Quarterly Financial Report for the quarter ended June 30, 2022

Introduction

The Canadian Northern Economic Development Agency (the Agency) works with Northerners, Indigenous groups, communities, businesses, organizations, and other federal departments to help foster long-term economic sustainability in Nunavut, Northwest Territories, and the Yukon. CanNor's programs are summarized in Part II of the Main Estimates.

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 should be read in conjunction with the Main Estimates and the Supplementary Estimates (A). This report has not been subject to an external audit or review.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency’s spending authorities granted by Parliament, and those used by the Agency consistent with the Main Estimates and Supplementary Estimates (A) for the 2022-2023 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 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 Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year-to-date (YTD) results

Risks and Uncertainties

The Agency has seen rapid growth with increased funding, growth in programs and services offered, staff, and responsibilities, particularly as a result of the global COVID-19 pandemic. Administrative capacity, corporate services, and governance capacity have not scaled with the growth in funding and programming, placing a significant burden on the Agency's leadership and staff.

To meet the challenge, the Agency developed and maintained a comprehensive Corporate Risk Profile to support risk-based decision-making and guided by the Treasury Board of Canada Secretariat Guide to Integrated Risk Management and the Canadian Standards Association’s ISO 31000. The Agency closely monitors its environment and operations to manage its corporate risks, ensures appropriate mitigation strategies are in place, and allocates and reallocates resources as required. This approach supports effective service delivery, better project management, increased value for money, and ultimately better results for Northerners and Indigenous communities.

As Canada emerges from the pandemic, the Agency will closely monitor the risks associated with COVID-19, and ensure appropriate mitigation strategies are in place to effectively deliver on our mandate.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during this quarter.

Approved by: