Public Services and Procurement Canada
Quarterly Financial Report for the quarter ended June 30, 2026
Statement outlining results, risks and significant changes in operations, personnel and programs.
On this page
- Introduction
- Highlights of fiscal quarter and fiscal year-to-date results
- Risks and uncertainties
- Significant changes to operations, personnel and programs
- Approval by senior officials
- Appendix: Statement of authorities and departmental budgetary expenditures by standard object
List of tables
- Table 1: Year-over-year variances in authorities available for use
- Table 2: Year-over-year variances in net budgetary expenditures (presented by standard object)
- Table 3: Statement of authorities (unaudited)
- Table 4: Departmental budgetary expenditures by standard object (unaudited)
Introduction
This Quarterly Financial Report (QFR) should be read in conjunction with the 2026 to 2027 Estimates (Main Estimates) and Supplementary Estimates. It has been prepared by management as required under section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Directive on Accounting Standards, Government of Canada (GC) 4400 departmental Quarterly Financial Report. It has not been subject to an external audit or review.
Public Works and Government Services Canada (PWGSC) was established effective June 20, 1996, under the Department of Public Works and Government Services Act. As of November 4, 2015, PWGSC started operating as Public Services and Procurement Canada (PSPC).
Public Services and Procurement Canada's mandate, which outlines what the department does and why it exists, is available on the department's website.
Further details on the department's authorities and core responsibilities can be found in the 2026 to 2027 Estimates (Main Estimates—Part II) and the Public Services and Procurement Canada's 2026 to 2027 Departmental Plan for the fiscal year ending March 31, 2027.
In this section
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting and a special-purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities. The accompanying Table 3: Statement of authorities (unaudited) includes the department's spending authorities granted by Parliament, and those used by the department and are consistent with the Main Estimates and Supplementary Estimates for the current fiscal year.
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 method of accounting 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.
Public Services and Procurement Canada's financial structure
PSPC delivers on its mandate through a variety of funding mechanisms. These include budgetary authorities that are comprised of voted authorities (operating expenditures, vote-netted revenues and capital expenditures) and statutory authorities mainly composed of revolving funds, employee benefit plans and payments in lieu of taxes (PILT). Funding also includes non-budgetary authorities consisting primarily of the Seized Property Working Capital Account (Managing seized property).
PSPC also operates on a cost-recovery basis through revolving fund organizations and programs within the operating vote, which provide services to other government organizations, and recover their operating costs through generated revenues in accordance with the Guide to Internal Charging and Special Financial Authorities. In addition, as part of its Real property services and parliamentary infrastructure program, PSPC manages large-scale real property projects, which progress through multiple phases resulting in uneven expenditure patterns throughout the year.
As a result of PSPC's complex financial structure, significant fluctuations in authorities may occur on a quarterly basis, which are due to timing differences that are resolved by year-end.
Highlights of fiscal quarter and fiscal year-to-date results
This section highlights the financial results and explanations for variances between the fiscal quarter and fiscal year-to-date ended on June 30, 2026, compared with the same period of the previous year.
In this section
Significant changes to authorities
As presented in Table 3: Statement of authorities (unaudited), year-to-date PSPC authorities available for use decreased by $1,230.7 million as compared to the same quarter of the previous year ($6,032.6 million in the current fiscal year compared to $7,263.3 million in the previous fiscal year). The items responsible for the overall decrease are outlined in Table 1: Year-over-year variances in authorities available for use, followed by a description for each variance.
| Initiatives | Operating | Capital | Budgetary statutory authorities | Total variance |
|---|---|---|---|---|
| Planning and investment in PSPC's assets portfolio | (47.3) | (1,165.2) | (0.2) | (1,212.7) |
| Comprehensive Expenditure Review | (73.7) | 0 | (23.8) | (97.5) |
| Advertising programs | 75.0 | 0 | 0 | 75.0 |
| Other | (41.8) | 0 | 46.3 | 4.5 |
| Cumulative variance in authorities available for use | (87.8) | (1,165.2) | 22.3 | (1,230.7) |
Groupings can change between quarters due to materiality of initiatives.
Amounts may not balance with other public documents due to rounding.
Planning and investment in Public Services and Procurement Canada's assets portfolio: decrease of $1,212.7 million
The decrease reflects the department's current funding approval to deliver on its long-term capital funding plan. The department will seek updated approval as required in order to maintain the quality of its infrastructure for the benefit of all Canadians.
Comprehensive Expenditure Review: decrease of $97.5 million
Budget 2025 announced the Comprehensive Expenditure Review (CER) aimed at reducing inefficiency and focusing on core priorities, thereby returning government spending to sustainable levels. To meet up to 15% in savings targets over three years, PSPC will undertake strategic realignments to reduce program operation costs and efficiently deliver services as a common service provider for the government.
Advertising programs: increase of $75.0 million
The increase is for the Emerging Needs Fund to manage advertising on behalf of other federal government departments to address urgent and/or unforeseen issues.
Other: increase of $4.5 million
The increase is the result of funding variances in various projects and activities, some of which reflect timing variances or changes in incremental funding.
Significant changes to year-to-date net expenditures
As presented in Table 4: Departmental budgetary expenditures by standard object (unaudited), year-to-date total net budgetary expenditures have increased by $75.9 million as compared to the same quarter of the previous year ($1,696.5 million in the current fiscal year compared to $1,620.6 million in the previous fiscal year).
| Standard object | June 30, 2026 year-to-date used at quarter-end | June 30, 2025 year-to-date used at quarter-end | Year-over-year variance |
|---|---|---|---|
| Personnel | 516.6 | 548.4 | (31.8) |
| Transportation and communications | 21.8 | 17.9 | 3.9 |
| Information | 4.4 | 1.9 | 2.5 |
| Professional and special services | 382.9 | 399.9 | (17.0) |
| Rentals | 333.4 | 366.6 | (33.2) |
| Repair and maintenance | 215.4 | 189.0 | 26.4 |
| Utilities, materials and supplies | 16.0 | 17.3 | (1.3) |
| Acquisition of land, buildings and works | 130.6 | 118.0 | 12.6 |
| Acquisition of machinery and equipment | 14.4 | 9.0 | 5.4 |
| Transfer payments | 426.5 | 436.7 | (10.2) |
| Public debt charges | 21.6 | 21.3 | 0.3 |
| Other subsidies and payments | 56.7 | 59.1 | (2.4) |
| Revenues netted against expenditures | (443.8) | (564.5) | 120.7 |
| Total net budgetary expenditures | 1,696.5 | 1,620.6 | 75.9 |
Comparative figures have been reclassified to conform to the current year's presentation.
Amounts may not balance with other public documents due to rounding.
The year-over-year variance is mainly attributable to:
-
personnel: decrease of $31.8 million
- the decrease is mainly attributable to reduced salary costs resulting from employee departures, vacant positions and lower spending under the CER, as well as timing difference of transactions related to retroactive pay
- the decrease is partially offset by increased expenditures to support the continued implementation of the Next Generation Human Resources and Pay system initiative
-
professional and special services: decrease of $17.0 million
- PSPC's mandate as real property manager includes entering into multi-year projects that require specialized skills and technical expertise which are not always available within the department
- professional and special services fluctuate with the progress of major property and infrastructure projects
- as such, the decrease is mainly attributable to
- reduced expenditures under the Real Property Services Revolving Fund (RPSRF) related to Giant Mine Remediation Project in Western region and services provided in the previous year in support of the 2025 G7 Summit hosted by Canada
- the West Memorial Building rehabilitation project in the National Capital Region (NCR) which is nearing completion
- the decrease is partially offset by increased expenditures related to the continued implementation of the Long Term Vision and Plan (LTVP), a multi-decade strategy to restore and modernize Canada's Parliamentary Precinct, such as the Centre Block Rehabilitation Program which includes the construction of the new Parliament Welcome Centre
- although PSPC has noted an increase in some construction services, it continues to monitor professional and special services spending and is reducing expenditures on management consulting
- PSPC's mandate as real property manager includes entering into multi-year projects that require specialized skills and technical expertise which are not always available within the department
-
rentals: decrease of $33.2 million
- the decrease is mainly due to accommodation services required in the previous year in support of the 2025 G7 Summit
-
repair and maintenance: increase of $26.4 million
- the increase is mainly due to
- repairs, operations and utility requirements for PSPC's property portfolio within the NCR, as well as road maintenance projects in different sections of the Alaska Highway in Pacific region
- work performed via the RPSRF for other government departments such as channel dredging in small craft harbours in Atlantic region
- the increase is mainly due to
-
revenues netted against expenditures: decrease of $120.7 million
- the decrease is primarily driven by
- revenues from accommodation services provided to other government departments which were received later this fiscal year compared to the previous one
- revenues from digital services and some linguistic services which were lower due to timing difference in invoicing
- reduced revenues reported by the RPSRF resulting from cost recoveries for services provided to other government departments in support of the 2025 G7 Summit, which was completed in the previous fiscal year
- the decrease is primarily driven by
Risks and uncertainties
PSPC integrates risk management principles and practices into business planning, decision-making and organizational processes to identify threats and minimize negative impacts, and maximize opportunities across its diverse range of services and operations. Risk management at PSPC is carried out in accordance with the Treasury Board of Canada Secretariat's Framework for the Management of Risk, Risk and Compliance Process, and PSPC's Integrated Risk Management Framework.
PSPC's departmental risk profile identified the following key risks, as having a potential financial impact on its operations:
In this section
Funding mechanism
PSPC may be unable to achieve its departmental investment objectives and targets, due to the variety of funding mechanisms employed by the department and the need to have better tools to effectively implement the OnePSPC concept, which may impede on-going relationships with clients and the efficiency and effectiveness of the department's programs and services. To mitigate this risk, PSPC is taking the following measures, among others:
- improving PSPC's Investment Management Framework and associated governance, further refining an enterprise-wide prioritization model for all of PSPC's asset portfolios and aligning resources to priorities
- implementing Project Costing Model Modernization initiative, with focus on 4 key deliverables
- PSPC Integrated Project Costing Framework
- Monte Carlo simulation model
- costing guides and tools
- project gating amendments
Global supply
PSPC's service delivery may encounter challenges due to the impact of disruptions to trading relationships, the increasing price of commodities, increasing uncertainties in supply chains, and the security of those supply chains caused by geopolitical tensions, which could impact stakeholder trust and our clients' ability to achieve their policy and program objectives, and the public's trust in the Government of Canada. To mitigate this risk, PSPC is taking the following measures, among others:
- continuing to use the Defence Procurement Strategy and National Shipbuilding Strategy governance to tackle challenges, including early engagement with industry and shipyards
- continuing consistent and strong communication with allied partners, and strategic oversight between programs, to ensure effective supply chain management
- continuing to implement the Sustainment Initiative principles for defence procurement by providing procurement professionals with support in the development of sustainment solutions, including
- engagement
- training
- best practices and tools
- where possible explore options to have sustainment provided in Canada by Canadian industry
Effective delivery
PSPC may encounter delays to achieving full stabilization of pay administration for the Government of Canada (including pay processing and transfer of information to the pension administrator) as a result of the sustained increase in Human Resources (HR) and pay events for public servants while facing capacity constraints which could further impede efforts to increase stakeholder trust and lessen liabilities to the Government of Canada. To mitigate this risk, PSPC is taking the following measures, among others:
- advancing progress on queue management, including maintaining intake service standards while completing all critical backlog cases (that is, backlog cases with the biggest impact on employees either financially or due to age)
- continuing to implement a multi-year roadmap for
- MyGCPay future enhancements
- robotics process automation projects and further data enhancements
- exploring innovative solutions such as leveraging artificial intelligence to help manage workload
- seeking resolution of longstanding critical pay (Phoenix) data issues impacting pension
- continuing to seek realignment of pay and pension employment and contribution data by leveraging the Innovation Garage interface solution
Compromised assets
The integrity, safety and accessibility of PSPC real property and infrastructure assets could be compromised by climate change, natural disasters, infrastructure deterioration and original design deficiencies, as well as human related actions which may impede the continuity of government operations and the wellbeing of Canadians. To mitigate this risk, PSPC is taking the following measures, among others:
- continuing to implement adaptation measures that are recommended in the Parliamentary Precinct Climate Change Adaptation Plan, such as
- designing cooling and ventilation systems for hotter summers
- enhancing drainage systems to manage more frequent intense rainfall events
- continuing to deliver various projects to
- preserve buildings
- prevent or reduce ongoing deterioration
- address urgent repair needs
- resolve health and safety issues
- minimize the cost and complexity of future work
Supply and delivery
The effective and efficient delivery of major PSPC initiatives may be impeded due to the nature of large-scale and complex work (project scale, complexities, partner dependencies, evolving security requirements) along with current global events (inflation, supply delays and industry capacity limitations) which may affect the department's credibility with stakeholders. To mitigate this risk, PSPC is taking the following measures, among others:
- continuing early industry engagement throughout the procurement process to ensure industry has advanced awareness of projects to effectively plan and build sufficient capacity to bid on contracts
- continuing to implement the Science Portfolio Planning and Operating Framework through enterprise and costing analysis, while exploring strategies and solutions to fund lifecycle costs to advance proposed funding and operating models
- structuring, financing and accelerating fit-up to deliver and optimize real property's portfolio
Significant changes to operations, personnel and programs
The following changes have occurred since the last published quarterly financial report:
- Francis Trudel was appointed Associate Deputy Minister, effective March 23, 2026, replacing Michael Mills, who assumed responsibility for supporting the establishment and management of the Defence Investment Agency (DIA)
- Alex Benay left his role as Associate Deputy Minister, Human Capital Management Solutions Branch, effective April 6, 2026, to pursue an opportunity outside of the federal government
- pursuant to Order in Council 2026‑0402 dated April 29, 2026, the responsibility for the management of the HR systems and the associated work units was transferred from five departments to PSPC, effective between April to June 2026
Approval by senior officials
Original signed by:
Arianne Reza
Deputy Minister
Gatineau, Canada
August 27, 2026
Michael Hammond, CPA
Chief Financial Officer and
Assistant Deputy Minister
Gatineau, Canada
August 20, 2026
Appendix: Statement of authorities and departmental budgetary expenditures by standard object
| Breakdown by authorities | Total available for use for the year ending March 31, 2027Table 3 note 1Table 3 note 2 | Used during the quarter ended June 30, 2026 for fiscal year ending March 31, 2027 | Year-to-date used at quarter-end for fiscal year ending March 31, 2027 | Total available for use for the year ending March 31, 2026Table 3 note 1Table 3 note 2 | Used during the quarter ended June 30, 2025 for fiscal year ending March 31, 2026 | Year-to-date used at quarter-end for fiscal year ending March 31, 2026 |
|---|---|---|---|---|---|---|
| Vote 1: gross operating expenditures | 5,135,140 | 988,714 | 988,714 | 5,181,956 | 1,001,985 | 1,001,985 |
| Vote 1: vote-netted revenues | (1,488,086) | (213,000) | (213,000) | (1,447,120) | (295,546) | (295,546) |
| Vote 1: net operating expenditures | 3,647,054 | 775,714 | 775,714 | 3,734,836 | 706,439 | 706,439 |
| Vote 5: capital expenditures | 2,148,696 | 298,926 | 298,926 | 3,313,865 | 282,443 | 282,443 |
| Real Property Services revolving fund: gross expenditures | 2,692,293 | 338,340 | 338,340 | 2,687,023 | 371,779 | 371,779 |
| Real Property Services revolving fund: revenues | (2,679,304) | (209,514) | (209,514) | (2,686,323) | (236,875) | (236,875) |
| Real Property Services revolving fund: net expenditures | 12,989 | 128,826 | 128,826 | 700 | 134,904 | 134,904 |
| Translation Bureau revolving fund: gross expenditures | 150,816 | 30,865 | 30,865 | 172,705 | 30,702 | 30,702 |
| Translation Bureau revolving fund: revenues | (141,547) | (17,675) | (17,675) | (166,894) | (26,625) | (26,625) |
| Translation Bureau revolving fund: net expenditures | 9,269 | 13,190 | 13,190 | 5,811 | 4,077 | 4,077 |
| Optional Services revolving fund: gross expenditures | 60,376 | 5,156 | 5,156 | 32,062 | 9,194 | 9,194 |
| Optional Services revolving fund: revenues | (59,900) | (3,586) | (3,586) | (33,226) | (5,408) | (5,408) |
| Optional Services revolving fund: net expenditures | 476 | 1,570 | 1,570 | (1,164) | 3,786 | 3,786 |
| Total of all revolving funds: gross expenditures | 2,903,485 | 374,361 | 374,361 | 2,891,790 | 411,675 | 411,675 |
| Total of all revolving funds: revenues | (2,880,751) | (230,775) | (230,775) | (2,886,443) | (268,908) | (268,908) |
| Total revolving fund: net expenditures | 22,734 | 143,586 | 143,586 | 5,347 | 142,767 | 142,767 |
| Other budgetary statutory authorities: contributions to employee benefit plans | 213,328 | 51,710 | 51,710 | 208,751 | 52,188 | 52,188 |
| Other budgetary statutory authorities: minister of Public Services and Procurement—Salary and motor vehicle allowance | 106 | 26 | 26 | 102 | 25 | 25 |
| Other budgetary statutory authorities: secretary of State of Public Services and Procurement—Motor vehicle allowance | 2 | 1 | 1 | 0 | 0 | 0 |
| Other budgetary statutory authorities: refunds of amounts credited to revenues in previous years | 0 | 0 | 0 | 0 | 0 | 0 |
| Other budgetary statutory authorities: spending of proceeds from the disposal of surplus Crown assets | 680 | 0 | 0 | 367 | 0 | 0 |
| Other budgetary statutory authorities: collection agency fees | 0 | 0 | 0 | 0 | 0 | 0 |
| Other budgetary statutory authorities: payment in lieu of taxes to municipalities and other taxing authoritiesTable 3 note 2 | 0 | 426,550 | 426,550 | 0 | 436,732 | 436,732 |
| Total other budgetary statutory authorities | 214,116 | 478,287 | 478,287 | 209,220 | 488,945 | 488,945 |
| Total budgetary authorities | 6,032,600 | 1,696,513 | 1,696,513 | 7,263,268 | 1,620,594 | 1,620,594 |
| Non-budgetary authorities | 0 | 0 | 0 | 0 | 0 | 0 |
| Total authorities | 6,032,600Table 3 note 3 | 1,696,513 | 1,696,513 | 7,263,268Table 3 note 3 | 1,620,594 | 1,620,594 |
Table 3 notes
|
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| Breakdown by standard object | Planned expenditures for the year ending March 31, 2027Table 4 note 1Table 4 note 2 | Expended during the quarter ended June 30, 2026 for fiscal year ending March 31, 2027 | Year-to-date used at quarter-end for fiscal year ending March 31, 2027 | Planned expenditures for the year ending March 31, 2026Table 4 note 1Table 4 note 2 | Expended during the quarter ended June 30, 2025 for fiscal year ending March 31, 2026 | Year-to-date used at quarter-end for fiscal year ending March 31, 2026 |
|---|---|---|---|---|---|---|
| Expenditures: personnel | 2,110,885 | 516,557 | 516,557 | 2,187,301 | 548,377 | 548,377 |
| Expenditures: transportation and communications | 102,153 | 21,813 | 21,813 | 114,085 | 17,880 | 17,880 |
| Expenditures: information | 100,993 | 4,428 | 4,428 | 27,463 | 1,908 | 1,908 |
| Expenditures: professional and special services | 3,087,778 | 382,939 | 382,939 | 3,630,910 | 399,898 | 399,898 |
| Expenditures: rentals | 1,408,398 | 333,367 | 333,367 | 1,417,271 | 366,645 | 366,645 |
| Expenditures: repair and maintenance | 1,489,508 | 215,381 | 215,381 | 1,719,769 | 189,014 | 189,014 |
| Expenditures: utilities, materials and supplies | 174,357 | 16,037 | 16,037 | 163,377 | 17,309 | 17,309 |
| Expenditures: acquisition of land, buildings and works | 1,191,961 | 130,576 | 130,576 | 1,573,468 | 117,953 | 117,953 |
| Expenditures: acquisition of machinery and equipment | 140,948 | 14,380 | 14,380 | 160,307 | 9,014 | 9,014 |
| Expenditures: transfer paymentsTable 4 note 2 | 0 | 426,550 | 426,550 | 0 | 436,724 | 436,724 |
| Expenditures: public debt charges | 109,890 | 21,604 | 21,604 | 119,275 | 21,266 | 21,266 |
| Expenditures: other subsidies and payments | 484,566 | 56,656 | 56,656 | 483,605 | 59,060 | 59,060 |
| Total gross budgetary expenditures | 10,401,437 | 2,140,288 | 2,140,288 | 11,596,831 | 2,185,048 | 2,185,048 |
| Less revenues netted against expenditures: revolving funds revenues | (2,880,751) | (230,775) | (230,775) | (2,886,443) | (268,908) | (268,908) |
| Less revenues netted against expenditures: vote-netted revenues | (1,488,086) | (213,000) | (213,000) | (1,447,120) | (295,546) | (295,546) |
| Total revenues netted against expenditures | (4,368,837) | (443,775) | (443,775) | (4,333,563) | (564,454) | (564,454) |
| Total net budgetary expenditures | 6,032,600 | 1,696,513 | 1,696,513Table 4 note 3 | 7,263,268 | 1,620,594 | 1,620,594Table 4 note 3 |
Table 4 notes
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© His Majesty the King in Right of Canada, as represented by the Minister of Public Services and Procurement Canada, 2026
ISSN: 2819-2117