Future-Oriented Financial Statements - Years Ending March 31, 2013 and 2014

Statement of Management Responsibility

Departmental management 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 December 31, 2012 and reflect the plans described in the Report on Plans and Priorities.

In accordance with the Treasury Board Secretariat's Policy on Internal Audit, the IRB established a Departmental Audit Committee which includes external members. Its role is to provide the IRB's Chairperson with added assurance and advice on risk management, control and governance processes.

Brian Goodman,
Chairperson
Serge Gascon,
Chief Financial Officer

Ottawa, Canada
March 11, 2013

Immigration and Refugee Board of Canada
Future-oriented Statement of Financial Position (Unaudited) As at March 31 (in thousands of dollars)
Forecast
2013-14
Estimated Results
2012-13
LIABILITIES
Accounts payable and accrued liabilities (note 6) 9,887 11,941
Vacation pay and compensatory leave 4,988 5,424
Employee future benefits (note 7) 12,330 13,040
Total liabilities 27,205 30,405
ASSETS
Financial assets
Due from Consolidated Revenue Fund 9,143 11,091
Accounts receivable and advances (note 8) 376 367
Total gross financial assets 9,519 11,458
Financial assets held on behalf of Government
Accounts receivable and advances (note 8) (34) (37)
Total financial assets held on behalf of Government (34) (37)
Total net financial assets 9,485 11,421
Departmental net debt 17,720 18,984
Non-financial assets
Prepaid expenses 270 244
Tangible capital assets (note 9) 18,606 21,984
Total non-financial assets 18,876 22,228
Departmental net financial position 1,156 3,244

Contingent liabilities (note 10)
The accompanying notes form an integral part of these financial statements.

Brian Goodman,
Chairperson
Serge Gascon,
Chief Financial Officer

Ottawa, Canada
March, 2013

Immigration and Refugee Board of Canada
Statement of Operations and Departmental Net Financial Position (Unaudited) As at March 31 (in thousands of dollars)
Forecast
2013-14
Estimated Results
2012-13
Expenses
Refugee Protection 55,180 82,286
Immigration Appeal 20,910 18,014
Admissibility Hearings and Detention Reviews 12,156 12,748
Refugee Appeal 26,604 5,775
Internal Services 36,506 44,942
Total expenses 151,356 163,765
Revenues
Miscellaneous revenues 11 16
Revenues earned on behalf of Government (11) (16)
Total revenues 0 0
Net cost of operations before government funding and transfers 151,356 163,765
Government funding and transfers
Net cash provided by Government 125,044 140,160
Change in due from Consolidated Revenue Fund (1,948) 5,497
Services provided without charge by other government departments (note 11) 26,172 25,151
Net cost of operations after government funding and transfers 2,088 (7,043)
Departmental net financial position - Beginning of year 3,244 (3,799)
Departmental net financial position - End of year 1,156 3,244

Segmented information (note 12)
The accompanying notes form an integral part of these financial statements.

Immigration and Refugee Board of Canada
Future-oriented Statement of Change in Departmental Net Debt (Unaudited) For the Year Ended March 31 (in thousands of dollars)
Forecast
2013-14
Estimated Results
2012-13
Net cost of operations after government funding and transfers 2,088 (7,043)
Change due to tangible capital assets
Acquisition of tangible capital assets 500 8,200
Other adjustments - -
Amortization of tangible capital assets (3,878) (3,666)
Total change due to tangible capital assets (3,378) (4,534)
Change due to prepaid expenses 26 (5)
Net increase (decrease) in departmental debt (1,264) (2,514)
Departmental net debt - Beginning of year 18,984 21,498
Departmental net debt - End of year 17,720 18,984

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

Immigration and Refugee Board of Canada
Future-oriented Statement of Cash Flows (Unaudited) For the Year Ended March 31 (in thousands of dollars)
Forecast
2013-14
Estimated Results
2012-13
Operating activities
Net cost of operations before government funding and transfers 151,356 163,765
Non-cash items:
Amortization of tangible capital assets (note 9) (3,878) (3,666)
Services provided without charge by other government departments (note 11) (26,172) (25,151)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 12 (1,950)
Increase (decrease) in prepaid expenses 26 (5)
Decrease (increase) in accounts payable and accrued liabilities 2,054 3,235
Decrease (increase) in vacation pay and compensatory leave 436 (1,465)
Decrease (increase) in future employee benefits 710 (2,803)
Cash used in operating activities 124,544 131,960
Capital investing activities:
Acquisitions of tangible capital assets (note 7) 500 8,200
Cash used in capital investing activities 500 8,200
Net cash provided by Government of Canada 125,044 140,160

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


Notes to Future-oriented Financial Statements (Unaudited) For the Year Ended March 31

1. Authority and Objectives

The Immigration and Refugee Board of Canada (IRB) is an independent administrative tribunal that was created on January 1, 1989, by an amendment to the Immigration Act. In 2002, the Immigration Act was replaced by the Immigration and Refugee Protection Act (IRPA), which was amended by the Balanced Refugee Reform Act (BRRA) in 2010 and the Protecting Canada's Immigration System Act (PCISA) in 2012. IRB divisions will derive their mandates from these last three acts during the 2013-14 reporting period.

The IRB's mission, on behalf of Canadians, is to resolve immigration and refugee cases efficiently, fairly and in accordance with the law.

As an independent tribunal, the IRB's mandate is to:

  • decide claims for refugee protection;
  • decide applications for vacation of refugee protection;
  • decide applications for cessation of refugee protection;
  • decide pre-removal risk assessments (PRRA)Note 1;
  • hear appeals from some decisions of the RPD allowing or rejecting claims for refugee protection;
  • conduct admissibility hearings for foreign nationals or permanent residents who seek entry into Canada, or who are already in Canada and are alleged to be inadmissible;
  • conduct detention reviews for foreign nationals or permanent residents who are detained for immigration reasons;
  • hear appeals of family sponsorship applications refused by Citizenship and Immigration Canada (CIC);
  • hear appeals from certain removal orders made against permanent residents, Convention refugees and other protected persons, and holders of permanent resident visas;
  • hear appeals by permanent residents against whom a CIC officer outside Canada has decided that they have not fulfilled their residency obligation; and
  • hear appeals by the Minister of Public Safety of ID decisions at admissibility hearings

The IRB has five program activities: Refugee Protection, Immigration Appeal, Admissibility Hearings and Detention Reviews, Refugee Appeal and Internal Services. The Internal Services program activity supports the four other program activities.

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 IRB as described in the Report on Plans and Priorities.

Estimated year end information for 2012-13 is used as the opening position for the 2013-14 planned results, and forecasts have been made for the planned results for the 2013-14 fiscal year.

The main assumptions are as follows:

  1. Expenses related to program activities not significantly affected by the BRRA and the PCISA, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
  2. Expenses of the program activities primarily affected by the BRRA and the PCISA reflect both transitional and new spending.

These assumptions are adopted as at December 31, 2012.

3. Variations and changes to the forecast financial information

While every attempt has been made to 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 the IRB has made estimates and assumptions concerning the future. These estimates and assumptions 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 future-oriented financial statements and the historical financial statements include:

  1. The timing and amounts of acquisition and disposals of equipment or accommodation fit up may effect gains/losses and amortization expense.
  2. Implementation of new collective agreements.
  3. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

4. Summary of significant accounting policies

The future-oriented financial 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

    The IRB is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the IRB 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 the 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 3 provides a reconciliation between the bases of reporting.

  2. Net Cash Provided by Government

    The IRB operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the IRB is deposited to the CRF and all cash disbursements made by the IRB 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. Due from the CRF

    Amounts due from 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 IRB is entitled to draw from the CRF without further appropriations to discharge its liabilities.

  4. Revenue

    Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place. The IRB does not charge for its services and its only revenues stem from gains on the disposal of crown assets, Access to Information and Privacy fees and interest on overdue accounts receivable.

    Revenues that are non-respendable are not available to discharge the Department's liabilities. While the Deputy Head is expected to maintain accounting control, he or 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 the entity's gross revenues.

  5. Expenses

    Expenses are recorded on the accrual basis:

    • 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 accommodation and employer contributions to the health and dental insurance plans 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 IRB's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation of the Board to the Plan. The IRB'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 receivable

    Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.

  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 financial statements.

  9. 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:

    Amortization of tangible capital assets
    Asset class Amortization Period
    Informatics hardware 4 years
    Informatics software 5 years
    Machinery and Equipment 10 years
    Leasehold improvements Lesser of the remaining term of the lease or useful life of the improvement

    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

  10. Measurement uncertainty

    The preparation of these future-oriented financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Actual results could significantly differ from those estimated.

5. Parliamentary authorities

The IRB receives its funding through annual Parliamentary authorities. Items recognized in the Future-oriented Statement of Operations and Departmental Net Position and the Future-oriented Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the IRB 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 (in thousands of dollars):

(a) Reconciliation of net cost of operations to requested authorities
Forecast
2013-14
Estimated Results
2012-13
Net cost of operations before government funding and transfers 151,356 163,765
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (note 11) (26,172) (25,151)
Amortization of tangible capital assets (note 9) (3,878) (3,666)
Decrease (increase) in employee future benefits 710 (2,803)
Decrease (increase) in vacation pay and compensatory leave 436 (1,465)
Total items affecting net cost of operations but not affecting authorities (28,904) (33,085)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets (note 9) 500 8,200
Total items affecting net cost of operations but not affecting authorities 500 8,200
Forecast authorities available 122,952 138,880
(b) Authorities requested
Authorities requested 2013-14 2012-13
Vote 10 - Operating expenditures 108,680 122,421
Statutory amounts 14,272 16,459
Forecast authorities available 122,952 138,880

6. Accounts payable and accrued liabilities

The following table presents details of the IRB's accounts payables and accrued liabilities (in thousands of dollars):

Accounts payables and accrued liabilities
Forecast
2013-14
Estimated Results
2012-13
Accounts payable - Other government departments and agencies 1,992 2,764
Accounts payable - External parties 3,323 4,266
Total accounts payables 5,315 7,030
Accrued liabilities 4,572 4,911
Total accounts payable and accrued liabilities 9,887 11,941

7. Employee future benefits

  1. Pension benefits

    The IRB'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.

    The IRB'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

    The IRB 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. Information about the severance benefits, estimated as of the date of these statements, is as follows (in thousands of dollars):

    Severance Benefits
    Forecast
    2013-14
    Estimated Results
    2012-13
    Accrued benefit obligation - Beginning of the year 13,040 10,237
    Expense for the year 475 4,364
    Benefits paid during the year (1,185) (1,561)
    Accrued benefit obligation - End of the year 12,330 13,040

8. Accounts receivable and advances

The following table presents details of the IRB's accounts receivable and advances balances (in thousands of dollars):

Accounts Receivable and Advances Balances
Forecast
2013-14
Estimated Results
2012-13
Receivables - Other government departments and agencies 339 327
Receivables - External parties 34 37
Employee advances 3 3
Gross accounts receivable 376 367
Accounts receivable held on behalf of Government (34) (37)
Net accounts receivable 342 330

9. Tangible capital assets

Cost (in thousands of dollars)
Opening balance Acquisitions Transfers Closing Balance
Informatics Hardware 2,203 - - 2,203
Informatics Software 14,791 - 1,760 16,551
Machinery and Equipment 228 - - 228
Leasehold Improvements 9,068 500 3,456 13,024
Assets under construction 5,216 - (5,216) -
Total 31,506 500 - 32,006
Accumulated Amortization (in thousands of dollars)
Opening balance Amortization Transfers Closing Balance
Informatics Hardware 1,638 208 - 1,846
Informatics Software 5,525 2,811 - 8,336
Machinery and Equipment 35 23 - 58
Leasehold Improvements 2,324 836 - 3,160
Total 9,522 3,878 - 13,400
Net book value (in thousands of dollars)
Forecast
2013-14
Estimated Results
2012-13
Informatics Hardware 357 565
Informatics Software 8,215 9,266
Machinery and Equipment 170 193
Leasehold Improvements 9,864 6,744
Assets under construction - 5,216
Total 18,606 21,984

10. Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.

  1. Claims and litigation
    Claims have been made against the IRB in the normal course of operations. These claims include items with pleading amounts and other for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable.

11. Related Party Transactions

The IRB is related as a result of common ownership to all government departments, agencies, and Crown corporations. The IRB enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the IRB received common services which were obtained without charge from other government departments as disclosed below.

(a) Common services provided without charge by other government departments

During the year, the IRB received services without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the IRB's Statement of Operations and Departmental Net Financial Position as follows (in thousands of dollars)

Common services provided without charge by other government departments
Forecast
2013-14
Estimated Results
2012-13
Accommodation 19,200 17,778
Employer's contribution to the health and dental insurance plans 6,972 7,373
Total 26,172 25,151

(b) Other transactions with related parties (in thousands of dollars)

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 IRB's Statement of Operations and Departmental Net Financial Position.

Other transactions with related parties
Forecast
2013-14
Estimated Results
2012-13
Expenses - Other Government departments and agencies 21,589 22,172

12. Segmented information

Presentation by segment is based on the IRB's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows (in thousands of dollars):

Segmented program activity architecture
RP IA AHDR RA IS Forecast
2013-14
Total
Estimated Results
2012-13
Total
Operating Expenses
Salaries and employee benefits 36,530 12,925 7,838 20,818 25,609 103,720 113,752
Accommodation 6,720 2,304 1,536 3,840 4,800 19,200 17,778
Rentals 106 27 161 - 106 595 685
Professional and special services 6,968 5,146 1,778 1,946 2,234 18,072 15,205
Amortization 3,057 17 141 - 663 3,878 3,666
Transportation and telecommunications 1,206 307 241 - 740 2,689 4,712
Repair and maintenance 25 20 209 - 913 1,362 3,119
Acquisition of equipment 282 94 182 - 1,219 1,971 3,611
Utilities, materials and supplies 153 39 29 - 207 622 848
Information 52 4 3 - 8 67 132
Other 81 27 38 - 7 153 257
Total operating expenses 55,180 20,910 12,156 26,604 36,506 151,356 163,765
Revenues
Miscellaneous revenues 5 - - - 6 11 16
Revenues earned on behalf of Government (5) - - - (6) (11) (16)
Total revenues 0 - - - 0 0 0
Net cost of operations 55,180 20,910 12,156 26,604 36,506 151,356 163,765

Table Legend:

RP: Refugee Protection
IA: Immigration Appeal
AHDR: Admissibility Hearings and Detention Reviews
RA: Refugee Appeal
IS: Internal Services

Notes

Note 1

Activities associated with PRRA will begin in a future reporting period.

Return to note 1 referrer