  • Offset by a decrease of $24.7 million due to a decrease in funding levels related to the Business Phase of the program including funding related to planning and operational functions, to fully implement a web portal and case management system and to support a national marketing campaign.
• An increase of $6.6 million in new funding to implement firearms legislation, build policy capacity and modernize firearms-related operational services; and
• An increase of $4.3 million related to one year funding for safety-related expenses for Canada's 2025 G7 Presidency.

These increases are primarily offset by the following decrease:

• A decrease of $10.8 million in capital funding required for the relocation and accommodations for the Government Operations Center (GOC) (Budget 2016).

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:

• An increase of $328.9 million in funding for the Assault Style Firearms Compensation Program (ASFCP) which is primarily attributable to:
  • An increase of $335.5 million in new funding for the collection and destruction of individually-owned assault-style Firearms and related to the Phase 2 of the ASFCP; and
  • Offset by a decrease of $6.6 million due to a decrease in funding levels related to compensation to businesses for Phase 1 of the ASFCP.
• An increase of $66.0 million related to the Disaster Financial Assistance Arrangements (DFAA) program. This is due to a decrease of $450.0 million in funding levels to support the 2021 natural disasters in British-Columbia, which is offset by an increase of $516.0 million from a reprofile of funding from previous year;
• An increase of $52.8 million related to one year funding for safety-related expenses for Canada's 2025 G7 Presidency;
• An increase of $13.5 million in new funding for supporting the Canadian Red Cross's Urgent Relief Efforts - Donation Matching program;
• An increase of $11.6 million in new funding for the Canada Community Security Program; and
• An increase of $10.0 million in new funding to enhance security around parliamentary campus.

These increases are primarily offset by the following decreases:

• A decrease of $33.9 million related to the Memorial Grant Program for First Responders due to the expiry of top-up funding received in 2022-23 to 2024-25 to eliminate the backlog of applications;
• A decrease of $32.5 million following the expiry of reprofiled funding in 2024-25 for the Building Safer Communities Fund; and
• A decrease of $14.6 million due to the sunset of funding for the Drug Impaired Driving initiative, for which renewal is underway.

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

First Quarter Expenditures

Compared to the previous year, expenditures used during the quarter ended June 30, 2025 have increased by $71.4 million (52.9 percent) (from $135.1 million to $206.5 million) as reflected in the Departmental Budgetary Expenditures by Standard Object table (Section 7.0).

• Operating expenditures (Vote 1) have increased by $4.1 million (7.9 percent) primarily attributable to:
  • Personnel expenditures have increased by $6.0 million (11.9 percent), primarily due to new collective agreements and an increase in staffing requirements to support advancement of the department's agenda.
• Transfer payment expenditures (Vote 5) have increased by $65.7 million (84.9 percent) primarily attributable to:
  • An increase of $45.1 million due to the timing of payments for the First Nations and Inuit Policing Program;
  • An increase of $6.9 million due to the timing of payments for Supporting a Humanitarian Workforce;
  • An increase of $6.7 million due to the timing of payments for the Memorial Grant for First Responders; and
  • An increase of $5.1 million due to the timing of payments for supporting the Canadian Red Cross's Urgent Relief Efforts - Donation Matching program.

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 PS grants and contributions programs given that it represents a significant portion of the PS 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 regards to these 89 events is $4.93 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has slightly decreased by $0.50 billion from $5.43 billion in the third quarter of 2024-25 to $4.93 billion in the first quarter of 2025-26. Variations in the DFAA liability are mainly attributable to:

• Changes for newly approved OiCs, which authorize funding related to recent natural disasters for which provinces and territories require federal sharing of costs;
• Changes in the estimates of the existing natural disasters; and
• Changes for payments issued under the existing obligation.

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

• British Columbia 2021 November Storm ($1.5 billion);
• Alberta 2013 June Flood ($410 million);
• British Columbia 2020 Flood & Landslides ($401 million);
• Manitoba 2022 Spring Flood ($260 million);
• British Columbia 2021 Flood & Landslides ($247 million); and
• British Columbia 2021 Wildfire ($189 million).

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 Spring 2025 and is reflected in the current Quarterly Financial Report.

4.0 Significant Changes in Relation to Operations, Programs and Personnel

The Prime Minister appointed new ministers to the federal Cabinet, effective May 14, 2025:

• The Honourable Gary Anandasangaree has been named Minister of Public Safety;
• The Honourable Eleanor Olszewski has been named Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada; and
• The Honourable Ruby Sahota has been named Secretary of State for Combatting Crime.

The Prime Minister also appointed new parliamentary secretaries to assist Cabinet ministers, effective June 5, 2025:

• Jacques Ramsay has been named Parliamentary Secretary to the Minister of Public Safety;
• Anthony Housefather has been named Parliamentary Secretary to the Minister of Emergency Management and Community Resilience; and
• Vince Gasparro has been named Parliamentary Secretary to the Secretary of State (Combatting Crime).

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

• The Indigenous Affairs Branch (IAB), the Firearms Program Branch (FPB), and the Federal Policing Taskforce joined the Crime Prevention Branch (CPB) to consolidate all policing and firearms files under one branch, effective April 14, 2025; and
• Both the Counter Foreign Interference (CFI) Division, and the Foreign Influence Transparency Commissioner Transition Office responsible for the implementation of the Foreign Influence Transparency and Accountability Act joined the ONCFIC and report directly to ADM Aubertin-Giguère, effective May 12, 2025.

Greg Kenney was appointed as Assistant Deputy Minister (ADM), Programs, effective June 11, 2025, following the departure of Joanne Garrah on May 22, 2025.

Rachel Richardson was appointment in the role of Ombuds, effective May 22, 2025.

5.0 Approval by Senior Officials

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

6.0 Statement of Authorities (unaudited)

7.0 Departmental budgetary expenditures by Standard Object (unaudited)

Date modified:

2025-10-02