2010-2011 Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ending March 31, 2011, and all information contained in these statements rests with the management of the Immigration and Refugee Board of Canada (IRB). These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the IRB's Departmental Performance Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the IRB.

The Chairperson's Management Board (CMB) is the senior management body responsible for setting organizational priorities and objectives and providing overall direction to the IRB. The CMB oversees major initiatives that cut across the organization to ensure a comprehensive and integrated approach.

The Chief Financial Officer is a full member of the CMB.

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 Chairperson with added assurance and advice on risk management, control and governance processes.

The financial statements of the Immigration and Refugee Board of Canada have not been audited.

Ken Sandhu,
Acting Chairperson
Serge Gascon,
Chief Financial Officer

Ottawa, Canada
August 19, 2011


Immigration and Refugee Board of Canada
Statement of Financial Position (Unaudited)
As at March 31 (in thousands of dollars)
2011 2010
ASSETS
Financial assets
Due from Consolidated Revenue Fund 12,103 4,956
Accounts receivable and advances (note 4) 601 955
Total financial assets 12,704 5,911
Non-financial assets
Prepaid expenses 390 245
Tangible capital assets (note 5) 10,634 5,880
Total non-financial assets 11,024 6,125
23,728 12,036
LIABILITIES AND EQUITY OF CANADA
Liabilities
Accounts payable and accrued liabilities (note 6) 12,479 5,942
Vacation pay and compensatory leave 4,414 4,180
Employee future benefits (note 7) 20,151 17,961
37,044 28,083
Equity of Canada (13,316) (16,047)
23,728 12,036

Contingent liabilities (note 8)
The accompanying notes form an integral part of these financial statements.

Ken Sandhu,
Acting Chairperson
Serge Gascon,
Chief Financial Officer

Ottawa, Canada
August 19, 2011


Immigration and Refugee Board of Canada
Statement of Operations (Unaudited)
For the Year Ended March 31 (in thousands of dollars)
2011 2010
Expenses
Refugee Protection 72,021 78,168
Immigration Appeal 19,123 18,111
Admissibility Hearings & Detention Reviews 12,127 10,247
Internal Services 41,487 34,797
Total expenses 144,758 141,323
Revenues
Refugee Protection 3 1
Immigration Appeal 1 -
Internal Services 7 6
Total revenues 11 7
Net cost of operations 144,747 141,316

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


Immigration and Refugee Board of Canada
Statement of Equity of Canada (Unaudited)
For the Year Ended March 31 (in thousands of dollars)
2011 2010
Equity of Canada, beginning of year (16,047) (9,248)
Net cost of operations (144,747) (141,316)
Net cash provided by Government 118,269 118,992
Change in due from the Consolidated Revenue Fund 7,147 (5,392)
Services provided without charge by other government departments (Note 9) 22,062 20,917
Equity of Canada, end of year (13,316) (16,047)

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


Immigration and Refugee Board of Canada
Statement of Cash Flows (Unaudited)
For the Year Ended March 31 (in thousands of dollars)
2011 2010
Operating activities
Net cost of operations 144,747 141,316
Non-cash items:
Amortization of tangible capital assets (Note 5) (1,118) (4,685)
Loss on write-off of tangible capital assets - (7,774)
Services provided without charge by other government departments (Note 9) (22,062) (20,917)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances (354) (387)
Increase in prepaid expenses 145 25
Decrease (increase) in accounts payable and accrued liabilities (6,537) 5,783
Increase in vacation pay and compensatory leave (234) (423)
Decrease (increase) in future employee benefits (2,190) 1,306
Cash used in operating activities 112,397 114,244
Capital investing activities
Acquisitions of tangible capital assets (Note 5) 5,872 4,748
Cash used in capital investing activities 5,872 4,748
Net cash provided by Government of Canada 118,269 118,992

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


Immigration and Refugee Board of Canada
Notes to the Financial Statements (Unaudited)
For the Year Ended March 31

1.  Authority and Objectives

The Immigration and Refugee Board of Canada (the 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) from which each IRB division gets its mandate.

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

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;
  • 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 four program activities: Refugee Protection, Immigration Appeals, Admissibility Hearings and Detention Reviews and Internal Services. The Internal Services program activity support the three other program activities

As an organization with three adjudicative divisions, the IRB provides a responsive and efficient means of delivering administrative justice for individuals and ensures that all people who come before it are treated fairly. In fulfilling its mandate, the IRB contributes directly to maintaining public confidence in the integrity of Canada's immigration and refugee determination system.

2.  Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

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 Statement of Operations and the 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. 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 disposals of crown assets, Access to Information and Privacy fees and interest on overdue accounts receivable.
  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. Current legislation does not require the IRB to make contributions for any actuarial deficiencies of the Plan.
    2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. 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 receivables 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 financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3.  Parliamentary Authorities

The IRB receives its funding through annual Parliamentary authorities. Items recognized in the statement of operations and the 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:

(a)  Reconciliation of net cost of operations to current year authorities used (in thousands of dollars)
2011 2010
(Note 11)
Net cost of operations 144,747 141,316
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (Note 9) (22,062) (20,917)
Loss on write-off of capital assets - (7,774)
Amortization of tangible capital assets (Note 5) (1,118) (4,685)
Decrease (increase) in employee future benefits (2,190) 1,306
Increase in vacation pay and compensatory leave (234) (423)
Prepaid expenses previously charged to appropriation (345) (413)
Adjustments to prior's years accounts payable (PAYE) 253 396
Refund of prior years' expenditures 110 59
Revenue not available for spending 11 7
Other 25 10
(25,550) (32,434)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets (Note 5) 5,872 4,748
Increase in prepaid expenses 490 438
Temporary Advance - (2)
6,362 5,184
Current year authorities used 125,559 114,066

(b)  Authorities provided and used (in thousands of dollars)
2011 2010
Authorities Provided:
Vote 10 - Operating expenditures 117,209 110,748
Statutory amounts 13,641 12,935
Less:
Lapsed: Operating (5,291) (9,617)
Current year authorities used 125,559 114,066

4.  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
2011 2010
Receivables from other government departments and agencies 530 923
Receivables from external parties 62 28
Employee advances 9 4
601 955

5.  Tangible capital assets

Cost (in thousands of dollars)
Opening Balance Acquisitions Write-offs and Disposals Closing Balance
Informatics Hardware 3,656 226 (43) 3,839
Informatics Software 4,437 19 - 4,456
Machinery and Equipment 12 103 - 115
Leasehold Improvements 1,251 435 - 1,686
Assets under construction 1,488 5,089 - 6,577
Total 10,844 5,872 (43) 16,673

Accumulated Amortization (in thousands of dollars)
Opening Balance Amortization Write-offs and Disposals Closing Balance
Informatics Hardware 2,959 323 (43) 3,239
Informatics Software 1,935 635 - 2,570
Machinery and Equipment - 3 - 3
Leasehold Improvements 70 157 - 227
Total 4,964 1,118 (43) 6,039

Net book value (in thousands of dollars)
2010 2011
Informatics Hardware 697 600
Informatics Software 2,502 1,886
Machinery and Equipment 12 112
Leasehold Improvements 1,181 1,459
Assets under construction 1,488 6,577
Total 5,880 10,634

6.  Accounts payable and accrued liabilities

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

Accounts payable and accrued liabilities
2011 2010
Accounts payable to other government departments and agencies 2,533 1,002
Accounts payable to external parties 7,388 2,673
9,921 3,675
Accrued liabilities 2,558 2,267
12,479 5,942

7.  Employee future benefits

(a)  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.

Both the employees and the IRB contribute to the cost of the Plan. The 2010-2011 expense amounts to $9,574,800 ($9,337,503 in 2009-2010), which represents approximately 1.9 times (1.9 times in 2009-2010) the contributions by employees.

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.

(b)  Severance benefits

The IRB provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31 (in thousands of dollars), is as follows:

Severance benefits
2011 2010
Accrued benefit obligation, beginning of the year 17,961 19,267
Expense for the year 2,815 (189)
Benefits paid during the year (625) (1,177)
Accrued benefit obligation, end of the year 20,151 17,961

8.  Contingent liabilities

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

(a)  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. Based on IRB's assessment, legal proceedings for claims estimated at $200,000 ($5,575,000 in 2009-2010) were pending at March 31, 2011. Some of these potential liabilities 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 in the financial statements.

9.  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 and legal services. These services provided without charge have been recorded in the IRB's Statement of Operations (in thousands of dollars) as follows:

Common services provided without charge by other government departments
2011 2010
Accommodation 15,199 14,562
Employer's contribution to the health and dental insurance plans 6,834 6,355
Legal services 29 -
Total 22,062 20,917

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 (in thousands of dollars).

(b)  Other transactions with related parties

Other transactions with related parties
2011 2010
Expenses - Other Government departments and agencies 23,287 19,333

10.  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
Refugee Protection Immigration Appeals Admissibility Hearings & Detention Reviews Internal Services 2011
Total
2010
Total
Operating expenses
Salaries and employee benefits 53,707 12,838 7,589 27,272 101,406 91,295
Accommodation 8,313 1,928 1,180 3,778 15,199 14,562
Rentals 177 21 445 236 879 1,043
Professional and special services 6,464 3,760 2,056 3,751 16,031 14,504
Amortization 640 10 40 428 1,118 4,685
Transportation and telecommunications 1,837 284 389 1,560 4,070 3,886
Repair and maintenance 312 35 21 1,310 1,678 1,131
Acquisition of equipment 341 84 213 2,648 3,286 1,302
Utilities, materials and supplies 215 44 50 451 760 784
Information 35 3 4 7 49 207
Other (20) 116 140 46 282 7,924
Total operating expenses 72,021 19,123 12,127 41,487 144,758 141,323
Revenues
Miscellaneous 3 1 - 7 11 7
Total revenues 3 1 - 7 11 7
Net cost of operations 72,018 19,122 12,127 41,480 144,747 141,316

11.  Comparative information

Comparative figures have been reclassified to conform to the current year's presentation