ISSN: 2564-355X
Statement outlining results, risks and significant changes in operations, personnel and program
Introduction
This quarterly financial 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. The report should be read in conjunction with the 2018-19 Main Estimates Part II and the previous quarterly financial reports for the current year. The report has not been subject to an external audit or review.
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 by the
Protecting Canada’s Immigration System Act (PCISA) in 2012.
A summary description of the IRB’s programs can be found in the Part II the Main Estimates and the
2018-19 Departmental Plan.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the IRB’s spending authorities granted by Parliament and those used by the IRB in a manner consistent with the Main Estimates for the 2018-19 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 money 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.
When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
The IRB uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of fiscal quarter and fiscal year-to-date (YTD) results
In June 2017, the House of Commons approved a change allowing the Main Estimates to be tabled in Parliament by April 16th instead of March 1st, which allowed the 2018 Federal Budget priorities to be included in the 2018-19 Main Estimates. These changes address the government’s commitment to provide more coherent information to Parliament and to align the Federal Budget and the Estimates.
These changes address the government’s commitment to provide more coherent information to Parliament and to align the Federal Budget and the Estimates.
This section also highlights the significant items that contributed to the net increase or decrease in resources available and actual expenditures for the year and for the quarter ended December 31, 2018 in comparison to the prior year.
The total budgetary authorities available for use, as at December 31 2018, increased in 2018-19 from those in 2017-18 by 29.2M including EBP (15.2%). This increase was largely as a result of the funding received for personnel, $19.2M (including EBP) and operating expenditures, $9.9M arising from the impact of the irregular migration. Also note that the total budgetary authorities has been reduced by $8M at the IRB to reprofile a portion of Budget 2018 into 2020-21.
Program expenditures in the third quarter of 2018-19 were $39.6M, an increase of 25.7 percent or $8.1M, from the $31.5M in the same period last year with the major changes by standard object:
- an increase in personnel cost of $4.2M, as a result of an increase in staffing levels to address the increased cases of irregular migration and to reduce the backlog of refugee claims;
- an increase in the acquisition of the machinery and equipment of $0.4M to support the additional personnel that have been hired;
- an increase in the acquisition of land, buildings and works of $0.4M to support and accommodate the additional personnel that have been hired;
- an increase in the professional services of $2.8M due to the increase of translation services related to the increase of decisions made through the asylum process;
- an increase in the transportation and communications of $0.2M is mainly related to the travel for the staffing processes and the training of new hires.
The total authorities used to date increased by $13.6M or 14.8 percent when compared to the previous year. The increase in program expenditures year-to-date are mainly due to an increase in personnel costs for resources to process refugee applications, an increase in payroll due to negotiated salary adjustments and several types of services which include: translation, interpreters, designated representatives and transcription as a result of the increased volumes of irregular immigration.
Risks and uncertainties
The Immigration and Refugee Board of Canada (IRB) is funded through annual appropriations. As a result, its operations are affected by any changes in funding approved by Parliament. In addition, the IRB’s operations are affected by fluctuations in the intake of immigration and refugee cases and by changes brought by legislation and/or Federal Court jurisprudence.
The volume of asylum seekers has increased since the last report, mainly due to the influx of those arriving at irregular border crossings across Canada.
To this extent, hiring new personnel, particularly decision-makers, has become a priority due to the increased number of claims received and decisions to be rendered to address the refugee backlog. The increase in personnel has resulted in the immediate need for office space accommodation.
Significant changes related to operations, personnel and program
Budget 2018 provides the IRB additional funding to face the increase of asylum seekers for two fiscal years, 2018-19 and 2019-20. By the end of the third quarter, the majority of GIC appointments had been made for the year and the IRB is on track to meet 2018/19 appointment requirements. Since several GICs will come out of mandate early in 2019-20, ongoing attention to appointments is required to ensure the IRB can maintain a full complement.
Approval by senior officials
Approved by:
Richard Wex
Chairperson
Barbara Wyant
Chief Financial Officer
Ottawa, Canada
February 28, 2019
Statement of Authorities (unaudited)
Fiscal year 2018-19
(in thousands of dollars)
| | Total available for use for the year ending March 31, 2019Footnote 1 | Used during the quarter ended December 31, 2018 | Year to date used at quarter-end |
|---|
| Vote 1 – Program expenditures | 149,654 | 36,058 | 94,721 |
| Budgetary statutory authority – Employee benefit plans | 18,511 | 3,590 | 10,771 |
|
Total authorities |
168,165 |
39,648 |
105,492 |
Statement of Authorities (unaudited)
Fiscal year 2017-18
(in thousands of dollars)
| | Total available for use for the year ending March 31, 2018Footnote 1 | Used during the quarter ended December 31, 2017 | Year to date used at quarter-end |
|---|
| Vote 1 – Program expenditures | 124,713 | 28,089 | 81,506 |
| Budgetary statutory authority – Employee benefit plans | 14,252 | 3,458 | 10,375 |
|
Total authorities |
138,965 |
31,547 |
91,881 |
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2018-19
(in thousands of dollars)
| Expenditures | Planned expenditures for the year ending March 31, 2019 | Expended during the quarter ended December 31, 2018 | Year to date used at quarter-end |
|---|
| Personnel | 129,373 | 30,525 | 85,634 |
| Transportation and communications | 3,090 | 867 | 2,316 |
| Information | 367 | 93 | 281 |
| Professional and special services | 23,498 | 6,584 | 12,947 |
| Rentals | 1,077 | 188 | 738 |
| Repair and maintenance | 514 | 222 | 321 |
| Utilities, materials and supplies | 551 | 310 | 649 |
| Acquisition of machinery and equipment | 3,119 | 576 | 1,520 |
| Acquisition of land, buildings and works | 6,527 | 388 | 388 |
| Other subsidies and payments | 49 | (105) | 698 |
|
Total net budgetary expenditures |
168,165 |
39,648 |
105,492 |
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2017-18
(in thousands of dollars)
| Expenditures | Planned expenditures for the year ending March 31, 2018 | Expended during the quarter ended December 31, 2017 | Year to date used at quarter-end |
|---|
| Personnel | 110,029 | 26,375 | 78,315 |
| Transportation and communications | 2,204 | 619 | 1,476 |
| Information | 250 | 136 | 288 |
| Professional and special services | 21,922 | 3,763 | 9,440 |
| Rentals | 960 | 91 | 675 |
| Repair and maintenance | 500 | 67 | 119 |
| Utilities, materials and supplies | 757 | 122 | 360 |
| Acquisition of machinery and equipment | 2,291 | 159 | 389 |
| Other subsidies and payments | 52 | 215 | 819 |
|
Total net budgetary expenditures |
138,965 |
31,547 |
91,881 |