Future-Oriented Financial Statements 2011-12

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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 November 30, 2010 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 Immigration and Refugee Board (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.

Brian Goodman,
Chairperson
Serge Gascon,
Chief Financial Officer

Ottawa, Canada
January 17, 2011


Future-oriented Statement of Operations
For the Year Ending March 31 (in thousands of dollars)
Expenses Estimated
Results
2011
Forecast
2012
Refugee Protection 79,969 78,283
Immigration Appeal 16,273 17,592
Admissibility Hearings & Detention Reviews 13,844 15,643
Refugee Appeal 0 14,891
Internal Services 38,157 42,874
Net cost of operations 148,243 169,283

Segmented information (Note 8)
The accompanying notes form an integral part of these future-oriented financial statements.


Notes to Future-oriented Financial Statements
For the Year Ending March 31

1.  Authority and Objectives

The Immigration and Refugee Board (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:

Refugee Protection Program Activity:
Renders quality decisions and otherwise resolves cases in a timely manner regarding:

  • Refugee protection claims made by persons in Canada
  • Pre-removal risk assessments of persons subject to a removal order (1)

Refugee Appeal Program Activity (2):
Renders quality decisions and otherwise resolves cases in a timely manner regarding:

  • Appeals against a decision made on a Refugee protection claim of the Refugee protection Division

Admissibility Hearings and Detention Reviews Program Activity:
Renders quality decisions and otherwise resolves cases in a timely manner regarding:

  • Admissibility of foreign nationals or permanent residents who are alleged to be inadmissible to Canada pursuant to the provision of the IRPA
  • Detention reviews for foreign nationals or permanent residents who are detained under the IRPA

Immigration Appeal Program Activity:
Renders quality decisions and otherwise resolves cases in a timely manner regarding:

  • Sponsorship applications refused by CIC
  • Certain removal orders made against permanent residents, refugees and other protected persons, and holders of permanent resident visa
  • Permanent residents who have been found outside of Canada not to have fulfilled their residency obligation
  • Appeals by the Minister of Public Safety of ID decisions at admissibility hearings

(1)  When transferred from CIC, see page 15 of the Report on Plans and Priorities for more details.
(2)  When proclaimed, see page 17 of the Report on Plans and Priorities for more details.

2.  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.

The main assumptions are as follows:

  1. Expenses of the program activities not affected by the Balanced Refugee Reform Act (BRRA), 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 affected by the BRRA, reflect transitional and new spending to prepare for and implement the reform to Canada's refugee determination system which is expected to come into force in late 2011.
  3. Forecasted year end information for 2010-11 is used as the opening position for the 2011-12 forecasts.

These assumptions are adopted as at November 30, 2010.

3.  Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the year 2010-11 and for the year 2011-12, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these financial statements the IRB has made estimates and assumptions concerning the future. These estimates and judgments may differ from the subsequent actual results. Estimates and judgments 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 coming into force date of the BRRA which can come into force no later than June 29, 2012.
  2. The timing and amounts of acquisitions and disposals of equipment or, accommodation fit up required to prepare for the reform to Canada's refugee determination system, may affect gains/losses and amortization expense.
  3. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, the IRB will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4.  Summary of Significant Accounting Policies

The future-oriented 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 appropriations – the IRB is financed by the Government of Canada through Parliamentary appropriations. The cash accounting basis is used to recognize transactions affecting parliamentary appropriations. The future-oriented financial statements are based on accrual accounting. Consequently, items presented in the Future-oriented Statement of Operations are not necessarily the same as those provided through appropriations from Parliament. Note 5 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. Expenses – Expenses are presented on an 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.
  4. 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 IRB 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.
  5. 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 Term of lease

    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.

5.  Parliamentary Appropriations

The IRB receives its funding through expenditure authorities provided by Parliament. Items recognized in the statement of operations 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)  Authorities requested (in thousand of dollars)
Authorities requested Estimated
Results
2011
Forecast
2012
Vote 10 - Operating expenditures 118,586 136,541
Statutory amounts 13,136 16,460
Forecast authorities available 131,722 153,001

Forecast authorities requested for the year ending March 31, 2012 are the planned spending amounts presented in the 2011-12 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31 2011 include amounts presented in the 2010-11 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

(b)  Reconciliation of net cost of operations to requested authorities (in thousand of dollars):
Estimated
Results
2011
Forecast
2012
Net cost of operations 148,243 169,283
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (Note 7) (22,137) (23,907)
Amortization of tangible capital assets (1,037) (2,424)
Increase in employee future benefits (Note 6) (5,024) (2,124)
Increase in vacation pay and compensatory leave (403) (424)
(28,601) (28,879)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 7,344 12,597
7,344 12,597
Estimated surplus 4,736 -
Forecast authorities available 131,722 153,001

6.  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 of Canada. 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.

(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 appropriations. Information about the severance benefits, estimated as at the date of these statements, is as follows:

Severance Benefits (in thousand of dollars)
Estimated
Results
2011
Forecast
2012
Accrued benefit obligation, beginning of the year 17,961 22,985
Expense for the year 5,024 2,124
Accrued benefit obligation, end of the year 22,985 25,109

7.  Related Party Transactions

The IRB is related as a result of common ownership to all Government of Canada departments, agencies, and Crown Corporations. The IRB enters into transactions with these entities in the normal course of business and on normal trade terms.

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

During the year, the IRB is forecasted to receive without charge from other departments, accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recognized in the IRB's future-oriented Statement of Operations as follows:

Future-Oriented Statement of Operations (in thousand of dollars)
Estimated
Results
2011
Forecast
2012
Accommodation 15,322 16,462
Employer's contribution to the health and dental insurance plans 6,815 7,445
Total 22,137 23,907

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include 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 as an expense in the IRB's Statement of Operations.

8.  Segmented information (in thousand of dollars)

Segmented Operating Expenses
Operating expenses 2011 2012
Total RP IA AHDR RA IS Total
Salaries and employee benefits 108,701 53,373 12,484 8,241 11,101 30,311 115,510
Professional and special services 13,268 12,608 2,734 5,043 506 3,976 24,867
Accommodation 15,322 7,737 1,811 1,152 1,482 4,280 16,462
Transportation and telecommunications 4,359 1,350 343 421 367 1,049 3,530
Acquisition of equipment 1,088 649 7 68 672 1,041 2,437
Amortization 1,037 1,766 7 191 149 311 2,424
Repair and maintenance 2,149 196 49 4 192 1,272 1,713
Utilities, materials and supplies 907 399 51 80 230 349 1,109
Rentals 1,149 179 26 440 192 200 1,037
Information 141 12 2 3 0 75 92
Other 122 14 78 0 0 10 102
Total operating expenses 148,243 78,283 17,592 15,643 14,891 42,874 169,283
Net cost of operations 148,243 78,283 17,592 15,643 14,891 42,874 169,283

Table Legend:

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