Future-oriented Financial Statements
as at March 31, 2015

Consolidated Future-Oriented Statement of Operations
For the Year Ending March 31

  Estimated
Results
2013-2014
(in thousands of dollars)
Planned
Results
2014-2015
(in thousands of dollars)

Expenses

Settlement and Integration of Newcomers

$990,602

$1,005,061

Passport

317,434

405,863

Migration Control and Security Management

183,893

185,041

Permanent Economic Residents

138,687

128,277

Family and Discretionary Immigration

84,941

86,083

Citizenship for Newcomers and all Canadians

72,640

133,534

Temporary Economic Residents

72,371

86,129

Health Management

65,379

59,466

Refugee Protection

51,039

50,972

Multiculturalism for Newcomers and all Canadians

15,179

13,841

Canadian Influence in International Migration and Integration Agenda

4,154

9,927

Internal Services

297,918

198,548

Total Expenses

$2,294,237

$2,362,742

Revenues

Passport

$496,458

$673,741

Immigration service fees

349,883

374,736

Right of permanent residence

82,420

84,347

Citizenship service fees

27,050

74,917

Right of citizenship

14,180

21,721

International Experience Canada

8,041

9,938

Interest on loans

450

450

Other

283

283

Revenues earned on behalf of Government

(474,255)

(556,443)

Total Revenues

504,510

683,690

Net cost of operations

$1,789,727

$1,679,052

The accompanying notes form an integral part of this consolidated future-oriented statement of operations.

1. Methodology and Significant Assumptions

The consolidated future-oriented statement of operations has been prepared on the basis of government priorities and departmental plans as described in the Report on Plans and Priorities.

The main assumptions are as follows:

  1. Citizenship and Immigration Canada's (CIC) activities will remain substantially the same as for the previous year with the addition of the Passport and International Experience Canada programs as of July 2, 2013 and August 31, 2013 respectively.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience and knowledge of CIC operations, with the exception of the Passport program. Expenses and revenues related to the Passport program are based on forecasted volumes.

These assumptions are adopted as at January 31, 2014.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2013-14 and for 2014-15, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing the consolidated future-oriented statement of operations, CIC has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and assumptions 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 consolidated future-oriented statement of operations and the historical 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 in financial resources made in ensuing supplementary estimates.

3. Summary of Significant Accounting Policies

The consolidated future-oriented statement of operations has been prepared using Government’s accounting policies that came into effect for the 2011–12 fiscal year 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:

(a) Consolidation

The consolidated future-oriented statement of operations includes the accounts of Passport program. These accounts have been consolidated with those of CIC and all inter-organizational balances and transactions have been eliminated.

(b) Expenses

Expenses are recorded on an accrual basis. Expenses for CIC operations are recorded when goods are received or services rendered including services provided without charges for accommodation, employee contributions to health and dental insurance plans, legal services and workers’ compensation which are recorded as expenses at their estimated cost. Additionally, the Department of Foreign Affairs, Trade and Development (DFATD) provides international immigration services at missions abroad, for which CIC has transferred funding. Vacation pay and compensatory leave as well as severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment. 

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.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable, provision for valuation on loans, investments and advances and inventory obsolescence or liabilities, including contingent liabilities and environmental liabilities to the extent the future event is likely to occur and a reasonable estimate can be made.

Expenses also include amortization of tangible capital assets which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

(c) 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. Revenues from passport fees are recognized upon receipt of payment and verification of the passport application for completeness.

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, she 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.

Revenues that are respendable are available to discharge the liabilities of the Passport and International Experience Canada programs.

4. Parliamentary Authorities

CIC is financed partly by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to CIC do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily bases on cash flow requirements. Items recognized in the consolidated future-oriented statement of operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, CIC has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year authorities requested
  Estimated
Results
2013-2014
(in thousands of dollars)
Planned
Results
2014-2015
(in thousands of dollars)

Net cost of operations

$1,789,727

$1,679,052

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

Amortization of tangible capital assets

(26,773)

(28,827)

Loss on disposal of tangible capital assets

(9)

(9)

Services provided without charge by other government departments

(305,438)

(305,804)

Decrease (increase) in vacation pay and compensatory leave

(2,039)

813

Decrease in employee future benfits

9,643

3,860

Decrease in accrued liabilities not charged to authorities

4,634

4,011

Bad debt expense

(225)

(24)

Refund of prior years’ expenditures

2,016

2,164

Other

115

115

Total items affecting net cost of operation but not affecting authorities

(318,076)

(323,701)

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

Acquisition of tangible capital assets

30,222

35,399

Proceeds from disposal of tangible capital assets

11

11

Refunds of prior year revenues

7,205

7,205

Decrease in net loans issued

(1,686)

(2,454)

Decrease in inventory

(3,263)

(728)

Decrease in prepaid expenses

(1,090)

-

Other

191

191

Total items not affecting net cost of operations but affecting authorities

$31,590

39,624

Requested authorities

$1,503,241

$1,394,975

(b) Authorities requested
Authorities requested Estimated
Results
2013-2014
(in thousands of dollars)
Planned
Results
2014-2015
(in thousands of dollars)

Vote 1 – Operating Expenditures

$593,169

$561,173

Vote 5 – Grants and Contributions

983,148

976,456

Vote 7 – Loan Write-offs

806

-

Non-budgetary item

(1,686)

(2,454)

Statutory amounts – Passport (net revenues)

(182,940)

(254,192)

Statutory amounts – Other

110,744

113,992

Requested Authorities

$1,503,241

$1,394,975

Date Modified: