Canada Revenue Agency Quarterly Financial Report For the quarter ended June 30, 2024
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Canada Revenue Agency Quarterly Financial Report For the quarter ended June 30, 2024
On this page
- Statement outlining results, risks and significant changes in operations, personnel and program
- Highlights of the fiscal year-to-date (YTD) results
- YOY analysis of authorities
- YOY analysis of expenditures
- Risks and uncertainties
- Approval by Senior Officials
Statement outlining results, risks and significant changes in operations, personnel and program
Introduction
This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act in the form and manner prescribed by the Treasury Board. This report should be read in conjunction with the Main Estimates.
Further details on the Canada Revenue Agency’s (CRA) program activities can be found in the Departmental Plan.
Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the CRA's spending authorities granted by Parliament and those used by the CRA consistent with the Main Estimates for the 2024-2025 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 moneys can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation of statutory spending authority for specific purposes.
The CRA uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
This quarterly report has not been subject to an external audit or review.
Highlights of the fiscal year-to-date (YTD) results
Figure 1 below reflects the CRA's annual net authorities available for use, as well as the CRA’s YTD expenditures as at June 30, 2024.
The YTD spending as of Q1, in relation to the annual authorities, is approximately 25% in both years, illustrating that spending is trending as expected and no unusual year-over-year (YOY) variances have been noted.
The CRA’s annual net authorities and YTD expenditures have increased primarily due to the Canada Carbon Rebate (CCR). Further analysis of authorities and expenditures is presented below.
The Agency’s annual authorities available for use as of June 30 and cumulative expenditures for 2023-2024 and 2024-2025
Figure 1 – details
| Year | Authority/Expenditure | Total Authorities Excluding Statutory Items | Statutory | Total |
|---|---|---|---|---|
| 2023-2024 | Authorities | $5,423,524 | $10,359,586 | $15,783,110 |
| Expenditures | $1,124,680 | $2,379,164 | $3,503,844 | |
| 2024-2025 | Authorities | $5,217,080 | $12,924,918 | $18,141,998 |
| Expenditures | $1,423,888 | $3,058,035 | $4,481,923 |
Note 1: Amounts in Figure 1 may not correspond exactly to amounts listed in the report due to rounding.
Note 2: Statutory authorities include the CCR, Distribution of Fuel and Excess Emission Charges – Provinces and Territories, Distribution of Fuel and Excess Emission Charges – Farming Businesses, Contributions to employee benefit plan, Children’s Special Allowance payments, spending of revenues received, and the Minister’s salary and motor car allowance.
YOY analysis of authorities
This report reflects the results for the current fiscal year in relation to the Main Estimates and authorities available for use from the prior fiscal year. As shown in the summarized table below, the CRA’s total Budgetary Authorities have increased by $2,359M ($2.4B) since the first quarter of 2023-2024, from $15,783M ($15.7B) in 2023-2024, to $18,142M ($18.1B) in 2024-2025.
| (in millions of dollars) | Total available for use for the year ending March 31, 2025 | Total available for use for the year ending March 31, 2024 | Variance in budgetary authorities |
|---|---|---|---|
|
Budgetary Statutory Authorities |
$12,925M |
$10,359M |
$2,565M |
|
The increase in Budgetary Statutory Authorities is mostly related to an adjustment in the estimate from the Department of Finance of fuel charge proceeds to be returned to the province or territory of origin, primarily through the CCR, $2,573M |
|||
|
Gross Vote 1 – Operating Authorities |
$5,556M |
$5,706M |
($150M) |
|
The decrease in Gross Vote 1 Operating Authorities is primarily related to the following:
|
|||
|
Vote 5 – Capital Authorities |
$143M |
$158M |
($14M) |
|
The decrease in Vote 5 Capital Authorities is related to the following:
|
|||
|
Revenue Credited to the Vote (RCV) |
($482M) |
($440M) |
($42M) |
|
The increase in RCV is primarily related to the increased pay rates in the new collective agreements |
|||
|
Total Budgetary Authorities |
$18,142M ($18.1B) |
$15,783M ($15.7B) |
$2,359M ($2.4B) |
This table is an extract of Appendix 1 of this report. Columns and rows may not add exactly due to rounding.
YOY analysis of expenditures
Expenditures by vote
The first quarter expenditures as at June 30, 2024 have increased by $978M ($1B) from $3,504M ($3.5B) in 2023-2024, to $4,482M ($4.5B) in 2024-2025, as displayed in the Statement of Authorities. The material components of this YOY change are explained below.
| (in millions of dollars) | YTD expenditures at June 30, 2024 | YTD expenditures at June 30, 2023 | Variance in YTD expenditures |
|---|---|---|---|
|
Budgetary Statutory Authorities |
$3,058M |
$2,379M |
$679M |
|
The majority of the increase in Budgetary Statutory Authorities is primarily related to an increase in quarterly CCR payments made to families and individuals, which reflects the increase in the price on carbon pollution under the federal carbon pollution pricing system as per the Department of Finance, $651M |
|||
|
Net Vote 1 – Operating Expenditures |
$1,409M |
$1,109M |
$300M |
|
The increase in Net Vote 1 Operating Expenditures is primarily related to the following: Salary
Operating and maintenance
|
|||
|
Vote 5 – Capital Expenditures |
$15M |
$15M |
- |
|
Total Budgetary Authorities |
$4,482M ($4.5B) |
$3,504M ($3.5B) |
$978M ($1B) |
This table is an extract of Appendix 1 of this report. Columns and rows may not add exactly due to rounding.
Expenditures by standard object
As mentioned previously, the material variances will be explained in the table below. The transfer payments standard object makes up the majority of the YOY variance in YTD expenditures with the other standard objects making up only a small portion.
| (in millions of dollars) | YTD expenditures at June 30, 2024 | YTD expenditures at June 30, 2023 | Variance in YTD expenditures |
|---|---|---|---|
|
Transfer Payments |
$2,896M |
$2,152M |
$744M |
|
The increase in Transfer Payments, is primarily related to an increase in the fuel charge proceeds returned to the province or territory of origin, primarily through the CCR, $735M |
|||
|
Personnel |
$1,394M |
$1,246M |
$148M |
|
The variance explanation noted in the Net Vote 1 salary section is also applicable to the Personnel standard object, in addition to variances in other items, including the Employee Benefit Plan |
|||
|
Other Standard Objects |
$314M |
$216M |
$99M |
|
Of the $99M increase, $92M is related to the professional services standard object. The following items relate to this variance specifically:
|
|||
|
Revenue Credited to the Vote |
($123M) |
($110M) |
$13M |
|
Total Budgetary Authorities |
$4,482M ($4.5B) |
$3,504M ($3.5B) |
$978M ($1B) |
- Transfer payments include the Children’s Special Allowance payments, CCR payments, Return of Fuel Charge Proceeds to Farming Businesses, and the Distribution of Fuel and Excess Emission charges.
- This table is an extract of Appendix 2 of this report. Columns and rows may not add exactly due to rounding.
Risks and uncertainties
The CRA strives to be a world-class tax and benefits administration that is trusted, fair, and helpful by putting people first. As such, the CRA continually monitors its internal and external environments for events that could affect whether it achieves its strategic priorities and objectives. The Board of Management monitors, and senior management receives, quarterly updates on the CRA’s Corporate Risk Profile, which involves regular monitoring of the entire risk portfolio. The CRA’s key risks and mitigation strategies are outlined in the 2024-2025 Departmental Plan.
The CRA recognizes that all of the key risks identified in the Departmental Plan could have financial impacts should they materialize. The key risks and associated mitigation strategies outlined in the Departmental Plan relate to the CRA’s 2024-2025 strategic priorities, which include the following:
- Deliver seamless client experiences and tailored interactions that are digital first
- Combat aggressive tax planning and tax evasion
- Strengthen security and safeguard privacy
- Nurture a high-performing, diverse, and inclusive workforce in a modern, flexible, and accessible workplace
Significant changes in relation to operations, personnel, and programs
During the first quarter of 2024-2025, the CRA continued to support all Canadians with accurate information, benefits, and services during tax filing season, while continuing to comply with the government-wide RGS reductions.
This year, the CRA has several Treasury Board submissions related to priorities that were announced in Budget 2024. If funding for these initiatives is not approved, the CRA will ensure it prioritizes any non-discretionary workloads.
The CRA’s 2024-2025 contribution to RGS, $58M, includes reductions for travel, professional services, and operating expenditures. In the upcoming years, the CRA will also be proactive in implementing the second phase of RGS, announced in Budget 2024.
Approval by Senior Officials
Approved by:
[original signed by]
________________________
Bob Hamilton, Commissioner
[original signed by]
_____________________________
Hugo Pagé, Chief Financial Officer
Ottawa, Canada
Date:
| (in thousands of dollars) | Total available for use for the year ending March 31, 2025table 4 note 1 | Used during the quarter ended June 30, 2024 |
Year-to-date used at quarter-end |
|---|---|---|---|
|
Vote 1 - Operating expenditures |
|||
|
Gross Operating expenditures |
$5,556,071 |
$1,532,228 |
$1,532,228 |
|
Revenues netted against expenditures |
$(482,414) |
$(122,990) |
$(122,990) |
|
Net Vote 1 - Operating expenditures |
$5,073,657 |
$1,409,238 |
$1,409,238 |
|
Vote 5 - Capital expenditures |
$143,423 |
$14,650 |
$14,650 |
|
Budgetary Statutory Authorities |
|||
|
Contributions to employee benefit plans |
$568,546 |
$142,137 |
$142,137 |
|
Children's Special Allowance payments (Children's Special Allowances Act) |
$396,000 |
$102,187 |
$102,187 |
|
Canada Carbon Rebate payments |
$11,358,000 |
$2,700,767 |
$2,700,767 |
|
Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act |
$338,773 |
$19,519 |
$19,519 |
|
Distribution of Fuel Charges - Provinces and Territories |
$60,000 |
$7,649 |
$7,649 |
|
Distribution of Fuel Charges - Farming Businesses |
$203,500 |
$85,567 |
$85,567 |
|
Minister's salary and motor car allowance |
$99 |
$25 |
$25 |
|
Court awards - Tax Court of Canada |
- |
$166 |
$166 |
|
Spending proceeds from the disposal of surplus Crown Assets |
- |
$19 |
$19 |
|
Energy Cost Benefit |
- |
$(1) |
$(1) |
|
Total Budgetary Statutory Authorities |
$12,924,918 |
$3,058,035 |
$3,058,035 |
|
Total Budgetary Authorities |
$18,141,998 |
$4,481,923 |
$4,481,923 |
This financial table compares the Agency’s total available authorities available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by voted authority. This table uses parentheses to show negative numbers.
| (in thousands of dollars) | Total available for use for the year ending March 31, 2024table 5 note 1 | Used during the quarter ended June 30, 2023 |
Year-to-date used at quarter-end |
|---|---|---|---|
|
Vote 1 - Operating expenditures |
|||
|
Gross Operating expenditures |
$5,706,407 |
$1,219,405 |
$1,219,405 |
|
Revenues netted against expenditures |
$(440,567) |
$(110,142) |
$(110,142) |
|
Net Vote 1 - Operating expenditures |
$5,265,840 |
$1,109,263 |
$1,109,263 |
|
Vote 5 - Capital expenditures |
$157,683 |
$15,417 |
$15,417 |
|
Budgetary Statutory Authorities |
|||
|
Contributions to employee benefit plans |
$585,813 |
$146,453 |
$146,453 |
|
Children's Special Allowance payments (Children's Special Allowances Act) |
$368,000 |
$92,661 |
$92,661 |
|
Canada Carbon Rebate payments |
$8,999,000 |
$2,050,028 |
$2,050,028 |
|
Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act |
$357,679 |
$80,718 |
$80,718 |
|
Distribution of Fuel Charges - Provinces and Territories |
$49,000 |
$9,173 |
$9,173 |
|
Distribution of Fuel Charges - Farming Businesses |
- |
- |
- |
|
Minister's salary and motor car allowance |
$95 |
$24 |
$24 |
|
Court awards - Tax Court of Canada |
- |
$97 |
$97 |
|
Spending proceeds from the disposal of surplus Crown Assets |
- |
$11 |
$11 |
|
Energy Cost Benefit |
- |
$(1) |
$(1) |
|
Total Budgetary Statutory Authorities |
$10,359,586 |
$2,379,164 |
$2,379,164 |
|
Total Budgetary Authorities |
$15,783,110 |
$3,503,844 |
$3,503,844 |
This financial table compares the Agency’s total available authorities available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by voted authority. This table uses parentheses to show negative numbers.
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2025 | Expended during the quarter ended June 30, 2024 | Year-to-date used at quarter-end |
|---|---|---|---|
|
Expenditures: |
|||
|
Personnel |
$4,931,715 |
$1,394,216 |
$1,394,216 |
|
Transportation and communications |
$240,789 |
$34,478 |
$34,478 |
|
Information |
$43,246 |
$5,835 |
$5,835 |
|
Professional and special services |
$904,898 |
$171,231 |
$171,231 |
|
Rentals |
$309,149 |
$68,853 |
$68,853 |
|
Purchased repair and maintenance |
$69,016 |
$10,891 |
$10,891 |
|
Utilities, materials, and supplies |
$42,890 |
$3,375 |
$3,375 |
|
Acquisition of machinery and equipment |
$58,809 |
$17,498 |
$17,498 |
|
Transfer payments |
$12,023,544 |
$2,896,170 |
$2,896,170 |
|
Other subsidies and payments |
$356 |
$2,366 |
$2,366 |
|
Total Gross Budgetary Expenditures |
$18,624,412 |
$4,604,913 |
$4,604,913 |
|
Less: Revenues netted against expenditures |
$482,414 |
$122,990 |
$122,990 |
|
Total Net Budgetary Expenditures |
$18,141,998 |
$4,481,923 |
$4,481,923 |
This financial table compares the Agency’s planned expenditures available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by standard object. This table uses parentheses to show negative numbers.
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended June 30, 2023 | Year-to-date used at quarter-end |
|---|---|---|---|
|
Expenditures: |
|||
|
Personnel |
$4,764,017 |
$1,246,266 |
$1,246,266 |
|
Transportation and communications |
$304,823 |
$31,009 |
$31,009 |
|
Information |
$52,770 |
$4,313 |
$4,313 |
|
Professional and special services |
$1,133,395 |
$79,560 |
$79,560 |
|
Rentals |
$337,365 |
$72,381 |
$72,381 |
|
Purchased repair and maintenance |
$81,246 |
$12,034 |
$12,034 |
|
Utilities, materials, and supplies |
$51,942 |
$3,709 |
$3,709 |
|
Acquisition of machinery and equipment |
$76,326 |
$5,005 |
$5,005 |
|
Transfer payments |
$9,421,379 |
$2,152,005 |
$2,152,005 |
|
Other subsidies and payments |
$414 |
$7,704 |
$7,704 |
|
Total Gross Budgetary Expenditures |
$16,223,677 |
$3,613,986 |
$3,613,986 |
|
Less: Revenues netted against expenditures |
$440,567 |
$110,142 |
$110,142 |
|
Total Net Budgetary Expenditures |
$15,783,110 |
$3,503,844 |
$3,503,844 |
This financial table compares the Agency’s planned expenditures available as of June 30, expenditures used during the quarter and year-to-date expenditures for fiscal years 2023-2024 and 2024-2025 by standard object. This table uses parentheses to show negative numbers.
- Footnote 1
-
Includes only authorities available for use and granted by Parliament at quarter-end.
Page details
- Date modified:
- 2024-08-28