Future-oriented Financial Statements
as at March 31, 2014


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 7, 2013 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 7, 2013

Citizenship and Immigration Canada
Future-oriented Statement of Financial Position
As at March 31

(in thousands of dollars)

Estimated
Results 2013
Planned
Results 2014

Financial assets

Due from Consolidated Revenue Fund

$ 441,975

$ 307,320

Accounts receivable and advances (note 6)

31,297

31,382

Loans receivable (note 7)

39,471

41,842

Total gross financial assets

512,743

380,544

Financial assets held on behalf of Government

Accounts receivable (note 6)

(20,463)

(20,696)

Total financial assets held on behalf of Government

(20,463)

(20,696)

Total net financial assets

492,280

359,848

Liabilities

Accounts payable and accrued liabilities (note 8)

287,295

198,696

Immigrant Investor Program (note 9)

143,032

102,249

Vacation pay and compensatory leave

18,832

18,644

Deferred revenue (note 10)

225,531

184,868

Employee future benefits (note 11b)

42,237

30,829

Total gross liabilities

716,927

535,286

Liabilities held on behalf of Government

Deferred revenue (note 10)

(225,531)

(184,868)

Total liabilities held on behalf of Government

(225,531)

(184,868)

Total net liabilities

491,396

350,418

Departmental net financial asset

884

9,430

Non-financial assets

Prepaid expenses

2,048

2,121

Inventory (note 12)

5,907

5,624

Tangible capital assets (note 13)

131,497

118,380

Total non-financial assets

139,452

126,125

Departmental net financial position

$ 140,336

$ 135,555

Contractual obligations (note 14)

Contingent liabilities (note 15)

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 7, 2013

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

(in thousands of dollars)

  Estimated
Results 2013
Planned
Results 2014
Expenses

Settlement and Integration of Newcomers

$ 990,263 $ 973,769

Migration Control and Security Management

147,539 167,860

Permanent Economic Residents

81,551 78,939

Family and Discretionary Immigration

81,116 73,120

Health Management

68,320 61,723

Citizenship for Newcomers and All Canadians

66,064 54,961

Temporary Economic Residents

53,578 49,389

Refugee Protection

49,209 46,970

Multiculturalism for Newcomers and All Canadians

20,123 14,982

Canadian Influence in International Migration and Integration Agenda

3,930 3,822

Internal Services

305,311 285,963
Total expenses 1,867,004 1,811,498
Revenues

Immigration service fees

357,295 374,313

Right of permanent residence

85,671 85,052

Citizenship service fees

20,125 27,143

Right of citizenship

13,280 19,105

Interest on loans

500 500

Other

400 400

Revenues earned on behalf of Government

(477,254) (506,498)
Total revenues 17 15
Net cost of operations before government funding 1,866,987 1,811,483
Government funding

Net cash provided by Government

1,678,688 1,695,686

Change in due from the Consolidated Revenue Fund

(64,393) (134,655)

Services provided without charge by other government departments (note 16a)

247,351 245,671
Net cost of operations after government funding 5,341 4,781
Departmental net financial position – Beginning of year 145,677 140,336
Departmental net financial position – End of year $ 140,336 $ 135,555

Segmented information (note 17)

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

Citizenship and Immigration Canada
Future-oriented Statement of Change
in Departmental Net Financial Asset
For the Year Ending March 31

(in thousands of dollars)

Estimated
Results 2013
Planned
Results 2014
Net cost of operations after government funding

$ 5,341

$ 4,781

Change due to tangible capital assets

Acquisition of tangible capital assets

5,052

6,665

Amortization of tangible capital assets

(19,160)

(19,733)

Proceeds from disposal of tangible capital assets

(17)

(15)

Net (loss) or gain on disposal of tangible capital assets including adjustments

(34)

(34)

Total change due to tangible capital assets

(14,159)

(13,117)

Change due to prepaid expenses

(7,078)

73

Change due to inventories

1,769

(283)

Net increase in departmental net financial asset

14,127

8,546

Departmental net financial asset  – Beginning of year

(13,243)

884

Departmental net financial asset  – End of year 

$ 884

$ 9,430


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

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

(in thousands of dollars)

  Estimated
Results 2013
Planned
Results 2014
OPERATING ACTIVITIES
Net cost of operations before government funding $ 1,866,987 $ 1,811,483
Non-cash items:

Amortization of tangible capital assets

(19,160) (19,733)

Gain (loss) on disposal of tangible capital assets including adjustments

(34) (34)

Services provided without charge by other government departments (note 16a)

(247,351) (245,671)
Variations in Future-oriented Statement of Financial Position:

Increase (decrease) in accounts receivable and advances

3,027 (148)

Increase (decrease) in loans receivable

1,626 2,371

Decrease (increase) in accounts payable and accrued liabilities

29,929 88,599

Decrease (increase) in Immigrant Investor Program

48,488 40,783

Decrease (increase) in vacation pay and compensatory leave

(337) 188

Decrease (increase) in employee future benefits

(4,213) 11,408

Increase (decrease) in prepaid expenses

(7,078) 73

Increase (decrease) in inventory

1,769 (283)
Cash used by operating activities 1,673,653 1,689,036
CAPITAL INVESTING ACTIVITIES

Acquisitions of tangible capital assets

5,052 6,665

Proceeds from disposal of tangible capital assets

(17) (15)
Cash used in capital investing activities 5,035 6,650
Net cash provided by Government of Canada $ 1,678,688 $ 1,695,686

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 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 Programs:

Permanent Economic Residents: Rooted in objectives outlined in IRPA the focus of this Program is on the selection and processing of immigrants who can support the development of a strong and prosperous Canada, in which the benefits of immigration are shared across all regions of Canada. The acceptance of qualified permanent residents helps the government meet its economic objectives, such as building a skilled work force, addressing immediate and longer term labour market needs, and supporting national and regional labour force growth. The selection and processing involve the issuance of a permanent resident visa to qualified applicants, as well as the refusal of unqualified applicants.

Temporary Economic Residents: Rooted in objectives outlined in IRPA the focus of this Program is on processing and facilitating the entry into Canada of temporary foreign workers and international students. Temporary economic migration enhances Canada’s trade, commerce, cultural, educational and scientific activities, in support of our overall economic and social prosperity. 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’s Family and Discretionary programs support the Government of Canada’s social goals for immigration. The Program objectives are to reunite family members and to allow for the processing of exceptional cases. Family Class provisions of IRPA enable Canadian citizens and permanent residents of Canada to apply to sponsor eligible members of the Family Class, including spouses and partners, dependent children, and parents and grandparents. Discretionary provisions in the legislation are used in cases where there are humanitarian and compassionate considerations or for public policy reasons. These discretionary provisions provide the flexibility to approve exceptional and deserving cases not anticipated in the legislation and to support the Government of Canada in its humanitarian response to world events and crises. The selection and processing involve the issuance of a permanent resident visa or granting of permanent residence to qualified applicants, as well as the refusal of unqualified applicants.

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.

Newcomer Settlement and Integration: In accordance with the Canadian Multiculturalism Act, the Employment Equity Act and IRPA, programming is developed based on policies that support the settlement, resettlement, adaptation and integration of newcomers into Canadian society. 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 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: This Program aims to ensure the managed migration of foreign nationals and newcomers to Canada. As such, in accordance with IRPA and accompanying Regulations, CIC facilitates the travel of bona fide permanent residents, visitors, students and temporary workers while protecting the health, safety and security of Canadians by effectively managing migration access and controlling entry. This is accomplished through a variety of policy and operational measures, including visa policy interventions, anti-fraud measures, eligibility and admissibility criteria, negotiations of bilateral and multilateral information sharing agreements and treaties, security updates to travel and immigration status documents, as well as revisions to identity management practices. Strategic partnership engagements with security and public safety-related departments are another essential component of this Program.

Canadian Influence in International Migration and Integration Agenda: Reflecting part of CIC’s mandate, this Program 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 contributions to 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 2013-14 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, except as impacted by the Budget 2012 spending review.
  3. Allowances for uncollectibility are based on historical experience.  The general historical pattern is expected to continue.
  4. Estimated year end information for 2012-13 is used as the opening position for the 2013-14 planned results.

These assumptions are adopted as at March 7, 2013.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2012-13 and for 2013-14, 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, CIC 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, trends, known information, 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, CIC 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

These future–oriented statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

  1. Parliamentary authorities

    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 Future-oriented Statement of Operations and Departmental Net Financial Position and in 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. 

  2. Net Cash Provided by Government

    CIC 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.

  3. Amounts due from/to the CRF

    Amounts due from or 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 authorities to discharge its liabilities.

  4. 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. These revenues are recognized in the period in which the related expenses are incurred.

    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.

    Revenues that are non-respendable are not available to discharge CIC’s liabilities. While the Deputy Minister is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of CIC’s gross revenues.

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

    Transfer payments are recorded as expenses when authorization of the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program.  In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.

    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, accommodation, legal services, employer’s contributions to the health and dental insurance plans and workers’ compensation are recorded as operating expenses at their estimated cost.

  6. 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. CIC’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.
    2. Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. 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. 
  7. Accounts and loans receivable

    Accounts and loans receivable 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 recorded for accounts and loans receivable 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.

  8. 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.

  9. Inventory

    Inventory consists of forms and informatics equipment held for future program delivery and not intended for resale. Inventory is valued at cost using the first in, first out method.

  10. 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. Gains and losses resulting from foreign currency transactions are included in other revenues or other expenses in the Statement of Operations and Departmental Net Financial Position.

  11. 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 and are not amortized until they become available for use.

5. Parliamentary Authorities

CIC receives most of its funding through annual parliamentary authorities.  Items recognized in the Future-oriented Statement of Operations and Departmental Net Financial Position and in the Future-oriented Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years.  Accordingly, CIC 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 before government funding to current year authorities used

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Net cost of operations before government funding

$ 1,866,987

$ 1,811,483

Adjustments for items affecting net cost of operations but not affecting authorities:

Amortization of tangible capital assets

(19,160)

(19,733)

Gain (loss) on disposal of tangible capital assets

(34)

(34)

Services provided without charge by other government departments

(247,351)

(245,671)

Decrease (increase) in vacation pay and compensatory leave

(337)

188

Decrease (increase) in employee future benefits

(4,213)

11,408

Decrease (increase) in accrued liabilities not charged to authorities

3,823

3,145

Bad debt expense

(628)

363

Refund of prior year expenditures

2,169

2,378

Other

(89)

(89)

Total items affecting net cost of operations but not affecting authorities

(265,820)

(248,045)

Adjustments for items not affecting net cost of operations but affecting authorities:

Acquisition of tangible capital assets

5,052

6,665

Proceeds from disposal of tangible capital assets

17

15

Refunds of prior year revenues

19,530

95,530

Increase (decrease) in net loans issued

2,114

2,008

Increase (decrease) in prepaid expenses

(7,078)

73

Increase (decrease) in inventory

1,769

(283)

Other

274

274

Total items not affecting net cost of operations but affecting authorities

21,678

104,282

Current year authorities used

$ 1,622,845

$ 1,667,720

b. Authorities provided and used

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Authorities provided:

Vote 1 – Operating expenditures

$ 582,239

$ 562,797

Vote 5 – Grants and Contributions

961,603

949,946

Vote 7 - Loan Write-Off

442

Non-budgetary item

2,114

2,008

Statutory amounts

76,447

152,969

Current year authorities used

$ 1,622,845

$ 1,667,720


6. Accounts Receivable and Advances

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

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Receivables – Other government departments and agencies

$ 23,825

$ 23,825

Receivables – External parties

7,286

7,286

Employee advances

480

565

Subtotal

31,591

31,676

Allowance for doubtful accounts on receivables from external parties

(294)

(294)

Gross accounts receivable and advances

31,297

31,382

Accounts receivable held on behalf of Government

(20,463)

(20,696)

Net accounts receivable and advances

$ 10,834

$ 10,686

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 immigration loans balances:

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Immigration loans - Opening balance

$ 41,809

$ 43,923

Add: New loans issued

14,849

15,634

Less: Repayments of loans

(12,382)

(13,626)

Less: Loans balance written-off during the year

(353)

Immigration loans - Closing balance

43,923

45,931

Less: Allowance for uncollectibility

(4,452)

(4,089)

Total loans receivable

$ 39,471

$ 41,842


8. Accounts Payable and Accrued Liabilities

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

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Accounts payable – Other government departments and agencies

$ 10,310

$ 10,310

Accounts payable – External parties

81,373

81,373

Total accounts payable

91,683

91,683

Accrued liabilities

195,612

107,013

Total accounts payable and accrued liabilities

$ 287,295

$ 198,696

9. 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 (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 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,
2013
Receipts Payments March 31,
2014

Immigrant Investor Program

$ 143,032

938,078

(978,861)

$ 102,249


10. 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:

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Opening balance

$ 257,176

$ 225,531

Amounts received

451,655

471,880

Revenue recognized

(483,270)

(512,513)

Remissions – reduction of the right of permanent residence

(30)

(30)

Gross closing balance

225,531

184,868

Deferred revenues held on behalf of Government

(225,531)

(184,868)

Closing balance


11. Employee Future Benefits

a. Pension benefits

CIC’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 2013-14 expense is forecasted at $40,963 thousands ($42,900 thousands in 2012-13), which represents approximately 1.8 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

CIC provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded.  Benefits will be paid from future authorities.

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.

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

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Accrued benefit obligation - Beginning of year

$ 38,024

$ 42,237

Expense for the year

10,255

(1,145)

Benefits paid during the year

(6,042)

(10,263)

Accrued benefit obligation - End of year

$ 42,237

$ 30,829


12. Inventory

The following table presents details of the inventory, measured at cost using the first in, first out method.

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Forms

$ 5,121

$ 5,121

Computer equipment

786

503

Total inventory

$ 5,907

$ 5,624


13. 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
2013 2014

Machinery and equipment

1,936

29

(38)

1,927

1,499

129

(15)

1,613

437

314

Informatics hardware

1,365

231

(111)

1,485

632

238

(111)

759

733

726

Software (purchased and developed)

250,384

6,018

(190)

256,212

121,938

19,205

(183)

140,960

128,446

115,252

Office furniture

1,139

66

(76)

1,129

689

94

(58)

725

450

404

Vehicles

842

(60)

782

670

67

(59)

678

172

104

Assets under construction

1,259

321

1,580

1,259

1,580

Total

$ 256,925

$ 6,665

$ (475)

$ 263,115

$ 125,428

$ 19,733

$ (426)

$ 144,735

$ 131,497

$ 118,380

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.

14. Contractual Obligations

The nature of CIC’s activities can result in some large multi-year contracts and obligations whereby CIC 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 2014 2015 2016 2017 2018
and after
Total

Transfer payments to provincial governments

370,953

283,102

283,102

283,102

283,102

$ 1,503,361

Professional Services

28,699

24,609

20,060

18,553

11,455

$ 103,376

Total

$ 399,652

$ 307,711

$ 303,162

$ 301,655

$ 294,557

$ 1,606,737


15. 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, 2014 (no allowance was estimated for 2012-13). 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.


16. Related Party Transactions

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

a.  Services provided without charge by other government departments

During the year, CIC 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 CIC’s future-oriented Statement of Operations and Departmental Net Financial Position as follows:

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

International immigration services

$ 149,809

$ 149,809

Accommodation

37,247

38,093

Legal services

29,713

30,213

Employer’s contribution to the health and dental insurance plans

30,383

27,367

Workers’ Compensation

199

189

Total

$ 247,351

$ 245,671

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 and Departmental Net Financial Position.

b. Other transactions with related parties

Estimated
Results 2013
Planned
Results 2014

(in thousands of dollars)

Expenses – Other Government departments and agencies

$ 86,985

$ 82,956


17. Segmented information

Presentation by segment is based on the Department's program alignment 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 programs, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

(in thousands of dollars)

  2013 2014
  Total Settlement and Integration of Newcomers Migration Control and Security Management Permanent Economic Residents Family and Discretionary Immigration Health Management Citizenship for Newcomers and all Canadians Temporary Economic Residents Refugee Protection Multicultu- ralism for Newcomers and all Canadians Canadian Influence in International Migration and Integration Agenda Internal Services Total
Transfer payments
Non–profit organizations 468,492 502,043 8,455 510,498
Other levels of government within Canada 444,128 392,196 392,196
Individuals 42,618 41,153 41,153
Other countries and international organizations 1,818 –; 1,813 1,813
Total transfer payments 957,056 935,392 8,455 1,813 945,660
Operating Expenses
Salaries and employee benefits 584,299 27,584 114,154 52,526 52,391 9,017 44,609 41,287 37,973 4,638 1,874 174,747 560,800
Professional and special services 163,563 5,329 24,589 11,052 8,334 51,646 4,959 3,054 3,421 933 67 54,862 168,246
Accommodation 37,247 1,726 7,962 3,579 2,699 336 1,606 989 1,108 302 21 17,765 38,093
Transportation and communication 32,264 1,343 6,197 2,785 2,100 261 1,250 769 862 235 17 13,826 29,645
Amortization of tangible capital assets 19,160 169 4,621 4,351 4,105 33 477 2,017 2,189 30 2 1,739 19,733
Utilities, materials and supplies 27,482 773 3,565 1,602 1,208 150 719 443 496 135 10 7,954 17,055
Rentals of equipment 19,400 601 2,772 1,246 940 117 559 344 386 105 8 6,185 13,263
Information services 15,970 441 2,037 916 690 86 411 253 283 77 6 4,545 9,745
Repairs and maintenance 9,243 339 1,565 704 530 66 316 194 218 59 4 3,492 7,487
Other 1,320 72 398 178 123 11 55 39 34 13 848 1,771
Total operating expenses 909,948 38,377 167,860 78,939 73,120 61,723 54,961 49,389 46,970 6,527 2,009 285,963 865,838
Total Expenses 1,867,004 973,769 167,860 78,939 73,120 61,723 54,961 49,389 46,970 14,982 3,822 285,963 1,811,498
Revenues
Immigration service fees 357,295 145,645 92,100 46,729 83,169 6,670 374,313
Right of permanent residence 85,671 52,562 32,490 85,052
Citizenship service fees 20,125 27,143 27,143
Right of citizenship 13,280 19,105 19,105
Interest on loans 500 500 500
Other 400 7 3 10 15 1 3 361 400
Revenues earned on behalf of Government (477,254) (507) (145,648) (144,662) (79,229) (15) (46,249) (83,172) (6,670) (346) (506,498)
Total Revenues 17 15 15
Net Cost of Operations 1,866,987 973,769 167,860 78,939 73,120 61,723 54,961 49,389 46,970 14,982 3,822 285,948 1,811,483
Date Modified: