Immigration, Refugees and Citizenship Canada Future-Oriented Statement of Operations (unaudited) For the Year Ending March 31, 2019

  Forecast Results
2017-2018
(in thousands of dollars)
Planned Results
2018-2019
(in thousands of dollars)
Expenses
Immigrant and Refugee Selection and Integration
Settlement $1,271,076 $1,303,186
Refugee Resettlement 222,913 189,049
Asylum 129,775 157,721
Family Reunification 107,822 121,464
Federal Economic Immigration 73,185 90,104
Provincial Economic Immigration 37,870 55,115
Humanitarian Compassionate and Discretionary Immigration 16,991 17,471
Citizenship and Passport
Passport 459,476 474,928
Citizenship 95,296 92,340
Visitors, International and Temporary Workers
Visitors 213,743 242,450
Temporary Work 92,264 62,191
International Students 49,820 55,093
Internal Services 251,331 234,854
Total Expenses $3,021,562 $3,095,966
Revenues
Passport fees earned $609,077 $384,609
Immigration service fees 523,602 678,608
Right of permanent residence 141,060 161,238
Citizenship service fees 70,291 113,105
Right of citizenship 11,907 19,643
International Experience Canada 9,938 9,938
Interest on loans 200 -
Passport miscellaneous revenues 250 250
Other revenues 393 369
Revenues earned on behalf of Government (747,443) (972,953)
Total Revenues $619,275 $394,807
Net cost of operations before government funding and transfers $2,402,287 $2,701,159

The accompanying notes form an integral part of this Future-Oriented Statement of Operations.

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of government priorities and departmental plans as described in the Departmental Plan.

The main assumptions are as follows:

  1. IRCC’s activities for 2017-2018 and 2018-2019 will see a shift from resettlement of Syrian refugees to an increase in immigration levels as established in the 2018-2020 multi-year immigration levels plan.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience and knowledge of IRCC operations. Expenses and revenues related to the Passport Program are based on forecasted volumes.

These assumptions are adopted as at March 26, 2018.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2017-2018 and for 2018-2019, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing the Future-Oriented Statement of Operations, IRCC has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include the following:

  1. the timing and amount of acquisitions and disposals of property, plant and equipment may affect gains, losses and amortization expense;
  2. the implementation of new collective agreements;
  3. economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
  4. further changes to the operating budget through additional new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, IRCC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates.

3. Summary of significant accounting policies

This Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2017-2018, and is 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:

a. Consolidation

This Future-Oriented Statement of Operations includes the accounts of the Passport Program Revolving Fund for which the Deputy Head (DH) is accountable. The accounts of the Passport Program Revolving Fund have been consolidated with those of IRCC, and all inter-organizational balances and transactions have been eliminated.

b. Expenses

Expenses are recorded on an accrual basis.

Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. 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. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.

Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

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, employers' contributions to the health and dental insurance plans, legal services, and workers’ compensation costs are recorded as operating expenses at their estimated costs.

c. Revenues

The recognition of revenues from immigration service fees, citizenship service fees, rights and privileges is deferred until a final decision has been rendered. Revenues from passport fees are recognized upon request for a passport service, which is upon receipt of payment and verification of the passport application for completeness. 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 DH is expected to maintain accounting control, she 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 in 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.

4. Parliamentary Authorities

IRCC receives most of its funding through annual parliamentary authorities. IRCC is also responsible for the management of the Passport revolving fund, a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund 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 and rights, are deposited to the Consolidated Revenue Fund and are not available for use by the Department. Fees and rights are collected through the Immigration and Refugee Protection Regulations as well as through the Citizenship Regulations.

Items recognized in the Future-Oriented Statement of Operations 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 requested authorities

  Forecast Results
2017-2018
(in thousands of dollars)
Planned Results
2018-2019
(in thousands of dollars)
Net cost of operations before government funding and transfers $2,402,287 $2,701,159
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (34,914) (37,744)
Gain on disposal of tangible capital assets 3 3
Services provided without charge by other government departments (333,279) (337,246)
Increase in vacation pay and compensatory leave (5,424) (4,888)
Decrease in accrued liabilities not charged to authorities 3,000 3,000
Increase in bad debt allowance (572) (1,394)
Refund of previous year’s expenditures 5,182 4,382
Decrease in program expenditures not charged to authorities 1,169 1,169
Total items affecting net cost of operations but not affecting authorities (364,835) (372,718)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 39,863 23,331
Loans issued on behalf of Government 12,603 21,560
Proceeds from disposal of tangible capital assets (10) (10)
Salary overpayments related to pay system implementation 4,064 6,964
Decrease in inventory held for resale (542) (2,538)
Increase (decrease) in inventory held for consumption 218 (525)
Increase in prepaid expenses 424 -
Refunds of prior years’ revenues 10,137 10,825
Total items not affecting net cost of operations but affecting authorities 66,757 59,607
Requested authorities $2,104,209 $2,388,048

b. Authorities requested

  Forecast Results
2017-2018
(in thousands of dollars)
Planned Results
2018-2019
(in thousands of dollars)
Authorities requested
Vote 1 – Operating Expenditures $775,226 $822,862
Vote 5 – Capital 37,527 21,816
Vote 7 – Debt Write-Off – Immigration Loans 397 -
Vote 10 – Grants and Contributions 1,350,171 1,356,436
Statutory amounts (71,715) 165,374
Non-budgetary items 12,603 21,560
Total authorities requested $2,104,209 $2,388,048
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