Question Period Note: Public accounts (PHAC)

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• The Public Accounts of Canada were tabled in the House of Commons on October 28, 2022.
• The Public Health Agency of Canada is committed to ensuring that public funds are spent effectively, and in a transparent manner.
• The Public Health Agency of Canada works to ensure that the resources at its disposal are utilized efficiently in order to promote and protect the health of Canadians.

If pressed on outstanding contracts
• The Public Health Agency of Canada contracts for goods and services in pursuit of its mandate.
• The Agency is reporting $7.9 billion in outstanding contractual obligations, a 39% increase over 2020-21.
• $6.8 billion of the contractual obligations are of a sensitive nature. As a result, the contractor names are being withheld from publication due to non-disclosure clauses in contracts.
• More than 99% of outstanding contracts are related to COVID-19.

If pressed on unused authorities

• The Public Health Agency of Canada works to ensure that the resources at its disposal are utilized efficiently in order to promote and protect the health of Canadians.
• Overall, the Public Health Agency of Canada’s unused authorities at 2021-22 fiscal year end, were 47% of total authorities. 83% of lapsed authorities is re-profiled for use in 2022-23 and future years.
• After maximizing its options for reprofiling funding, the remaining $1.3 billion lapse occurred in funding for personal protective equipment, border testing and quarantine measures, and strengthening of pre-clinical countermeasures.

If pressed on contracting professional services
• As part of its COVID-19 response, the Public Health Agency of Canada used a variety of vehicles to augment its capacity and protect the health of Canadians.
• Contracting professional services allowed the Agency to acquire specific expertise to help complement its existing capabilities.
• The Agency exercised due diligence in selecting the appropriate mechanism to augment its capacity, always seeking to obtain the best value for Canadians while operating in unprecedented and rapidly changing circumstances.

The Public Accounts of Canada is the report of the Government of Canada prepared annually by the Receiver General, as required by section 64 of the Financial Administration Act. It covers the Government fiscal year, which ends on March 31.

The information in the report originates from two sources of data:
• the summarized financial transactions presented in the accounts of Canada, maintained by the Receiver General; and
• the detailed records, maintained by departments and agencies.

Each department and agency is responsible for reconciling its accounts to the control accounts of the Receiver General, and for maintaining detailed records of the transactions in its accounts.
Outstanding contracts
The Agency’s contractual obligations relate to its response to the COVID-19 pandemic for the procurement of essential goods and services to achieve its mandate.

These contracts relate mostly to the procurement of vaccines, therapeutics, pharmaceuticals, medical equipment, and laboratory services and supplies. The Government is bound by the confidentiality provisions of each agreement, and cannot provide additional details about these contracts.

$7.4 million of the contractual obligations is spread over a maximum of 2 years; however, many contracts have option years that may be exercised.

$513 million (6%) of the outstanding contractual obligations are for transfer payments.

Unused authorities
The Agency was provided total spending authorities of $16.4 billion, of which it spent $8.7 billion. A total of $6.4 billion was re-profiled and will be available for use in future years, leaving $1.3 billion as the remaining lapse.
The re-profiled spending authorities were for a variety of initiatives, most notably for procurement of vaccines and medical countermeasures, the procurement of therapeutics, and for border testing and quarantine measures.
This re-profiling will allow the Agency to access existing funding in future years when it will be needed, with funding immediately available in 2022-23, and beyond, in order to adjust and continue the ongoing management of COVID-19 and to address other public health priorities

Professional services
The Agency’s response to the COVID-19 pandemic is the primary reason for a 262% increase.

The bulk of the $1.1 billion in professional expenditures relates to:
• security services and increased testing capacity at borders and quarantine sites;
• communications and IT services; and
• storage, warehousing and logistics costs for the National Emergency Strategic Stockpile to strategically position its reserve of personal protective equipment.

• The Public Health Agency of Canada (PHAC) is reporting outstanding contractual obligations of $7.9 billion spread over the next 6 years.
• PHAC reported $7.7 billion in unspent authorities. PHAC transferred $6.4 billion from its spending authorities from 2021-22 to future years. After reprofiles, PHAC will lapse $1.3 billion of its spending authorities.
• PHAC reported total professional services expenditures of $1.1 billion, an increase of 262% over the previous year.