Quarterly Financial Report: Quarter ended September 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 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.

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 of accounting.

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 September 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 second quarter in 2025-26 is $13,057.9 million which is comprised of the Department's 2025-26 Main Estimates of $13,040.3 million, as well as the allotment adjustment related to the Operating and Capital Budget Carry Forwards of $17.6 million. Specifically, CIRNAC carried forward $17.5 million in operating budget from 2024-25 to 2025-26 and $22,124 in capital budget from the same period.

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

At the end of the second quarter in 2025-26, CIRNAC's total budgetary authorities available for use is $13,057.9 million which is $3,492.0 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 $1,026.4 million in Vote 1 – Operating. The changes in budgetary authorities are mainly attributed to:

Vote 1 - Operating (+$1,026.4 million), for items such as:

• 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 Day Schools (McLean) Settlement (-$1,333.1 million); and
• Funding for the Federal Indian Boarding Homes (Percival) litigation (-$300.6 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 authorities available for use are illustrated in Graph 1 below.

Text alternative for: Comparison of Authorities Available as at September 30, 2025 (in thousands of dollars)

	(In thousands of dollars)
Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
FY 2025-26	4,894,684	347	8,162,828	13,057,859
FY 2024-25	3,863,606	111	12,686,151	16,549,868
Variance	1,031,078	236	(4,523,323)	(3,492,009)

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 $2,729.3 million, mainly related to the following initiatives:

Vote 1 – Operating:

• Funding for the Exercise of Crown Discretion - Whitesand ($507.2 million)

Vote 10 – Grants and Contributions:

• Funding for Agricultural Benefits Claims ($918.2 million); and
• Specific Claims Settlement Fund ($744.8 million).

Compared to the previous fiscal year, total budgetary expenditures for the second quarter have increased by $697.3 million (14.9%) from $4,686.9 million as of September 30, 2024, to $5,384.2 million as of September 30, 2025. This total increase mainly consists of an increase of $363.4 million in Vote 1 – Operating, and an increase of $331.6 million in Vote 10 – Grants and Contributions. The changes in actual expenditures are mainly attributed to:

Vote 1 – Operating (+$363.4 million), for items such as:

• Funding for the Exercise of Crown Discretion - Whitesand (+$1,156,4 million); and
• Funding for the Federal Indian Day Schools (McLean) Settlement (-$750,0 million).

Vote 10 – Grants and Contributions (+$331.6 million), for items such as:

• Funding for Agricultural Benefits Claims (+$536.7 million); and
• Specific Claims Settlement Fund (-$192.7 million).

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