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

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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 Treasury Board. 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, 1.88 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

CIC’s 2010-11 authorities represent the total Main Estimates, the Operating Budget Carry Forward and the Supplementary Estimates (A), whereas 2011-12 includes only the amounts in the Main Estimates and the Operating Budget Carry Forward. CIC did not request authorities through Supplementary Estimates (A) in 2011-12.

CIC’s net budgetary expenditures for the quarter ending September 30, 2011 were $392 million compared to $348 million as of September 30, 2010, representing 26% of the total budgetary authorities available for use for year ending March 31, 2012; approximately the same percentage (22%) used at quarter-end last year.  The Department has therefore been consistent in its spending this quarter versus its authorities provided, compared to the second quarter of the previous fiscal year.

Statement of Authorities: Significant changes

Citizenship and Immigration Canada’s budgetary authorities available for use decreased by approximately $84 million when compared to the same quarter in 2010-11.

  • Decrease of $33 million – in 2010-11, CIC had received almost $33 million in funding through Supplementary estimates (A) which did not occur in 2011-12.
  • Decrease of $59 million – the Department’s reference levels for 2011-12 are $59 million lower due to Strategic Review reductions.
  • Decrease of $41 million – 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, the International Youth program.
  • Increase of $53 million – an investment of $53 million in the Refugee Reform initiative has partially offset the above notes reductions.

Departmental Budgetary Expenditures by Standard Object: Significant Changes

The increase in expenditures for this second quarter of the year over the comparable quarter in 2010-11 is approximately $44 million.

In Vote 1, $27 million is due to cash out of severance entitlements and salary increase resulting from collective bargaining. The increase of $8 million in professional and special services is related to spending on the Interim Federal Health program. The standard object of the repair and maintenance is in a credit position as a result of recovery for informatics equipment maintenance from another government department. The transportation and communications expenditures remained constant compared to the same quarter in 2010-11.

A further $14 million in Vote 5 is mainly 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 61% 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

Effective August 8th, 2011, Daniel Paquette became the Acting Assistant Deputy Minister and the Chief Financial Officer of the Department.

Approved by:

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

November 12, 2011

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

Statement of Authorities
(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 September 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 September 30, 2010 Year to date used at quarter-end
Vote 1 – Operating Expenditures 512,648 148,187 257,121 569,841 116,694 216,090
Vote 5 – Grants and Contributions 944,971 229,611 475,742 972,339 215,381 452,325
Vote 7 – Debt Write-off 0 0 0 0 0 0
Budgetary Statutory Authorities 55,035 14,165 28,394 54,958 15,965 30,801
Total Budgetary Authorities 1,512,654 391,963 761,257 1,597,138 348,040 699,216
Non-Budgetary Authorities 73,648 **(245) (2,734) 74,030 **407 (2,018)
TOTAL AUTHORITIES 1,586,302 391,718 758,523 1,671,168 348,447 697,198
Departmental Budgetary Expenditures by Standard Object
(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 September 30, 2011 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2011 * Expended during the quarter ended September 30, 2010 Year to date used at quarter-end
Personnel 348,581 122,197 217,819 346,931 94,761 182,850
Transportation and Communications 32,214 5,213 9,499 40,832 5,379 10,173
Information 11,891 82 887 17,063 407 1,610
Professional and Special Services 129,612 31,977 44,762 166,085 24,203 33,870
Rentals 2,662 749 5,984 3,488 968 6,595
Repair and maintenance 7,128 (28) 806 9,987 1,270 2,219
Utilities, Materials and Supplies 8,793 833 1,745 11,295 866 1,357
Acquisition of Machinery and Equipment 25,027 438 1,119 22,474 854 1,485
Transfer Payments 944,971 229,611 475,742 972,339 215,381 452,325
Other Subsidies and Payments 1,775 891 2,894 6,644 3,951 6,732
TOTAL NET BUDGETARY EXPENDITURES 1,512,654 391,963 761,257 1,597,138 348,040 699,216
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