Housing, Infrastructure and Communities Canada Financial Statements (unaudited) - For the period of June 20, 2024 to March 31, 2025

Catalogue No. T91-9E-PDF

ISSN 2819-6562

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the period of June 20, 2024 to March 31, 2025, and all information contained in these statements rests with the management of Housing, Infrastructure and Communities Canada. These financial statements have been prepared by management using the Government's accounting policies which are based on Canadian Public Sector Accounting Standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of Housing, Infrastructure and Communities Canada’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in Housing, Infrastructure and Communities Canada’s Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout Housing, Infrastructure and Communities Canada and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the period of June 20, 2024 to March 31, 2025 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The effectiveness and adequacy of Housing, Infrastructure and Communities Canada’s system of internal control are reviewed by the work of internal audit staff, who conduct periodic audits of different areas of Housing, Infrastructure and Communities Canada’s operations, and by the Departmental Audit Committee, which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting, and recommends the financial statements to the Deputy Head of Housing, Infrastructure and Communities Canada.

The financial statements of Housing, Infrastructure and Communities Canada have not been audited.

Paul Halucha
Deputy Head

Signed at Ottawa, Canada

Michelle Baron
Chief Financial Officer

Housing, Infrastructure and Communities Canada Statement of Financial Position (*Unaudited*)
As at March 31, 2025
(in thousands of dollars)
	2025
Liabilities
Accounts payable and accrued liabilities (note 5)	$2,464,582
Samuel De Champlain Bridge Corridor Project (note 4)	743,095
Vacation pay and compensatory leave	13,683
Employee future benefits (note 9)	3,768
Deferred revenue (note 7)	2,158
Total net liabilities	3,227,285
Financial assets
Due from Consolidated Revenue Fund	2,462,327
Accounts receivable and advances (note 10)	2,255
Total gross assets	2,464,582
Financial assets held on behalf of Government	(2,827)
Total net financial assets	2,461,755
Departmental net debt	765,531
Non-Financial assets
Tangible capital assets (note 11)	2,543,766
Total non-financial assets	2,543,766
Departmental net financial position	$1,778,235

Paul Halucha
Deputy Head

Signed at Ottawa, Canada

Michelle Baron
Chief Financial Officer

Housing, Infrastructure and Communities Canada
Statement of Operations and Departmental Net Financial Position (*Unaudited*)
For the period of June 20, 2024 to March 31, 2025
(in thousands of dollars)
	2025 Planned Results	2025
Expenses by Core Responsibility
Public Infrastructure, Communities, Affordable Housing and Homelessness Policy	$63,714	$68,406
Public Infrastructure, Communities and Homelessness Investments	27,225	35,157
Public Infrastructure and Communities Investment Stewardship and Delivery	7,439,084	7,197,265
Internal Services	66,937	80,233
Total expenses	7,596,960	7,381,060
Revenues
Other revenues (note 6)	2,361	2,414
Revenues earned on behalf of Government	(2,361)	(2,414)
Total revenues	-	-
Net cost of operations before government funding and transfers	7,596,960	7,381,060
Government funding and transfers
Net cash provided by Government of Canada	-	5,639,789
Change in due from Consolidated Revenue Fund	-	1,692,392
Services provided without charge by other government departments (note 13)	-	13,824
Transfer of assets and liabilities from other government department (note 14)	-	1,812,654
Net transfer of salary overpayments from (to) other government departments	-	636
Net cost of operations after government funding and transfers	-	(1,778,235)
Departmental net financial position - Beginning of year	-	-
Departmental net financial position - End of year	-	$1,778,235

Segmented Information (note 15)

The accompanying notes form an integral part of these financial statements.

Housing, Infrastructure and Communities Canada
Statement of Change in Departmental Net Debt (*Unaudited*)
For the period of June 20, 2024 to March 31, 2025
(in thousands of dollars)
	2025
Net cost of operations after government funding and transfers	$(1,778,235)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 11)	2,817
Amortization of tangible capital assets (note 11)	(38,706)
Proceeds from disposal of tangible capital assets	-
Proceeds from disposal of real property	(45)
Transfer from other government departments (note 14)	2,579,897
Net gain (loss) on disposal of tangible capital assets and real property including adjustments	(197)
Total change due to tangible capital assets	2,543,766
Net increase (decrease) in departmental net debt	765,531
Departmental net debt – Beginning of year	-
Departmental net debt – End of year	$765,531

The accompanying notes form an integral part of these financial statements.

Housing, Infrastructure and Communities Canada
Statement of Cash Flows (*Unaudited*)
For the period of June 20, 2024 to March 31, 2025
(in thousands of dollars)
	2025
Operating activities
Net cost of operations before government funding and transfers	$7,381,060
Non-cash items
Amortization of tangible capital assets (note 11)	(38,706)
Gain (loss) on disposal of tangible capital assets and real property	(197)
Net transfer of salary overpayments and advances (from) to other government departments	(636)
Services provided without charge by other government departments (note 13)	(13,824)
Variations in Statement of Financial Position:
Decrease (increase) in accounts payable and accrued liabilities (note 5)	(2,464,582)
Increase (decrease) in accounts receivable and advances (note 10)	(572)
Decrease (increase) in vacation pay and compensatory leave	(13,683)
Decrease (increase) in employee future benefits (note 9)	(3,768)
Decrease (increase) in deferred revenue (note 7)	(2,158)
Transfer of assets and liabilities to other government department	787,390
Cash used in operating activities	5,630,325
Capital investing activities
Acquisitions of tangible capital assets (note 11)	2,817
Proceeds from disposal of tangible capital assets	-
Proceeds from disposal of real property	(45)
Cash used in capital investing activities	2,772
Financing activities
Payments on obligation under Public Private Partnership (note 4)	6,693
Cash used in capital investing activities	6,693
Net cash provided by Government of Canada	$5,639,789

Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

The Department of Housing, Infrastructure and Communities (commonly referred to as Housing, Infrastructure and Communities Canada (HICC)) was initially established in 2002 as Infrastructure Canada to ensure Canadians benefit from world-class public infrastructure from coast to coast to coast. On June 20, 2024, with the passing of Bill C-59, Infrastructure Canada (INFC) became the Department of Housing, Infrastructure and Communities enacting its enabling legislation, the Department of Housing, Infrastructure and Communities Act. The Act establishes a Minister of Infrastructure and Communities and a Minister of Housing, both supported by the Department and a single deputy minister.

As a result, all of INFC’s operations including the stewardship responsibility for the assets and liabilities were transferred to HICC.

HICC is funded through annual and statutory appropriations received from the Parliament of Canada and is not taxable under the provisions of the Income Tax Act. HICC reports to the Minister of Housing, Infrastructure and Communities.

Core responsibilities

Housing, Infrastructure and Communities Canada works closely with all orders of government and other partners to enable investments in social, green, public transit and other core public infrastructure, as well as trade and transportation infrastructure.

HICC reports on its mandate under three core responsibilities, as well as internal services, in support of its activities as described below.

Public Infrastructure, Communities, Affordable Housing and Homelessness Policy:

Housing, Infrastructure and Communities (HICC) sets policies for both public infrastructure and approaches for the development of affordable housing, address homelessness that target the needs of Canadians and stakeholders (public/private partners) while considering finite resources. Policies are set through strategies, plans, consideration of alternative financing models and funding programs, and eligibility requirements among other tools and their outcomes are monitored to inform future decision making. Policy solutions determine how the federal government supports public infrastructure development, bridges, public transit, clean water and wastewater, disaster mitigation, and approaches to address homelessness, among other areas, which have impacts on the quality of life of Canadians.

Public Infrastructure, Communities and Homelessness Investments:

Housing, Infrastructure and Communities (HICC) uses a range of funding mechanisms to maximize value-for-money in direct (leveraging infrastructure investments) government investment in infrastructure and to address affordable housing and homelessness:

Allocation-based programs offer stable funding for projects that balance both national priorities with local needs of Provinces and Territories;
Direct-funding programs award funding to projects that are selected through an application process; and,
Alternative financing arrangements identify projects that are delivered in partnership with either private sector or non-government organization and Housing, Infrastructure and Communities or Crown Corporations under the Minister of Intergovernmental Affairs, Infrastructure and Communities.

Public Infrastructure and Communities Investment, Stewardship and Delivery:

Housing, Infrastructure and Communities (HICC) oversees programs and projects as well as major bridges, Crown Corporations and alternative financing arrangements. While Crown Corporations operate at arm’s length, the Department plays a secretariat role in supporting them. Across all programming, numerous monitoring activities are used to oversee projects and ensure they are delivered as expected for Canadians.

Internal Services

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs.

There are 10 categories of internal services:

Management and oversight services
Communications services
Legal services
Human resources management services
Financial management services
Information management services
Information technology services
Real property management services
Materiel management services
Acquisition management services

2. Summary of significant accounting policies

These financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian Public Sector Accounting Standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian Public Sector Accounting Standards.

Significant accounting policies are as follows:

Parliamentary authorities
HICC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to HICC do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.
Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2024-2025 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2024-2025 Departmental Plan.
Consolidation
HICC has received dividends on behalf of the Government of Canada from the Canada Mortgage and Housing Corporation (CMHC) and revenues for Pont de Québec on behalf of The Jacques Cartier and Champlain Bridges Incorporated (JCCBI). As per the Government of Canada Accounting Handbook, these dividends are not recorded in HICC's financial statements as they do not relate to HICC's activities. HICC is simply acting as a flow‑through mechanism for administrative purposes in order to enable the Government of Canada to receive the dividends.
Net cash provided by government
HICC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by HICC is deposited to the CRF and all cash disbursements made by HICC are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.
Amounts due from or to the CRF
Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that HICC is entitled to draw from the CRF without further authorities to discharge its liabilities.
Revenues
Revenues are comprised of revenues earned from non-tax sources. They include exchange transactions where goods or services are provided for consideration where a performance obligation exists, and non-exchange transactions where no performance obligations exist to provide a good or service. These transactions can be recurring or non-recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonably expected to be earned again in future years. Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned. Other revenues are recognized in the period the event giving rise to the revenues occurred. Revenues that are non-respendable are not available to discharge the department’s liabilities. While the Departmental Deputy Head is expected to maintain accounting control, he or she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity’s gross revenues. Revenues earned on behalf of Government consist of the sale of services and gains on the sale of assets. These are recognized when earned.
Expenses
Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
Services provided without charge by other government departments for accommodation and employer contributions to the health and dental insurance plans are recorded as operating expenses at their carrying value.
Employee future benefits
1. Pension benefits: Eligible employees participate in the Public Service Pension Plan (Public Service Superannuation Act), a multi-employer plan administered by the Government. HICC’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. HICC’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.
2. Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
Accounts and loans receivable
Accounts and loans receivable are initially recorded at cost and where necessary, are discounted to reflect their concessionary terms. Concessionary terms of loans include cases where loans are made on a long-term, low interest or interest-free basis. Transfer payments that are unconditionally repayable are recognized as loans receivable. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts and loans receivable to amounts that approximate their net recoverable value.
Non-financial assets
The cost of acquiring land, buildings, equipment and other capital property is capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 11. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.
Contingent liabilities
Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in the notes to the financial statements.
Contingent assets
Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in the notes to the financial statements.
Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the Samuel De Champlain Bridge Corridor Project asset and liability, the payables at year end, contingent liabilities, the liability for employee future benefits, and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
Related party transactions
Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.
Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:
1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

HICC receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, HICC has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

Reconciliation of net cost of operations to current year authorities used

*(in thousands of dollars)*
	2025
Net cost of operations before government funding and transfers	$7,381,060
Adjustments for items affecting net cost of operations but not affecting authorities
Amortization of tangible capital assets	(38,706)
Gain (loss) on disposal of tangible capital assets	(197)
Services provided without charge by other government departments	(13,824)
Decrease (increase) in vacation pay and compensatory leave	(1,747)
Decrease (increase) in employee future benefits	(160)
Bad debt expense	(679)
Refund of previous year's expenditures	16,069
Other amounts to be recovered / Other expenditures not affecting authorities	(75)
Total items affecting net cost of operations but not affecting authorities	(39,919)
Adjustments for items affecting net cost of operations but not affecting authorities
Acquisitions of tangible capital assets	2,817
Payments of obligation under Public Private Partnership	6,693
Proceeds from disposal of tangible capital assets	-
Increase (decrease) in salary overpayments and advances	77
Loss (Gains) on Other Foreign Exchange Valuations	-
Total items not affecting net cost of operations but affecting authorities	9,587
Current year authorities used	$7,351,328

Authorities provided and used

(in thousands of dollars)
	2025
Authorities
Vote 1 – Operating expenditures	$261,686
Vote 5 – Capital expenditures	36,781
Vote 10 – Contributions	5,152,568
Statutory Amounts
Employee Benefit Plan	21,156
Minister Office Salary and Car Allowance	88
Canada Community-Building Fund	2,368,158
Proceeds from disposal	-
Less
Authorities available for future years	-
Lapsed: Operating	(16,364)
Lapsed: Capital	(27,307)
Lapsed: Contributions	(445,438)
Current year authorities used	$7,351,328

4. Samuel De Champlain Bridge Corridor Project

After a competitive process, in 2015, Signature on the St. Lawrence Group (SSL) was awarded the contract and is responsible for the design, construction, financing, operation, maintenance and rehabilitation of the corridor. The new bridge crossing was fully opened to traffic on July 1, 2019 and construction of the remainder of the corridor was substantially completed in October 2019. Work to complete elements of the corridor that were deferred and to correct minor deficiencies is expected to be completed by the end of 2025.

In 2024-25, $1.86M was spent on the project and it has been added to the existing bridge asset value. The total asset value of the Samuel De Champlain Bridge Corridor (SDCBC) project is $2.69B.

Ownership of the bridge and related corridor remains with federal government, and Signature on the St. Lawrence Group will operate the corridor until October 31, 2049.

Obligation under Public Private Partnership

HICC has entered into a public private partnership agreement with SSL for the project. The obligations related to the upcoming years include the following:

Obligation under Public Private Partnership
(in thousands of dollars)
	2025
2026	$49,778
2027	49,778
2028	49,778
2029	49,778
2030 and subsequent	1,024,590
Total estimated payments	1,223,701
Less: imputed interest (5.59%)	480,605
Balance of obligation under public private partnership	$743,095

5. Accounts payable and accrued liabilities

The following table presents details of HICC’s accounts payable and accrued liabilities:

Accounts payable and accrued liabilities
(in thousands of dollars)
	2025
Accounts Payable - Other government departments and agencies	$7,946
Accounts Payable - External parties	2,444,664
Total accounts payable	2,452,610
Accrued Liabilities	11,972
Total accounts payable and accrued liabilities	$2,464,582

6. Revenues

Revenues consist of lease and use of public property related to the Samuel De Champlain Bridge Corridor Project and nominal revenue from Access to Information fees.

7. Deferred Revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are related to Samuel De Champlain Bridge Corridor project. Details of the transactions related to this account are as follows:

Deferred Revenue
(in thousands of dollars)
	2025
Opening balance	$-
Amounts received	2,589
Revenue recognized	(2,061)
Deferred revenues transferred from Infrastructure Canada	1,629
Closing balance	$2,158

8. Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. Claims have been made against Housing, Infrastructure and Communities Canada in the normal course of operations. These claims include items with pleading amounts and other for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. Through the assumption of liabilities from Infrastructure Canada, claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $379 million as at March 31, 2025. Housing, Infrastructure and Communities Canada has no claim and litigation with related parties at March 31, 2025.

9. Employee future benefits

Pension benefits:
HICC's employees participate in the public service pension plan (the “Plan”), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and HICC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
The 2024-25 expense amounts to $13,569,703 for the period of June 20, 2024 to March 31, 2025. For Group 1 members, the expense represents approximately 1.02 times the employee contributions and, for Group 2 members, approximately 1.00 times the employee contributions.

HICC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

Severance benefits:

Severance benefits provided to HICC’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2025, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Severance benefits
(in thousands of dollars)
	2025
Accrued benefit obligation - Beginning of year	$-
Liability transferred from Infrastructure Canada	3,609
Expense for the year	1,126
Benefits paid during the year	(967)
Accrued benefit obligation - End of year	$3,768

10. Accounts receivable and advances

Accounts receivable and advances

(in thousands of dollars)
	2025
Receivables - Other government departments and agencies	$1,761
Receivables - External parties	1,116
Advances - Employees	57
Allowance for doubtful accounts	(679)
Total accounts receivable and advances	$2,255
Assets held on behalf of government	(2,827)
Net accounts receivable and advances	$(572)

11. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Tangible capital assets
Asset class	Amortization period
Works and Infrastructure	5 to 100 years
Machinery and Equipment	5 years
Computer Hardware	3 to 5 years
Informatics Software – Purchased and Developed	2 to 8 years
Vehicles (non-military)	5 to 7 years
Machinery and equipment – Other equipment (including furniture)	10 years
Leasehold Improvements	Term of lease

Assets under construction are recorded in the applicable capital asset class in the year that they are put into service and are not amortized until they are put into service.

Cost 2025
(in thousands of dollars)
Capital asset class	Opening balance	Acquisitions	Adjustments^{Footnote 1}	Disposals	Write-offs	Closing balance
Land	-	-	128,601	(242)	-	128,359
Works and infrastructure	-	-	2,692,260	-	-	2,692,260
Machinery and Equipment	-	-	-	-	-	-
Computer Hardware	-	-	691	-	-	691
Informatics Software - Developed and Purchased	-	-	22,285	-	-	22,285
Other equipment (including furniture)	-	336	-	-	-	336
Motor Vehicle	-	-	138	-	-	138
Leasehold Improvements	-	-	7,218	-	-	7,218
Assets under construction	-	2,481	(827)	-	-	1,654
Total	-	2,817	2,850,366	(242)	-	2,852,941

Accumulated amortization 2025
(in thousands of dollars)
Capital asset class	Opening balance	Amortization	Adjustments	Disposals	Write-offs	Closing balance
Land	-	-	-	-	-	-
Works and infrastructure	-	(35,687)	251,265	-	-	(286,952)
Machinery and Equipment	-	-	-	-	-	-
Computer Hardware	-	(94)	415	-	-	(509)
Informatics Software - Developed and Purchased	-	(2,191)	(14,649)	-	-	(16,840)
Other equipment (including furniture)	-	(3)	-	-	-	(3)
Motor Vehicle	-	(10)	(81)	-	-	(90)
Leasehold Improvements	-	(723)	(4,058)	-	-	(4,781)
Assets under construction	-	-	-	-	-	-
Total	-	(38,706)	(270,468)	-	-	(309,175)

Net Book Value
(in thousands of dollars)
Capital asset class	2025	2024
Land	128,359	-
Works and infrastructure	2,405,309	-
Machinery and Equipment	-	-
Computer Hardware	182	-
Informatics Software - Developed and Purchased	5,445	-
Other equipment (including furniture)	333	-
Motor Vehicle	48	-
Leasehold Improvements	2,437	-
Assets under construction	1,654	-
Total^{Footnote 1}	2,543,766	-

12. Contractual obligations

The nature of HICC's activities can result in some large multi-year contracts and obligations whereby HICC will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Contractual obligations
(in thousands of dollars)
	2025	2027	2028	2029	2030	2031 and thereafter	Total
Transfer payments	10,947,163	7,423,776	6,044,492	3,407,025	1,687,210	3,060,005	32,569,671
Other goods and services	57,434	56,652	56,481	55,664	55,746	972,754	1,254,731
Total	11,004,597	7,480,428	6,100,973	3,462,689	1,742,956	4,032,759	33,824,402

13. Related party transactions

HICC is related as a result of common ownership to all government departments, agencies, and Crown corporations. HICC enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, HICC received common services which were obtained without charge from other government departments as disclosed below.

Common services provided without charge by other government departments

During the period of June 20, 2024 to March 31, 2025, HICC received services without charge from certain common service organizations, related to accommodation and the employer’s contribution to the health and dental insurance plans. These services provided without charge have been recorded in HICC’s Statement of Operations and Departmental Net Financial Position as follows:

Common services provided without charge by other government departments
(in thousands of dollars)
	2025
Employer's contribution to the health and dental insurance plans	$10,369
Accommodation	3,455
Total	$13,824

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and audit services provided by the Office of the Auditor General are not included in HICC's Statement of Operations and Departmental Net Financial Position.

Other transactions with related parties

Other transactions with related parties
(in thousands of dollars)
	2025
Accounts receivable – Other government departments and agencies	$1,761
Accounts payable – Other government departments and agencies	7,945
Expenses – Other government departments and agencies	54,746

Expenses disclosed in (b) exclude common services provided without charges, which are already disclosed in (a).

Other Government Departments (OGDs) and agencies administer certain programs on behalf of HICC. Funds are advanced to these OGDs and agencies, namely Transport Canada and Employment and Social Development Canada, during the fiscal year. An accounts receivable is recorded for the unused portion that will be returned to HICC after year end while an account payable is recorded when HICC must provide additional funds to these OGDs and agencies.

14. Transfer to another Government Department

On June 20, 2024, with the passing of Bill C-59, Infrastructure Canada (INFC) became the Department of Housing, Infrastructure and Communities (commonly referred to as Housing, Infrastructure and Communities Canada (HICC)) enacting its enabling legislation, the Department of Housing, Infrastructure and Communities Act.

As a result of this bill, INFC transferred all of its operations including the stewardship responsibility for the assets and liabilities to HICC.

Transfer to another Government Department
(in thousands of dollars)
	2025
Assets
Due from the Consolidated Revenue Fund	$769,934
Accounts receivable and advances	1,904
Financial assets held on behalf of Government	(413)
Tangible capital assets	2,578,070
Total assets	$3,349,496
Liabilities
Accounts payable and accrued liabilities	$771,708
Samuel de Champlain Bridge Corridor Project	749,788
Vacation pay and compensatory leave	11,936
Employee future benefits	3,609
Deferred revenues	1,629
Total liabilities	$1,538,669
Adjustment to the departmental net financial position	$1,810,827

Transfer between ESDC and HICC.

Transfer between ESDC and HICC
(in thousands of dollars)
	2025
Assets
Tangible capital assets	1,827
Total assets	$1,827
Adjustment to the departmental net financial position	$1,827

15. Segmented Information

Presentation by segment is based on INFC's core responsibilities. The presentation by segment is based on the same accounting policies as described in the Summary of Significant Accounting Policies in Note 2. The following table presents the expenses incurred for the main core responsibilities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

Segmented Information
For the period from June 20, 2024 to March 31, 2025
(in thousands of dollars)
	Public Infrastructure, and Communities, Affordable Housing and Homelessness Policy	Public Infrastructure, and Communities and Homelessness Investments	Public Infrastructure and Communities Investment Stewardship and Delivery	Internal Services	Total
Transfer payments
Contributions	$4,088	$ -	$7,057,362	$ -	$7,061,450
Total transfer payments	$4,088	$-	$7,057,362	$-	$7,061,450
Operating expenses
Salaries and employee benefits	51,330	32,315	38,072	54,510	176,228
Professional and special services	5,307	2,075	12,217	8,632	28,230
Rentals	1,028	634	1,137	3,801	6,600
Amortization	-	-	37,877	829	38,706
Repairs and maintenance	-	-	17,438	99	17,537
Transportation and communications	415	71	456	412	1,354
Acquisition of machinery and equipment	2	-	7	3,411	3,419
Information	6,215	56	76	5,821	12,168
Utilities, materials, and supplies	22	3	21	139	184
Acquisition of land, buildings and works	-	-	-	92	92
Other	-	2	3,602	2,489	35,093
Total operating expenses	64,318	35,157	139,902	80,233	319,611
Total expenses	68,406	35,157	7,197,265	80,233	7,381,060
Revenues
Other revenues	-	-	2,413	-	2,413
Revenues earned on behalf of government	-	-	(2,413)	-	(2,413)
Total revenues	-	-	-	-	-
Net cost from continuing operations^{Footnote 1}	$68,406	$35,157	$7,197,265	$80,233	$7,381,060

16. Subsequent events

Funding letters for the Canada Community-Building Fund for a total amount of $2,466,830,789 were signed and provided to the recipients of Nunavut, Ontario, British Columbia, Quebec, Prince Edouard Island, Northwest Territories, Alberta, New Brunswick, Nova Scotia, Newfoundland and Labrador, Yukon, Saskatchewan, Manitoba on June 16, 2025.

These letters indicate to each recipient the amounts of funds to be disbursed in 2025-26. Overall, first payment totalling $1,233,415,395 had to be released no later than mid July 2025.Yukon has met the requirements to initiate the second funding transfer for the 2025-26 and an outstanding payment of $9,375,000 is being processed.

ANNEX to the Statement of Management Responsibility Including Internal Control over Financial Reporting for the Fiscal Year ending March 31, 2025

Important note

Effective June 19, 2024, the Department of Infrastructure Canada (INFC) was dissolved, and a new department—Housing, Infrastructure and Communities Canada (HICC)—was established to carry forward the Government of Canada’s mandate. The assessments of Internal Control over Financial Reporting (ICFR) and Internal Control over Financial Management (ICFM) conducted during the 2024–25 fiscal year were based on data and operations under INFC. However, the resulting findings and recommendations have been formally transferred to HICC. HICC has assumed full responsibility for the associated Management Action Plans (MAPs) and is actively implementing measures to address the identified risks.

1.0 Introduction

This document provides summary information on the measures taken by Housing, Infrastructure and Communities Canada (HICC) to maintain an effective system of Internal Control over Financial Management (ICFM), which encompasses the system of Internal Control over Financial Reporting (ICFR), as well as information on internal control management, assessment results and related action plans. These systems provide assurance that public resources are used prudently and in an economical manner, that financial processes are effective and efficient, and relevant legislation & policy instruments are complied with.

Detailed information on the department's authority, mandate, and core responsibilities can be found in the Departmental Results Report and the Departmental Plan.

2.0 Departmental system of ICFM and ICFR

2.1 Internal control management

HICC has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its overall system of internal controls. A departmental Internal Control Management Framework is in place and comprises:

Organizational accountability structures, including the roles & responsibilities of relevant authorities;
Key requirements of HICC’s Risk & Assessment System;
Internal & external reporting requirements; and
Relevant policies & internal control references for sound internal control management practices.

Equally, the Departmental Audit Committee (DAC) is an independent advisory committee to the Deputy Head (DH). It is responsible for providing advice to the DH on the adequacy and functioning of the department’s risk management, control and governance frameworks and processes. HICC’s DAC is composed of four external members, three internal ex-officio members and meets a minimum of three times per year (and more frequently if required).

2.2 Service arrangements relevant to financial statements

2.2.1 Common Service Arrangements

HICC relies on Other Government Departments (OGDs) for processing certain transactions that are recorded in its financial statements, as follows:

Public Services and Procurement Canada (PSPC), which provides accommodation services and administers the procurement of goods & services, in accordance with HICC’s Delegation of Financial Signing Authorities;
Treasury Board of Canada Secretariat (TBS), which provides information on public service insurance and centrally administers payment of the employer’s share of contributions toward statutory employee benefit plans;
Department of Justice Canada, which provides legal services; and
Shared Services Canada (SSC), which provides information technology infrastructure services in the areas of data centre and network services. The scope and respective responsibilities are described in the interdepartmental arrangement between SSC and HICC.

Readers of this annex may refer to the annexes of the above-noted departments for a greater understanding of the systems of ICFM and ICFR related to these specific services.

2.2.2 Specific Arrangements

In addition to the above, HICC relies on other external service providers and OGDs to process certain transactions and information that are recorded in its financial statements, as follows:

Federal delivery partner (Transport Canada), which manages certain contribution programs on behalf of HICC;
Innovation, Science and Economic Development Canada (ISED), which hosts HICC's departmental financial management system, the Integrated Financial Management System (IFMS). The service arrangement also includes system support;
Employment and Social Development Canada (ESDC), which provides and supports the Common System for Grants & Contributions, used in the delivery of the Reaching Home program; and
Canada Mortgage and Housing Corporation (CMHC), which is an important partner in building new capacities and functions within the department, to deliver Canada’s housing mandate.

3.0 Departmental assessment results for the 2024-25 fiscal year

3.1 Progress during the 2024-25 fiscal year

HICC successfully completed all planned assessments as stated in the departmental Ongoing Monitoring Plan (OMP). The majority of key controls tested proved to be operating effectively. Testing results and recommendations were communicated to stakeholders, and remedial actions are in progress. The significant adjustments required from these assessments are summarized in subsection 3.3 Remediation.

The following table summarizes the status of the Ongoing Monitoring (OM) activities for each control area assessed in 2024-25, along with the respective testing results.

Progress during the 2024-25 fiscal year
Control Area	Status	Testing results
Budgeting & Forecasting	Ongoing Monitoring	Inefficiencies tied to the management of Budget Transfers.
Financial Reporting & Financial Close	Ongoing Monitoring	Inefficiencies tied to Payables at year-end (PAYE) and Receivables at year-end (RAYE) transaction handling.
Project Management	Design Effectiveness	Inefficiencies tied to governance and the master database integrity.
Travel, Hospitality, Conferences & Events	Ongoing Monitoring	Inefficiencies tied to travel request approval, event plans documentation and monitoring, and proactively disclosed information.

3.2 New or significantly amended key controls

In 2024-2025, HICC introduced a new control area within its suite of business processes under review. A set of controls was developed to support the effective management of projects, incorporating key Investment Planning considerations. These new controls further reinforce the existing Investment Planning framework embedded within HICC’s Capital Asset business process.

Additionally, enhancements were made to the Budgeting & Forecasting controls to strengthen oversight of initial preparation of multi-year Grants & Contribution (G&C) forecasts and commitment budgets. These improvements also support in-year financial analysis, G&C forecast reviews, and year-end reconciliations.

All these additional controls have been documented and, where feasible, tested to provide increased assurance regarding the sound financial management of public funds.

3.3 Remediation

HICC conducted periodic monitoring activities to ensure that Management Action Plans (MAPs) were implemented as intended. These monitoring efforts also served to inform senior management on progress and areas of risk.

The mitigating measures addressing the high and medium risks identified through the 2024-25 assessments are as follows:

Remediation
Control areas	Management Action Plan
Budgeting & Forecasting	Reinforce sound Budget Transfers management practices.
Financial Reporting & Financial Close	No high or medium risk action required.
Project Management	No high or medium risk action required.
Travel, Hospitality, Conferences & Events	Strengthen the management of the travel booking process, specifically if significant changes occur to trips within the travel plans. Launch a post-payment verification process for Event & Hospitality expenditures. Strengthen the management of Event & Hospitality expenditures to ensure timely and accurate proactive disclosure of information.

4.0 Departmental action plan for the next fiscal year and subsequent years

The Department applies a risk-based approach to monitor and respond to changes and emerging risks within its internal control environment. These evolving risks inform the level of risk assigned to each control area and influence the frequency of testing. Where appropriate, updates are made to the OMP to ensure continued effectiveness and accountability.

HICC’s rotational OMP over the next five (5) fiscal years is shown in the following table:

Approved Rotational ongoing risk-based monitoring plan
Control Areas	2024-25	2025-26	2026-27	2027-28	2028-29
Budgeting and Forecasting	✔	-	✔	-	✔
IT General Controls	-	-	✔	-	✔
Procure to Payment	-	✔	-	✔	-
Transfer Payments	-	✔	-	✔	-
Capital Assets	-	-	✔	-	-
Entity Level Controls	-	-	-	✔	-
Payroll	-	✔	-	-	✔
Project Management	✔	✔	-	-	✔
Acquisition Cards	-	-	✔	-	-
Cabinet Submissions	-	-	-	✔	-
Financial Reporting & Financial Close	✔	-	-	-	-
Travel, Hospitality, Conferences & Events	✔	-	-	-	-

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Date modified:: 2025-11-07