Quarterly Financial Report for the period ending June 30, 2025
Statement outlining results, risks and significant changes in operations, personnel and program
On this page
List of acronyms and abbreviations
- DNA
- Deoxyribonucleic acid
- FTE
- full-time equivalent
- G7
- Group of Seven
- IM
- Information management
- IT
- Information technology
- RCMP
- Royal Canadian Mounted Police
- SPA
- special purpose allotment
- VNR
- Vote Netted Revenues
List of tables
- Table 1: Cumulative Variance in Authorities in 2025-26 in comparison to 2024-25
- Table 2: Year to date expenditure at quarter end (in thousands of dollars)
- Table 3: Year to date expenditures by standard object at quarter end (in thousands of dollars)
- Table 4: Statement of Authorities (unaudited) (in thousands of dollars)
- Table 5: Departmental budgetary expenditures by standard object (unaudited) (in thousands of dollars)
1. Introduction
This quarterly financial report (QFR) 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. The report should be read in conjunction with the Main Estimates for 2025-26. The quarterly report has not been subject to an external audit or review.
1.1 Mandate
The Minister of Public Safety is the minister responsible for the Royal Canadian Mounted Police (RCMP). The responsibilities of the RCMP are set out in section 18 of the Royal Canadian Mounted Police Act. The RCMP's mandate is multi-faceted, it includes preventing and investigating crime; maintaining peace and order; enforcing laws; contributing to national security; ensuring safety of state officials, visiting dignitaries and foreign missions; and providing vital operational support services to other police and law enforcement agencies within Canada and abroad.
Further information on the mandate, roles, responsibilities and programs of the RCMP can be found in the Main Estimates (Part II of Estimates) and the Departmental Plan and Departmental Results Report (Part III of Estimates).
1.2 Basis of presentation
This quarterly report has been prepared by management using the expenditure basis of accounting. The accompanying Statement of Authorities includes the RCMP's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates. 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 RCMP 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 a cash expenditure basis.
The RCMP is funded through annual appropriations and is, therefore, impacted by any changes in funding approved through Parliament. In addition, it receives a significant portion of funding through vote netted revenue (VNR) from the provision of policing services to provinces, territories, municipalities and first nations communities, as well as from cost sharing agreements with provinces and territories for the provision of DNA analysis by the RCMP. The RCMP also receives VNR authorities for the administration of RCMP's Pension Plan.
The RCMP's authorities are allocated in several discrete envelopes with varying sources of funds. A number of Special Purpose Allotments (SPAs) have been created over the years to manage the various programs and/or initiatives.
2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results
The following section provides financial results and explanations for the quarter ending June 30, 2025, as compared to the quarter ending June 30, 2024. The following graph illustrates the net budgetary authorities, the year-to-date expenditures, which equal the expenditures for the quarter ending June 30, 2025, along with comparative figures for the quarter last fiscal year. It reflects the department's combined Vote 1 - Operating, Vote 5 - Capital, Vote 10 - Grants and Contributions, Vote 15 – Payments in respect of disability and health benefits for members of the Royal Canadian Mounted Police, as well as statutory elements.
Chart 1: Highlights of the fiscal quarter and the fiscal year-to-date
| Authorities | 2025-26 | 2024-25 |
|---|---|---|
| Net budgetary authorities | $6,078.0 million | $4,848.6 million |
| First Quarter Expenditures to date | $1,347.5 million | $1,094.4 million |
2.1 Significant changes to authorities
For the period ending June 30, 2025, the RCMP has $6,078.0 million in total authorities. This amount includes 2025-26 Main Estimates of $6,076.4 million and proceeds from the disposal of Crown assets of $1.6M.
As illustrated in the table below, total authorities as at June 30, 2025, increased by $1,229.4 million compared to the first quarter of fiscal 2024-25.
| Based on the end of the first quarter (June) | Total authorities | Year over year variance | ||
|---|---|---|---|---|
| (in thousands of dollars) | 2025-26 | 2024-25 | Authorities | Percentage |
| Gross operating expenditures | 6,179,869 | 5,076,194 | 1,103,674 | 22% |
| Less: Vote netted revenues | 2,364,427 | 2,062,523 | 301,904 | 15% |
| Vote 1 - Net operating expenditures | 3,815,441 | 3,013,671 | 801,770 | 27% |
| Vote 5 - Capital expenditures | 452,366 | 262,585 | 189,781 | 72% |
| Vote 10 - Grants and contributions | 26,177 | 24,845 | 1,331 | 5% |
| Vote 15 - Health and Disability | 1,060,656 | 952,070 | 108,587 | 11% |
| Total voted authorities | 5,354,640 | 4,253,171 | 1,101,469 | 26% |
| Pensions and other employee benefits - Members of the Force | 597,401 | 513,252 | 84,149 | 16% |
| Contributions to employee benefit plans (public service employees) | 119,377 | 76,333 | 43,044 | 56% |
| Pensions under the Royal Canadian Mounted Police Pension Continuation Act | 5,000 | 5,000 | - | 0% |
| Proceeds from the Disposal of Crown Assets under the Surplus Crown Assets Act | 1,627 | 849 | 778 | 92% |
| Total statutory authorities | 723,404 | 595,434 | 127,971 | 21% |
| Total budgetary authorities | 6,078,045 | 4,848,605 | 1,229,440 | 25% |
Table 1 footnotes
- Table 1 footnote 1
-
Totals may not add due to rounding.
Explanation of changes in voted and statutory authorities
Vote 1 - Gross operating
The organization's gross Vote 1 increased by $1,103.7 million compared to the first quarter of 2024-25, mainly due to:
- An increase of $480.8 million to address growth in the Contract Policing program and enable the continuance of effective program delivery.
- An increase of $174.5 million in support of Canada's 2025 G7 Presidency.
- An increase of $100.2 million in compensation adjustments for public service employees and members of the RCMP.
- An increase of $110.9 million as part of Vote Netted Revenues (VNR) adjustments due to changes to collective bargaining agreements.
- An increase of $91.6 million to enhance the integrity of Canada's borders.
- An increase of $75.0 million for the Assault-Style Firearms Compensation Program.
- An increase of $35.8 million for Protection of Public Figures and Democratic Institutions.
- An increase of $28.5 million to modernize digital network infrastructure.
- A net increase of $6.4 million for other previously approved and new initiatives.
Vote netted revenues
The organization's VNR authority increased by $301.9 million compared to the first quarter of 2024-25 primarily to address growth in the Contract Policing program.
Vote 5 - Gross capital
The organization's Vote 5 increase of $189.8 million, compared to the first quarter of 2024-25, is mainly due to:
- An increase of $142.3 million to address growth in the Contract Policing program.
- An increase of $28.5 million through a funding reprofile, to modernize RCMP's IM/IT infrastructure.
- An increase of $18.1 million in support of Canada's 2025 G7 Presidency.
- A net increase of $1.0 million for other previously approved and new initiatives.
Vote 10 - Grants and contributions
The organization's Vote 10 increased by $1.3 million, compared to the first quarter of 2024-25 for the firearms contribution program.
Vote 15 - Payments in respect of disability and health benefits for members of the Royal Canadian Mounted Police
The organization's Vote 15 increased by $108.6 million, compared to the first quarter of 2024-25, due to:
- An increase of $75.1 million in disability payments for Members Injured in the Line of Duty.
- An increase of $33.5 million for RCMP Member Occupational and Supplemental Health Benefits, approved as part of new initiatives in 2025-26.
Statutory authorities
The organization's statutory authority increased by $128.0 million compared to the first quarter of 2024-25, mainly due to:
- An increase of $137.6 million in Public Service Employees and Members of the RCMP Employee Benefits Plan, related to new and previously approved initiatives.
- An increase of $11.4 million related to Compensation adjustments for Public Service Employees and members of the RCMP Employee Benefits Plan.
- An increase of $0.8 million related to the Proceeds from the Disposal of Crown Assets under the Surplus Crown Assets Act.
- A decrease of $21.8 million as a result of changes in the attribution of Members and Public Service Employees Benefits costs, as well as updates to their respective rates.
Explanation of significant variances from previous year expenditures
As illustrated in table 2 below, the total year-to-date net expenditures for the period ending June 30, 2025 have increased by approximately $253 million (or 23%) compared to the previous year. As observed in table 3, RCMP's gross budgetary expenditures increased by $352 million (or 23%) compared to the same period. The increases in gross budgetary expenditures were slightly offset by increased revenue collections ($99 million) for the first quarter, which is attributable to both the timing of collections and increased invoiced costs to Contract Policing partners as compared to the prior year.
| Year to date expenditures as at June 30, 2025 | 2025-26 | 2024-25 | Variance | Percentage |
|---|---|---|---|---|
| Vote 1 - Net Operating expenditures | 876,917 | 842,897 | 34,020 | 4% |
| Vote 5 - Capital expenditures | 71,738 | 49,144 | 22,595 | 46% |
| Vote 10 - Grants and contributions | 863 | 778 | 84 | 11% |
| Vote 15 - Health and disability | 244,160 | 47,892 | 196,268 | 410% |
| Budgetary statutory expenditures | 153,782 | 153,660 | 122 | 0% |
| Total expenditures | 1,347,460 | 1,094,371 | 253,088 | 23% |
Table 2 footnotes
- Table 2 footnote 1
-
Totals may not add due to rounding.
The increase in net budgetary expenditures ($253 million) is mainly due to the timing of payments issued to Veterans Affairs Canada for Members Injured in the Line of Duty ($200 million), which occurred in June 2025 as opposed to July 2024. Additionally, one-time operating and capital expenditures associated with Canada's G7 presidency were incurred in the first quarter of 2025-26. Other contributing factors to the increase in net budgetary expenditures include the timing of expenditures and phases related to various projects, and the increase in acquisition of vehicles in comparison to the previous year.
| Standard objects | 2025-26 | 2024-25 | Variance | Percentage |
|---|---|---|---|---|
| Personnel | 1,392,072 | 1,107,610 | 284,462 | 26% |
| Transportation and communications | 81,708 | 78,752 | 2,956 | 4% |
| Information | 1,074 | 1,221 | (147) | (12%) |
| Professional and special services | 147,481 | 160,862 | (13,381) | (8%) |
| Rentals | 47,652 | 25,709 | 21,943 | 85% |
| Purchased repair and maintenance | 17,905 | 22,530 | (4,625) | (21%) |
| Utilities, materials and supplies | 37,827 | 40,987 | (3,160) | (8%) |
| Acquisition of land, buildings and works | 10,604 | 9,575 | 1,029 | 11% |
| Acquisition of machinery and equipment | 94,167 | 48,828 | 45,339 | 93% |
| Transfer payments | 1,371 | 1,362 | 9 | 1% |
| Public debt charges | 118 | 128 | (10) | (8%) |
| Other subsidies and payments | 35,604 | 18,224 | 17,380 | 95% |
| Total gross budgetary expenditures | 1,867,581 | 1,515,788 | 351,793 | 23% |
| Less: Revenues and other reductions | 520,121 | 421,417 | 98,704 | 23% |
| Total net budgetary expenditures | 1,347,460 | 1,094,371 | 253,089 | 23% |
Table 3 footnotes
- Table 3 footnote 1
-
Totals may not add due to rounding.
- Table 3 footnote 2
-
There is not a direct correlation between total expenditure and revenue trends as expenditures reflect total RCMP, whereas revenues are related primarily to contract policing activities.
Expenditure analysis by standard object
Personnel
The increase in expenditure of $284.5 million (or 26%) is mainly attributed to a year-over-year increase in disability payments for Members Injured in the Line of Duty ($200 million) in addition to increases in full-time equivalents (FTEs) due to newly approved initiatives and increased salary costs due to the G7 summit. This has led to a year-over-year increase to personnel expenditures, including the associated employee benefits plan expenditures, through the first quarter of the fiscal year 2025-26 in comparison to 2024-25.
Information
The decrease in expenditures of $0.1 million (or 12%) is mainly attributed to the timing of printing services for firearms communications and which was partially offset by an increase in advertising and publication services due to increased efforts in recruiting compared to the previous fiscal year.
Rentals
The increase in expenditure of $22.0 million or (85%) is due to an increase in building and aircraft rentals, as well as expenditures related to licensing and maintenance fees.
Purchased repair and maintenance
The decrease in expenditures of $4.6 million (or 21%) is mainly due to the timing of various life cycle costs for assets, vehicle repairs and IT maintenance.
Acquisition of land, buildings and works
The increase of $1.0 million or (11%) is due to increases in capital expenditures related to RCMP Buildings' costs.
Acquisition of machinery and equipment
The increase in expenditures of $45.3 million (or 93%) is mainly attributed to the acquisition of computer and security equipment, as well as vehicle purchases, radios and firearms primarily related to the G7 summit.
Other subsidies and payments
The increase of $17.4 million or (95%) is mainly due to protective operations related to the G7 summit, investigations and enhancing border security initiatives.
Revenues and other reductions
The increase in vote netted revenues by $98.7 million (or 23%) is attributable to the timing of collections and increased amounts invoiced to contract partners when compared to the prior year.
3. Risks and uncertainties
The RCMP has completed an environmental scan as part of its work to toward the 2025-28 Corporate Risk Profile. In the meantime, the five risks that have been identified with a high-risk rating from the 2021-24 Corporate Risk Profile continue to help guide funding decisions are as follows:
- Recruitment, Retention and Modernized Skillsets
- The Risk that the RCMP will be unable to adequately attract and retain diverse groups of employees with the appropriate skills, attributes, characteristics and mindset to police the crimes of the future.
- Expanding Commitments
- Risk that the RCMP's commitments continue to expand without sufficient resources, impeding its ability to deliver on priorities and core services.
- IT Infrastructure and Systems
- The Risk that the RCMP's IT infrastructure, systems and applications will become increasingly inadequate to support the administrative and operational requirements of the organization.
- Technology
- Risk that the RCMP may not have the technology to sufficiently combat the changing nature of crime.
- Employee wellness
- Maximize opportunities to promote and optimize employee wellness as well as support employees who experience stress, trauma or serious injury as a result of the nature of policing work and the environments in which they operate.
Other risks noted in the Corporate Risk Profile are: Strategic Decision-Making; Transformation Resistance; and Intelligence and Information Sharing.
Additionally, the operational nature of the RCMP is impacted by inflationary increases to cost of goods and services, and due to the size of the organization these types of increases have significant impacts on expenditures.
Quarterly monitoring of all identified corporate risks and their mitigations is ongoing.
4. Significant changes in relation to operations, personnel and programs
- Shelley Peters, formerly the RCMP's Deputy Chief Human Resources Officer, was appointed Chief Human Resources Officer for the Royal Canadian Mounted Police.
- Assistant Commissioner, Trevor Daroux became the RCMP's Commanding Officer in Alberta at the rank of Deputy Commissioner, replacing Deputy Commissioner Rob Hill upon his retirement.
- Marie-Claude Dandenault, who spent 25 years with the Service de police de la Ville de Montréal, most recently as Chief Inspector, was appointed the RCMP's Deputy Commissioner of Specialized Policing Services.
Annex A: Statement of Authorities (unaudited)
| Fiscal year 2025-2026 | Fiscal year 2024-2025 | |||||
|---|---|---|---|---|---|---|
| Total available for use for the year ending March 31, 2026 table 4 footnote 1 | Used during the quarter ended June 30, 2025 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2025 | Used during the quarter ended June 30, 2024 | Year-to-date used at quarter-end | |
| Gross Operating expenditures | 6,179,869 | 1,397,041 | 1,397,041 | 5,076,194 | 1,264,321 | 1,264,321 |
| Less: Vote Netted Revenues | 2,364,427 | 520,124 | 520,124 | 2,062,523 | 421,424 | 421,424 |
| Vote 1 - Net Operating expenditures | 3,815,441 | 876,917 | 876,917 | 3,013,671 | 842,897 | 842,897 |
| Vote 5 - Capital expenditures | 452,366 | 71,738 | 71,738 | 262,585 | 49,144 | 49,144 |
| Vote 10 - Grants and contributions | 26,177 | 863 | 863 | 24,845 | 778 | 778 |
| Vote 15 - Payments in respect of disability and health benefits for members of the Royal Canadian Mounted Police | 1,060,656 | 244,160 | 244,160 | 952,070 | 47,892 | 47,892 |
| Voted Authorities | 5,354,640 | 1,193,678 | 1,193,678 | 4,253,171 | 940,711 | 940,711 |
| Pensions and other employee benefits - Members of the Force | 597,401 | 123,427 | 123,427 | 513,252 | 133,433 | 133,433 |
| Contributions to employee benefit plans (public servants) | 119,377 | 29,844 | 29,844 | 76,333 | 19,083 | 19,083 |
| Pensions under the Royal Canadian Mounted Police Pension Continuation Act | 5,000 | 508 | 508 | 5,000 | 583 | 583 |
| Refunds of amounts credited to revenues in previous years | 0 | 3 | 3 | 0 | 7 | 7 |
| Proceeds from the Disposal of Crown Assets under the Surplus Crown Assets Act | 1,627 | 0 | 0 | 849 | 554 | 554 |
| Court Awards | 0 | 0 | 0 | 0 | 0 | 0 |
| Statutory Authorities | 723,404 | 153,782 | 153,782 | 595,434 | 153,660 | 153,660 |
| Total budgetary authorities | 6,078,045 | 1,347,460 | 1,347,460 | 4,848,605 | 1,094,371 | 1,094,371 |
Table 4 footnotes
- Table 4 footnote 1
-
Includes only Authorities available for use and granted by Parliament at quarter-end as well as a statutory authority for Proceeds from the Disposal of Crown Assets
Annex B: Budgetary expenditures by standard object (unaudited)
| Fiscal year 2025-2026 | Fiscal year 2024-2025 | |||||
|---|---|---|---|---|---|---|
| Planned expenditures for the year ending March 31, 2026 | Expended during the quarter ended June 30, 2025 | Year-to-date used at quarter-end | Planned expenditures for the year ending March 31, 2025 | Expended during the quarter ended June 30, 2024 | Year-to-date used at quarter-end | |
| Expenditures | ||||||
| Personnel | 5,884,602 | 1,392,072 | 1,392,072 | 5,136,531 | 1,107,610 | 1,107,610 |
| Transportation and communications | 296,869 | 81,708 | 81,708 | 214,652 | 78,752 | 78,752 |
| Information | 5,577 | 1,073 | 1,073 | 3,809 | 1,221 | 1,221 |
| Professional and special services | 860,473 | 147,481 | 147,481 | 588,034 | 160,862 | 160,862 |
| Rentals | 208,899 | 47,652 | 47,652 | 147,759 | 25,709 | 25,709 |
| Repair and maintenance | 156,982 | 17,905 | 17,905 | 108,999 | 22,530 | 22,530 |
| Utilities, materials and supplies | 229,627 | 37,826 | 37,826 | 161,490 | 40,987 | 40,987 |
| Acquisition of land, buildings and works | 143,650 | 10,604 | 10,604 | 94,613 | 9,575 | 9,575 |
| Acquisition of machinery and equipment | 437,827 | 94,167 | 94,167 | 280,824 | 48,828 | 48,828 |
| Transfer payments | 31,177 | 1,371 | 1,371 | 29,845 | 1,362 | 1,362 |
| Public debt charges | 2,374 | 118 | 118 | 1,316 | 128 | 128 |
| Other subsidies and payments | 184,415 | 35,604 | 35,604 | 143,256 | 18,224 | 18,224 |
| Total gross budgetary expenditures | 8,442,472 | 1,867,581 | 1,867,581 | 6,911,128 | 1,515,788 | 1,515,788 |
| Less revenues netted against expenditures | 0 | 0 | 0 | 0 | 0 | 0 |
| Vote netted revenues | 2,364,427 | 520,121 | 520,121 | 2,062,523 | 421,417 | 421,417 |
| Total revenues netted against expenditures | 2,364,427 | 520,121 | 520,121 | 2,062,523 | 421,417 | 421,417 |
| Total net budgetary expenditures | 6,078,045 | 1,347,460 | 1,347,460 | 4,848,605 | 1,094,371 | 1,094,371 |
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