Question Period Note: PUBLIC ACCOUNTS OF CANADA 2021-22

Why has the Innovation, Science and Economic Development (ISED) portfolio lapsed a total of $2.1 billion for fiscal year 2021–22 as reported in the Public Accounts of Canada?

• The Government of Canada takes the stewardship of all public funds very seriously and ISED has made excellent progress towards achieving its objectives.

• Most of the lapsed funding reported in Public Accounts is required to deliver on the portfolio’s commitments, including legally binding agreements already signed.

• The funding is simply being carried over to future years when it will be spent.

• Of the total lapse, less than two-tenths of 1% was returned to the fiscal framework because it was not needed.

• Departments are permitted to automatically carry forward up to 5% of their operating budget and 20% of their capital budget to the next fiscal year.

• Departments can also reprofile Capital and Grants and Contribution funding to future years above the carry forward entitlement upon approval by the Department of Finance.

• The Public Accounts, which also present the audited financial statements for the 2021-22 fiscal year that ended on March 31, 2022, are generated using Treasury Board Secretariat (TBS) established reporting mechanisms.

The Public Accounts of Canada are prepared annually by the Receiver General for Canada and were tabled by the President of the Treasury Board on October 27, 2022. They present Canada’s financial statements, including:
• revenues and expenses;
• assets and liabilities;
• other analyses;
• operations broken down by department; and
• Ministers’ office expenditures, including travel expenditures, for the 2021-22 fiscal year.

Total Voted Authorities available for use for the ISED Portfolio were $9.8 billion in 2021-22, of which $7.7 billion was spent, leaving a lapse of $2.1 billion. Of this lapse, $2.06 billion has been carried over to future years to ensure better alignment between the funding and spending profiles.