Treasury Board of Canada Secretariat Quarterly Financial Report for the Quarter Ended June 30, 2026

1.1 Basis of presentation

This report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Treasury Board of Canada Secretariat’s (TBS’s) spending authorities granted by Parliament and those used by TBS, consistent with the Main Estimates and the Supplementary Estimates (A) for the fiscal year ending March 31, 2027. This 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.

TBS uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.2 Raison d’être

TBS is the central agency that acts as the administrative arm of the Treasury Board, a committee of Cabinet. TBS supports the Treasury Board in the following principal roles:

1.3 TBS’s financial structure

TBS manages both departmental and Treasury Board central votes. Its departmental operating expenditures and revenues are managed under Vote 1, Program expenditures.

This quarterly report highlights the financial results of:

• Vote 1, Program expenditures, related to the delivery of TBS’s mandate
• Vote 20, Public Service Insurance, provides the employer’s share of group benefit plan coverage costs as part of the Treasury Board’s role as the employer of the core public administration. These plans include:
  • Public Service Health Care Plan
  • Public Service Dental Care Plan
  • Pensioners’ Dental Services Plan
  • Disability Insurance Plan
  • provincial payroll taxes (British Columbia, Manitoba, Newfoundland and Labrador, Ontario, and Quebec)
  • Public Service Management Insurance Plan
• statutory authorities that mainly reflect contributions to employee benefit plans

Central vote funding is transferred from TBS to individual departments and agencies once specified criteria are met. These amounts are reflected in each recipient’s financial reports. TBS also receives funding from central votes into its own Vote 1 (Program expenditures). Unused central vote funding is returned to the Consolidated Revenue Fund.

TBS manages seven central votes:

• Vote 5, Government contingencies, supplements other appropriations to provide federal departments and agencies with temporary advances for urgent or unforeseen departmental expenditures between parliamentary supply periods
• Vote 10, Government-wide initiatives, supplements other appropriations to support the implementation of strategic management initiatives across the federal public service
• Vote 15, Compensation adjustments, supplements other appropriations to provide funding for adjustments made to terms and conditions of service or employment of the federal public administration as a result of collective bargaining
• Vote 25, Operating budget carry-forward, supplements other appropriations for the carry-forward of unused operating funds from the previous fiscal year, up to 5% of the gross operating budget in an organization’s Main Estimates
• Vote 30, Paylist requirements, supplements other appropriations to meet legal requirements for the government as employer for items such as parental benefits and severance payments
• Vote 35, Capital budget carry-forward, supplements other appropriations for the carry-forward of unused capital funds from the previous fiscal year, up to 20% of an organization’s capital vote
• Vote 50, Defence and security initiatives, provides departments with temporary advances for national defence or national security expenditures between Parliamentary supply periods

Expenditures incurred against statutory authorities mainly reflect the government’s obligation to pay the employer’s share of the Public Service Pension Plan, the Canada Pension Plan and the Québec Pension Plan, Employment Insurance premiums, and public service death benefits. TBS recovers from other government departments and agencies their share of the employer contributions under the Public Service Superannuation Act and is subsequently charged by Public Services and Procurement Canada for actual expenditures in the same statutory vote. Adjustments are made at year-end to individual departments’ statutory votes (including those of TBS) for the difference between periodic recoveries and actual expenditures. At year-end, the net effect on TBS’s financial statements will be zero.

2.1 Statement of voted and statutory authorities

Total budgetary authorities available for use increased by $1,000 million (23.1%) compared to the previous fiscal year:

• Vote 1 authorities decreased by $14.7 million
• Vote 20 authorities increased by $1,000 million
• Statutory authorities increased by $1.4 million

The following table provides a detailed explanation of these changes.

2.2 Statement of departmental budgetary expenditures by standard object

For the fiscal quarter and year-to-date budgetary expenditures as of June 30, 2026, decreased by $89.9 million (-8.9%) compared to the same period in the previous year:

• Vote 1 expenditures increased by $5.3 million
• Vote 20 expenditures decreased by $44.6 million
• statutory payments decreased by $50.6 million

The following table provides a detailed explanation of these changes by vote and by standard object.

3.1 Financial management

Reduced financial flexibility may constrain the department's ability to fund priorities, sustain delivery capacity, and respond to future operational pressures. To mitigate the risk, TBS will prioritize investments that address strategic priorities and support core operations, strengthen financial monitoring, and reallocate resources from lower priorities to areas of greatest need.

3.2 Workforce

Reduced workforce capacity resulting from attrition in key positions and shifting departmental priorities may constrain the department's ability to deliver priority initiatives, sustain operational effectiveness, and respond to emerging demands. To mitigate this risk, TBS will proactively monitor workforce trends, align staffing actions with business needs, and redeploy talent to areas of greatest operational priority.

3.3 Information technology

Delays in modernizing legacy information technology systems may increase operational vulnerabilities, reduce service reliability, and constrain the department's ability to implement new digital capabilities, including emerging technologies such as artificial intelligence. To mitigate this risk, TBS will prioritize technology investments, advance key renewal initiatives, and leverage governance and planning processes to support timely modernization decisions.

4.1 Operations and programs

There were no significant changes to operations and programs during the quarter.

4.2 Personnel

There were no significant changes in personnel during the quarter.