Consolidated Financial Statements for the year ended March 31, 2024

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying consolidated financial statements for the year ended March 31, 2024, and all information contained in these consolidated statements rests with the management of Immigration, Refugees and Citizenship Canada (IRCC). These consolidated financial statements have been prepared by management using the Government of Canada'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 consolidated financial statements. Some of the information in the consolidated 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 IRCC's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in IRCC's Departmental Results Report, is consistent with these consolidated 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 consolidated 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 IRCC 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 year ended March 31, 2024 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 IRCC's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of IRCC's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting.

The consolidated financial statements of IRCC have not been audited.

Original signed by Dr. Harpreet S. Kochhar
Dr. Harpreet S. Kochhar
Deputy Minister

Original signed by Nathalie Manseau
Nathalie Manseau, CPA
Assistant Deputy Minister | Chief Financial Officer
Chief Financial Officer Sector

Ottawa, Canada
September 11, 2024

Immigration, Refugees and Citizenship Canada
Consolidated Statement of Financial Position (unaudited)

As at March 31
(in thousands of dollars)

  2024 2023
Financial assets

Due from Consolidated Revenue Fund

834,073 676,243

Accounts receivable and advances (note 4)

111,851 114,358

Loans receivable (note 5)

248,543 141,856

Inventory held for resale (note 6)

27,507 35,819
Total gross financial assets 1,221,974 968,276
Financial assets held on behalf of Government

Accounts receivable and advances (note 4)

(49,239) (37,852)
Total financial assets held on behalf of Government (49,239) (37,852)
Total net financial assets 1,172,735 930,424
Liabilities

Accounts payable and accrued liabilities (note 7)

876,292 713,040

Immigrant Investor Program (note 8)

800 746

Vacation pay and compensatory leave

71,225 59,284

Deferred revenue (note 9)

945,863 812,555

Employee future benefits (note 10)

21,454 19,340
Total gross liabilities 1,915,634 1,604,965
Liabilities held on behalf of Government

Deferred revenue (note 9)

(904,219) (812,555)
Total liabilities held on behalf of Government (904,219) (812,555)
Total net liabilities 1,011,415 792,410
Departmental net financial asset 161,320 138,014
Non-financial assets

Prepaid expenses

10,594 9,921

Inventory held for consumption (note 6)

17,317 14,473

Tangible capital assets (note 11)

151,672 147,731
Total non-financial assets 179,583 172,125
Departmental net financial position 340,903 310,139

Contractual obligations (note 12)
Contingent liabilities (note 13)

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

Original signed by Dr. Harpreet S. Kochhar
Dr. Harpreet S. Kochhar
Deputy Minister

Original signed by Nathalie Manseau
Nathalie Manseau, CPA
Assistant Deputy Minister | Chief Financial Officer
Chief Financial Officer Sector

Ottawa, Canada
September 11, 2024

Immigration, Refugees and Citizenship Canada
Consolidated Statement of Operations and Departmental Net Financial Position (unaudited)

For the Year Ended March 31
(in thousands of dollars)

  2024
Planned results
2024
Actual
2023
Actual
Expenses

Immigrant and Refugee Selection and Integration

3,677,357 4,816,372 4,144,833

Citizenship and Passports

749,825 870,859 807,521

Visitors, International Students and Temporary Workers

509,119 732,056 543,001

Internal Services

610,225 588,268 459,937
Total expenses 5,546,526 7,007,555 5,955,292
Revenues

Immigration service fees

954,697 1,257,797 938,049

Passport fees

652,039 553,732 403,742

Immigration rights and privileges

193,468 226,213 230,504

Citizenship service fees

127,439 193,122 165,573

Right of citizenship

21,543 33,934 28,687

International Experience Canada

14,249 12,345 12,887

Passport miscellaneous revenues

- 371 295

Other revenues

1,425 10,321 47,891

Revenues earned on behalf of Government

(1,298,572) (1,721,631) (1,414,859)
Total revenues 666,288 566,204 412,769
Net cost of operations before government funding and transfers 4,880,238 6,441,351 5,542,523
Government funding and transfers

Net cash provided by Government of Canada

  5,886,078 5,011,569

Change in due from Consolidated Revenue Fund

  157,830 267,986

Services provided without charge by other government departments (note 14)

  427,761 403,336

Other transfers of assets from (to) other government departments

  446 (657)
Net revenue of operations after government funding and transfers   (30,764) (139,711)
Departmental net financial position - Beginning of year   310,139 170,428
Departmental net financial position - End of year   340,903 310,139

Segmented information (note 15)

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

Immigration, Refugees and Citizenship Canada
Consolidated Statement of Change in Departmental Net Financial Asset (unaudited)

For the Year Ended March 31
(in thousands of dollars)

  2024 2023
Net revenue of operations after government funding and transfers (30,764) (139,711)
Change due to tangible capital assets

Acquisition of tangible capital assets

26,215 36,396

Amortization of tangible capital assets

(22,276) (19,286)

Proceeds from disposal of tangible capital assets

(34) -

Net gain (loss) on disposal of tangible capital assets

23 (38)

Transfer from another government department

13 -
Total change due to tangible capital assets 3,941 17,072
Change due to inventory held for consumption 2,844 6,875
Change due to prepaid expenses 673 (7,098)
Decrease in departmental net financial asset (23,306) (122,862)
Departmental net financial asset - Beginning of year (138,014) (15,152)
Departmental net financial asset - End of year (161,320) (138,014)

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

Immigration, Refugees and Citizenship Canada
Consolidated Statement of Cash Flows (unaudited)

For the Year Ended March 31
(in thousands of dollars)

  2024 2023
Operating activities
Net cost of operations before government funding and transfers 6,441,351 5,542,523
Non-cash items:

Amortization of tangible capital assets

(22,276) (19,286)

Net gain (loss) on disposal of tangible capital assets

23 (38)

Services provided without charge by other government departments (note 14)

(427,761) (403,336)
Variations in Consolidated Statement of Financial Position:

Increase (decrease) in accounts receivable and advances

(13,894) 58,353

Increase (decrease) in loans receivable

106,687 68,803

Increase (decrease) in prepaid expenses

673 (7,098)

Increase (decrease) in inventory held for resale

(8,312) 13,889

Increase (decrease) in inventory held for consumption

2,844 6,875

Decrease (increase) in accounts payable and accrued liabilities

(163,252) (287,366)

Decrease (increase) in Immigrant Investor Program

(54) 1,572

Decrease (increase) in vacation pay and compensatory leave

(11,941) (1,098)

Decrease (increase) in deferred revenue

(41,644) -

Decrease (increase) in employee future benefits

(2,114) 723

Transfer of salary overpayments to (from) other government departments

(433) 657
Cash used in operating activities 5,859,897 4,975,173
Capital investing activities

Acquisition of tangible capital assets

26,215 36,396

Proceeds from disposal of tangible capital assets

(34) -
Cash used in capital investing activities 26,181 36,396
Net cash provided by Government of Canada 5,886,078 5,011,569

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

Immigration, Refugees and Citizenship Canada
Notes to the Consolidated Financial Statements (unaudited)

For the Year Ended March 31

1. Authority and objectives

Immigration, Refugees and Citizenship Canada (IRCC) was established under the Department of Citizenship and Immigration Act. It is a department named in Schedule I of the Financial Administration Act and reports to Parliament through the Minister of Immigration, Refugees and Citizenship.

IRCC administers the Citizenship Act of 1977 and shares responsibility with the Canada Border Services Agency for the Immigration and Refugee Protection Act (IRPA).

Jurisdiction over immigration is a shared responsibility between the federal and the provincial and territorial governments under section 95 of the Constitution Act, 1867. Under s. 91(25) of the Constitution Act, 1867, the federal government has jurisdiction over naturalization and aliens.

IRCC's priorities in 2023-24 were:

These nine priorities were delivered with the following core responsibilities:

Visitors, International Students and Temporary Workers: IRCC facilitates the entry of migrants who wish to come to Canada temporarily, while protecting the health, safety and security of Canadians. IRCC works with partners to determine that individuals meet admissibility requirements. IRCC processes visas, electronic travel authorizations, and work and study permits for tourists, business travelers, international students and temporary workers, whose spending and presence in Canada benefit the economy.

Immigrant and Refugee Selection and Integration: IRCC facilitates the admission and economic and social integration of immigrants and refugees who intend to stay in Canada permanently, while protecting the health, safety and security of Canadians. IRCC selects economic immigrant applicants to contribute to the Canadian economy, processes family member applicants to reunite families, and processes refugee and protected person applicants to provide a safe haven for those facing persecution. IRCC works with partners to verify that individuals meet admissibility requirements before they enter Canada. In order to support immigrants and refugees in integrating into Canadian society, IRCC offers a variety of settlement support services through a network of service providers.

Citizenship and Passports: IRCC promotes the rights and responsibilities of Canadian citizenship, and issues secure and internationally recognized Canadian citizenship and travel documents so that Canadians can participate fully in civic society and so that travel is facilitated across borders while contributing to international and domestic security.

Internal Services: Internal Services are 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; and Acquisition Management Services.

2. Summary of significant accounting policies

These consolidated financial statements are prepared using IRCC'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.

Adoption of a new accounting standard

Effective April 1, 2023, IRCC adopted the new Public Sector Accounting Standard (PS) 3400, Revenue. This standard requires public sector entities to differentiate between revenue arising from transactions that include performance obligations (exchange transactions) and transactions without performance obligations (non-exchange transactions). Revenues from transactions that include performance obligations are recognized only when each performance obligation is fulfilled. In accordance with PS 3400, the financial statements for prior periods were not restated upon transition since IRCC chose to apply the standard prospectively. On the initial application of the standard, IRCC changed the accounting policy for revenues from passport fees and recognized deferred revenue.

Significant accounting policies are as follows:

(a) Parliamentary authorities

IRCC is mainly financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to IRCC 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 Consolidated Statement of Operations and Departmental Net Financial Position and in the Consolidated 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 Consolidated Statement of Operations and Departmental Net Financial Position are the amounts reported in the Consolidated Future-Oriented Statement of Operations included in the 2023-24 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Consolidated Statement of Operations and Departmental Net Financial Position and in the Consolidated Statement of Change in Departmental Net Financial Asset because these amounts were not included in the 2023‑24 Departmental Plan.

(b) Consolidation

These consolidated financial statements include the accounts of the Passport Canada Revolving Fund, for which the Deputy Minister is accountable. The accounts of the Passport Canada Revolving Fund have been consolidated with those of IRCC, and all inter‑organizational balances and transactions have been eliminated.

(c) Net cash provided by Government

IRCC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by IRCC is deposited to the CRF, and all cash disbursements made by IRCC 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.

(d) Amount due from the CRF

Amounts due from 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 IRCC is entitled to draw from the CRF without further authorities to discharge its liabilities.

(e) Revenues and deferred 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.

The recognition of revenues from immigration and citizenship service fees, rights and privileges and passport fees is deferred until a final decision has been rendered. 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, including International Experience Canada, are accounted for in the period in which the underlying transaction or event that gave rise to the revenues takes place.

Revenues that are non-respendable are not available to discharge IRCC's liabilities. While the Deputy Minister is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of IRCC's gross revenues.

Revenues that are respendable are mainly available to discharge the liabilities of the Passport and International Experience Canada programs.

(f) Expenses

Expenses are recorded on an accrual basis.

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

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 international immigration and citizenship services, accommodation, employer's contributions to the health and dental insurance plans, legal services, and workers' compensation are recorded as operating expenses at their estimated costs.

(g) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. IRCC's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. IRCC'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.

(h) Accounts and loans receivable

Accounts and loans receivable are initially recorded at cost and 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. Loans that cannot be recovered are written off after receiving Parliamentary approval in accordance with the Debt Write‑off Regulations, 1994.

(i) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are 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. Inventory held for consumption consists of forms, informatics equipment and passport material held for future program delivery and not intended for resale. All passport material is valued at the lower of cost (using the average cost method) or net realizable value. Informatics equipment and forms are valued at cost using the first in, first out method.

(j) Contingent liabilities

Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or if an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the consolidated financial statements.

(k) Transactions involving foreign currencies

Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using the rate of exchange in effect at March 31. Net gains and losses resulting from foreign currency translation are reported on the Consolidated Statement of Operations and Departmental Net Financial Position according to the activities to which they relate.

(l) Measurement uncertainty

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the consolidated financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the deferred revenues, the liability for employee future benefits, the useful life of tangible capital assets, contingent liabilities and the allowance for doubtful accounts.

Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the consolidated financial statements in the year they become known.

(m) 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 consolidated financial statements purposes at the carrying amount.

3. Parliamentary authorities

IRCC receives most of its funding through annual parliamentary authorities. IRCC is also responsible for the management of the Passport Canada Revolving Fund, a continuing non-lapsing authority from Parliament to make payments out of the CRF for working capital, capital acquisitions and temporary financing of accumulated operating deficits. The International Experience Canada program is managed through a budgetary authority. Employee benefits are authorized by a statutory authority. IRCC issues immigration loans through a non-budgetary non-lapsing authority.

Revenues related to immigration and citizenship, including fees, rights and privileges, are deposited to the CRF and are not available for use by IRCC. Fees, rights and privileges are collected through the Immigration and Refugee Protection Regulations as well as through the Citizenship Regulations.

Items recognized in the Consolidated Statement of Operations and Departmental Net Financial Position and the Consolidated Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, IRCC 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:

(a) Reconciliation of net cost of operations to current year authorities used

  2024 2023
  (in thousands of dollars)
Net cost of operations before government funding and transfers 6,441,351 5,542,523
Adjustments for items affecting net cost of operations but not affecting authorities:

Amortization of tangible capital assets

(22,276) (19,286)

Net gain (loss) on disposal of tangible capital assets

23 (38)

Services provided without charge by other government departments

(427,761) (403,336)

Decrease (increase) in vacation pay and compensatory leave

(11,941) (1,098)

Decrease (increase) in employee future benefits

(2,114) 723

Adjustments of previous years accounts payable

15,594 16,427

Bad debt expense

(1,614) (7,379)

Refund of previous years' expenditures

4,429 5,427

Phoenix damages - collective agreements

502 (502)

Refunds of program expenditures

4,355 2,045

Other

(8,417) 42
Total items affecting net cost of operations but not affecting authorities (449,220) (406,975)
Adjustments for items not affecting net cost of operations but affecting authorities:

Acquisition of tangible capital assets

26,215 36,396

Decrease (increase) in gross loans receivable

104,341 70,867

Salary overpayments related to pay system implementation

4,742 2,554

Increase (decrease) in inventory held for resale

(8,312) 13,889

Increase (decrease) in inventory held for consumption

2,844 6,875

Increase (decrease) in prepaid expenses

673 (7,098)

Decrease (increase) in deferred revenue

(41,644) -

Refund of previous years' revenues

17,454 20,791

Other

152 163
Total items not affecting net cost of operations but affecting authorities 106,465 144,437
Current year authorities used 6,098,596 5,279,985

(b) Authorities provided and used

  2024 2023
  (in thousands of dollars)
Authorities provided:

Vote 1 - Operating expenditures

2,987,011 2,445,010

Vote 5 - Capital expenditures

23,570 53,433

Vote 10 - Grants and contributions

3,343,085 3,184,296

Statutory amounts

475,740 755,363

Non-budgetary items

150,043 170,910
Less:

Lapsed Vote 1 - Operating expenditures

(281,654) (518,222)

Lapsed Vote 5 - Capital expenditures

(9,912) (31,504)

Lapsed Vote 10 - Grants and contributions

(349,447) (383,755)

Authorities available for future years

(239,840) (395,546)
Current year authorities used 6,098,596 5,279,985

4. Accounts receivable and advances

The following table presents details of IRCC's accounts receivable and advances balances:

  2024 2023
  (in thousands of dollars)
Receivables - Other government departments and agencies 61,845 81,714
Receivables - External parties 71,273 37,859
Employee advances 751 852
Subtotal 133,869 120,425
Allowance for doubtful accounts on receivables from external parties (22,018) (6,067)
Gross accounts receivable and advances 111,851 114,358
Accounts receivable and advances held on behalf of Government (49,239) (37,852)
Net accounts receivable and advances 62,612 76,506

Receivables - External parties includes receivables of $14,157 thousand related to revenues not expected to be collected on initial recognition due to regulatory fees owing from services provided to certain qualified applicants in the fiscal year as announced by the Minister. An equal offsetting amount is recorded in the Allowance for doubtful accounts on receivables from external parties. These amounts will be written off once authority has been received.

The following table provides an aging analysis of accounts receivable from external parties and the associated valuation allowances used to reflect their net recoverable value.

  2024 2023
  (in thousands of dollars)
Accounts receivable from external parties
Not past due 62,302 32,181
Number of days past due
1 to 30 50 403
31 to 60 - 48
61 to 90 40 55
91 to 365 5,720 1,747
Over 365 3,161 3,425
Sub-total 71,273 37,859
Less: Valuation allowance (22,018) (6,067)
Total 49,255 31,792

5. Loans receivable

In accordance with the IRPA, IRCC can issue immigration loans up to a maximum of $300,000 thousand. The Immigration Loans Program provides eligible immigrants, who are mainly refugees selected for resettlement to Canada, with access to funding that would otherwise not be available to them. Loans are used to cover a number of expenses, including travel to Canada and other costs associated with resettlement, specifically:

Starting February 28, 1995, all immigration loans bore interest at a rate determined by the Minister of Finance at the beginning of each calendar year. Regulations provided for a period of up to six years for the repayment of the loans and the interest rate on outstanding interest-bearing loans varied from 0.76% to 9.06%. Since February 21, 2018, loans are non-interest bearing and are repayable over one to eight years with a possible deferment of two years. The closing balance of the immigration loans only includes the outstanding principal balance. An allowance for uncollectible loans is recorded when recovery is considered uncertain.

The following table presents details of IRCC's immigration loans balances:

  2024 2023
  (in thousands of dollars)
Immigration loans - Opening balance 149,957 79,090
New loans issued 131,195 87,726
Repayments of loans (26,854) (16,859)
Immigration loans - Closing balance 254,298 149,957
Allowance for uncollectible loans (5,755) (8,101)
Total loans receivable 248,543 141,856

The following table provides an aging analysis of loans receivable that are either past due or impaired and the associated valuation allowances used to reflect their net recoverable value:

  2024 2023
  (in thousands of dollars)
Loans receivable
Not past due 243,268 140,748
Number of years past due
Less than one year 3,511 2,240
1 to 2 years 1,627 833
2 to 3 years 940 1,171
3 to 4 years 954 934
4 to 5 years 726 665
Over 5 years 3,046 3,109
Impaired 226 257
Sub-total 254,298 149,957
Less: Valuation allowance (5,755) (8,101)
Total 248,543 141,856

6. Inventory

The following table presents details of the inventory, measured at cost or net realizable value:

  2024 2023
  (in thousands of dollars)
Inventory held for resale:
Passport material 24,041 32,442
Forms 3,466 3,377
Total Inventory held for resale 27,507 35,819
Inventory held for consumption:
Passport material 5,930 6,169
Informatics equipment 11,287 8,178
Forms 100 126
Total inventory held for consumption 17,317 14,473
Total inventory 44,824 50,292

The cost of consumed inventory recognized as an expense in the Consolidated Statement of Operations and Departmental Net Financial Position is $80,381 thousand in 2023-24 ($54,214 thousand in 2022-23).

7. Accounts payable and accrued liabilities

The following table presents details of IRCC's accounts payable and accrued liabilities:

  2024 2023
  (in thousands of dollars)
Accounts payable - Other government departments and agencies 127,963 118,162
Accounts payable - External parties 439,625 309,232
Total accounts payable 567,588 427,394
Accrued liabilities 308,704 285,646
Total accounts payable and accrued liabilities 876,292 713,040

8. Immigrant Investor Program

The Economic Action Plan 2014 Act, no.1 (Bill C-31) put an end to requests for applications in the federal Immigrant Investor Program (IIP) for which a selection decision had not been made before February 11, 2014. While the program was terminated, outstanding investments continued to be returned to investors until May 2024. The IIP allowed qualified immigrants to gain permanent residence in Canada by making an investment of $800 thousand ($400 thousand prior to December 1, 2010) in the Canadian economy. The investment was returned to the investor, without interest, five years and two months after initial payment.

After meeting other immigration requirements, applicants to this program were required to pay their investment to the Receiver General for Canada. IRCC acted as an agent for the approved provincial funds by collecting the investments and distributing them to the participating provinces on the first day of the second month following receipt from the investor.

The participating provinces were then responsible for investing their allocations to strengthen their economies and to create or continue employment. They had to report to IRCC quarterly, and after the five-year holding period, remit the full amount of the investment back to IRCC. Within 30 days of receipt of the full amount from a participating province, IRCC returned the investment to the investor (without interest).

As of 2023-24, all provinces have repaid all amounts owed under this program.

The value of financial transactions processed during the year is as follows:

  2024 2023
  (in thousands of dollars)
Opening balance 746 2,318
Receipts 54 1,228
Payments - (2,800)
Closing balance 800 746

9. Deferred revenue

The deferred revenue account was established to record immigration and citizenship fees, rights and privileges and passport fees derived from the Immigration and Refugees Protection Act and regulations, the Citizenship Act and regulations and the Canadian Passport Order for services that have yet to be rendered by IRCC.

The following table presents details of the deferred revenue account:

  2024 2023
  (in thousands of dollars)
Opening balance 812,555 950,806
Amounts received 2,426,059 1,291,867
Revenue recognized (2,292,751) (1,430,118)
Gross closing balance 945,863 812,555
Deferred revenue held on behalf of Government (904,219) (812,555)
Net closing balance 41,644 -

10. Employee future benefits

(a) Pension benefits

IRCC'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 two 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 IRCC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to the 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 2023-24 expense amounts to $104,317 thousand ($87,054 thousand in 2022-23). For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2022-23) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2022-23) the employee contributions.

IRCC'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.

(b) Severance benefits

Severance benefits provided to IRCC'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, 2024, 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 follow:

  2024 2023
  (in thousands of dollars)
Accrued benefit obligation - Beginning of year 19,340 20,063
Expense for the year 2,410 331
Benefits paid during the year (296) (1,054)
Accrued benefit obligation - End of year 21,454 19,340

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:

Asset class Amortization period
Machinery and equipment 15 years
Informatics hardware 5 to 10 years
Software (purchased and developed) 3 to 10 years
Office furniture 10 years
Vehicles 8 years
Leasehold improvements Lesser of remaining term of the lease or useful life of the improvement

Assets under construction are recorded in the applicable asset class in the year they became ready for productive use and are not amortized until then.

Cost

(in thousands of dollars)

Capital Asset Class Opening balance Acquisitions AdjustmentsFootnote 1 Disposals and write-offs Closing balance
Machinery and equipment 5,724 448 - - 6,172
Informatics hardware 8,952 100 9,125 - 18,177
Software (purchased and developed) 471,387 - 30,121 2,498 499,010
Office furniture 1,790 47 - 83 1,754
Vehicles 342 - 4 75 271
Assets under construction 41,896 25,594 (39,246) - 28,244
Leasehold improvements 7,259 26 - - 7,285
Total 537,350 26,215 4 2,656 560,913

Accumulated amortization

(in thousands of dollars)

Capital Asset Class Opening balance Amortization AdjustmentsFootnote 1 Disposals and write-offs Closing balance
Machinery and equipment 2,193 294 - - 2,487
Informatics Hardware 7,604 1,492 - - 9,096
Software (purchased and developed) 371,029 20,353 - 2,498 388,884
Office Furniture 1,315 108 (8) 73 1,350
Vehicles 219 29 - 75 165
Assets under construction - - - - -
Leasehold improvements 7,259 - - - 7,259
Total 389,619 22,276 (8) 2,646 409,241

Net book value

(in thousands of dollars)

Capital Asset Class 2024 2023
Machinery and equipment 3,685 3,531
Informatics hardware 9,081 1,348
Software (purchased and developed) 110,126 100,358
Office furniture 404 475
Vehicles 106 123
Assets under construction 28,244 41,896
Leasehold improvements 26 -
Total 151,672 147,731

12. Contractual obligations

The nature of IRCC's activities may result in some large multi-year contracts and obligations whereby IRCC 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 by fiscal year are summarized as follows:

(in thousands of dollars) 2025 2026 2027 2028 2029 2030 and subsequent Total
Transfer Payments 1,931,195 784,918 777,974 778,002 775,064 775,064 5,822,217
Capital 2,240 - - - - - 2,240
Operating and Maintenance 168,063 17,743 15,754 210 109 - 201,879
Passport - Operating and Maintenance 163,146 68,342 54,164 53,238 36,702 136,564 512,156
Total 2,264,644 871,003 847,892 831,450 811,875 911,628 6,538,492

13. Contingent liabilities

Claims have been made against IRCC in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, most of their outcomes are not determinable. IRCC records an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. No such allowance has been recorded as at March 31, 2024 (nil as at March 31, 2023). Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to $60,065 thousand as at March 31, 2024 ($60,165 thousand as at March 31, 2023).

14. Related party transactions

IRCC is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

IRCC enters into transactions with these entities in the normal course of business and on normal trade terms. There are no transactions that have occurred at a value different from that which would have been arrived at if the parties were unrelated, other than the services provided without charge listed below.

a) Common services provided without charge by other government departments

During the year, IRCC received services without charge from certain common service organizations, related to accommodation, legal services, the employer's contributions to the health and dental insurance plans, and workers' compensation coverage. Additionally, Global Affairs Canada provides international immigration and citizenship services at missions abroad. These services provided without charge have been recorded at the carrying value in IRCC's Consolidated Statement of Operations and Departmental Net Financial Position as follows:

  2024 2023
  (in thousands of dollars)
International immigration and citizenship services 245,669 246,184
Employer's contributions to health and dental insurance plans 99,838 72,875
Accommodation 55,243 54,318
Legal services 27,005 29,953
Workers' compensation 6 6
Total 427,761 403,336

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, audit services provided by the Office of the Auditor General and information technology infrastructure services provided by Shared Services Canada are not included in IRCC's Consolidated Statement of Operations and Departmental Net Financial Position.

b) Other transactions with other government departments and agencies

  2024 2023
  (in thousands of dollars)
Expenses 772,085 724,580
Revenues 2,785 3,844

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

15. Segmented information

Presentation by segment is based on IRCC'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 and revenues generated for the main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Transfer payments
(in thousands of dollars) Immigrant and Refugee Selection and Integration Citizenship and Passports Visitors, International Students and Temporary Workers Internal Services 2024 2023
Other levels of government within Canada 1,224,286 - - - 1,224,286 1,063,735
Non-profit organizations 1,102,506 - - - 1,102,506 1,038,250
Individuals 551,852 - - - 551,852 556,838
Other countries and international organizations 102,796 - - - 102,796 136,437
Total transfer payments 2,981,440 - - - 2,981,440 2,795,260
Operating expenses
(in thousands of dollars) Immigrant and Refugee Selection and Integration Citizenship and Passports Visitors, International Students and Temporary Workers Internal Services 2024 2023
Professional and special services 764,431 493,776 245,868 150,914 1,654,989 1,352,392
Salaries and employee benefits 599,616 245,829 409,182 378,885 1,633,512 1,282,779
Rentals 410,112 10,868 18,258 17,472 456,710 243,677
Transportation and communication 16,320 59,615 18,056 2,599 96,590 88,532
Utilities, materials and supplies 16,429 44,721 13,722 3,204 78,076 81,090
Accommodation 22,878 10,658 12,494 15,378 61,408 60,374
Amortization of tangible capital assets 1,544 2,087 10,281 8,364 22,276 19,286
Information services 1,644 2,706 1,966 8,781 15,097 19,170
Repairs and maintenance 936 328 1,523 2,047 4,834 5,026
Other 1,022 271 706 624 2,623 7,706
Total operating expenses 1,834,932 870,859 732,056 588,268 4,026,115 3,160,032
Total expenses 4,816,372 870,859 732,056 588,268 7,007,555 5,955,292
Revenues
(in thousands of dollars) Immigrant and Refugee Selection and Integration Citizenship and Passports Visitors, International Students and Temporary Workers Internal Services 2024 2023
Immigration service fees 297,377 - 960,420 - 1,257,797 938,049
Passport fees - 553,732 - - 553,732 403,742
Immigration rights and privileges 149,773 - 76,440 - 226,213 230,504
Citizenship service fees - 193,122 - - 193,122 165,573
Right of citizenship - 33,934 - - 33,934 28,687
International Experience Canada - - 12,345 - 12,345 12,887
Passport miscellaneous revenues - 371 - - 371 295
Other revenues 4,822 943 3,487 1,069 10,321 47,891
Revenues earned on behalf of Government (451,972) (227,999) (1,040,599) (1,061) (1,721,631) (1,414,859)
Total revenues - 554,103 12,093 8 566,204 412,769
Net cost of operations before government funding and transfers 4,816,372 316,756 719,963 588,260 6,441,351 5,542,523

Total non-recurring revenues of $4 thousand were incurred in relation to court costs.

16. Comparative information

Certain comparative figures have been reclassified to conform to the current year's presentation.

Immigration, Refugees and Citizenship Canada
Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting

For the fiscal year 2023-24 (unaudited)

1. Introduction

This document provides summary information on the measures taken by IRCC to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.

Detailed information on the department's authority, mandate and core responsibilities can be found in the Departmental Plan and the Departmental Results Report for the 2023-24 fiscal year.

2. Departmental system of internal control over financial reporting

2.1 Internal control management

IRCC has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. A departmental internal control management framework is in place and comprises:

The Departmental Audit Committee is an independent advisory committee to the deputy head. It is responsible for providing advice to the deputy head on the adequacy and functioning of the department's risk management, control and governance frameworks and processes.

IRCC's senior management recognizes the importance of setting the tone from the top to help ensure that staff at all levels understand their roles in maintaining effective systems of ICFR and are equipped to exercise these responsibilities effectively. IRCC's focus is on ensuring that risks are managed well through a responsive and risk-based control environment that enables continuous improvement and innovation.

2.2 Service arrangements relevant to financial statements

IRCC relies on other departments for processing certain transactions that are recorded in its financial statements, as follows:

Common arrangements:

IRCC relies on other external service providers, departments and agencies for the processing of certain information or transactions that are recorded in its financial statements, as follows:

Specific arrangements with external service providers:

Specific arrangements with other departments and agencies:

Readers of this annex may refer to the annexes of the above-noted departments and agencies for a greater understanding of the systems of internal control over financial reporting related to these specific services.

3. Departmental assessment results for the 2023-24 fiscal year

The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year's rotational plan.

Progress during the fiscal year 2023-24

Rotational ongoing monitoring plan for the current fiscal year Status
Costing — Passport model, entity-level controls, non-salary operating expenses at NHQ for one significant branch, transfer payments to service provider organizations at two Canadian regional offices and all significant business processes at a Canadian case processing location Completed as planned; remedial actions in progress.
Salaries and employee benefits, including salary advances, recoveries and accrued leave Assessment work substantially advanced in 2023-24; results to be reported in 2024-25.
Revenue processes at NHQ and non-salary operating expenses at NHQ for two significant branches Assessment work carried forward to 2024-25.

The key findings and significant adjustments required from the current fiscal year's assessment activities are summarized below.

3.1 New or significantly amended key controls

Although IRCC continued to enhance some of its business processes, there were no new or significantly amended key controls in existing processes that required a reassessment in the current year.

3.2 Ongoing monitoring program

As part of its rotational ongoing monitoring program, IRCC completed its reassessment of the financial controls embedded within the following business processes: costing – Passport model, entity-level controls, non-salary operating expenses at National Headquarters (NHQ) for one significant branch, transfer payments to service provider organizations at two Canadian regional offices and all significant business processes at a Canadian case processing location. For the most part, the key controls that were tested performed as intended, with remediation required in the following areas:

Management action plans addressing the recommendations were developed by the business process owners and some have already been implemented. The remaining action plans will be operationalized within a reasonable timeframe.

In 2023-24, IRCC also followed up on financial controls that required enhancements as a result of prior year's monitoring, and determined that most controls were being duly strengthened within appropriate timelines and for others, progress is closely monitored until the remediation plans are fully implemented.

4. Departmental action plan for the next fiscal year and subsequent fiscal years

IRCC's rotational ongoing monitoring plan over the next five years, subject to an annual validation of the high-risk processes and controls and related adjustments to the plan as required, is shown in the following table:

Rotational Ongoing Monitoring Plan
Key control areas Fiscal year
2024-25
Fiscal year
2025-26
Fiscal year
2026-27
Fiscal year
2027-28
Fiscal year
2028-29
Entity-level controlsFootnote * No No No No Yes
IT general controls under departmental management Yes No No No No
Budgeting and forecastingFootnote * No Yes No No No
Investment PlanningFootnote * No Yes No No No
Costing, including CFO attestationsFootnote * No No No No Yes
Procurement Management Yes No No No Yes
Financial closing and reporting No Yes No No No
Contractual obligationsFootnote * No No Yes No No
Contingent liabilities No No Yes No No
Adjusting journal entries No No No Yes No
Revenue processes at NHQ Yes No No Yes No
Transfer payments to service provider organizations (at NHQ and/or selected Canadian regional offices) Yes Yes Yes Yes Yes
Transfer payments to other levels of government No No Yes No No
Transfer payments to individuals – Resettlement Assistance Program Yes No No Yes No
Transfer payments to individuals – Other countries and international organizationsFootnote * No No No No Yes
Interim Federal Health Program expenses Yes No No No Yes
Non-salary operating expense processes at NHQ Yes Yes Yes Yes Yes
Salaries and employee benefits, including salary advances, recoveries and accrued leave NoFootnote ** No Yes No No
Services provided without charge by other departmentsFootnote * No No No Yes Yes
Due from Consolidated Revenue FundFootnote * No No Yes No No
Immigration loans No No Yes No No
Tangible capital assets No Yes No No No
Accounts payable, accrued liabilities and payments No Yes No No No
Employee severance benefits No Yes No No No
Deferred revenue No No Yes No No
Canadian case processing centres — All significant revenue and expense business processes No Yes No Yes No
International missions — All significant revenue and expense business processesFootnote *** No No Yes Yes No

In addition to the ongoing monitoring rotational plan, IRCC will continue to address any outstanding remediation resulting from its reassessments of the existing financial controls.

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