Immigration, Refugees and Citizenship Canada Future-Oriented Statement of Operations (unaudited) for the Year Ending March 31, 2020

  Forecast results
2019
(in thousands of dollars)
Planned results
2020
(in thousands of dollars)
Expenses
Settlement $1,362,272 $1,378,386
Passports 476,202 416,289
Refugee Resettlement 344,213 178,583
Visitors 263,349 266,723
Asylum 188,503 431,423
Family Reunification 114,106 118,317
Temporary Workers 96,524 99,586
Citizenship 94,319 90,376
Federal Economic Immigration 88,587 89,613
International Students 59,566 61,671
Provincial Economic Immigration 53,659 55,404
Humanitarian Compassionate and Discretionary Immigration 16,803 16,930
Internal Services 250,169 240,110
Total expenses $3,408,272 $3,443,411
Revenues
Immigration service fees $668,947 $683,048
Passport fees 384,609 270,683
Immigration rights and privileges 164,708 168,002
Citizenship service fees 114,720 114,720
Right of citizenship 19,652 19,652
International Experience Canada 10,200 10,200
Other revenues 562 532
Passport miscellaneous revenues 250 250
Revenues earned on behalf of Government (968,589) (985,954)
Total revenues $395,059 $281,133
Net cost of operations before government funding and transfers $3,013,213 $3,162,278

The accompanying notes form an integral part of the 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 information in the forecast results for fiscal year 2018-19 is based on actual results as at December 31, 2018 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2019-20.

The main assumptions underlying the forecasts are as follows:

  1. Immigration, Refugees and Citizenship Canada’s (IRCC) activities will remain substantially the same as in the previous year.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience and knowledge of IRCC’s operations. Expenses and revenues related to the Passport Program are based on forecasted volumes. The general historical pattern is expected to continue.

These assumptions are made as at February 15, 2019.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2018-19 and for 2019-20, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

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

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

  1. the timing and the amount of acquisitions and disposals of tangible capital assets, which 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. other changes to the operating budget, such as 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. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2018-19, 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 consolidated Future-Oriented Statement of Operations includes the accounts of the Passport Canada Revolving Fund, for which the Deputy Head (DH) 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.

b) Expenses

Transfer payments are recorded as an expense 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 consolidated 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 are also included in other expenses.

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 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 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, rights and privileges, are deposited to the Consolidated Revenue Fund and are not available for use by the Department. Fees, rights and privileges are collected through the Immigration and Refugee Protection Regulations as well as through the Citizenship Regulations.

Financial reporting authorities provided to IRCC differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. 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 cost 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
2019
(in thousands of dollars)
Planned results
2020
(in thousands of dollars)
Net cost of operations before government funding and transfers $3,013,213 $3,162,278
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (37,278) (44,436)
Loss on disposal of tangible capital assets (437) (9)
Services provided without charge by other government departments (331,541) (336,905)
Increase in vacation pay and compensatory leave (5,964) (2,455)
Decrease in accrued liabilities not charged to authorities 7,252 2,252
Decrease (increase) in bad debt allowance 2,903 (267)
Refunds of previous years’ expenditures 3,705 3,705
Decrease in program expenditures not charged to authorities 318 318
Total items affecting net cost of operations but not affecting authorities (361,042) (377,797)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 34,153 61,101
Loans issued on behalf of Government 7,233 9,560
Salary overpayments related to pay system implementation 5,874 4,993
Increase (decrease) in inventory held for resale (5,025) 307
Decrease in inventory held for consumption (771) (2,419)
Refunds of previous years’ revenues 7,426 8,243
Total items not affecting net cost of operations but affecting authorities 48,890 81,785
Authorities requested $2,701,061 $2,866,266

b) Authorities requested

  Forecast results
2019
(in thousands of dollars)
Planned results
2020
(in thousands of dollars)
Authorities requested
Vote 1 – Operating Expenditures $923,590 $797,461
Vote 5 – Capital 30,753 22,243
Vote 15 – Debt Write-Off 267 -
Vote 10 – Grants and Contributions 1,572,351 1,775,345
Statutory amounts 166,867 261,657
Non-budgetary items 7,233 9,560
Total authorities requested $2,701,061 $2,866,266
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