Public Safety Canada Quarterly Financial Report for the quarter ended June 30, 2026

1.0 Introduction

This quarterly financial report for the period ending June 30, 2026 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 2026-27 Departmental Plan and the 2026-27 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 and Supplementary Estimates (A) for the 2026-27 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, 2026 and June 30, 2025 for the Department's combined:

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

The net budgetary authorities have increased by $441.0 million (20.4 percent), primarily due to a reprofile of funding for the Disaster Financial Assistance Arrangements (DFAA) program. Furthermore, expenditures to date are $116.3 million (56.3 percent) higher compared to the same period of previous year, largely attributable to an advance payment to Employment and Social Development Canada which is responsible for issuing compensation payments to individuals for the Assault-Style Firearms Compensation Program (ASFCP).

Figure 1: Image description

Starting from the left-hand side, the first column in the graph indicates that the Department's authorities amount to $2,603,983 thousand for fiscal year 2026-27. The year-to-date expenditures of $322,809 thousand reported at the end of the first quarter of the 2026-27 fiscal year are shown under the second column. The third column in the graph depicts the 2025-26 authorities, which were at $2,162,989 thousand at the end of June 2025. The 2025-26 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 fourth column.

The following graph provides a comparison between the total of Vote 1 – Operating expenditures, Vote 5 – Grants and contributions, and Statutory funding (Employee Benefit Plans and Minister's Salary and Car Allowance) as of June 30, 2026 and June 30, 2025.

Figure 2: Image description

Starting from the left-hand side, the first column in the graph indicates that the Department received $2,603,983 thousand in funding through Main Estimates and Supplementary Estimates (A) for fiscal year 2026-27. This total includes $322,221 thousand in Vote 1, $2,250,658 thousand in Vote 5 and $31,104 thousand in Statutory funding. The second column in the graph depicts the 2025-26 funding received through the Main Estimates, which amounted to $2,162,989 thousand. The total for 2025-26 includes $346,712 thousand in Vote 1, $1,787,484 thousand in Vote 5 and $28,793 thousand in Statutory funding.

2.1 Significant changes to authorities

For the period ending June 30, 2026, the authorities provided to the Department include Main Estimates and Supplementary Estimates (A). The 2025-26 authorities for the same period included only the Main Estimates. The Statement of authorities table (Section 6.0) presents an increase of $441.0 million (20.4 percent) compared to those of the same period of the previous year (from $2,163.0 million to $2,604.0 million).

Operating expenditures authorities (Vote 1) have decreased by $24.5 million (7.1 percent) (from $346.7 million to $322.2 million), which is primarily attributable to:

• a decrease of $18.8 million in funding for the Assault-Style Firearms Compensation Program (ASFCP) to align with the program timelines and activities at quarter-end;
• a decrease of $13.3 million following the adjustments related to the Comprehensive Expenditure Review (CER);
• a decrease of $4.3 million following the expiry of the one year funding for safety-related expenses for Canada's 2025 G7 Presidency; and
• a decrease of $3.2 million following the expiry of Vote 1 funding in 2025-26 for the Initiative to Take Action against Gun and Gang Violence.

These decreases are primarily offset by the following increases:

• an increase of $7.5 million in new funding for Foreign Influence Transparency and Accountability Regime;
• an increase of $6.6 million in new funding for National Public Alerting System; and
• an increase of $3.9 million in new funding for Criminal Code Authorization Regime.

Grants and Contributions (G&C) authorities (Vote 5) have increased by $463.2 million (25.9 percent) (from $1,787.5 million to $2,250.7 million), which is primarily attributable to:

• a net increase of $490.9 million for the Disaster Financial Assistance Arrangements (DFAA) program. This increase is attributable to the reprofiling of funding required to meet existing obligations and timeframe to request payments;
• an increase of $38.2 million in funding for the First Nations and Inuit Policing Program;
• an increase of $37.8 million in funding for the First Nations and Inuit Policing Facilities Program;
• an increase of $27.3 million in new funding for the Memorial Grant Program for First Responders;
• an increase of $14.6 million in funding for the Canada's Black Justice Strategy; and
• an increase of $10.2 million in new funding for police colleges in Canada for hate crime training through the Community Resilience Fund.

These increases are primarily offset by the following decreases:

• a decrease of $86.8 million in funding for the Assault Style Firearms Compensation Program (ASFCP) to realign funding from Vote 5 to Vote 1 to continue the implementation and completion of the program;
• a decrease of $52.8 million following the expiry of the one year funding for safety-related expenses for Canada's 2025 G7 Presidency; and
• a net decrease of $12.1 million related to the Canadian Red Cross's Urgent Relief Efforts – Donation Matching program. This decrease is primarily attributable to the sunsetting and reprofiling of funding provided for the 2024 Alberta wildfires, the 2023 Nova Scotia wildfires, and the 2021 British Columbia floods and wildfires. Furthermore, this decrease is offset by new funding received to support the 2025 Saskatchewan, Manitoba and Nunavut wildfires.

Budgetary statutory authorities have increased by $2.3 million (8.0 percent) in 2026-27 primarily attributable to the Employee Benefits Plan associated with new salary funding received in the Supplementary Estimates (A).

2.2 Significant variances from previous year expenditures

First quarter expenditures

Compared to the previous year, expenditures used during the quarter ended June 30, 2026 have increased by $116.3 million (56.3 percent) (from $206.5 million to $322.8 million) as reflected in the Departmental budgetary expenditures by standard object table (Section 7.0).

Other subsidies and payments expenditures have increased by $96.4 million primarily attributable to an advance payment to Employment and Social Development Canada which is responsible for issuing compensation payments to individuals for the Assault-Style Firearms Compensation Program (ASFCP). The advances are currently presented as an operating expense in this report but will be presented as a transfer payment expense when the expenditures are incurred.

Transfer payment expenditures have increased by $24.7 million (17.3 percent) primarily attributable to:

• an increase of $32.5 million in support of payments for the First Nations and Inuit Policing Program;
• an increase of $6.7 million due to the timing of payments for the National Crime Prevention Strategy; and
• an increase of $5.5 million due to the timing of payments for the Assault-Style Firearms Compensation Program.

Primarily offset by the following decreases:

• a decrease of $11.9 million due to the timing of payments for Supporting a Humanitarian Workforce;
• a decrease of $5.1 million due to the timing of payments for supporting the Canadian Red Cross's Urgent Relief Efforts – Donation Matching program; and
• a decrease of $4.3 million due to the timing of payments for the Memorial Grant Program for First Responders.

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 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 87 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 87 events is $3.6 billion, the majority of which is expected to be paid out over the next five years.

DFAA liability has slightly decreased by $0.8 billion from $4.4 billion in the third quarter of 2025-26 to $3.6 billion in the first quarter of 2026-27. 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 ($784 million)
• Alberta 2013 June Flood ($410 million)
• Manitoba 2022 Spring Flood ($262 million)
• British Columbia 2021 Wildfire ($190 million)
• Quebec 2019 Spring Flood ($181 million)
• British Columbia 2023 Interface Fires ($177 million)
• British Columbia 2017 July Wildfire ($160 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 2026 following the Semi-Annual Accounting (SAA) exercise 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 first quarter of 2026-27:

• Sébastien Aubertin-Giguère, previously Assistant Deputy Minister (ADM), National and Cyber Security Branch (NCSB), moved to Emergency Management Branch to establish a departmental Hub on Sovereignty and Resilience, effective June 4, 2026.

The following senior management appointments and assignments took place during the first quarter of 2026-27:

• Michèle Kingsley was appointed as Senior Assistant Deputy Minister (SADM) for the Crime Prevention Branch, effective June 4, 2026;
• Shannon Grainger, previously Senior Assistant Deputy Minister, Portfolio Affairs and Communications Branch (PACB), is Senior Assistant Deputy Minister for the National and Cyber Security Branch (NCSB), effective June 4, 2026; and
• Martin Joyal is Acting Senior Assistant Deputy Minister (A/SADM) for Portfolio Affairs and Communications Branch (PACB) replacing Shannon Grainger until a permanent replacement is appointed, effective June 4, 2026.

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:

2026-08-31