Quarterly Financial Report for the Quarter ended September 30, 2025

1. Introduction

This Quarterly Financial Report (QFR) has been prepared by management as required by the Federal Economic Development Agency for Northern Ontario (FedNor) under section 65.1 of the Financial Administration Act, in the form and manner prescribed by the Treasury Board.

This report must be read in conjunction with the Main Estimates and Supplementary Estimates (as applicable) for the fiscal year 2025–2026. These documents provide a brief description of FedNor's mandate and programs.

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

1.1 Authority, mandate and programs

FedNor was first created as a federal initiative within the Department of Industry in 1987 with a mandate to assist in the expansion and diversification of the economy of Northern Ontario. In fiscal year 2021–2022, by way of Order in Council P.C. 2021-0840 dated August 6, 2021, and effective as of August 12, 2021, the control and supervision of the Federal Economic Development Initiative for Northern Ontario, previously under the Department of Industry, was transferred to the Federal Economic Development Agency for Northern Ontario.

FedNor works to create opportunities for economic growth by helping businesses become more competitive, innovative and productive, by working with diverse communities to develop and diversify local economies, and by championing the strengths of the region.

A summary description of FedNor's core responsibilities can be found on its external website, as well as in the 2025–2026 Departmental Plan.

1.2 Basis of presentation

This quarterly report was prepared by FedNor using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament, and those used by the department consistent with the Main Estimates and Supplementary Estimates (as applicable) for the 2025–2026 fiscal year. This 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.

Prior authority from Parliament is required before funds can be spent by the Government. Authorities available for use are given through appropriation acts in the form of annually approved limits, or through legislation in the form of statutory spending authorities for specific purposes.

FedNor uses the full accrual method of accounting to prepare and present its annual financial statements that make up part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.3 Financial structure and definitions of the Federal Economic Development Agency for Northern Ontario (FedNor)

The following descriptions are referred to throughout the report:

  • Operating (Vote 1): Amount approved for the fiscal year for the department to spend on salary and operating expenditures.
  • Grants and Contributions (Vote 5): Amount approved for the fiscal year for the department to provide Grants and Contribution (G&C) funding to prospective recipients.
  • Authority: Approvals from Parliament to spend up to a specific amount.
  • Employee benefit plan (EBP): The department's contribution to public service employee benefit plans.

2. Highlights of fiscal quarter and fiscal year-to-date results

This section highlights significant changes to the fiscal quarter results as of September 30, 2025. For more details on FedNor's Statement of Authorities, see Appendix 6.1: Statement of Authorities.

Statement of Authorities: Vote 1 – Net Operating Expenditures

As of September 30, 2025, total authorities available for fiscal year 2025–2026 are $16.22 million, compared to $15.99 million as of September 30, 2024. This represents an increase of $0.23 million (1.4%) this year.

The increase can mainly be attributed to additional temporary program funding.

Vote 1 authorities used year-to-date are $6.37 million at the end of the second quarter this fiscal year compared to $5.39 million as of September 30, 2024. This represents an increase of $0.98 million (18.2%) this year, and the increase is attributable to FedNor’s effort to attain its operational human resources complement since becoming a standalone agency.

Graph 1 illustrates the total authorities available for use for the year, as well as the amount used year-to-date at quarter end.

Graph 1: Comparison of Net Budgetary Authorities and Expenditures for Vote 1 as of September 30, 2024–2025 and 2025–2026 - (in thousands of dollars)
- 2024–2025 2025–2026
Total authorities available for use
15,987
16,220
Year-to-date authorities used
5,389
6,373

Statement of Authorities: Vote 5 – Grants and Contributions

As of September 30, 2025, total authorities available for fiscal year 2025–2026 are $54.18 million, compared to $38.17 million as of September 30, 2024. This represents an increase of $16.01 million (41.9%) this year.

This variance consists of a number of items resulting in the net increase of $16.01 million, as follows:

  • Increase in funding ($16.01 million)
    • Regional Growth Through Innovation Top-up: + $4.14 million
    • Northern Ontario Development Program Top-up: + $4.60 million
    • Black Entrepreneurship Program: + $0.06 million
    • Artificial Intelligence: + $2.21 million
    • Strategic Innovation Fund loan repayment to Innovation, Science and Economic Development Canada completed: + $5.00 million

Vote 5 authorities used year-to-date are $16.39 million at the end of the second quarter this fiscal year compared to $14.90 million as of September 30, 2024. The $1.49 million (10.0%) increase is mainly attributable to higher budget availability in the first and second quarters of this year, as funding for the Northern Ontario Development Program Top-up, the Regional Economic Growth through Innovation Top-up and the Regional Artificial Intelligence Initiative were available at the start of the fiscal year, whereas they were only received in the third quarter of last year.

Graph 2 illustrates the total authorities available for use for the year, as well as the amount used year-to-date at quarter end.

Graph 2: Comparison of Net Budgetary Authorities and Expenditures for Vote 5 as of September 30, 2024–2025 and 2025–2026 - (in thousands of dollars)
- 2024–2025 2025–2026
Total authorities available for use
38,173
54,179
Year-to-date authorities used
14,902
16,386

3. Risks and uncertainties

FedNor has a Memorandum of Understanding with Innovation, Science and Economic Development Canada (ISED) to continue providing internal services to FedNor, including information technology infrastructure and support, and security services.

In terms of transfer payment program and transfer payment recipient risk, FedNor transfers funds to recipients each year, while balancing program and recipient risks to deliver on its mandate. FedNor undertakes risk assessments on new, existing and reformed programs, as well as an annual general assessment of each recipient to identify areas of risk. As the majority of Grant and Contribution funding is being provided through existing programs with well-functioning internal controls, the department continues to seek improvements to enhance those controls. From an internal management perspective, FedNor will continue to monitor, and when required, develop clear mitigation actions towards its financial risks.

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

On August 19, 2025, FedNor participated in the government-wide transition of its travel management platform, from HRG to NEO. The NEO platform is an upgraded online booking and expense management tool. The system also integrates with the department’s financial system.

5. Approval of senior officials

The purpose of this section is to provide the approval of senior officials, as required by the Policy on Financial Management, as follows:

Approved by:

Original signed by

Valerie Gideon
President

November 13, 2025

Original signed by

Daniel Audet
Chief Financial Officer

November 7, 2025

6. Appendices

6.1 Statement of Authorities (unaudited)

Fiscal Year 2025–2026
(in thousands of dollars) Total available for use for the year ending March 31, 2026Footnote * Used during the quarter ended September 30, 2025 Year-to-date used at quarter end
Vote 1 - operating expenditures
16,220
3,121
6,373
Vote 5 - Grants and contributions
54,179
7,285
16,386
Total voted authorities
70,399
10,406
22,759
Employee benefit plans
2,054
514
1,028
Total budgetary statutory authorities
2,054
514
1,028
Total authorities
72,453
10,920
23,787
Fiscal Year 2024–2025
(in thousands of dollars) Total available for use for the year ending March 31, 2025Footnote * Used during the quarter ended September 30, 2024 Year-to-date used at quarter end
Vote 1 - Operating expenditures
15,987
2,640
5,389
Vote 5 - Grants and contributions
38,173
3,475
14,902
Total voted authorities
54,160
6,115
20,291
Employee benefit plans
1,795
449
898
Total budgetary statutory authorities
1,795
449
898
Total authorities
55,955
6,564
21,189

6.2 Departmental budgetary expenditures by standard object (unaudited)

Fiscal Year 2025–2026
(in thousands of dollars) Planned expenditures for the year ending March 31, 2026Footnote * Expended during the quarter ended September 30, 2025 Year-to-date used at quarter end
Expenditures:
Personnel
15,882
3,324
6,860
Transportation and communications
323
42
116
Information
740
51
52
Professional and special services
1,160
214
301
Rentals
50
0
7
Repair and maintenance
33
0
5
Utilities, materials and supplies
6
3
5
Acquisition of machinery and equipment
80
1
55
Transfer payments
54,179
7,285
16,386
Total gross budgetary expenditures
72,453
10,920
23,787
Total net budgetary expenditures
72,453
10,920
23,787
Fiscal Year 2024–2025
(in thousands of dollars) Planned expenditures for the year ending March 31, 2025Footnote * Expended during the quarter ended September 30, 2024 Year-to-date used at quarter end
Expenditures:
Personnel
14,805
2,804
5,723
Transportation and communications
346
43
101
Information
1,358
80
85
Professional and special services
902
140
354
Rentals
156
0
0
Repair and maintenance
46
10
11
Utilities, materials and supplies
16
4
5
Acquisition of machinery and equipment
153
8
8
Transfer payments
38,173
3,475
14,902
Total gross budgetary expenditures
55,955
6,564
21,189
Total net budgetary expenditures
55,955
6,564
21,189