Quarterly Financial Report - 2026-2027 - 1st quarter

© National Film Board of Canada, 2026
Quarterly Financial Report for the quarter ended June 30, 2026
Cat no. NF2-2E-PDF
ISSN 2818-0062

1. Introduction

The National Film Board (NFB) was created by an act of Parliament in 1939. A federal cultural agency within the Canadian Heritage portfolio, the NFB exists to produce and distribute original, innovative audiovisual works that raise awareness of Canadian values and viewpoints and the issues of interest to Canadians – across the country and around the world. The NFB serves Canadians by producing and making accessible, in all regions of the country and on all available platforms, rich and diverse cultural content that would not be produced otherwise and that reflects Canada’s rapidly shifting demographic profile. A brief description of the agency’s activities for the current year can be found in Part II of the Main Estimates.

This quarterly report has been prepared by management as required by Section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read together with the Main Estimates.

This quarterly report has not been subject to an external audit or review.

2. Basis of Presentation

This quarterly report has been prepared by management using expenditure accounting. The accompanying Statement of Authorities includes the agency’s spending authorities granted by Parliament and those used by the agency consistent with the Main Estimates and Supplementary Estimates for the 2026-2027 fiscal year. The 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 of Canada. Approvals are given in the form of annually approved limits through the Appropriation Act or through legislation in the form of statutory spending authority for specific purposes.

When Parliament is dissolved for the purpose 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 NFB uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

3. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

This section highlights the principal factors that contributed to the variances between projected and actual expenditures and expected and earned revenues for the period ended June 30, 2026.

The graphic above shows the total budgetary authorities granted to the NFB for fiscal year 2026-2027 with projected gross expenditures totalling $ 89.6 million.

Table 2, (below), shows expenditures and revenues for the first quarter of 2026-2027. Here is an overview of the key items to be noted:

Variance in Revenues

The revenues recorded during this 1^st quarter of 2026-2027 total $0.8 million comparable to the previous year.

Variation in Expenditures

Gross expenditures of the 1st quarter of 2026-2027 remained consistent with those recorded in the same quarter of fiscal year 2025-2026, totalling $18.8 million.

The increase in personnel expenditures is attributable to the higher Employee Benefit Plan contribution rate, which rose from 25.1% to 26.6% this year, as well as to the payment of severance benefits related to workforce adjustment measures.

The decrease in information expenditures is mainly due to the Stream Canadian advertising campaign conducted during the first quarter of 2025–26. The campaign aimed to increase awareness and reach of the NFB while promoting Canadian identity through its online viewing platform, NFB.ca.

The decrease in professional and special services expenditures is primarily attributable to lower costs incurred for projects in the production phase, as these expenditures fluctuate according to projects life cycle.

The increase in rental expenditures is mainly due to higher software licensing and support costs, as well as billing delays.

The decrease in expenditures related to the acquisition of machinery and equipment is attributable to larger technology equipment purchases made early in the previous fiscal year, whereas acquisitions planned for the current year will occur later in the fiscal cycle.

4. Risks and Uncertainties

The need to innovate, create and collaborate remotely

The Technology Branch will continue its strategic investments in alignment with the NFB’s 2025-2028 Strategic Plan. It will update its five-year investment plan annually to ensure the ongoing maintenance and advancement of infrastructure, digital platforms, and production environments. These investments will help improve the accessibility, security, and discoverability of content, further the digitization and enhancement of the NFB’s collection, and support the transformation of digital services for the organization’s audiences and partners.

Artificial intelligence also represents a strategic opportunity to enhance the NFB’s capacity for innovation. Through a responsible approach aligned with its values, the organization will continue to evaluate, test, and gradually integrate AI solutions that can improve the discoverability of works, the enhancement of audiovisual heritage assets, knowledge management, data analysis, and the efficiency of organizational processes. In doing so, the NFB aims to remain at the forefront of the technological transformations shaping the creative, cultural, and media sectors.

Through its Innovation Lab, the Technology Branch will continue exploring and experimenting with new technological approaches that support the creation, distribution, preservation, and promotion of audiovisual heritage. The Lab will play a key role in assessing the potential of artificial intelligence and other emerging technologies in areas such as content discoverability, knowledge management, data analytics, archive enhancement, and the improvement of organizational processes. The knowledge gained and the results of this work will be shared with NFB teams, as well as with industry partners and stakeholders, to help advance the Canadian audiovisual ecosystem.

The organization benefits from a modern and flexible digital infrastructure that facilitates secure access to services, promotes collaboration, and supports the effective management of information assets. The centralized management of audiovisual works through specialized platforms ensures their long-term preservation, distribution, and discoverability. Continued investment in digital transformation, information governance, and emerging technologies remains essential to ensuring service sustainability, organizational effectiveness, and the achievement of the NFB’s strategic objectives.

Financial and operational pressures

The NFB has been facing a multi-year structural budget deficit for several years. A number of financial pressures, primarily external, have caused expenditures to exceed the organization's cost structure. To address these immediate financial pressures, the NFB has received temporary funding to balance its operating budget from 2020-2021 through 2025-2026.

Budget 2025 provided the NFB with $26.1 million in funding over three years, beginning in 2026-2027. This investment gives the organization greater financial predictability, enabling it to stabilize its operations and continue fulfilling its mandate by supporting the production, distribution, and promotion of Canadian works.

5. Significant Changes Related to Operations, Personnel and Programs

Over the past year, the NFB has implemented its 2025-2026 action plan, which builds on its 2025-2028 three-year strategic plan, entitled "Transmitting our Past, Shaping our Future." This plan is a flagship document that reaffirms the NFB's mission: to promote, preserve and reflect Canadian identity while representing a mobilizing force for the country's creative community. This action plan is also aligned with the evolution of its structure, with the aim of redefining its working and collaboration methods around its core mandate as a public producer and distributor.

In May, Cynthia Miller was appointed Director General, People and Culture, and Chief Security Officer following the retirement of François Tremblay.

* Includes only Authorities available for use and granted by Parliament at quarter-end.

* Includes only Authorities available for use and granted by Parliament at quarter-end.