Fisheries and Oceans Canada - Quarterly financial report for the quarter ended September 30, 2025

Table of contents

1. Introduction
2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results
3. Risks and uncertainties
4. Significant changes in relation to operations, personnel and programs
5. Approval by senior officials
6. Appendix

1. Introduction

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act. The quarterly report should be read in conjunction with the current year’s Main Estimates.

This quarterly report has not been subject to an external audit or review.

Further details on Fisheries and Oceans Canada’s authority, mandate and programs may be found in the Departmental Plan.

1.1 Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes Fisheries and Oceans Canada’s spending authorities granted by Parliament and those used by the Department consistent with the 2025-26 Main Estimates and the Operating and Capital Budget Carry Forwards.

The authority of Parliament is required before money can be spent by the Government. Approval is 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 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.

2. Highlights of the fiscal quarter and fiscal year to date (YTD) results

The following section highlights the financial results and provides explanations as at September 30, 2025, compared to the same period last year.

2.1 Significant changes in authorities

In the second quarter of 2025-26, total budgetary authorities available for use increased by $1,409.7 million (28.7%) compared to the same period in the previous year:

• Vote 1 authorities increased by $127.1 million
• Vote 5 authorities increased by $829.3 million
• Vote 10 authorities increased by $422.1 million
• Statutory authorities increased by $31.2 million

Comparison of net budgetary authorities, by Vote, as at September 30 of fiscal years 2024-25 and 2025-26 (in millions of dollars)

Note: Funding presented reflects approved reference levels at the time of Main Estimates and the Operating and Capital Budget Carry Forwards.

The following table provides a detailed explanation of these changes.

2.2 Significant changes in expenditures

In the second quarter of 2025-26, total budgetary expenditures amounted to $1,458.9 million compared to $1,106.0 million reported in the same quarter of 2024-25. This represents an increase of $352.9 million, or 31.9%.

• Vote 1 - Net Operating expenditures (decrease of $1.2 million or 0.2%)
  This variance is mainly attributed to a timing difference in the processing of financial transactions between departments, which is partially offset by an increase in salary expenditures.
• Vote 5 - Capital expenditures (increase of $100.7 million or 24.1%)
  This variance is mainly explained by expenditures associated with the procurement activities related to the Polar Icebreaker Project and the Polar Max vessel.
• Vote 10 - Grants and Contributions expenditures (increase of $244.8 million or 306.4%)
  This variance is mainly explained by a payment to the Aajuraq Conservation Fund Society for the Qikiqtani Project as well as an increase in payments related to Indigenous Reconciliation Priorities.
• Statutory – Authorities used (increase of $8.6 million or 17.9%)
  This variance is mainly attributed to an increase in contributions to Employee Benefit Plans which is related to the growth in salary expenditures.

Comparison of authorities used, by Vote, during the second quarter of fiscal years 2024-25 and 2025-26 (in millions of dollars)

As reflected in Table 2: Departmental Budgetary Expenditures by Standard Object (unaudited), the net increase by standard object is mainly attributed to:

• Repair and Maintenance (decrease of $8.6 million)

  This variance is mainly explained by a realignment of financial coding to properly reflect the expenditure type.

• Acquisition of Machinery and Equipment (increase of $91.0 million)

  This variance is mainly explained by expenditures associated with the procurement activities related to the Polar Icebreaker Project and the Polar Max vessel. This was partially offset by a decrease in vessel dry docking and betterment work related to various Vessel Life Extension projects.

• Transfer Payments (increase of $244.8 million)

  This variance is mainly explained by a payment to the Aajuraq Conservation Fund Society for the Qikiqtani Project as well as an increase in payments related to Indigenous Reconciliation Priorities.

• Other Subsidies and Payments (decrease of $10.8 million)

  This variance is mainly explained by a timing difference in the processing of financial transactions between departments.

3. Risks and uncertainties

Fisheries and Oceans Canada operates in a dynamic environment that is affected by a number of factors, including: northern development; evolving relationships with Indigenous partners; navigating waters; climate change; demographics; technological advances; changing maritime safety and security demands; and global geopolitical and economic conditions. The Department maintains a Departmental Risk Profile which assesses corporate strategic risks, which if not managed and mitigated, could impair DFO-CCG’s ability to deliver on its mandate and achieve results under the Department’s core responsibilities. Additional information regarding the Department’s key risk areas is presented in the 2025-26 Departmental Plan.

Certain risks would have financial impacts should they materialize such as affecting the timing of transfer payments or delays in the delivery of shipbuilding projects, which lie outside the control of the Department and could require funds to be shifted to future years to meet program requirements. To minimize these impacts, the Department continuously monitors program funding and expenditures throughout the year. In addition, the Department has put strategies in place such as the National Shipbuilding Strategy to ensure accountability and objectives are met.

As the Government maintains its efforts to manage growth and ensure efficient use of taxpayer money, Fisheries and Oceans is focused on reducing spending in strategic areas, with minimal impact to service standards. With continued fiscal constraint measures on the horizon, the focus on efficiency and value for money will be at the forefront to reflect an evolving financial and socio-economic landscape, as well as the continual support of regional representation, including a diverse public service workforce.

4. Significant changes in relation to operations, personnel and programs

The following changes in relation to operations, personnel and programs were made since the last published quarterly report:

• The appointment of Jennifer Saxe as Assistant Deputy Minister, Aquatic Ecosystems Sector, as of August 14, 2025.
• On September 2, 2025, Order in Council 2025-0639 decreed to transfer the control and supervision of the Canadian Coast Guard (CCG) and Canadian Coast Guard Support Services Group to the Department of National Defence. To align with government-wide financial reporting requirements, this quarter’s figures include CCG financial data, which will be excluded in the next reporting period.

5. Approval by senior officials

Approved by:

6. Appendix

Table 1: Statement of authorities (unaudited)

(in thousands of dollars)

* Includes only Authorities available for use and granted by Parliament at quarter-end.

** Pursuant to Order in Council P.C. 2025-0639 effective September 2, 2025 and in accordance with Section 31.1 of the Financial Administration Act, $1,759.4 million (in voted authorities) are deemed to have been appropriated to the Department of National Defence, which results in a reduction for the same amount in the Department of Fisheries and Oceans, Appropriation Act No 1 & 2, 2025-2026.

Table 2: Departmental budgetary expenditures by standard object (unaudited)

(in thousands of dollars)

* Includes only Authorities available for use and granted by Parliament at quarter-end.