ARCHIVED – Quarterly Financial Report for the quarter ended June 30, 2011

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Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board Accounting Standard 1.3. This quarterly report should be read in conjunction with the Main Estimates.

A summary description of the Citizenship and Immigration Canada (CIC) program activities may be found in Part II of the Main Estimates (PDF, 1.9 MB).

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament and those used by the department consistent with the Main Estimates for the 2011-12 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

Citizenship and Immigration Canada prepares its annual departmental financial statements that are part of the departmental performance reporting process, on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

This quarterly report has not been subject to an external audit or review.

2. Highlights of fiscal quarter and fiscal year to date (YTD) results

Statement of Authorities: Significant changes

Citizenship and Immigration Canada’s authorities available for use decreased by approximately $80M when compared to the same quarter for the previous year.

  • Decrease of $33M - in 2010-11, CIC had received almost $33M in funding through Supplementary estimates by the end of the first quarter which did not occur in 2011-12.
  • Decrease of $59M - the Department’s reference levels for 2011-12 are $59M lower due to Strategic Review reductions.
  • Decrease of $41M – the Department’s reference levels reflect reduced levels of funding for program initiatives such as: the Interim Federal Health program, the Global Case Management system development and, the International Youth program.
  • Increase of $53M - an investment of $53M in the Refugee Reform initiative has partially offset the above noted reductions.

Departmental Budgetary Expenditures by Standard Object: Significant Changes

The increase in expenditures for this first quarter of the year over the comparable quarter of last year is approximately $18M. In Vote 1, almost $10M is due to salary increase resulting from collective bargaining and spending on professional and special services. A further $9M in Vote 5 is attributable to increased grant payment to Quebec under the Canada-Quebec Accord.

3. Risks and Uncertainties

CIC is funded through annual appropriations. As a result, its operations can be impacted by any changes approved by Parliament. This departmental Quarterly Financial Report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 27, 2011.

CIC consistently receives more immigration and citizenship applications than can be processed in a year. This situation gives rise to significant backlogs of applications awaiting processing and an inventory which must be managed within the immigration levels plan submitted annually to Parliament and within the resources available. The Department has embarked on an ambitious modernization agenda which aims to provide simpler and more accessible services; continuous, innovative and adaptable operational improvements, as well as robust program integrity and the delivery of quality service at lower costs.

Budget 2010 announced that the operating budgets for departments would be frozen at their 2010-11 levels for fiscal years 2011-12 and 2012-13. The area most impacted by this freeze had been personnel costs as they amount to 70% of Vote 1 expenditures. The recent wage increases as a result of collective bargaining, must be absorbed within existing budgets. CIC has taken steps to closely manage costs in this area by establishing staffing and salary budgets in addition to implementing rigorous monthly monitoring to ensure that annual budgets are respected.

4. Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs during the current quarter.

Approved by:

Neal Yeates, Deputy Minister, Ottawa, Canada Daniel Paquette, Acting Assistant Deputy Minister, Cheif Financial Officer, Ottawa, Canada

Date: Aug. 18, 2011

* Includes only authorities available for use and granted by Parliament at quarter-end
** Represents collected loans

Statement of Authorities (Unaudited)
(in thousands of dollars) Fiscal Year 2011-2012 Fiscal Year 2010-2011
Total available for use for the year ending March 31, 2012* Used during the quarter ended June 30, 2011 Year to date used at quarter-end Total available for use for the year ending March 31, 2011* Used during the quarter ended June 30, 2010 Year to date used at quarter-end
Vote 1 - Operating Expenditures 492,532 108,934 108,934 550,385 99,396 99,396
Vote 5 - Grants and Contributions 944,971 246,131 246,131 972,339 236,944 236,944
Vote 7 - Debt Write-off 0 0 0 0 0 0
Budgetary Statutory Authorities 54,174 14,229 14,229 51,059 14,836 14,836
Total Budgetary Authorities 1,491,677 369,294 369,294 1,573,783 351,176 351,176
Non-Budgetary Authorities 73,403 **(2,489) (2,489) 74,437 **(2,425) (2,425)
TOTAL AUTHORITIES 1,565,080 366,805 366,805 1,648,220 348,751 348,751
Departmental Budgetary Expenditures by Standard Object (Unaudited)
(in thousands of dollars) Fiscal Year 2011-2012 Fiscal Year 2010-2011
Planned expenditures for the year ending March 31, 2012 * Expended during the quarter ended June 30, 2011 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2011 * Expended during the quarter ended June 30, 2010 Year to date used at quarter-end
Personnel 348,581 95,622 95,622 346,931 88,089 88,089
Transportation and Communications 28,333 4,286 4,286 36,836 4,794 4,794
Information 10,458 805 805 15,894 1,203 1,203
Professional and Special Services 120,062 12,785 12,785 156,746 9,667 9,667
Rentals 2,341 5,235 5,235 3,161 5,627 5,627
Repair and maintenance 6,269 834 834 8,904 949 949
Utilities, Materials and Supplies 7,734 912 912 10,177 491 491
Acquisition of Machinery and Equipment 22,010 681 681 20,043 631 631
Transfer Payments 944,971 246,131 246,131 972,339 236,944 236,944
Other Subsidies and Payments 918 2,003 2,003 2,752 2,781 2,781
TOTAL NET BUDGETARY EXPENDITURES 1,491,677 369,294 369,294 1,573,783 351,176 351,176
Date Modified: