Quarterly Financial Report: Quarter ended June 30, 2025

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.

The responsibility for CIRNAC is shared between the Minister of Crown-Indigenous Relations and the Minister of Northern and Arctic Affairs.

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 for the 2025–26 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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: Approval from Parliament or from a special Governor General warrant 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.

2.1 Authorities available for use

This section highlights the financial results for the quarter and fiscal year to date ended June 30, 2025, 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 first quarter of 2025–26 is $13,040.3 million. This total reflects the Department's 2025–26 Main Estimates. Unlike in previous years, no other significant adjustments to authorities were made during the first quarter.

2.1.1 Highlights of changes in authorities available for use (2025-26 compared to 2024-25)

At the end of the first quarter of 2025-26, CIRNAC's total budgetary authorities available for use are $13,040.3 million which is $3,490.3 million (21%) lower than the same period in 2024-25. This total decrease mainly consists of a decrease of $4,523.3 million in Vote 10 – Grants and Contributions offset by an increase of $1,028.1 million in Vote 1 – Operating. The changes in authorities can be attributed to:

Vote 1 - Operating (+$1,028.1 million)

• Funding for the Exercise of Crown Discretion - Whitesand (+$1,820.0 million);
• Funding for the Federal Indian Hospitals (Hardy) litigation (+$836.5 million);
• Funding for the Federal Indian Boarding Homes (Percival) litigation (-$300.6 million); and
• Funding for the Federal Indian Day Schools (McLean) Settlement (-$1,333.1 million)

Vote 10 – Grants and Contributions (-$4,523.3 million)

• Funding for agricultural benefits claims (-$4,571 million).
• Funding for Specific Claims Settlement Fund (-$1,017.6 million);
• Funding to settle land-related claims and litigation (+$669.2 million); and
• Funding to settle land-related claims (+$563.8 million)

The changes in Total Net Budgetary Authorities Available for Use are illustrated in Graph 1 below.

Text alternative for: Comparison of Total Net Budgetary Authorities Available for Use as of June 30, 2025 and June 30, 2024 (in thousands of dollars)

	(In thousands of dollars)
Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
2025-26 (left side)	4,877,148	325	8,162,828	13,040,301
2024-25 (right side)	3,844,383	75	12,686,151	16,530,609
Variance	1,032,765	250	(4,523,323)	(3,490,308)

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

CIRNAC's year-to-date expenditures for the quarter ended June 30, 2025, was $2,654.8 million as compared to $2,836.9 million in 2024-25 for the same period, representing a decrease of $182.2 million (6%). This change primarily consists of a $240.8 million increase in Vote 1 – Operating, which was offset by a $424.2 million decrease in Vote 10 – Grants and Contributions. The changes in actuals can be mainly attributed to:

A net increase in Compensation payments under Vote 1 – Operating (+$240.8 million) for:

• Land-related claims and litigation settlements (+$632 million); and,
• Federal Indian Day School (McLean) Settlement (-$400.0 million).

This increase is offset by a decrease in Vote 10 – Grants and Contributions (-$424.2 million) for the following payments:

• Specific claims Fund (-$296 million); and,
• Loan forgiveness and reimbursement of comprehensive land claim negotiation loans and the reform of the Negotiation Support Funding Program (-$94 million).

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