Quarterly Financial Report: Quarter ended June 30, 2026
Table of contents
1. Introduction
This Quarterly Financial Report should be read in conjunction with the 2026-27 Main Estimates as well as the Supplementary Estimates (A) for fiscal year 2026-27. It 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 Policy on Financial Management.
This report has not been subject to an external audit or review.
1.1 Authority, Mandate and Departmental Results
Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) continues to renew the nation-to-nation, Inuit-Crown, government-to-government relationship between Canada and First Nations, Inuit and Métis; modernize Government of Canada structures to enable Indigenous Peoples to build capacity and support their vision of self-determination; and lead the Government of Canada's work in the North.
The responsibility for CIRNAC is shared between the Minister of Crown-Indigenous Relations and the Minister of Northern and Arctic Affairs.
Further details on CIRNAC's authority, mandate and departmental results can be found in Part roman numeral 2 of the Main Estimates and the Departmental Plan.
1.2 Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying statement of authorities (Table 1) includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates and the Supplementary Estimates for the 2026-27 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 Department uses the full accrual accounting method 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 accounting.
1.3 General Descriptions
The following descriptions are referred to throughout the report:
- Authority: Approvals from Parliament to spend up to a specific amount.
- Operating (Vote 1 and Statutory):
- Vote 1: Amount approved for the fiscal year for the Department to spend on operating expenditures.
- Statutory: Amount approved through an existing Act of Parliament.
- Capital (Vote 5): Amount approved for the fiscal year for the Department to spend on capital purchases or for the construction of assets.
- Grants and Contributions (G&C's) (Vote 10 and Statutory):
- Vote 10: Amount approved for the fiscal year for the Department as Grants and Contributions (G&C's) transfer payments to recipients.
- Statutory: Amount approved through an existing Act of Parliament.
- Standard Object (SO): Classification or coding of transactions to permit the reporting of information about the nature of transactions in the Estimates and Public Accounts. Classifications include, for example, personnel, professional and special services, and transfer payments.
2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results
2.1 Authorities available for use
This section highlights the financial results for the quarter and fiscal year to date ended June 30, 2026, and provides an explanation of variances in authorities available for use compared to the same period in the prior year.
CIRNAC's total budgetary authorities available for use at the end of the first quarter in 2026-27 are $14,976.2 million. This total reflects the Department's 2026-27 Main Estimates of $11,868.6 million, and the Supplementary Estimates (A) of $3,107.6 million. The most significant adjustments made to CIRNAC's authorities during the first quarter were the Supplementary Estimates (A), which funded key initiatives, including:
- $2,726.2 million for Agricultural Benefits Claims;
- $290.5 million in reprofiled funding for the exercise of Crown discretion (Whitesand);
- $55.9 million in reprofiled funding for the settlement of Île‑à‑la‑Crosse; and
- $30.0 million for the Nutrition North Canada program.
2.1.1 Highlights of changes in authorities available for use (2026-27 compared to 2025-26)
At the end of the first quarter in 2026-27, CIRNAC's total budgetary authorities available for use is $14,976.2 million, which is $1,936.0 million (15%) higher than the same period in 2025-26.
This total increase mainly consists of an increase of $2,350.7 million in Vote 10 – Grants and Contributions offset by a decrease of $411.2 million in Vote 1 – Operating. This increase is a result of changes in funding levels for many initiatives, the most noteworthy of which include:
Vote 1 – Operating (-$411.2 million), for items such as:
- Funding to settle the Federal Indian Hospitals (Hardy) litigation (+$1,679.0 million);
- Funding for the Exercise of Crown Discretion - Whitesand (-$1,529.5 million);
- Funding for the Federal Indian Boarding Homes (Percival) litigation (-$384.0 million); and
- Funding for the Federal Indian Day Schools (McLean) Settlement (-$173.0 million).
Vote 10 – Grants and Contributions (+$2,350.7 million), for items such as:
- Funding for Agricultural Benefits Claims (+$2,495.7 million);
- Funding for Compensation Related to Losses Incurred Through the Diminishing Purchasing Power of Annuity Payments with Treaty 8 First Nations (+$431.7 million); and
- Funding to settle land-related claims and litigation (-$563.8 million).
The changes in authorities available for use are illustrated in Graph 1 below.
Text alternative for: Comparison of Authorities Available as at June 30, 2026 (in thousands of dollars)
| (In thousands of dollars) | ||||
|---|---|---|---|---|
| Fiscal Year | OperatingTable note 1 | Capital | Grants and ContributionTable note 1 | Total |
| 2026-27 (right side) | 4,466,653 | 225 | 12,686,151 | 14,976,272 |
| 2025-26 (left side) | 4,877,148 | 325 | 10,509,394 | 13,040,301 |
| Variance | (410,495) | (100) | 2,346,566 | 1,935,971 |
|
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See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.
2.2 Authorities used and actual expenditures
Actual expenditures during this quarter were $3,163.2 million, mainly due to the following:
Vote 1 – Operating:
- A payment related to the Federal Indian Boarding Homes (Percival) litigation ($532.7 million);
- Compensation payments for legal services ($29.9 million); and
- A payment related to Northern Contaminated sites ($24.7 million).
Vote 10 – Grants and Contributions:
- Payment related to comprehensive land claims and self-government agreements ($1,626.0 million); and
- Payment related to Specific Claims Settlement Fund ($347.0 million).
Compared to the previous fiscal year, total budgetary expenditures for the first quarter increased by $508.4 million (19%) from $2,654.8 million as of June 30, 2025, to $3,163.2 million as of June 30, 2026. This increase is mostly attributed to:
Vote 1 – Operating (-$102.9 million), for items such as:
- The Federal Indian Boarding Homes (Percival) litigation (+$533.0 million); and
- The Robinson Superior Treaty settlement (-$649.0 million).
Vote 10 – Grants and Contributions (+$615.2 million), for items such as:
- The Specific Claims Settlement Fund (+$346.8 million);
- Comprehensive land claims and self-government agreements (+$226.0 million); and
- The National Council for Reconciliation (+$60.0 million).
See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.
3. Risks and Uncertainties
The Department has robust risk management, oversight and internal control processes in place to identify, assess and manage strategic, operational, and financial risks across the organization. These measures support sound stewardship, compliance, and the responsible use of public funds.
In 2026–27, the Department faces a challenging environment shaped by fiscal restraint, expenditure reduction measures and increasing expectations for accountability, transparency, and results. These factors create uncertainty regarding funding levels, timing and allocation, including operating budgets, grants and contributions, and time-limited authorities. As a result, the Department must carefully prioritize activities and manage financial flexibility while continuing to advance commitments related to reconciliation, Indigenous self-determination, claims and agreements, litigation, northern development, and environmental responsibilities.
Given that a huge portion of expenditures is delivered through grants and contributions to Indigenous and northern recipients, maintaining strong stewardship and demonstrating measurable results remain critical. Funding constraints, changing funding profiles, implementation delays and varying partner capacity may affect program delivery, expenditure timing, forecasting, reporting, and recipient support.
The Department also manages a range of interconnected corporate risks, including those related to Indigenous and northern priorities, treaty and claims negotiations, litigation, results reporting, digital infrastructure, data governance, organizational resilience, workforce well-being, and environmental management. Fiscal restraint may further affect staffing, procurement, transformation initiatives, service delivery, and internal support functions, while limiting the Department's ability to respond quickly to emerging priorities and unforeseen events.
To address these challenges, the Department uses integrated business planning, financial monitoring, forecasting, resource management, and governance processes to review budgets, pressures, reallocations, and mitigation strategies. Its Integrated Risk Management approach uses information from corporate risk assessments, planning activities, internal controls and performance reporting to support informed decision-making and resource allocation. Mitigation measures include strengthening data governance, enhancing oversight, improving business processes, supporting digital modernization, and fostering cross-organizational collaboration on risk management.
Throughout 2026–27, the Department will continue to monitor financial and operational pressures, adjust mitigation measures as needed and use expenditure monitoring, risk oversight, and performance reporting to support mandate delivery, responsible resource management, and transparent reporting.
4. Significant changes in relation to Operations, Personnel and Programs
In the context of the December 2025 Workforce Adjustment exercise, CIRNAC identified 174 non-executive positions and 13 executive positions as affected. Since then, additional positions have been added to address needs arising from various smaller-scale workplace transformation needs and initiatives. The process currently affects 212 positions, including 199 non-executive positions and 13 executive positions.
In terms of changes in personnel during this quarter, the following appointment has been made:
- Maxime Messier was deployed as Chief Digital and Service Officer on April 23, 2026.
5. Approval by Senior Officials
Approved, as required by the Treasury Board Policy on Financial Management:
Original signed by
Manon Nadeau-Beaulieu, CPA, MGP
Assistant Deputy Minister,
Chief Financial Officer,
Crown-Indigenous Relations and Northern Affairs Canada
Date: August 17, 2026
City: Gatineau (Canada)
Georgina Lloyd
Acting Deputy Minister,
Crown-Indigenous Relations and Northern Affairs Canada
Date: August 19, 2026
City: Gatineau (Canada)
| Fiscal year 2026-27 | Fiscal year 2025-26 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2027Table note 1 | Used during the quarter ended June 30, 2026 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2026Table note 1 | Used during the quarter ended June 30, 2025 | Year to date used at quarter-end | |
| Vote 1- Operating expenditures | 4,432,958 | 666,794 | 666,794 | 4,844,173 | 769,734 | 769,734 |
| Vote 5- Capital expenditures | 225 | 112 | 112 | 325 | 0 | 0 |
| Vote 10 - Grants and contributions | 10,509,394 | 2,487,453 | 2,487,453 | 8,158,702 | 1,872,214 | 1,872,214 |
| Budgetary statutory authorities - Operating Expenditures: | ||||||
| Contributions to employee benefit plans | 31,476 | 7,860 | 7,860 | 30,992 | 7,748 | 7,748 |
| Minister of Crown-Indigenous Relations – Salary and motor car allowance | 106 | 26 | 26 | 102 | 9 | 9 |
| Minister of Northern Affairs – Salary and motor car allowance | 106 | 26 | 26 | 0 | 8 | 8 |
| Payments to comprehensive claim beneficiaries in compensation for resource royalties | 1,866 | 0 | 0 | 1,866 | 0 | 0 |
| Grassy Narrows and Islington Bands Mercury Disability Board | 15 | 0 | 0 | 15 | 0 | 0 |
| Red Dress Alert | 126 | 0 | 0 | 0 | 0 | 0 |
| Total Statutory - Budgetary authorities - | 33,695 | 7,912 | 7,912 | 32,975 | 7,765 | 7,765 |
| Budgetary statutory authorities - Transfer Payments: | ||||||
| Grants to Aboriginal organizations designated to receive claim settlement payments pursuant to Comprehensive Land Claim Settlement Acts | 0 | 972 | 972 | 4,126 | 5,071 | 5,071 |
| Total Budgetary Authorities | 14,976,272 | 3,163,243 | 3,163,243 | 13,040,301 | 2,654,784 | 2,654,784 |
| Non-Budgetary Authorities: | ||||||
| Loans to native claimants | 25,903 | 500 | 500 | 25,903 | 0 | 0 |
| Total Non-Budgetary Authorities | 25,903 | 500 | 500 | 25,903 | 0 | 0 |
| Total Authorities | 15,002,175 | 3,163,743 | 3,163,743 | 13,066,204 | 2,654,784 | 2,654,784 |
| Note: Due to rounding, figures may not add to totals shown. | ||||||
| Fiscal year 2026-27 | Fiscal year 2025-26 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2027 | Expended during the quarter ended June 30, 2026 | Year to date expended at quarter-end | Planned expenditures for the year ending March 31, 2026 | Expended during the quarter ended June 30, 2025 | Year to date expended at quarter-end | |
| Expenditures: | ||||||
| 1. Personnel | 223,529 | 61,075 | 61,075 | 233,660 | 59,958 | 59,958 |
| 2. Transportation and communications | 8,789 | 806 | 806 | 11,058 | 512 | 512 |
| 3. Information | 2,143 | 235 | 235 | 3,206 | 158 | 158 |
| 4. Professional and special services | 866,412 | 67,164 | 67,164 | 896,209 | 40,115 | 40,115 |
| 5. Rentals | 6,447 | 1,010 | 1,010 | 9,585 | 254 | 254 |
| 6. Purchased repair and maintenance | 960 | 65 | 65 | 1,897 | 6 | 6 |
| 7. Utilities, materials and supplies | 1,121 | 162 | 162 | 1,550 | 41 | 41 |
| 8. Acquisition of land, buildings and works | 0 | 1 | 1 | 1 | 0 | 0 |
| 9. Acquisition of machinery and equipment | 225 | 172 | 172 | 324 | 21 | 21 |
| 10. Transfer payments | 10,509,394 | 2,488,425 | 2,488,425 | 8,162,827 | 1,877,285 | 1,877,285 |
| 11. Public debt charges | 0 | 0 | 0 | 0 | 0 | 0 |
| 12. Other subsidies and payments | 3,379,862 | 544,128 | 544,128 | 3,741,381 | 676,434 | 676,434 |
| Total gross budgetary expenditures | 14,998,882 | 3,163,243 | 3,163,243 | 13,061,698 | 2,654,784 | 2,654,784 |
| Less: Revenues netted against expenditures | ||||||
| Internal Services | (22,610) | 0 | 0 | (21,397) | 0 | 0 |
| Total Revenues netted against expenditures | (22,610) | 0 | 0 | (21,397) | 0 | 0 |
| Total net budgetary expenditures | 14,976,272 | 3,163,243 | 3,163,243 | 13,040,301 | 2,654,784 | 2,654,784 |
| Note: Due to rounding, figures may not add to totals shown. | ||||||