Quarterly Financial Report: Quarter ended December 31, 2024

1.1 Authority, Mandate and Departmental Results

Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) continues to renew the nation-to-nation, Inuit-Crown, government-to-government relationship between Canada and First Nations, Inuit and Métis; modernize Government of Canada structures to enable Indigenous Peoples to build capacity and support their vision of self-determination; and lead the Government of Canada's work in the North. Further details on CIRNAC's authority, mandate and departmental results can be found in Part roman numeral 2II 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 (Table 1) includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates and Supplementary 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 accounting method 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.

1.3 General Descriptions

The following descriptions are referred to throughout the report:

• Authority: Approvals from Parliament to spend up to a specific amount.
• Operating (Vote 1 and Statutory):
  • Vote 1: Amount approved for the fiscal year for the Department to spend on operating expenditures.
  • Statutory: Amount approved through an existing Act of Parliament.
• Capital (Vote 5): Amount approved for the fiscal year for the Department to spend on capital purchases or for the construction of assets.
• Grants and Contributions (G&C's) (Vote 10 and Statutory):
  • Vote 10: Amount approved for the fiscal year for the Department as Grants and Contributions (G&C's) transfer payments to recipients.
  • Statutory: Amount approved through an existing Act of Parliament.
• Standard Object (SO): Classification or coding of transactions to permit the reporting of information about the nature of transactions in the Estimates and Public Accounts. Classifications include, for example, personnel, professional and special services, and transfer payments.
• Operating and Capital Budget Carry Forward: Eligible funds lapsed in the previous fiscal year brought forward to the following year.

2.1 Authorities available for use

This section highlights the financial results for the quarter and fiscal year to date ended December 31, 2024, and provides an explanation of variances in authorities available for use compared to the same period in the prior year.

CIRNAC's total budgetary authorities available for use at the end of the third quarter in 2024-25 is $17,927.7 million, which is comprised of the Department's 2024-25 Main Estimates of $10,913.2 million, Supplementary Estimates (A) of $5,617.4 million, Supplementary Estimates (B) of $1,377.3 million and $19.8 million in allotment adjustments, which includes items such as the Operating and Capital Budget Carry Forwards. The most significant adjustment made to CIRNAC's authority during the third quarter was the Supplementary Estimates (B), which funded key initiatives, including:

• $532.7 million to settle land-related claims;
• $459.7 million in reprofiled funding for the Specific Claim Settlement Fund;
• $74.7 million in reprofiled funding for the Northern Abandoned Mine Reclamation Program;
• $56.9 million for the Northern Food Sovereignty; and
• $46.6 million to advance the right to self-determination through treaties, agreements and other constructive arrangements.

2.1.1 Highlights of changes in authorities available for use (2024-25 compared to 2023-24)

At the end of the third quarter of 2024-25, CIRNAC's total budgetary authorities available for use are $17,927.7 million which is $8,546.2 million (32%) lower than the same period in 2023-24. This decrease is a result of changes in funding levels for many initiatives, the most noteworthy of which include:

Vote 1 - Operating (-$7,575.7 million)

• Funding for the Restoule Settlement Agreement (-$5,000.0 million); and,
• Funding for the Gottfriedson Band Class Settlement Agreement (-$2,894.5 million).

Vote 10 – Grants and Contributions (-$970.2 million)

• Funding for Specific Claims Settlement Fund (-$1,681.6 million); and,
• Funding for agricultural benefits claims (+$1,508 million).

The changes in authorities available for use are illustrated in Graph 1 below.

Text alternative for: Comparison of Total Net Budgetary Authorities Available for Use as of December 31, 2024, and December 31, 2023 (in thousands of dollars)

	(In thousands of dollars)
Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
2024-25 (left side)	4,005,098	111	13,922,501	17,927,710
2023-24 (right side)	11,580,887	224	14,892,750	26,473,861
Variance	(7,575,789)	(113)	(970,249)	(8,546,151)

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.

2.2 Authorities used and actual expenditures

Actual expenditures during this quarter were $2,888.5 million, mainly due to the following:

Vote 1 – Operating

• Payment related to the remediation and care and maintenance of contaminated sites ($123 million); and
• Compensation payment related to Federal Indian Boarding Homes Litigation (Percival) Settlement ($50 million).

Vote 10 – Grants and Contributions

• Payment related to agricultural benefits claims ($1,576 million); and
• Payment to 8 First Nations to settle various specific claims ($641 million).

CIRNAC's year-to-date expenditures for the quarter ended December 31, 2024, was $7,575.4 million as compared to $8,114.1 million in 2023-24 for the same period, representing a decrease of $538.7 million (7%). This change mainly consists of a decrease of $2,879.4 million in Vote 1 – Operating, offset by an increase of $2,344.0 million in Vote 10 – Grants and Contributions. The changes in actuals can be mainly attributed to:

Vote 1 – Operating (-$2,879.4 million)

• A decrease in the compensation payments for the Gottfriedson Band Class Settlement (-$2,825 million).

Vote 10 – Grants and Contributions (+$2,344.0 million)

• An increase in payments made for agricultural benefits claims (+$1,808 million); and
• An increase in payments made to settle specific claims (+$427 million).

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.