ARCHIVED – Financial Statements for the year ended March 31, 2011

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An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.


Statement of Management Responsibility including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011, and all information contained in these statements rests with the management of Citizenship and Immigration Canada (CIC). These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

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

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

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout CIC; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.

An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

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

The financial statements of Citizenship and Immigration Canada have not been audited.

Signatures of the Deputy Minister and the Assistant Deputy Minister/Chief Financial Officer

Ottawa, Canada
August 5, 2011


Citizenship and Immigration Canada
Statement of Financial Position

At March 31 (Unaudited)
(in thousands of dollars)

  2011 2010
    Restated
(note 15)
ASSETS
Financial assets
Due from the Consolidated Revenue Fund $278,372 $262,577
Accounts receivable and advances (note 4) 34,407 31,586
Loans receivable (note 5) 34,334 34,361
Total financial assets 347,113 328,524
Non-financial assets
Prepaid expenses 4,450 2,368
Inventory 7,246 7,625
Tangible capital assets (note 6) 169,321 180,631
Total non-financial assets 181,017 190,624
Total $528,130 $519,148
     
LIABILITIES AND EQUITY OF CANADA
Liabilities
Accounts payable and accrued liabilities (note 7) $216,335 $191,723
Immigrant Investor Program (note 8) 65,600 74,800
Vacation pay and compensatory leave 19,175 18,076
Deferred revenue (note 9) 398,146 394,169
Employee future benefits (note 10) 72,119 65,834
Total liabilities 771,375 744,602
Equity of Canada (243,245) (225,454)
Total $528,130 $519,148

Contingent Liabilities (Note 11)
Contractual Obligations (Note 12)

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

Signatures of the Deputy Minister and the Assistant Deputy Minister/Chief Financial Officer

Ottawa, Canada
August 5, 2011


Citizenship and Immigration Canada
Statement of Operations

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

  2011 2010
Expenses
Program activities
Integration program $1,000,667 $989,874
Immigration program 232,477 212,755
Refugee program 122,421 126,779
Temporary resident program 112,575 106,593
Citizenship program 97,100 81,835
Canada’s role in international migration and protection 4,476 3,387
Total program activities 1,569,716 1,521,223
Internal Services 296,527 274,835
Total expenses 1,866,243 1,796,058
 
Revenues
Program activities
Integration program 552 549
Immigration program 257,248 270,131
Temporary resident program 171,354 156,533
Citizenship program 35,678 38,093
Total program activities 464,832 465,306
Internal Services 372 535
Total revenues 465,204 465,841
 
Net cost of operations $1,401,039 $1,330,217

Segmented information (note 14)

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


Citizenship and Immigration Canada
Statement of Equity of Canada

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

  2011 2010
    Restated
(note 15)
Equity of Canada, beginning of year $(225,454) $(265,045)
Net cost of operations (1,401,039) (1,330,217)
Net cash provided by government 1,097,303 1,029,758
Change in due from the Consolidated Revenue Fund 15,795 73,071
Services provided without charge by other government departments (note 13a) 270,150 267,548
Transfer of Multiculturalism program from Canadian Heritage (569)
Equity of Canada, end of year $(243,245) $(225,454)

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


Citizenship and Immigration Canada
Statement of Cash Flows

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

  2011 2010
OPERATING ACTIVITIES
Net cost of operations $1,401,039 $1,330,217
Non-cash items:
Amortization of tangible capital assets (20,336) (17,283)
Gain (loss) on disposal/adjustment of tangible capital assets (5,147) (21)
Services provided without charge by other government departments (note 13a) (270,150) (267,548)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 2,821 (5,296)
Increase (decrease) in loans receivable (27) 4,433
Increase (decrease) in prepaid expenses 2,082 732
Increase (decrease) in inventory (379) 4,645
Decrease (increase) in accounts payable and accrued liabilities (24,612) (29,747)
Decrease (increase) in Immigrant Investor Program liability 9,200 (41,200)
Decrease (increase) in vacation pay and compensatory leave (1,099) (2,880)
Decrease (increase) in deferred revenue (3,977) 22,060
Decrease (increase) in employee future benefits (6,285) (11,455)
Transfer of Multiculturalism program from Canadian Heritage 569
Cash used by operating activities 1,083,130 987,226
 
CAPITAL INVESTING ACTIVITIES
Acquisitions of tangible capital assets 14,173 42,511
Transfer of tangible capital assets from other government departments 21
Cash used in capital investing activities 14,173 42,532
 
Net cash provided by Government of Canada $1,097,303 $1,029,758

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


Citizenship and Immigration Canada
Notes to the Financial Statements

(Unaudited)

1. Authority and Objectives

Citizenship and Immigration Canada (CIC) was established on June 23, 1994 by the Department of Citizenship and Immigration Act. It is a Department named in Schedule I of the Financial Administration Act and currently reports to Parliament through the Minister of Citizenship, Immigration and Multiculturalism.

CIC administers the Citizenship Act of 1977 and shares responsibility with the Canada Border Services Agency (CBSA) for the Immigration and Refugee Protection Act (IRPA), which was enacted following a major legislative reform in 2002. On October 30, 2008, CIC also received responsibility from Canadian Heritage to implement the Canadian Multiculturalism Act of 1988.

The Department’s key strategic outcomes are:

  • Migration that significantly benefits Canada’s economic, social and cultural development, while protecting the health, safety and security of Canadians
  • International recognition and acceptance of the principles of managed migration consistent with Canada’s broader foreign policy agenda, and protection of refugees in Canada
  • Successful integration of newcomers into society and promotion of Canadian citizenship.

These three strategic outcomes are delivered with the following program activities.

Integration Program: The objectives of CIC’s Integration Program are to develop policies and programs that support the settlement, resettlement, adaptation, and integration of newcomers into Canadian society by delivering orientation, adaptation and settlement services as well as language programs for newcomers.

Immigration Program: The Immigration Program aims to design, develop, and implement policies and programs to facilitate the entry of permanent residents in a way which maximizes their economic, social, and cultural contribution to Canada; and protects the health, safety, and security of Canadians.

Refugee Program: The Refugee Program fulfils Canada’s international obligations by providing protection to refugees who seek asylum in Canada. It also maintains our humanitarian tradition by coming to the aid of refugees abroad and through resettlement to Canada.

Temporary Resident Program: The Temporary Resident Program aims to design, develop, and implement policies and programs to facilitate the entry of temporary workers, students, and visitors in a way which maximizes their contribution to Canada’s economic, social, and cultural development and protects the health, safety, and security of Canadians.

Citizenship Program: The Citizenship Program administers citizenship legislation and promotes the rights and responsibilities of Canadian citizenship. CIC administers the acquisition of Canadian citizenship by developing, implementing, and applying legislation, regulations and policies that protect the integrity of Canadian citizenship and allow eligible applicants to be granted citizenship or be provided with a proof of citizenship. In addition, the program promotes citizenship, to both newcomers and the Canadian-born, through various events, materials and projects. Promotional activities focus on enhancing knowledge of Canada’s history, institutions, and values, as well as fostering an understanding of the rights and responsibilities of Canadian citizenship.

In conjunction with the Citizenship Program, the Multiculturalism Program plays a key role in encouraging integration and increasing social cohesion. The Program aims to foster inter-cultural and inter-faith understanding; promote civic pride and memory; respect for core Canadian values; and equality of opportunity.

Canada’s Role in International Migration and Protection: The Canada’s Role in International Migration and Protection Program aims to advance Canada’s interests in the context of international migration consistent with Canada’s legal and international obligations; steer and influence the international agenda on  migration management issues, ensuring consistency with Canada’s foreign and other public policy approaches; contribute to managing migration internationally; and support development of Canada’s image abroad.

Internal Services are groups of activities and resources that help the Department achieve its strategic outcomes. Internal services apply across CIC and are not linked to a specific program. These services include management and oversight, communications, legal, human resources management, financial management, information management, information technology, real property, materiel, acquisition, and travel and other administrative services.

CIC receives most of its funding through annual Parliamentary authorities. Revenues, 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. Employee benefits are authorized by a statutory authority. CIC issues immigration loans through a non-budgetary non-lapsing authority.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Parliamentary authorities

Citizenship and Immigration Canada (CIC) is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting.

(b) Net Cash Provided by Government

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

(c) Amounts due from/to the CRF

Amounts due from/to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Department is entitled to draw from the CRF without further appropriations to discharge its liabilities.

(d) Revenues

Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue, provided the department has an obligation to the other parties for the provision of goods or services. The recognition of revenues from fees is considered deferred until the application is processed, while the recognition of revenues from rights (right of citizenship and right of permanent residence) is deferred until the right is granted.

Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues takes place.

(e) Expenses – Expenses are recorded on the accrual basis:

Grants are recognized in the year in which the conditions for payment are met. In the case of grants which do not form part of an existing program, the expense is recognized 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.

Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement, provided that the transfer is authorized and a reasonable estimate can be made.

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 services, legal services, accommodation, employer’s contributions to the health and dental insurance plans and workers’ compensation are recorded as operating expenses, using estimated costs supplied by the respective other government departments.

(f) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Department’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the Department to make contributions for any actuarial deficiencies of the Plan.
  2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts and loans receivables are stated at the lower of cost and net recoverable value. Interest is recognized as revenue and recorded as a receivable when earned. A valuation allowance is established for receivables where recovery is considered uncertain. Loans that cannot be recovered are written off after receiving Parliamentary approval in accordance with the Debt Write-off Regulations.

(h) Contingent liabilities

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

(i) Inventory

Inventory consists of forms and informatics equipment held for future program delivery and not intended for resale. Inventory is valued at cost.

(j) Foreign currency transactions

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 a foreign currency are translated into Canadian dollars using the rate of exchange in effect at year-end. Gains and losses resulting from foreign currency transactions are included in other revenues or other expenses on the statement of operations.

(k) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost.

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 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 capital asset class and amortized when they become available for use.

(l) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits, the useful life of tangible capital assets and deferred revenues. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Authorities

Citizenship and Immigration Canada receives most of its funding through annual Parliamentary authorities.  Items recognized in the statement of financial position and the statement of operations in one year may be funded through Parliamentary authorities in prior, current or future years.  Accordingly, the Department 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
(in thousands of dollars)

  2011 2010
Net cost of operations $1,401,039 $1,330,217
Adjustments for items affecting net cost of operations but not affecting authorities:
Revenue not available for spending 465,204 465,841
Refunds of previous year’s revenues 8,560 24,810
Services provided without charge by other government departments (note 13a) (270,150) (267,548)
Amortization of tangible capital assets (20,336) (17,283)
Inventory and prepaid expenses consumed in operations (6,427) (4,783)
Increase in vacation pay and compensatory leave (1,099) (2,880)
Increase in employee future benefits (6,285) (11,455)
Other (2,741) 7,311
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 14,173 42,511
Inventory purchased and prepaid expenses 8,130 10,160
Non-budgetary loans 1,098 4,335
Current year authorities used  $1,591,166 $1,581,236

(b) Authorities provided and used
(in thousands of dollars)

  2011 2010
Authorities provided:
Vote 1 – Operating expenditures $602,353 $584,266
Vote 5 – Grants and Contributions 976,737 959,636
Vote 7 – Loan Write-Off 828
Non-budgetary item 1,098 4,335
Statutory amounts 65,740 79,355
Less:
Lapsed Vote 1: Operating expenditures (31,064) (25,988)
Lapsed Vote 5: Grants and Contributions (23,687) (21,173)
Lapsed Vote 7: Debt Write-Off (7)
Lapsed: Proceeds from disposal of Crown assets (11)
Appropriations available for future years (11) (5)
Current year appropriations used  $1,591,166  $1,581,236

 

4. Accounts Receivable and Advances

The following table presents details of the Department’s accounts receivable and advances balances:

(in thousands of dollars)

  2011 2010
Receivables from other federal government departments and agencies $24,101 $26,098
Receivables from external parties 10,477 5,564
Employee advances 294 187
  34,872 31,849
Less: allowance for doubtful accounts from external parties (465) (263)
Total accounts receivable and advances $34,407 $31,586

5. Loans Receivable

In accordance with the Immigration and Refugee Protection Act, CIC can issue immigration loans up to a maximum of $110,000,000. Since February 28, 1995, all immigration loans bear interest at a rate determined by the Minister of Finance at the beginning of each calendar year. Regulations provide for a period of up to 6 years for the repayment of the loans. The interest rate on outstanding interest-bearing loans varies from 1.75% to 10.733%. The closing balance of the immigration loans only includes the outstanding principal balance. An allowance for doubtful accounts is made for loans when recovery is considered uncertain.

The following table presents details of the Department’s immigration loans balances:

(in thousands of dollars)

  2011 2010
Immigration loans – Opening balance $37,989 $33,654
Add: New loans issued 11,637 13,315
Less: Repayments of loans (10,539) (8,330)
Less: Loans balance written–off during the year (650)
Immigration loans – Closing balance 39,087 37,989
Less: Allowance for doubtful collection (4,753) (3,628)
Total loans receivable $34,334 $34,361

There were no write–offs in 2010–2011 as no Supplementary Estimates (C) were approved by Parliament.

6. Tangible Capital Assets

(in thousands of dollars)

Capital asset class Cost Accumulated amortization Net book value
Opening
balance
Acqui-
sitions
Disposals
and
write-offs
Closing
balance
Opening
balance
Amorti-
zation
Disposals
and
write-offs
Closing
balance
2011 2010
Machinery and equipment 2,065 19 22 2,062 1,158 139 8 1,289 773 907
Informatics hardware 29,502 1,275 1,927 28,850 18,301 2,779 1,927 19,153 9,697 11,201
Software (purchased and developed) 140,661 99,859 240,520 70,315 15,866 86,181 154,339 70,346
Office furniture 1,309 179 54 1,434 581 137 36 682 752 728
Vehicles 1,016 85 70 1,031 709 77 69 717 314 307
Leasehold improvements 13,367 13,367 7,362 1,338 8,700 6,005
Assets under construction 91,137 12,615 100,306 3,446 3,446 91,137
Total $279,057 $114,032 $115,746 $277,343 $98,426 $20,336 $10,740 $108,022 $169,321 $180,631

Disposals of assets under construction include assets of $99,859 that were put into use in the year and have been transferred to the other capital asset classes as applicable.

7. Accounts Payable and Accrued Liabilities

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

(in thousands of dollars)

  2011 2010
Accounts payable to other government departments and agencies $13,807 $13,940
Accounts payable to external parties 90,075 61,188
  103,882 75,128
Accrued liabilities 112,453 116,595
  $216,335 $191,723

8. Immigrant Investor Program

The Immigrant Investor Program allows qualified immigrants to gain permanent residence in Canada by making an investment of $800,000 ($400,000 prior to December 1, 2010) in the Canadian economy. The investment is returned to the investor, without interest, five years and two months after payment.

After meeting other immigration requirements, applicants are then required to pay their $800,000 ($400,000 prior to December 1, 2010) investment to the Receiver General for Canada. CIC acts as an agent for the approved provincial funds by collecting the investments and distributing them to the approved funds according to a prescribed allocation formula (50 percent divided equally and 50 percent distributed according to provincial gross domestic product). The investment is distributed to the participating provinces and territories (Ontario, British Columbia, Saskatchewan, Manitoba, Nova Scotia, Newfoundland and Labrador, New Brunswick, Prince Edward Island, Northwest Territories) on the first day of the second month following receipt from the investor.

The participating provinces and territories are responsible for investing their allocations to strengthen their economies and to create or continue employment. They report to CIC quarterly, and after the five-year holding period, remit the full amount investment back to CIC. Within 30 days of receipt of the full amount from the participating funds, CIC returns this investment to the investor (without interest).

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

(in thousands of dollars)

  April 1, 2010 Receipts Payments March 31, 2011
Immigrant Investor Program 74,800 964,744 (973,944) $65,600

9. Deferred Revenue

The deferred revenue account was established to record fees and rights derived from the Citizenship Act and Regulationsand the Immigration and Refugees Protection Act and Regulations. Fees are deferred until the application is deemed processed, while rights (right of citizenship and right of permanent residence) are deferred until the right is granted.

The following table presents details of the deferred revenue account:

(in thousands of dollars)

  2011 2010
Opening balance $394,169 $416,229
Payments received 476,269 466,154
Revenue recognized (472,142) (487,691)
Remissions – reduction of the right of permanent residence (150) (523)
Closing balance $398,146 $394,169

 

10. Employee Future Benefits

(a) Pension benefits

The Department’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Department contribute to the cost of the Plan. The 2010-2011 expense amounts to $40,197,828 ($39,577,358 in 2011-2010), which represents approximately 1.9 times (1.9 in 2011-2010) the contributions by employees.

The Department’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.

(b) Severance benefits

The Department provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

(in thousands of dollars)

  2011 2010
Accrued benefit obligation, beginning of year $65,834 $54,379
Expense for the year 11,818 15,774
Benefits paid during the year (5,533) (4,319)
Accrued benefit obligation, end of year $72,119 $65,834

11. Contingent Liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.

(a) Claims and litigation

Claims have been made against the Department in the normal course of operations. These claims include items with pleading amounts and other for which no amount is specified. Based on the Department’s legal assessment of potential liability, no allowance was recorded at March 31, 2011 (no allowance was recorded in 2011-2010). Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

12. Contractual Obligations

The nature of the Department’s activities can result in some large multi-year contracts and obligations whereby the Department will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received.

Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

Fiscal Year 2012 2013 2014 2015 2016
and after
Total
Total transfer payments 408,969 407,959 407,959 407,959 405,059 $2,037,905

13. Related party transactions

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

(a)  Services provided without charge by other Government departments

During the year, the Department received services without charge from certain common service organizations, related to legal services, accommodation, the employer’s contributions to the health and dental insurance plans, and workers’ compensation. Additionally, the Department of Foreign Affairs and International Trade provides international immigration services at missions abroad. The estimated amount for these charges has been recorded in the Department’s Statement of Operations as follows:

  2011 2010
International immigration services $172,528 $164,140
Legal services 34,455 44,609
Accommodation 34,260 32,384
Employer’s contribution to the health and dental
insurance plans
28,686 26,181
Workers’ compensation 221 234
Total $270,150 $267,548

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one Department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included as an expense in the Department’s Statement of Operations.

(b) Other transactions with related parties

(in thousands of dollars)

  2011 2010
Expenses – Other Government departments and agencies $89,001 $74,720

14. Segmented information

The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

(in thousands of dollars)

  Integration Program Immigration Program Refugee Program Temporary Resident Program Citizenship Program Canada’s Role in International Migration and Protection Internal Services Total 2011 Total 2010
Transfer payments
Non–profit organizations 483,585 9,788 325 493,698 494,635
Other levels of government within Canada 412,816 412,816 394,698
Individuals 39,311 6 39,317 41,468
Other countries and international organizations 40 1,788 1,828 1,483
Total transfer payments 935,712 9,834 2,113 947,659 932,284
Operating Expenses
Salaries and employee benefits 52,460 169,280 29,346 79,705 73,521 2,008 195,902 602,222 564,424
Professional and special services 5,970 27,957 89,079 15,993 5,586 160 32,264 177,009 176,183
Accommodation 3,542 10,880 964 5,819 3,592 154 9,309 34,260 32,384
Transportation and communication 1,045 6,215 678 5,278 2,237 39 10,115 25,607 26,528
Amortization of tangible capital assets 6,800 1,731 4,694 311 6,800 20,336 17,283
Utilities, materials and supplies 276 2,442 498 796 1,173 14,738 19,923 15,416
Repairs and maintenance 43 7,090 10 23 74 7,543 14,783 5,870
Rentals of equipment 105 532 51 51 279 12,372 13,390 10,958
Information services 238 1,279 64 216 492 7,045 9,334 9,792
Other 1,276 2 1 2 439 1,720 4,936
Total operating expenses 64,955 232,477 122,421 112,575 87,266 2,363 296,527 918,584 863,774
Total Expenses 1,000,667 232,477 122,421 112,575 97,100 4,476 296,527 1,866,243 1,796,058
Revenues
Immigration service fees 176,357 171,354 347,711 332,606
Right of permanent residence 80,851 80,851 93,982
Citizenship service fees 22,409 22,409 24,294
Right of citizenship 13,261 13,261 13,799
Interest on loans 542 542 543
Other 10 40 8 372 430 617
Total Revenues 552 257,248 171,354 35,678 372 465,204 465,841
Net Cost of Operations 1,000,115 (24,771) 122,421 (58,779) 61,422 4,476 296,155 1,401,039 1,330,217

15. Adoption of new accounting policies

During the year, the Department adopted the revised Treasury Board accounting policy TBAS 1.2: Departmental and Agency Financial Statements which is effective for the Department for the 2010-2011 fiscal year. The major change in the accounting policies of the Department required by the adoption of the revised TBAS 1.2 is the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position for a total value of $278,372 as of March 31, 2011.

The adoption of the new Treasury Board accounting policies has been accounted for retroactively with the following impact on the comparatives for 2011-10:

  2010
As previously stated
Effect of changes 2010
Restated
Statement of Financial Position:      
Assets $256,571 262,577 $519,148
Equity of Canada (488,031) 262,577 (225,454)

16. Comparative information

Comparative figures have been reclassified to conform to the current year’s presentation.

Date Modified: