Quarterly Financial Report for the quarter ended September 30, 2019
This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. This quarterly report should be read in conjunction with the 2019-20 Main Estimates Part II (PDF, 1.2 MB) and the 2018-19 Quarterly Financial Report for the quarter ended September 30, 2018.
A summary description of Immigration, Refugees and Citizenship Canada (IRCC) programs may be found in the 2019-20 Departmental Plan (PDF, 1.1 MB)
2. Basis of Presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament and those used by the department consistent with the Main Estimates for the 2019–20 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.
When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
3. Highlights of fiscal quarter and fiscal year-to-date (YTD) results
In June 2017, the House of Commons approved a change allowing the Main Estimates to be tabled in Parliament by April 16th instead of March 1st, which allowed the 2019 Federal Budget priorities to be included in the 2019-20 Main Estimates. These changes address the government’s commitment to provide more coherent information to Parliament and to align the Federal Budget and the Estimates.
The Main Estimates present financial requirements for the full 2019-20 fiscal year as announced in the 2019 Federal Budget. Items funded through Budget 2019 are held in a separately managed Budget Implementation Vote (BIV). Through this vote, the Main Estimates included Budget 2019 incremental spending measures, improving Budget-Estimates alignment and eliminating some of the time lag between announcement and implementation of programs. The funds will be held separately until supporting policy and program approvals are in place. After approvals, funds will be transferred to the department’s regular votes.
In 2019-20, IRCC’s total authorities include the Main Estimates, incremental funding from Budget 2019 related to Interim Federal Health Program, Enhancing the Integrity of Canada’s Borders and Asylum system, Improving Immigration Client Service, and Helping Travellers Visit Canada. It also includes funding from Treasury Board Vote 5 – Government Contingencies for Interim Housing Assistance Program, funding from the 2018-19 Operating and Capital Budget carry forward and other minor adjustments related to statutory items. IRCC did not request supply through the Governor General Special Warrants process.
The introduction of the 10 year passport in July 2013 has an impact on the Passport program as applicants who opted to apply for the 10 year Passport are no longer required to re-apply at the 5 year expiration mark. This has resulted in a reduction of Passport applications, hence a decrease in overall revenue for this program.
Significant changes to authorities
As reflected in the Statement of Authorities, IRCC’s Total Budgetary Authorities available for use in fiscal year 2019–20 increased by approximately $811.5 million (34%) compared to the same quarter in 2018–19. This increase is comprised of:
- $240.7 million (28%) in Vote 1 – Operating Expenditures
- $6.6 million (30%) in Vote 5 – Capital Expenditures
- $450.2 million (33%) in Vote 10 – Grants and Contributions
- $114.0 million (71%) in Statutory Authorities
The most significant changes to authorities available for use are related to increases in funding received to support provinces and municipalities for temporary housing with respect to increased volume of asylum claimants, for Enhancing the Integrity of Canada’s Borders and Asylum System, for the Canada-Quebec Accord and to support higher admission levels for permanent residents as per the Immigration Levels Plans. There is also an increase due to statutory adjustments related to Passport Program Revolving Fund to offset the impact of the anticipated decrease in revenues that started in 2018-19 and for the remainder of its 10 year business cycle, subsequent to the introduction of the 10-year passport in 2013.
These increases were partly offset by the reduction in the funding profile for the Government’s response to the Syrian Refugee crisis. While processing and resettlement activities have been completed, Syrian refugees continue to have access to settlement services provided by the Department.
Vote 1 – Operating Expenditures
The Department’s Vote 1 – Operating Expenditures Authorities net increase of $240.7 million (28%) is explained as follows:
- Increases of $252.3 million are mainly comprised of:
- Enhance the Integrity of Canada’s Borders and Asylum System ($97.2 million);
- Improving Immigration Client Service, and Helping Travellers Visit Canada ($35.8 million);
- The Interim Federal Health program to cover incremental program costs related to the provision of health-care services to eligible beneficiaries ($35.3 million);
- The protection of Temporary Foreign Workers ($32.9 million);
- The continuation of Biometric Expansion screening in Canada’s immigration system ($23.0 million);
- Higher admission levels for permanent residents as per the Immigration Levels Plans ($13.2 million);
- The 2018-19 Operating Budget Carry Forward ($7.7 million);
- The protection of Vulnerable Women and Girls ($3.3 million); and
- Other adjustments ($3.9 million).
- Decreases of $11.6 million are mainly comprised of:
- Transfer to Global Affairs Canada and Shared Services Canada to support staff across the overseas network ($6.3 million);
- Transfer to Shared Services Canada to enhance the Government’s digital services as announced in Budget 2018 ($3.6 million); and
- Other adjustments ($1.7 million).
Vote 5 – Capital Expenditures
The Department’s Vote 5 – Capital Expenditures Authorities net increase of $6.6 million (30%) is explained as follows:
- Increases of $11.4 million are mainly comprised of:
- The 2018-19 Capital Budget Carry Forward ($6.2 million);
- The protection of Temporary Foreign Workers ($3.3 million); and
- The Start-Up Visa Program ($1.9 million).
- Decreases of $4.8 million are mainly comprised of:
- $2.2 million attributable to lower IT system investment requirements, compared to previous years, for:
- The Biometric Expansion project to verify the identity of all visa required travelers seeking entry to Canada ($1.2 million);
- The admission levels for permanent residents as per the Immigration Levels Plans ($0.8 million); and
- Other adjustments ($0.2 million).
- $2.2 million attributable to lower IT system investment requirements, compared to previous years, for:
- A one-time internal vote transfer - Vote 1 Operating Expenditures to Vote 5 Capital performed in 2018-19 to support various IT builds/projects ($2.6 million).
Vote 10 – Grants and Contributions (G&C)
The Department’s Vote 10 – Grants and Contributions Authorities net increase of $450.2 million (33%) is explained as follows:
- Increases of $494.3 million are mainly comprised of:
- Support to provinces and municipalities for the temporary housing with respect to the increased volume of asylum claimants ($342.5 million);
- The grant related to the Canada-Quebec Accord on immigration ($69.2 million);
- Higher admission levels for permanent residents as per the Immigration Levels Plans ($42.4 million);
- Enhancing the Integrity of Canada’s Borders and Asylum System ($12.7 million);
- Getting into and staying in the Workforce and Career Pathways for Visible Minority Newcomer Women ($12.0 million);
- The Protection of Vulnerable Woman and Girls ($9.0 million);
- Support the Action Plan for Official Languages 2018-2023 ($3.5 million); and
- The Global Assistance for Irregular Migrants (GAIM) renewed program ($3.0 million).
- Decreases of $44.1 million are mainly comprised of:
- The Government’s response to the Syrian Refugee crisis as Syrian refugees continue to integrate into Canada’s society, the required investments shift from operationally and re-settlement-focused resources to settlement-focused resources ($40.4 million); and
- The Survivors of Daesh, including Yazidi women and girls ($3.7 million).
Budgetary Statutory Authorities
The 2019–20 statutory authority level in the second quarter has increased by $114.0 million (71%) compared to 2018-19 which is primarily explained as follows:
- Increase due to statutory adjustments for the Passport Program revolving fund. The Passport Program forecasts a net decrease of $93.2 million in its in-year surplus. The increased draw on the Revolving Fund is largely a result of a forecasted decrease in revenue as a result of the introduction of the 10 year passport in 2013. ($93.2 million);
- Adjustments to Employee Benefit Plans associated with funding received through Vote 1 – Operating expenditures ($18.4 million); and
- Adjustments related to other statutory authorities ($2.4 million).
Significant changes to departmental budgetary expenditures by standard object
Quarter over quarter analysis
As reflected in the Table of Departmental Budgetary Expenditures by Standard Object, the total gross budgetary expenditures during the quarter ending September 30 has increased by $386.8 million (61%) compared to the same quarter in 2018-19. This variance is mainly attributable to changes related to Professional and Special Services and Transfer payments. Through the Passport Program and International Experience Canada, IRCC generated $73.3 million and $1.8 million respectively in re-spendable revenues in the second quarter of 2019-20. This results in a net budgetary expenditure of $941.3 million as of September 30, 2019 compared to $541.5 million as of September 30, 2018.
Professional and Special Services expenditures have increased by $44.4 million (45%) which is mainly comprised of $19.0 million for the Interim Federal Health (IFH) program and $17.7 million for Biometrics transaction costs.
Transfer payments have increased by $340.7 million (101%). The increase is mainly explained by an increase of $260.4 million in spending to support provinces and municipalities for the interim housing of Asylum seekers, an increase of $17.3 million in spending for the Canada-Quebec Accord, an increase of $53.9 million in payments and advances to local non-profit organizations to support the Settlement and Resettlement Assistance Programs and a decrease of $3.7M related to the Syria initiative as the vast majority of this work was completed in previous years. The remaining increase is mostly attributed to higher admission or permanent residents as per Immigration Levels Plans.
Passport re-spendable revenues have decreased by $13.6 million (16%) compared to the same quarter in the previous year due largely to the expected volume reductions following the introduction of the 10 year passport.
As reflected in the Table of Departmental Budgetary Expenditures by Standard Object, IRCC’s year-to-date gross operating expenditures were $1,333 million in 2018-19 compared to $1,848 million in 2019-20 for an increase of $515 million (39%).
Personnel expenditures have increased by $18.9 million (6%) which is mainly due to increases in salary funding received for initiatives such as the Protection of Temporary Foreign Workers, the Immigration Levels Plan as well as Budget 2019 items. The increase is also due to additional personnel expenditures to keep pace with programs’ growth.
Professional and Special Services expenditures have increased by $49.3 million (27%) which is mainly comprised of of $24.2 million for Biometrics transaction costs and $20.9 million for the Interim Federal Health (IFH) program.
Transfer payments have increased by $456.7 (60%). The increase is mainly explained by an increase of $328.5 million in spending to support provinces and municipalities for the interim housing of Asylum seekers, an increase in $51.9 million in spending for the Canada-Quebec Accord, an increase of $57.6 million in payments and advances to local non-profit organizations to support the Settlement and Resettlement Assistance Programs and a decrease of $14.3M related to the Syria initiative as the vast majority of this work was completed in previous years. The remaining increase is mostly attributed to higher admission or permanent residents as per Immigration Levels Plans.
Other Subsidies and Payments have decreased by $8.5 million (39%) is mainly due to a decrease in the outstanding Interdepartmental Settlement amounts.
Passport re-spendable revenues have decreased by $57.9 million (28%) compared to the same period in the previous year due largely to the expected volume reductions following the introduction of the 10 year passport.
4. Risks and Uncertainties
IRCC operates in a constantly changing environment. Its strategic directions as well as its policies and operations are influenced by external factors such as emerging events, the Canadian and global economic, social or political contexts and shifting migration trends. For IRCC, continued increases in Temporary Resident applications and the management of the influx of asylum seekers are priorities that are closely monitored.
As part of its risk mitigation strategy, IRCC is continuously working towards improving its own internal processes and systems through change initiatives such as the modernization and transformation agenda with the objective to improve client service.
Unforeseen Events and Natural Disasters
Unforeseen events as well as natural disasters may have significant effects on IRCC’s operations. They can affect IRCC directly when they occur in places where our offices and employees are located.
IRCC can also be indirectly affected when the Department is required, for humanitarian or legal reasons, to facilitate travel of foreign nationals or Canadian citizens by processing applications for visas or other necessary documents on an urgent basis.
IRCC and partner departments will continue to respond to the influx of asylum seekers crossing between ports of entry. This situation involves multiple departments along with impacts to provinces and municipalities. IRCC and partner departments received funding in 2019-20 Main Estimates and Budget 2019 to help respond to this issue.
In conjunction with its national and international partners, IRCC continues to identify, assess, monitor, and proactively implement measures to mitigate risks and minimize the impact they may have on our operations, commitments, service standards and processing targets.
Litigation and Legal
IRCC operates in a very high volume litigation environment which includes complex, high profile and high impact litigation files. Sound management practices are in place to manage all of these challenges in a consistent and coordinated fashion, including consultations with Justice and other partner departments.
5. Significant Changes in Relation to Operations, Personnel and Programs
As per the Prime Minister announcement made on August 7th, 2019, Catrina Tapley was appointed to the position of Deputy Minister effective August 19, 2019.
Natasha Kim was appointed to the position of Associate Assistant Deputy Minister, Strategic and Program Policy Sector effective August 5, 2019.
Fraser Valentine was appointed to the position of Assistant Deputy Minister, Settlement and Integration effective August 21, 2019.
Paul MacKinnon, Assistant Deputy Minister Strategic and Program Policy left his functions following his appointment as the Executive Vice-President of the Canada Border Services Agency (CBSA) effective August 6, 2019.
There have been no other significant changes in relation to operations, personnel and programs during the quarter ended September 30, 2019.
Approval by Senior Officials
(Original signed by)
(Original signed by)
Daniel Mills, CPA, CMA
Assistant Deputy Minister
Chief Financial Officer
November 20, 2019
|(in thousands of dollars)||Fiscal Year 2019-20||Fiscal Year 2018-19|
|Total available for use for the year ending March 31, 2020Footnote 1||Used during the quarter ended September 30, 2019||Year-to-date used at quarter-end||Total available for use for the year ending March 31, 2019Footnote 1||Used during the quarter ended September 30, 2018||Year-to-date used at quarter-end|
|Vote 1 - Operating Expenditures||1,102,417||227,751||413,853||861,711||196,126||366,555|
|Vote 5 - Capital Expenditures||28,455||5,055||7,887||21,816||5,339||8,889|
|Vote 10 - Grants and Contributions||1,806,586||678,973||1,217,130||1,356,436||338,285||760,409|
|Budgetary Statutory Authorities|
|Contributions to Employee Benefit Plans||89,072||18,625||37,251||70,647||17,214||34,428|
|Minister's Salary and Motor Car Allowance||88||22||44||86||21||43|
|FSW Fees Returned (Terminated Applications)||247||114||247||364||150||364|
|IIP and EN Fees Returned (Terminated Applications)||83||32||83||151||73||151|
|Spending of Amounts Equivalent to Proceeds from
Disposal of Surplus Moveable Crown Assets
|Refunds of Previous Years Revenue||6,663||1,683||6,663||4,090||1,228||4,090|
|Passport Program Revolving Fund||178,824||9,040||9,394||85,607||(16,979)||- 54,358|
|Total Budgetary Authorities||3,212,478||941,315||1,692,572||2,400,938||541,463||1,120,578|
|Non-Budgetary AuthoritiesFootnote 2||52,370||4,944Footnote 3||5,787||68,017||5,132Footnote 3||2,089|
|(in thousands of dollars)||Fiscal Year 2019-20||Fiscal Year 2018-19|
|Planned expenditures for the year ending March 31, 2020||Expended during the quarter ended September 30, 2019||Year-to-date used at quarter-end||Planned expenditures for the year ending March 31, 2019||Expended during the quarter ended September 30, 2018||Year-to-date used at quarter-end|
|Transportation and Communications||53,249||10,390||19,095||52,613||10,096||20,911|
|Professional and Special Services||770,516||143,534||228,737||602,467||99,136||179,422|
|Repair and Maintenance||10,050||681||799||10,491||1,483||2,158|
|Utilities, Materials and Supplies||31,022||5,595||12,916||32,126||5,457||11,854|
|Acquisition of Machinery and Equipment||45,228||1,032||2,267||37,665||3,274||4,202|
|Other Subsidies and Payments||23,031||(3,699)||13,103||27,217||222||21,645|
|Total gross budgetary expenditures||3,493,349||1,016,374||1,848,478||2,795,735||629,599||1,333,057|
|Less Revenues Netted against Expenditures|
|International Experience Canada||9,938||1,792||5,627||9,938||1,303||4,281|
|Total net budgetary expenditures||3,212,478||941,315||1,692,572||2,400,938||541,463||1,120,578|
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