Future-oriented Statement of Financial Position
as at March 31, 2012


Citizenship and Immigration Canada
Statement of Management Responsibility

The management of Citizenship and Immigration Canada is responsible for this future-oriented Statement of Operations, including responsibility for the appropriateness of the assumptions on which this statement is prepared. This statement is based on the best information available and assumptions adopted as at January 14, 2011 and reflects the plans described in the Report on Plans and Priorities.

Signatures of Neil Yeates (Deputy Minister) and Mark Watters (Assistant Deputy Minister) on Feb 9, 2011

Citizenship and Immigration Canada
Future-oriented Statement of Operations
For the Year Ending March 31

(in thousands of dollars)
Future-oriented Statement of Operations
For the Year Ending March 31
Estimated Results
2011
Forecast
2012
Expenses
Settlement and Integration of Newcomers 1,010,133 974,949
Migration Control and Security Management 82,998 112,462
Health Management 100,359 98,640
Permanent Economic Residents 89,692 97,722
Family and Discretionary Immigration 84,178 93,585
Citizenship for Newcomers and all Canadians 72,762 64,722
Refugee Protection 52,185 47,658
Temporary Economic Residents 41,744 38,097
Multiculturalism for Newcomers and all Canadians 32,709 32,293
Canadian Influence in International Migration and Integration Agenda 3,153 2,858
Internal Services 325,492 297,683
Total expenses 1,895,405 1,860,669
Revenues
Permanent Economic Residents 182,660 187,098
Migration Control and Security Management 107,687 105,984
Temporary Economic Residents 68,036 74,076
Family and Discretionary Immigration 69,811 70,668
Citizenship for Newcomers and all Canadians 41,226 38,193
Internal Services 200 200
Total revenues 469,620 476,219
Net cost of operations 1,425,785 1,384,450

Segmented information (Note 8)

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

Citizenship and Immigration Canada
Notes to Future-oriented Statement of Operations
For the Year Ending March 31

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 of permanent and temporary residents that strengthens Canada’s economy
  • Family and humanitarian migration that reunites families and offers protection to the displaced and persecuted
  • Newcomers and citizens participate to their full potential in fostering an integrated society
  • Managed migration that promotes Canadian interests and protects the health, safety and security of Canadians

These four strategic outcomes are delivered with the following program activities:

Permanent Economic Residents: Rooted in legislative requirements outlined in the Immigration and Refugee Protection Act, the focus of this program is on the selection and processing of immigrants who can become permanent residents and contribute to Canada’s economic development. The acceptance of qualified permanent residents helps the government meet its economic objectives, such as building a skilled workforce, by addressing immediate and longer term labour market needs. The selection and processing involve the issuance of permanent resident visas to qualified applicants, as well as the refusal of unqualified applicants.

Temporary Economic Residents: Rooted in legislative requirements outlined in the Immigration and Refugee Protection Act, the focus of this program is on processing and facilitating the entry into Canada of temporary workers and students. Temporary economic migration benefits Canada’s economic growth. The selection and processing involve the issuance of temporary resident visas, work permits and study permits to qualified applicants, as well as the refusal of unqualified applicants.

Family and Discretionary Immigration: CIC facilitates family reunification by enabling eligible foreign nationals to be sponsored by family members in Canada who are Canadian citizens or permanent residents. Spouses and partners, dependent children (including adopted children), and other eligible relatives such as parents and grandparents are welcomed to Canada under this program. CIC may also grant permanent resident or other status to persons who would not otherwise qualify in any immigration category, in cases where there are strong humanitarian and compassionate considerations, or for public policy reasons. Such exceptional and discretionary immigration measures provide the flexibility to approve deserving cases not anticipated in the legislation.

Refugee Protection: The Refugee Protection program is in the first instance about saving lives and offering protection to the displaced and persecuted. One arm of the program starts overseas where refugees and persons in refugee-like situations are selected by Canadian visa officers to be resettled as permanent residents to Canada. Flowing from Canada's international and domestic legal obligations, the in-Canada asylum system evaluates the claims of individuals seeking asylum in Canada and grants permanent residence when a positive decision is rendered by the Immigration and Refugee Board of Canada.

Settlement and Integration of Newcomers: In accordance with the Canadian Multiculturalism Act, the Employment Equity Act and the Immigration and Refugee Protection Act, CIC develops policies and programs to support the settlement, resettlement, adaptation and integration of newcomers into Canadian society focused on information/orientation, language/skills, labour market access and welcoming communities. All permanent residents are eligible for settlement and integration programs. Programming is delivered by third parties (including provincial and municipal governments, school boards and post-secondary institutions, settlement service organizations and other non-governmental actors, and the private sector) across the country. However, accountability for expended funds and attaining outcomes remains with Citizenship and Immigration Canada.

Citizenship for Newcomers and all Canadians: The purpose of the Citizenship program is to administer citizenship legislation and promote 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.

Multiculturalism for Newcomers and all Canadians: The Multiculturalism program is the principal means of carrying out the Minister’s responsibilities under the Canadian Multiculturalism Act for promoting the full and equitable participation of individuals and communities of all origins. Grants and contributions to not-for-profit organizations, the private sector, provincial and municipal governments, non-federal public institutions and individuals seek to advance overarching program objectives. These objectives are to: build an integrated, cohesive society (through intercultural understanding, civic memory and pride and democratic values, and equality of opportunity); improve the responsiveness of institutions to the needs of a diverse population; and, actively engage in discussions on multiculturalism and diversity at the international level. Direct public outreach and promotional activities by the program primarily target young people. The program assists federal partners to meet their obligations under the Act and ensures annual reporting to Parliament on its operation. It also engages with non-federal public institutions seeking to respond to diversity. The program provides a forum for cooperation with provinces and territories and is the locus for Canada’s participation in international agreements and institutions with respect to multiculturalism, anti-racism and related issues.

Health Management: This program aims to provide effective immigration health services to manage the health aspect of migrant access and settlement to Canada, and facilitate the arrival of resettled refugees to Canada and their integration while contributing to the protection of the health and safety of all Canadians and contributing to the maintenance of sustainable Canadian health and social services. The program aims to evaluate health risks related to immigration and coordinate with international and Canadian health partners to develop risk management strategies and processes to assess the health of applicants wishing to immigrate to Canada and develop pre-departure, in-transit, and post arrival interventions. The strategies, processes and interventions are intended to reduce the impact of the risks identified on the health of Canadians and on Canada’s health and social services.

Migration Control and Security Management: In accordance with the Immigration and Refugee Protection Act (IRPA) and Regulations, this program activity aims to ensure the managed migration of people to Canada in order to protect the health, safety and security of Canadians. Even as CIC facilitates the travel of bona fide permanent residents, visitors, students and temporary workers, it also deploys an array of policy interventions to manage access and entry to Canada, including visas, admissibility, information sharing, travel document, and identity management policies. Effective partnerships with public safety-related departments and organizations are an essential component of this program activity. Under IRPA, all visitors to Canada require a Temporary Resident Visa (TRV) except where an exemption has been granted under the Regulations. The TRV requirement is Canada’s primary means of controlling migration and allows for the screening of individuals for health, safety and security risks before they begin travel to Canada. CIC also aims to ensure that admissibility policy continues to provide flexibility to address compelling circumstances that warrant a foreign national’s presence in Canada, while maintaining the integrity of Canada’s immigration system. Information sharing agreements and mechanisms support immigration management and provide security advantages. This program activity supports CIC’s policy initiatives related to identity management and entry document requirements, including the expansion of biometrics to accurately identify foreign nationals entering Canada and the provision of a highly secure proof of status document to all permanent residents. The Permanent Resident Card also serves as a travel document and is required for all commercial travel to Canada.

Canadian Influence in International Migration and Integration Agenda: As part of its mandate, CIC aims to influence the international migration and integration policy agenda. This is done by developing and promoting, together with other public policy sectors, Canada’s position on international migration, integration, and refugee protection issues and through participation in multilateral, regional and bilateral forums. CIC works closely with partner countries to ensure the effective administration of immigration laws through the exchange of information, including biometric data. This international migration policy development helps Canada advance its interests in the context of international migration as well as meet its international obligations and commitments. CIC supports international engagement and partnerships through membership in the International Organization for Migration, and contribution arrangements with other international migration policy organizations.

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. Significant assumptions

The future-oriented Statement of Operations has been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.

The main assumptions are as follows:

  1. The department's activities will remain substantially the same as for the previous year.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
  3. Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.

These assumptions are adopted as at January 14, 2011.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2010-11 and for 2011-12, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this future-oriented Statement of Operations, Citizenship and Immigration Canada has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements 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 this future-oriented Statement of Operations and the historical financial statements include:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  2. Economic conditions may affect both the amount of revenue earned and the collectability of loan receivables.
  3. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, Citizenship and Immigration Canada will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates.

4. Summary of Significant Accounting Policies

The future-oriented Statement of Operations has 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:

  1. Parliamentary authorities

    Citizenship and Immigration Canada 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 are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting.

  2. Revenues - Revenues are recorded on an accrual basis.

    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, services or the use of assets in the future. 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.

  3. Expenses – Expenses are recorded on an accrual basis.

    Grants are recognized in the year in which the conditions for payment are met.

    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 costs are recorded as operating expenses, using estimated costs supplied by the respective other government departments.

  4. 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.

  5. Accounts and loans receivables are stated at the lower of cost and net recoverable value. Interest is recognized as a 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.
  6. Inventories

    Inventories consist of forms and informatics equipment held for future program delivery and not intended for resale. They are valued at cost.

  7. 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 on March 31. Gains and losses resulting from foreign currency transactions are included in other revenues or other expenses.

  8. 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.

5. Parliamentary Authorities

Citizenship and Immigration Canada receives most of its funding through annual Parliamentary authorities. Items recognized in 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) Authorities requested

(in thousands of dollars)
Authorities requested Estimated
2011
Forecast
2012
Vote 1 – Operating expenditures 601,097 577,012
Vote 5 – Grants and Contributions 976,273 944,971
Vote 7 - Debt Write-Off 473 -
Non-budgetary item (3,361) -
Statutory amounts 57,807 63,388
Forecast authorities available 1,632,289 1,585,371

Forecast authorities requested for the year ending March 31, 2012 include the planned spending amounts presented in the 2011-12 Report on Plans and Priorities.

Estimated authorities requested for the year ending March 31, 2011 include amounts presented in the 2010-11 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

Both years include an additional statutory amount of $9,514 thousands for 2011 and $10,149 thousands for 2012 for refunds of previous years’ revenues.

A non-budgetary authority of ($3,361) thousands for immigration loans is also included for 2011.

(b) Reconciliation of net cost of operations to requested authorities

(in thousands of dollars)
Reconciliation of net cost of operations Estimated
2011
Forecast
2012
Net cost of operations 1,425,785 1,384,450
Adjustments for items affecting net cost of operations
but not affecting authorities
Revenue not available for spending 469,620 476,219
Refunds of previous year’s revenues 9,514 10,149
Services provided without charge by other government departments [Note 7a] (263,907) (266,854)
Amortization of tangible capital assets (23,473) (29,229)
Inventory and prepaid expenses consumed in operations (5,286) (5,020)
Increase in vacation pay and compensatory leave (2,119) (394)
(Increase) decrease in employee severance benefits 2,306 (400)
Other 6,647 6,978
Adjustments for items not affecting net cost of operations
but affecting authorities
Inventory purchased and prepaid expenses 3,894 3,972
Acquisition of tangible capital assets 12,669 5,500
Decrease in non-budgetary loans (3,361) -
Forecast authorities available 1,632,289 1,585,371

6. 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 forecast expenses are $33,847 thousands in 2010-11 and $37,319 thousands in 2011-12, which represents approximately 1.9 times 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.

7. Related Party Transactions

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

(a) Services provided without charge by other government departments

During the year, the Department is forecasted to receive services without charge from common service organizations, related to legal services, accommodation, employer’s contributions to the health and dental insurance plans and workers’ compensation costs. Additionally, the Department of Foreign Affairs and International Trade provides international immigration services at missions abroad on behalf of the Department. These services provided without charge have been recognized in the Department’s future-oriented Statement of Operations as follows.

(in thousands of dollars)
Services Estimated Results
2011
Forecast
2012
International immigration services 164,140 164,140
Legal services 38,788 40,746
Accommodation 33,944 34,078
Employer’s contribution to the health and dental insurance plans 26,919 27,678
Workers’ compensation costs 116 212
Total 263,907 266,854

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 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)
Transactions Estimated Results
2011
Forecast
2012
Expenses – other Government departments and agencies 77,984 75,630
Revenues – other Government departments and agencies - -

8. Segmented information

(in thousands of dollars)
  2011 2012
Segmented information Total Settlement and Integration of Newcomers Migration Control and Security Management Health Management Permanent Economic Residents Family and Discretionary Immigration Citizenship for Newcomers and all Canadians Refugee Protection Temporary Economic Residents Multicultu- ralism for Newcomers and all Canadians Canadian Influence in International Migration and Integration Agenda Internal Services Total
Transfer payments
Non-profit organizations 520,638 473,991 - - - - - - - 16,146 - - 490,137
Other levels of government within Canada 413,493 407,520 - - - - - - - - - - 407,520
Individuals 36,819 41,976 - - - - - - - - - - 41,976
Other countries and international organizations 2,000 - - - - - - - - 45 1,804 - 1,849
Total transfer payments 972,950 923,487 - - - - - - - 16,191 1,804 - 941,482
Operating Expenses
Salaries and employee benefits 539,039 34,075 74,465 6,153 64,705 61,965 42,854 31,555 25,225 10,663 698 197,131 549,489
Professional and special services 217,900 7,793 17,029 90,754 14,797 14,171 9,800 7,216 5,769 2,438 160 45,064 214,991
Accommodation 33,944 2,113 4,618 382 4,013 3,843 2,658 1,957 1,564 661 43 12,226 34,078
Transportation and communication 39,933 2,184 4,773 394 4,147 3,972 2,747 2,023 1,617 683 44 12,627 35,211
Amortization of tangible capital assets 23,473 1,813 3,961 327 3,442 3,296 2,279 1,679 1,342 567 37 10,486 29,229
Utilities, materials and supplies 41,290 2,015 4,404 364 3,827 3,665 2,535 1,866 1,492 631 41 11,651 32,491
Rentals of equipment 3,300 180 394 33 343 328 227 167 133 56 6 1,043 2,910
Information services 14,740 806 1,762 146 1,531 1,466 1,014 747 597 252 15 4,661 12,997
Repairs and maintenance 8,836 483 1,056 87 917 879 608 448 358 151 10 2,794 7,791
Total operating expenses 922,455 51,462 112,462 98,640 97,722 93,585 64,722 47,658 38,097 16,102 1,054 297,683 919,187
Total Expenses 1,895,405 974,949 112,462 98,640 97,722 93,585 64,722 47,658 38,097 32,293 2,858 297,683 1,860,669
Revenues
Immigration service fees 338,514 - 105,098 - 119,951 45,549 - - 46,554 - - - 317,152
Right of permanent residence 85,540 - - - 65,101 24,341 - - 26,903 - - - 116,345
Citizenship service fees 25,168 - - - - - 23,517 - - - - - 23,517
Right of citizenship 16,058 - - - - - 14,676 - - - - - 14,676
Interest on loans 600 - - - 435 165 - - - - - - 600
Other 3,740 - 886 - 1,611 613 - - 619 - - 200 3,929
Total Revenues 469,620 - 105,984 - 187,098 70,668 38,193 - 74,076 - - 200 476,219
Net Cost of Operations 1,425,785 974,949 6,478 98,640 (89,376) 22,917 26,529 47,658 (35,979) 32,293 2,858 297,483 1,384,450
Date Modified: