Citizenship and Immigration Canada
Consolidated Future-Oriented Statement of Operations For the Year Ending March 31, 2016

Consolidated Future-Oriented Statement of Operations For the Year Ending March 31, 2016

  Estimated
Results
2014-2015

(in thousands of dollars)
Planned
Results
2015-2016

(in thousands of dollars)
Expenses

Settlement and Integration of Newcomers

$1,034,047 $1,018,515

Passport

421,164 443,888

Migration Control and Security Management

176,781 222,103

Permanent Economic Residents

94,701 103,385

Citizenship for Newcomers and All Canadians

115,017 84,906

Family and Discretionary Immigration

91,946 77,337

Temporary Economic Residents

80,525 66,528

Health Protection

61,388 65,159

Refugee Protection

55,142 45,110

Multiculturalism for Newcomers and All Canadians

12,329 13,850

Canadian Influence in International Migration and Integration Agenda

9,531 5,666

Internal Services

248,661 215,268

Total Expenses

$2,401,232 $2,361,715
Revenues

Passport

$673,741 $639,372

Immigration service fees

401,790 429,478

Right of permanent residence

82,266 87,703

Citizenship service fees

97,341 172,582

Right of citizenship

24,500 30,000

International Experience Canada

9,938 9,938

Interest on loans

450 450

Other

285 285

Revenues earned on behalf of Government

(606,632) (720,498)

Total Revenues

683,679 649,310
Net cost of operations $1,717,553 $1,712,405

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.

  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 February 2nd, 2015.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2014-15 and for 2015-16, 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 amount of acquisitions and disposals of property, plant and equipment 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:

  1. Consolidation

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

  2. 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 international immigration services at missions abroad, accommodation, employee contributions to health and dental insurance plans, legal services and workers' compensation which are recorded as expenses at their estimated cost. 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, provisions for valuation on loans, investments and advances and inventory obsolescence or liabilities, including contingent 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.

  3. Revenues

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

    The recognition of revenues from immigration service fees and citizenship service 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, including International Experience Canada, 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 based 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:

  1. Reconciliation of net cost of operations to current year authorities requested

      Estimated
    Results
    2014-2015

    (in thousands of dollars)
    Planned
    Results
    2015-2016

    (in thousands of dollars)
    Net cost of operations $1,717,553 $1,712,405
    Adjustment for items affecting net cost of operations but not affecting authorities :

    Amortization of tangible capital assets

    (28,207) (30,015)

    Services provided without charge by other government departments

    (303,501) (295,730)

    Decrease (increase) in vacation pay and compensatory leave

    (2,700) 3,171

    Decrease in employee future benefits

    961 5,728

    Decrease in accrued liabilities not charged to authorities

    4,345 4,147

    Bad debt expense

    (32) (17)

    Refund of prior years' expenditures

    1,754 2,206

    Other

    208 296

    Total items affecting net cost of operation but not affecting authorities

    (327,172) (310,214)
    Adjustments for items not affecting net cost of operations but affecting authorities :

    Acquisition of tangible capital assets

    20,766 21,435

    Decrease in net loans issued

    (1,147) (2,061)

    Increase (decrease) in inventory held for resale

    7,284 (4,978)

    Increase (decrease) in consumable inventory

    (2,612) 42

    Increase (decrease) in prepaid expenses

    (1,143) 143

    Federal Skilled Worker and Immigrant Investor Program returned fees

    46,000 46,000

    Refunds of prior years' revenues

    7,294 8,023

    Other

    (161) (166)

    Total items not affecting net cost of operations but affecting authorities

    76,281 68,438
    Requested authorities $1,466,662 $1,470,629
  2. Authorities requested

    Authorities requested Estimated
    Results
    2014-2015

    (in thousands of dollars)
    Planned
    Results
    2015-2016

    (in thousands of dollars)

    Vote 1 – Operating Expenditures

    $607,408 $566,527

    Vote 5 – Grants and Contributions

    1,000,063 993,529

    Vote 7 – Loan Write-offs

    1,145 -

    Non-budgetary item

    (1,147) (2,061)

    Statutory amounts – Passport (net revenues)

    (254,192) (202,153)

    Statutory amounts – Other

    113,385 114,787

    Requested Authorities

    $1,466,662 $1,470,629
Date Modified: