Future-oriented Financial Statements
as at March 31, 2013


Citizenship and Immigration Canada
Statement of Management Responsibility

The management of Citizenship and Immigration Canada is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at March 28, 2012 and reflect the plans described in the Report on Plans and Priorities.

Signatures of Neil Yeates (Deputy Minister) and Amipal Manchanda (Assistant Deputy Minister) on March 28, 2012

Citizenship and Immigration Canada
Future-oriented Statement of Financial Position
As at March 31
(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
ASSETS
Financial assets
Due from Consolidated Revenue Fund $329,959 $340,628
Accounts receivable and advances (note 6) 34,678 34,678
Loans receivable (note 7) 32,841 32,841
Total financial assets 397,478 408,147
Non-financial assets
Prepaid expenses 3,674 1,942
Inventory 6,230 6,230
Tangible capital assets (note 8) 149,079 138,894
Total non-financial assets 158,983 147,066
Total $556,461 $555,213
 
LIABILITIES AND EQUITY OF CANADA
Liabilities
Accounts payable and accrued liabilities (note 9) $167,031 $167,031
Immigrant Investor Program (note 10) 134,910 145,579
Vacation pay and compensatory leave 21,452 20,579
Deferred revenue (note 11) 394,530 393,280
Employee future benefits (note 12) 41,820 39,132
Total liabilities 759,743 765,601
Equity of Canada (203,282) (210,388)
Total $556,461 $555,213

Contingent liabilities (note 13)
Contractual obligations (note 14)

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

Signatures of Neil Yeates (Deputy Minister) and Amipal Manchanda (Assistant Deputy Minister) on March 28, 2012

Citizenship and Immigration Canada
Future-oriented Statement of Operations
For the Year Ending March 31
(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
EXPENSES
Settlement and Integration of Newcomers 1,004,615 994,643
Migration Control and Security Management 97,405 159,380
Permanent Economic Residents 91,494 88,058
Family and Discretionary Immigration 84,848 80,718
Citizenship for Newcomers and all Canadians 70,878 63,819
Health Management 93,750 59,456
Refugee Protection 50,574 47,613
Temporary Economic Residents 40,360 41,656
Multiculturalism for Newcomers and all Canadians 29,431 30,523
Canadian Influence in International Migration and Integration Agenda 2,938 2,861
Internal Services 308,127 252,707
Total expenses 1,874,420 1,821,434
 
REVENUES
Migration Control and Security Management 123,921 126,315
Permanent Economic Residents 122,497 110,533
Temporary Economic Residents 76,657 80,739
Family and Discretionary Immigration 70,479 67,442
Citizenship for Newcomers and all Canadians 42,144 46,166
Refugee Protection 10,370 9,943
Settlement and Integration of Newcomers 600 600
Internal Services 200 200
Total revenues 446,868 441,938
Net cost of operations 1,427,552 1,379,496

Segmented information (note 16)

The accompanying notes form an integral part of these future-oriented statements.

Citizenship and Immigration Canada
Future-oriented Statement of Equity of Canada
For the Year Ending March 31
(in thousands of dollars)

  Estimated Results
2012
Planned Results
2013
Equity of Canada, beginning of year $(243,245) $(203,282)
Net cost of operations (1,427,552) (1,379,496)
Net cash provided by government 1,148,898 1,086,507
Change in due from the Consolidated Revenue Fund 51,587 10,669
Services provided without charge by other government departments (note 15a) 274,085 275,214
Change to Equity related to transfer to Shared Services Canada (SSC) (note 17) (7,055)
Equity of Canada, end of year $(203,282) $(210,388)

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

Citizenship and Immigration Canada Future-oriented Statement of Cash Flow
For the Year Ending March 31
(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
OPERATING ACTIVITIES
Net cost of operations $1,427,552 $1,379,496
Non-cash items:
Amortization of tangible capital assets (18,297) (16,609)
Services provided without charge by other government departments (note 15a) (274,085) (275,214)
Variations in Future-oriented Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 271
Increase (decrease) in loans receivable (1,493)
Increase (decrease) in prepaid expenses (776) (1,732)
Increase (decrease) in inventory (1,016)
Decrease (increase) in accounts payable and accrued liabilities 49,304
Decrease (increase) in Immigrant Investor Program liability (69,310) (10,669)
Decrease (increase) in vacation pay and compensatory leave (2,277) 873
Decrease (increase) in deferred revenue 3,616 1,250
Decrease (increase) in employee future benefits 30,299 2,688
Cash used by operating activities 1,143,788 1,080,083
CAPITAL INVESTING ACTIVITIES
Acquisitions of tangible capital assets 5,110 6,424
Cash used in capital investing activities 5,110 6,424
Net cash provided by Government of Canada $1,148,898 $1,086,507

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

Citizenship and Immigration Canada
Notes to Future-oriented Financial Statements
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 activity 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 activity 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 activity 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 CIC.

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 activity 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 activity 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 except where an exemption has been granted under the Regulations. The Temporary Resident Visa 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: CIC’s 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. Methodology and Significant Assumptions

The future-oriented financial statements have 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.
  4. Estimated year end information for 2011-12 is used as the opening position for the 2012-13 planned results.

These assumptions are adopted as at March 28, 2012.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2011-12 and for 2012-13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements, 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 the future-oriented financial statements and the historical financial statements include:

  1. The timing and amounts of acquisitions and disposals of capital assets may affect gains/losses and amortization expense.
  2. Implementation of new collective agreements.
  3. Economic conditions may affect both the amount of revenue earned and the collectability of loan receivables.
  4. Further changes to the operating budget through additional new initiatives or technical adjustments later in the 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 financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2011-12 fiscal year. These accounting policies, stated below, 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 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 Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting. 

(b) Net Cash Provided by Government

The Department operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Department is deposited to the CRF and all cash disbursements made by the Department 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 parliamentary expenditure authorities to discharge its liabilities.

(d) 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.

(e) 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.

(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

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.

(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 future-oriented financial statements

(i) Inventory

Inventory consists of forms and informatics equipment held for future program delivery and not intended for resale. They are 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 on March 31. Gains and losses resulting from foreign currency transactions are included in other revenues or other expenses.

(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 future-oriented financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Actual results could significantly differ from those estimated.

5. Parliamentary Authorities

Citizenship and Immigration Canada receives most of its funding through annual Parliamentary authorities. Items recognized in the Future-oriented Statements of Operations and Financial Position 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)

  Estimated
Results 2012
Planned Results 2013
Authorities provided:
Vote 1 – Operating expenditures $600,794 $524,631
Vote 5 – Grants and Contributions 966,286 963,929
Vote 7 – Loan Write-Off 1,709
Non-budgetary item (1,493)
Statutory amounts 58,696 63,531
Forecast authorities available $1,625,992 $1,552,091

Forecast authorities available for the year ending March 31, 2013 include the planned spending amounts presented in the 2012-13 Report on Plans and Priorities.

Estimated authorities for the year ending March 31, 2012 include amounts presented in the 2011-12 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 $5,457 thousands for 2012 and $6,692 thousands for 2013 for refunds of previous years’ revenues.

A non-budgetary authority of $(1,493) thousands for immigration loans is also included for 2012.

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

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Net cost of operations $1,427,552 $1,379,496
Adjustments for items affecting net cost of operations but not affecting authorities:
Revenue not available for spending 446,868 441,938
Refunds of previous year’s revenues 5,457 6,692
Services provided without charge by other government departments (note 15a) (274,085) (275,214)
Amortization of tangible capital assets (18,297) (16,609)
Increase (decrease) in prepaid expenses (776) (1,732)
Increase (decrease) in inventory (1,016)
(Increase) decrease in vacation pay and compensatory leave (2,277) 873
(Increase) decrease in employee severance benefits 30,299 2,688
Other 8,650 7,535
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 5,110 6,424
Decrease in non-budgetary loans (1,493)
Forecast authorities available $1,625,992 $1,552,091

6. Accounts Receivable and Advances

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

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Receivables from other federal government departments and agencies $22,677 $22,677
Receivables from external parties 12,066 12,066
Employee advances 185 185
  34,928 34,928
Less: allowance for doubtful accounts from external parties (250) (250)
Total accounts receivable and advances $34,678 $34,678

7. 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 1.26% to 10.718%. 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 loans balances:

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Immigration loans – Opening balance $39,087 $37,594
Add: New loans issued 12,963 12,233
Less: Repayments of loans (12,747) (12,233)
Less: Loans balance written–off during the year (1,709)
Immigration loans – Closing balance 37,594 37,594
Less: Allowance for doubtful collection (4,753) (4,753)
Total loans receivable $32,841 $32,841

8. Tangible 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
2012 2013
Machinery and equipment 2,062 51 (113) 2,000 1,591 198 (113) 1,676 471 324
Informatics hardware 21,795 21,795 16,594 2,945 19,539 5,201 2,256
Software (purchased and developed) 248,200 6,978 255,178 106,407 13,251 119,658 141,793 135,520
Office furniture 1,466 155 1,621 842 105 947 624 674
Vehicles 1,031 84 (65) 1,050 885 110 (65) 930 146 120
Assets under construction 844 (844) 844
Total $275,398 $7,268 $(1,022) $281,644 $126,319 $16,609 $(178) $142,750 $149,079 $138,894

Disposals of assets under construction represent assets that are put into use in the year and have been transferred to the other capital asset classes.

9. Accounts Payable and Accrued Liabilities

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

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Accounts payable to other government departments and agencies $9,532 $9,532
Accounts payable to external parties 73,033 73,033
  82,565 82,565
Accrued liabilities 84,466 84,466
  $167,031 $167,031

10. Immigrant Investment 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 and Prince Edward Island) 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 estimated to be processed is as follows:

(in thousands of dollars)

  April 1, 2012 Receipts Payments March 31, 2013
Immigrant Investor Program $134,910 966,110 (955,441) $145,579

11. Deferred Revenue

The deferred revenue account was established to record fees and rights derived from the Citizenship Act and Regulations and 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.

Details of the transactions related to this account are as follows:

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Opening balance $398,146 $394,530
Amounts expected to be received 453,049 439,866
Revenue recognized (456,592) (441,043)
Remissions – reduction of the right of permanent residence (73) (73)
Closing balance $394,530 $393,280

12. 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 forecasted expenses are $43,421 thousand in 2011-12 and $40,867 thousand in 2012-13, 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. As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation. These severance benefits are not pre-funded. Benefits will be paid from future authorities. 

Details of the severance benefits, estimated as at the date of these statements, is as follows:

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
Accrued benefit obligation, beginning of year $72,119 $41,820
Expense for the year 3,491 934
Expected benefits payments during the year (33,790) (3,622)
Accrued benefit obligation, end of year $41,820 $39,132

13. Contingent Liabilities

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

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 planned for March 31, 2013 (no allowance was recorded in 2011-12). 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.

14. 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 2013 2014 2015 2016 2017
and after
Total
Transfer payments to provincial governments 405,059 405,059 405,059 405,059 405,059 $2,025,295
Interim Federal Health Claims Processing 2,900 2,900 2,900 0 0 $8,700
Total $407,959 $407,959 $407,959 $405,059 $405,059 $2,033,995

15. 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 receives services without charge from common service organizations related to accommodation, legal services, 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.

These services provided without charge have been recognized in the Department’s future-oriented Statement of Operations as follows:

(in thousands of dollars)

  Estimated Results 2012 Planned Results 2013
International immigration services $172,528 $172,528
Accommodation 36,040 37,385
Legal services 33,483 33,139
Employer’s contribution to the health and dental
insurance plans
31,822 31,963
Workers’ compensation 212 199
Total $274,085 $275,214

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 in the Department's Future-oriented Statement of Operations.

(b) Other transactions with related parties

(in thousands of dollars)

  Estimated Results 2012 Planned Results  2013
Expenses – Other Government departments and agencies $78,689 $69,776

16. Segmented information

Presentation by segment is based on the Department's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the forecasted expenses incurred and forecasted 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)

  2012 2013
  Total Settlement and Integration of Newcomers Migration Control and Security Management Permanent Economic Residents Family and Discretionary Immigration Citizenship for Newcomers and all Canadians Health Management 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 486,857 461,713 14,599 476,312
Other levels of government within Canada 431,759 440,845 440,845
Individuals 41,497 42,887 42,887
Other countries and international organizations 1,848 1,848 1,848
Total transfer payments 961,961 945,445 14,599 1,848 961,892
Operating Expenses
Salaries and employee benefits 567,740 37,704 73,826 63,304 57,992 46,604 7,260 36,725 29,020 12,178 548 210,840 576,001
Professional and special services 189,951 4,846 36,071 10,437 9,581 7,258 51,205 4,590 5,328 1,580 196 17,652 148,744
Accommodation 36,041 1,844 13,724 3,971 3,645 2,762 275 1,746 2,027 601 75 6,716 37,386
Transportation and communication 30,745 1,368 10,184 2,947 2,705 2,049 204 1,296 1,504 446 55 4,984 27,742
Amortization of tangible capital assets 18,298 819 6,097 1,764 1,620 1,227 122 776 900 267 33 2,984 16,609
Utilities, materials and supplies 40,668 987 7,347 2,126 1,952 1,478 147 935 1,085 322 40 3,595 20,014
Rentals of equipment 4,513 674 5,019 1,452 1,333 1,010 101 640 741 219 27 2,456 13,672
Information services 17,768 470 3,499 1,012 930 704 70 445 517 153 19 1,712 9,531
Repairs and maintenance 6,735 486 3,613 1,045 960 727 72 460 534 158 20 1,768 9,843
Total operating expenses 912,459 49,198 159,380 88,058 80,718 63,819 59,456 47,613 41,656 15,924 1,013 252,707 859,542
Total Expenses 1,874,420 994,643 159,380 88,058 80,718 63,819 59,456 47,613 41,656 30,523 2,861 252,707 1,821,434
Revenues
Immigration service fees 306,764 123,909 57,450 33,036 9,943 80,739 305,077
Right of permanent residence 93,624 51,940 34,406 86,346
Citizenship service fees 23,970 28,387 28,387
Right of citizenship 18,174 17,779 17,779
Interest on loans 600 600 600
Other 3,736 2,406 1,143 200 3,749
Total Revenues 446,868 600 126,315 110,533 67,442 46,166 9,943 80,739 200 441,938
Net Cost of Operations 1,427,552 994,043 33,065 (22,475) 13,276 17,653 59,456 37,670 (39,083) 30,523 2,861 252,507 1,379,496

17. Transfers from/ to other government departments

Effective November 15, 2011 and pursuant to s. 31.1 of the Financial Administration Act and Order in Council P.C. 2011–1297, Citizenship and Immigration Canada transferred to Shared Services Canada (SSC) the control and supervision of its email, data centre and network services unit, and services support unit. As a result, all unexpended money to be paid and applied to SSC operating expenditures has been deemed to have been appropriated as of that date, resulting in a reduction by the same amount in the operating expenditures vote of Citizenship and Immigration Canada.

As a transition period, Citizenship and Immigration Canada continues to administer those activities on behalf of SSC until March 31, 2012. At the date of these future-oriented financial statements, Citizenship and Immigration Canada plans to incur expenses of $8,293 thousands on behalf of SSC. These forecasted expenses are not recorded in these future-oriented financial statements. Additionally, Citizenship and Immigration Canada incurred $15,484 thousands of operating expenditures related to SSC activities from April 1 to November 14, 2011, which will be reported as discontinued operations in its 2011-12 financial statements.

Date Modified: