Future-Oriented Statement of Operations - Years ending March 31, 2018 and 2019

Future-oriented Statement of Operations (Unaudited)

For the Year Ending March 31 (in thousands of dollars)
  Forecast Results
Planned Results
Refugee Protection 66,943 56,774
Immigration Appeal 20,504 23,398
Admissibility Hearings and Detention Reviews 14,265 13,015
Refugee Appeal 15,587 27,964
Internal Services 46,944 40,550
Total expenses 164,243 161,701
Miscellaneous revenues 8 8
Revenues earned on behalf of Government (8) (8)
Total revenues 0 0
Net cost of operations 164,243 161,701

The accompanying notes form an integral part of the future-oriented statement of operations.

Notes to Future-oriented Statement of Operations (Unaudited) for the Year Ending March 31

1. Methodology and Significant Assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of the IRB as described in the Departmental Plan.

The information in the forecast results for fiscal year 2017-18 and planned results for fiscal year 2018-19 are based on the activities and initiatives included in the forecast spending and planned spending amounts that are presented in the Departmental Plan, expressed in terms of accrual accounting.

The main assumptions are as follows:

  • The IRB’s activities will remain substantially the same as for the previous year; 
  • Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

These assumptions are adopted as at December 31, 2017.

2. Variations and Changes to the Forecast Financial Information

Forecasts have been made for 2017-18 and 2018-19. Actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this future-oriented statement of operations 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 statement of operations and the departmental financial statements include the following:

  • The timing and amounts of acquisition and disposals of tangible capital assets may affect gains/losses and amortization expense;
  • Implementation of new collective agreements;
  • Further changes to the operating budget through funding additional new initiatives or technical adjustments later in the year.

Once the Departmental Plan is presented, the IRB will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the IRB's Departmental Performance Report.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using Government of Canada accounting policies 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:

  • Expenses

    Expenses are recorded on an accrual basis. Expenses for the IRB operations are recorded when goods are received or services are rendered including services provided without charges for accommodation and employee contributions to health and dental insurance plans which are recorded as expenses at their estimated cost. Vacation pay as well as severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment.

    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 or the lesser of the remaining term of the lease or the useful life of the leasehold improvement.

  • Revenues

    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, usage of photocopiers from external users and Access to Information and Privacy fees.

    Revenues that are non-respendable are not available to discharge the IRB’s liabilities. While the Deputy Head is expected to maintain accounting control, he 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.

4. 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. Items recognized in the future-oriented statement of operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the IRB 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:

(a) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)

  Forecast Results
Planned Results
Net cost of operations 164,243 161,701
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (26,631) (27,166)
Amortization of tangible capital assets (2,620) (1,006)
Decrease (increase) in employee future benefits (82) 66
Increase in vacation pay and compensatory leave (813) (284)
Total items affecting net cost of operations but not affecting authorities (30,146) (28,390)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 1,302 0
Total items not affecting net cost of operations but affecting authorities 1,302 0
Requested authorities 135,399 133,311

(b) Authorities requested (in thousands of dollars)

  Forecast Results
Planned Results
Vote 1 - Program expenditures 124,713 118,950
Statutory amounts 14,252 14,361
Subtotal 138,965 133,311
Less: Authorities to lapse
Vote 1: Program expenditures (3,566) 0
Requested authorities 135,399 133,311