Quarterly Financial Report for the Quarter Ended
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© His Majesty the King in Right of Canada, represented by the Minister of Innovation, Science and Industry,
ISSN: 2564-4262
Management Statement for the Quarter Ended
1. Introduction
In this section
This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act, and in the form and manner prescribed by the Treasury Board. It has not been subject to an external audit or review, but has been reviewed by members of the Canadian Space Agency's (CSA) Audit Committee, who are satisfied with its presentation and content. This quarterly report should be read in conjunction with the - Main EstimatesFootnote 1.
1.1 Mandate and Program Activities
The CSA mandate is to promote the peaceful use and development of space, to advance the knowledge of space through science and to ensure that space science and technologies provide social and economic benefits for Canadians
More information is available on the CSA's mandate and on the departmental results framework in the latest Departmental PlanFootnote 1.
1.2 Basis of Presentation
This quarterly financial report (QFR) has been prepared using an expenditure basis of accounting. The Statement of Authorities annexed to this report includes the CSA's spending authorities granted by Parliament and those used by the CSA, consistent with the Main Estimates and Supplementary estimates (if applicable) for the current financial year. This QFR 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.
The CSA uses the full accrual method of accounting to prepare and present its annual financial statements, which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis, which is a partial accrual method of accounting. The partial accrual method of accounting includes disbursements as well as some accruals for salaries and salary allowances.
2. Highlights of the Quarterly Financial Results
In this section
This section highlights the significant elements that contributed to the changes to the authorities available for the fiscal year, as well as to the quarterly and year-to-date expenditures for the quarter ended .
The following graph provides an overview of the variations in the available authorities and the expenditures. Additional details on these variations are provided in sections 2.1 and 2.2 as well as in the appended annexes.
| Authorities | Quarterly Expenditures | Year to Date Expenditures | |
|---|---|---|---|
| Exercice - | 914.0 | 82.4 | 82.4 |
| Exercice - | 834.1 | 69.3 | 69.3 |
Totals may not add up with the Annexes due to rounding.
2.1 Significant Changes in the Authorities (Total Votes Available for Use) between fiscal years - and -
The total vote available for use as at , is $914 million, which represents an increase of $80 million compared to the same period in the previous year (10%).
| Authorities (in millions of dollars) | - | - | Variance | % |
|---|---|---|---|---|
| Vote 1 – Operating expenditures | 312,871 | 282,745 | 30,126 | 11% |
| Vote 5 – Capital expenditures | 520,371 | 466,960 | 53,411 | 11% |
| Vote 10 – Grants and contributions | 60,981 | 67,018 | (6,037) | (9%) |
| Contributions to employee benefit plans | 19,715 | 17,358 | 2,357 | 14% |
| Proceeds from disposal of surplus Crown assets | 86 | 50 | (36) | 72% |
| Total budgetary authorities | 914,024 | 834,131 | 79,893 | 10% |
Authorizations related to Vote 1 (operating expenditures)
At , authorizations totalled $312.9 million, compared with $282.7 million at , an increase of $30 million (11%).
The increase is mainly explained by the following items:
- An increase of $25.4 million for activities related to the successor to the RADARSAT Constellation Mission.
- An increase of $16.9 million for activities related to the Lunar Exploration Acceleration Program (LEAP) - Lunar Utility Vehicle project.
- An increase of $15.8 million for activities related to the RADARSAT Constellation Mission (RCM).
- A decrease of $3.1 million for activities related to the project Mission High-Altitude Aerosols, Water vapor and Clouds (HAWC) - Thin Ice Clouds and Far InfraRed Emissions (TICFIRE).
- A decrease of $6.4 million dollars in the CSA's contribution funding following the comprehensive spending review announced in the Budget.
- A decrease of $10.7 million for activities related to the International Space Station (ISS) project.
- The residual difference consists of multiple variations inherent to the Canadian Space Program (CSP) Resource Management. They result from the fact that budgetary requirements by vote are not linear from one year to the next, requiring vote transfers or fund carry forwards to another fiscal year.
Authorizations related to Vote 5 (capital expenditures)
At , authorizations totalled $520.4 million, compared with $467 million at , an increase of $53.4 million (11%).
The increase is mainly explained by the following items:
- An increase of $38.2 million in activities related to the Canadarm 3 project.
- An increase of $19.8 million in activities related to the Canadian Operational Mission (COM) – WildFire Sat (WFS)
- A decrease of $9.9 million for activities related to the Lunar Exploration Acceleration Program (LEAP) - Canadian Lunar Rover Mission project.
- A decrease of $10.6 million in activities related to Gateway Station External Robotic Interfaces (GERI).
- The residual difference consists of multiple variations inherent to the Canadian Space Program (CSP) Resource Management. They result from the fact that budgetary requirements by vote are not linear from one year to the next, requiring vote transfers or fund carry forwards to another fiscal year.
Authorizations related to Vote 10 (grants and contributions)
At , authorizations totalled $61 million, compared with $67 million at , a decrease of $6 million (-9%).
The decrease is mainly explained by the following items:
- An increase of $2.3 million for the contribution program under the Cooperation Agreement between Canada and the European Space Agency (ESA).
- A decrease of $3.8 million in the overall grants and contributions program to support research, awareness and education in space science and technology, as CSA's contribution to the government's refocusing exercise.
- The residual difference consists of multiple variations inherent to the Canadian Space Program (CSP) Resource Management. They result from the fact that budgetary requirements by vote are not linear from one year to the next, requiring vote transfers or fund carry forwards to another fiscal year.
2.2 Significant Changes in the Quarterly and Year-to-Date Expenditures (Votes Used) between fiscal years - and -
Cumulative expenditures as at are $82.4 million and represent a cumulative increase of $13.1 million over the same period last year.
| Expenditures by Vote (in thousands of dollars) |
- | - | Variance | |||
|---|---|---|---|---|---|---|
| Quarterly | Year to date | Quarterly | Year to date | Quarterly | Year to date | |
| Vote 1 – Operating expenditures | 42,072 | 42,072 | 33,919 | 33,919 | 8,153 | 8,153 |
| Vote 5 – Capital expenditures | 24,951 | 24,951 | 18,052 | 18,052 | 6,899 | 6,899 |
| Vote 10 – Grants and contributions | 10,431 | 10,431 | 12,988 | 12,988 | (2,557) | (2,557) |
| Contributions to employee benefit plans | 4,929 | 4,929 | 4,340 | 4,340 | 589 | 589 |
| Spending of proceeds from disposal of surplus Crown assets | - | - | - | - | - | - |
| Total budgetary expenditures by Vote | 82,383 | 82,383 | 69,299 | 69,299 | 13,084 | 13,084 |
Expenditures related to Vote 1 (operating expenditures)
The increase of $8.2 million in quarterly expenses (24%) is mainly explained by changes in the payment schedule for the Canadian International Space Station (ISS) program.
Expenditures related to Vote 5 (capital expenditures)
The increase of $6.9 million in quarterly expenses (38%) is mainly explained by variations in the payment schedule for the Canadarm3 project and the external robotic interfaces of the Gateway station (GERI).
Expenditures related to Vote 10 (grants and contributions)
The decrease of $2.6 million in quarterly expenses (-20%) is mainly explained by variations in the payment schedule to the European Space Agency (ESA).
| Expenditures by Standard Object (in thousands of dollars) | - | - | Variance | |||
|---|---|---|---|---|---|---|
| Quarterly | Year to date | Quarterly | Year to date | Quarterly | Year to date | |
| Personnel | 31,374 | 31,374 | 27,653 | 27,653 | 3,721 | 3,721 |
| Transportation and communications | 1,094 | 1,094 | 775 | 775 | 319 | 319 |
| Information | 244 | 244 | 67 | 67 | 177 | 177 |
| Professional and special services | 36,582 | 36,582 | 26,088 | 26,088 | 10,494 | 10,494 |
| Rentals | 619 | 619 | 914 | 914 | (295) | (295) |
| Repair and maintenance | 768 | 768 | 144 | 144 | 624 | 624 |
| Utilities, materials and supplies | 353 | 353 | 337 | 337 | 16 | 16 |
| Acquisition of land, buildings and works | - | - | - | - | - | - |
| Acquisition of machinery and equipment | 918 | 918 | 316 | 316 | 602 | 602 |
| Transfer payments | 10,430 | 10,430 | 12,988 | 12,988 | (2,558) | (2,558) |
| Other subsidies and payments | 1 | 1 | 17 | 17 | (16) | (16) |
| Total budgetary expenditures by Standard Object | 82,383 | 82,383 | 69,299 | 69,299 | 13,084 | 13,084 |
Total CSA expenses reported in the 1st quarter of - amounted to $82.4 million, compared with $69.3 million for the same period last year. This represents an increase of $13.1 million (19%) on the previous year.
Significant variances, by standard object, are as follows:
- Personnel
-
The increase of $3.7 million in quarterly expenses (13%) is mainly explained by the rise in CSA staffing to support the space exploration program.
- Professional and special services
-
The increase of $10.5 million in quarterly expenses (40%) is mainly explained by variations in the payment schedule for the Canadarm3 project and the external robotic interfaces of the Gateway station (GERI).
- Transfer payments
-
The decrease of $2.6 million in quarterly expenses (-20%) is mainly explained by variations in the payment schedule to the European Space Agency (ESA).
3. Risks and Uncertainties
The CSA operates in an ever-changing environment. The specific nature of the Canadian Space Program (CSP) exposes the CSA to challenges related to the development of advanced technologies as well as the international dimension of certain projects. For Canada, space activities must be carried out in partnership with other space-faring nations, using innovative technologies. The international nature and technical challenges associated with developing and implementing innovative technologies, in collaboration with multiple partners, generate risks in project delivery. Likewise, the possibility of service interruptions or unauthorized disclosure of information resulting from a cybersecurity incident poses an additional risk to CSA operations. These factors translate into financial risks associated with the use of funds, such as the carry-forward of funds and increased costs.
Risks also arise from the Canada / ESA Cooperation Agreement, such as amounts payable that vary according to changes in gross national product (GNP) statistics, fluctuations in the Canadian dollar relative to the euro (exchange rate), inflation, and the application of ESA's industrial policy. These risks affect both costs and the cash-flow profile.
To mitigate these risks, the CSA regularly reviews its project portfolio, activity plans, timelines, and financial management strategies in order to adapt to changes made to the space programs of its key partners (National Aeronautics and Space Administration (NASA), ESA and other space agencies). In addition, rigorous project-management practices are in place, along with measures to mitigate cybersecurity risk. These initiatives enable the CSA to monitor and report on the progress of its commitments, assess the effectiveness of its work, and align its resources with priorities.
Additionally, to strengthen the measures already in place, the CSA relies on a structured risk-management framework, including interdisciplinary consultations during cost estimation, rigorous monitoring through monthly dashboards, a formal risk register, and a stringent financial attestation process. These mechanisms enable early detection of variances, rapid adaptation to unforeseen events, and improved financial predictability despite the challenges related to inflation, the scarcity of specialized suppliers, the immaturity of certain technologies, and adjustments imposed by international partners.
4. Significant Changes in Relation to Operations, Personnel and Programs
There were no significant changes to operations, staffing, or programs during the first quarter of -.
Approval by Senior Officials
Approved by,
The original version was signed by Jean-Claude Piedboeuf, Acting President, in Longueuil, Quebec, on .
The original version was signed by Jennifer Fisher, Acting Vice President, Corporate Strategy and Innovation and Chief Financial Officer, in Longueuil, Quebec, on .
Annex 1
| Authorities | Fiscal Year - | Fiscal Year - | ||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending Footnote 2 $ |
Used during the quarter ended $ |
Year to date used at quarter-end $ |
Total available for use for the year ending Footnote 2 $ |
Used during the quarter ended $ |
Year to date used at quarter-end $ |
|
| Vote 1: Operating expenditures | 312,871 | 42,072 | 42,072 | 282,745 | 33,919 | 33,919 |
| Vote 5: Capital expenditures | 520,371 | 24,951 | 24,951 | 466,960 | 18,052 | 18,052 |
| Vote 10: Grants and contributions | 60,981 | 10,431 | 10,431 | 67,018 | 12,988 | 12,988 |
| Contributions to employee benefit plans |
19,715 | 4,929 | 4,929 | 17,358 | 4,340 | 4,340 |
| Spending of proceeds from the disposal of surplus Crown assets |
86 | 0 | - | 50 | - | - |
| Total budgetary authorities | 914,024 | 82,383 | 82,383 | 834,131 | 69,299 | 69,299 |
Annex 2
| Expenditures: | Fiscal Year - | Fiscal Year - | ||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending Footnote 2 $ |
Used during the quarter ended $ |
Year to date used at quarter-end $ |
Total available for use for the year ending Footnote 2 $ |
Used during the quarter ended $ |
Year to date used at quarter-end $ |
|
| Personnel | 139,928 | 31,374 | 31,374 | 130,811 | 27,653 | 27,653 |
| Transportation and communications | 8,304 | 1,094 | 1,094 | 8,311 | 775 | 775 |
| Information | 642 | 244 | 244 | 1,242 | 67 | 67 |
| Professional and special services | 504,169 | 36,582 | 36,582 | 612,297 | 26,088 | 26,088 |
| Rentals | 7,802 | 619 | 619 | 3,870 | 914 | 914 |
| Repair and maintenance | 3,851 | 768 | 768 | 3,209 | 144 | 144 |
| Utilities, materials and supplies | 1,219 | 353 | 353 | 1,629 | 337 | 337 |
| Acquisition of land, buildings and works | - | 0 | 0 | 0 | 0 | 0 |
| Acquisition of machinery and equipment | 184,348 | 918 | 918 | 3,067 | 316 | 316 |
| Transfer payments | 60,981 | 10,430 | 10,430 | 67,018 | 12,988 | 12,988 |
| Other subsidies and payments | 2,780 | 1 | 1 | 2,677 | 17 | 17 |
| Total budgetary expenditures | 914,024 | 82,383 | 82,383 | 834,131 | 69,299 | 69,299 |