Quarterly Financial Report for the Quarter Ended June 30, 2025

Statement outlining results, risks and significant changes in operations, personnel and programs

1. Introduction

This quarterly financial 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 Secretariat. The report should be read in conjunction with the Main Estimates and Supplementary Estimates.

The report has been reviewed by the Departmental Audit Committee.

1.1 Authority and mandate

The Canadian Nuclear Safety Commission (CNSC) was established on May 31, 2000, with the coming into effect of the Nuclear Safety and Control Act (NSCA). The CNSC is a departmental corporation and reports to Parliament through the Minister of Energy and Natural Resources.

As an independent regulatory agency and quasi-judicial administrative tribunal, the CNSC has jurisdiction over all non-military nuclear-related activities and substances in Canada. Its mandate under the NSCA is to:

• regulate the development, production and use of nuclear energy in Canada to protect health, safety and the environment
• regulate the production, possession, use and transport of nuclear substances, and the production, possession and use of prescribed equipment and prescribed information
• implement measures respecting international control of the development, production, transport and use of nuclear energy and substances, including measures respecting the non-proliferation of nuclear weapons and nuclear explosive devices
• disseminate objective scientific, technical and regulatory information concerning the CNSC’s activities, and about how the development, production, possession, transport and use of nuclear substances affect the environment and the health and safety of persons

Further details on the CNSC’s authority, mandate and Departmental Results Framework can be found in the Departmental Plan and the Main Estimates (Part II).

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 (see appendix) includes the CNSC’s spending authorities granted by Parliament and those used by the CNSC, consistent with the Main Estimates and Supplementary Estimates for both the 2024-25 and 2025-26 fiscal years, as well as transfers from Treasury Board central votes that are approved as at the end of the quarter. 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 monies can be spent by the Government of Canada. Approvals are given through annually approved limits, appropriation acts or legislation in the form of statutory spending authority for specific purposes.

The CNSC 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.

1.3 The CNSC’s financial structure

The CNSC has a structure within which various funding mechanisms are used to deliver its mandate. Most of the CNSC’s funding is received from statutory budgetary authorities, and the balance comes from voted budgetary authorities.

Pursuant to subsection 21(3) of the NSCA, the CNSC has statutory authority to spend during a fiscal year any revenues that it received in the current or previous fiscal year through the conduct of its operations. The revenues received from regulatory fees for licences and applications are charged in accordance with the Canadian Nuclear Safety Commission Cost Recovery Fees Regulations. This authority to spend revenues provides a sustainable and timely funding regime to address the rapid changes in the regulatory oversight workload associated with the Canadian nuclear industry.

The CNSC is also funded through a voted budgetary authority from Parliament (Vote 1 – Program expenditures). The voted authority is used to fund activities and certain types of licensees that, under the regulations, are not subject to cost recovery. The regulations state that licensees such as hospitals and universities are exempt from paying fees, as these entities exist for the public good. Additionally, fees are not charged for activities that result from CNSC obligations that do not provide a direct benefit to identifiable licensees. These include activities with respect to Canada’s international obligations (including non-proliferation activities) and public responsibilities (such as emergency management and public information programs), and work done to update the NSCA and associated regulations.

Contributions to employee benefit plans come from statutory budgetary authorities.

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

This section highlights the significant items that contributed to the net change in authorities and actual expenditures for the quarter and year-to-date (YTD) ended June 30, 2025.

Highlights of the fiscal quarter and fiscal year-to-date results ($ thousands)

n/a	n/a	2025–26 Budgetary authorities to March 31, 2026	2024–25 Budgetary authorities to March 31, 2025	Variance in budgetary authorities	YTD expenditures as at Q1 2025–26	YTD expenditures as at Q1 2024–25	Variance in expenditures
Not Statutory	Vote 1 – Program expenditures	57,418	52,421	4,997	11,686	11,147	539
Statutory	Contributions to employee benefit plans	6,232	5,108	1,124	1,558	1,277	281
Statutory	Expenditures pursuant to subsection 21(3) of the NSCA	121,416	108,606	12,810	25,828	23,822	2,006
Statutory	Total statutory authorities	127,648	113,714	13,934	27,386	25,099	2,287
Combined	Total	185,066	166,135	18,931	39,072	36,246	2,826

2.1 Statement of voted and statutory authorities

The CNSC’s total authorities available to spend in 2025–26 as of June 30 have increased by $18.9 million (to $185.0 million) or by 11.4%.

The voted authorities have increased by $5.0 million (to $57.4 million) or by 9.5%. The increase takes into account:

• a $3.6 million year-over-year increase in funding received from the Treasury Board Secretariat (TBS) for the cumulative effect of negotiated salary increases
• $2.0 million in funds reprofiled from previous years based on anticipated operational requirements
• a $0.5 million year-over-year decrease because of budget reductions announced under the government-wide Refocusing Government Spending Initiative
• a $0.1 million decrease because of a transfer to Shared Services Canada for the Microsoft 365 E5 enterprise standard

Contributions to employee benefit plans have increased by $1.1 million (to $6.2 million) or by 22.0% because of an increase in the rate used by TBS as well as new funding from TBS for negotiated salary increases.

The CNSC’s statutory authority for expenditures pursuant to subsection 21(3) of the NSCA is based on expenditures for activities subject to cost-recovery fees. This authority increased by $12.8 million (to $121.4 million) or by 11.8%, due to new industry projects and negotiated salary increases.

2.2 Expenditure analysis

As illustrated in the appended statement of authorities table, Q1 expenditures increased by $2.8 million (to $39.1 million) or 7.8%. Q1 Vote 1 expenditures increased by $0.5 million (to $11.7 million) or 4.8%, while expenditures pursuant to subsection 21(3) of the NSCA increased by $2.0 million (to $25.8 million) or 8.4%. Contributions to employee benefit plans increased by $0.3 million (to $1.6 million) or 22.0%.

As illustrated in the appended table of departmental budgetary expenditures by standard object, the increase in expenditures of $2.8 million for Q1 and YTD by standard object takes into account:

• a $4.6 million increase in personnel costs attributable to new industry projects and economic increases, including increases for fiscal years 2022–23 through 2024–25 which were not in effect for Q1 of 2024–25
• a $0.6 million decrease in transportation and communications because of a decrease in international travel attributable to budget reductions resulting from the government-wide Refocusing Government Spending Initiative
• a $0.5 million decrease in rentals due to a reduction in the CNSC’s portfolio of leased office space and the timing of payments for software licence and maintenance fees
• a $0.8 million decrease in the acquisition of machinery and equipment attributable to the timing of payments for software costs for cloud computing
• a $0.1 million net increase in other expenditure categories

3. Risks and uncertainties

The CNSC has revised its mission and vision and is actively working on reviewing its strategic planning framework to reflect changes taking place in the nuclear sector. It also continues to reflect and anticipate the needs of a changing industry, specifically:

• continued industry interest in small modular reactors, including the Darlington New Nuclear Project
• the need for enhanced engagement with Canadians, Indigenous Nations and communities, and those in communities near licensed sites
• the need to adapt its regulatory framework to encompass new nuclear technologies, including small modular reactors
• potential growth in nuclear capacity for net-zero emissions targets
• Ontario Power Generation’s plan to extend the life of and potentially refurbish the Pickering Nuclear Generating Station
• potential expansion of the Bruce Nuclear Generating Station
• potential impact of tariffs on industry growth

The CNSC continually assesses the impact of changes on resources through formal planning and budgeting processes to ensure agility and sustainability, given evolving market needs.

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

There were no significant changes to operations, personnel or programs during the first quarter of 2025–26.

5. Approval by senior officials

Approved by:

Pierre Tremblay
President and Chief Executive Officer

Stéphane Cyr
Chief Financial Officer

Ottawa, Canada

Appendix

Statement of authorities (unaudited)

Fiscal year 2025–26 (in thousands of dollars)

n/a	Total available for use for the year ending March 31, 2026*	Used during the quarter ended June 30, 2025	YTD used at quarter-end
Vote 1 – Program expenditures	57,418	11,686	11,686
Budgetary statutory authorities	n/a	n/a	n/a
Contributions to employee benefit plans	6,232	1,558	1,558
Expenditures pursuant to subsection 21(3) of the NSCA	121,416	25,828	25,828
Total budgetary authorities	185,066	39,072	39,072
Non-budgetary authorities	-	-	-
Total authorities	185,066	39,072	39,072

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

Fiscal year 2024–25 (in thousands of dollars)

n/a	Total available for use for the year ending March 31, 2025*	Used during the quarter ended June 30, 2024	YTD used at quarter-end
Vote 1 – Program expenditures	52,421	11,147	11,147
Budgetary statutory authorities	n/a	n/a	n/a
Contributions to employee benefit plans	5,108	1,277	1,277
Expenditures pursuant to subsection 21(3) of the NSCA	108,606	23,822	23,822
Total budgetary authorities	166,135	36,246	36,246
Non-budgetary authorities	-	-	-
Total authorities	166,135	36,246	36,246

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

Departmental budgetary expenditures by standard object (unaudited)

Fiscal year 2025–26 (in thousands of dollars)

Expenditure	Planned expenditures for the year ending March 31, 2026*	Expended during the quarter ended June 30, 2025	YTD used at quarter-end
Personnel	142,510	33,149	33,149
Transportation and communications	6,000	1,025	1,025
Information	1,150	207	207
Professional and special services	19,351	3,058	3,058
Rentals	2,500	371	371
Repair and maintenance	2,000	147	147
Utilities, materials and supplies	625	90	90
Acquisition of machinery and equipment	4,000	359	359
Transfer payments	6,830	673	673
Other subsidies and payments	100	(7)	(7)
Total gross budgetary expenditures	185,066	39,072	39,072
Total revenues netted against expenditures	-	-	-
Total net budgetary expenditures	185,066	39,072	39,072

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

Fiscal year 2024–25 (in thousands of dollars)

Expenditure	Planned expenditures for the year ending March 31, 2025*	Expended during the quarter ended June 30, 2024	YTD used at quarter-end
Personnel	125,608	28,549	28,549
Transportation and communications	5,300	1,578	1,578
Information	1,100	101	101
Professional and special services	17,350	3,175	3,175
Rentals	3,000	867	867
Repair and maintenance	3,347	128	128
Utilities, materials and supplies	500	90	90
Acquisition of machinery and equipment	3,000	1,152	1,152
Transfer payments	6,830	611	611
Other subsidies and payments	100	(5)	(5)
Total gross budgetary expenditures	166,135	36,246	36,246
Total revenues netted against expenditures	-	-	-
Total net budgetary expenditures	166,135	36,246	36,246

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