Future-Oriented Statements of Operations - Years ending March 31, 2014 and 2015

Immigration and Refugee Board of Canada
Future-oriented Statement of Operations (Unaudited)
For the Year Ending March 31 (in thousands of dollars)
Estimated Results
2013-14
Planned Results
2014-15
Expenses
Refugee Protection 73,241 65,445
Immigration Appeal 17,536 20,971
Admissibility Hearings and Detention Reviews 14,500 12,040
Refugee Appeal 9,941 12,767
Internal Services 39,322 34,793
Total expenses 154,540 146,016
Revenues
Miscellaneous revenues 10 10
Revenues earned on behalf of Government (10) (10)
Total revenues 0 0
Net cost of operations 154,540 146,016

The accompanying notes form an integral part of this financial statement.

Immigration and Refugee Board of Canada
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 Report on Plans and Priorities.

Forecasts have been made for the estimated results for fiscal year 2013–14 and planned results for fiscal year 2014-15.

The main assumptions are as follows:

  1. The IRB’s activities will remain substantially the same as for the previous year;
  2. 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 16, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for 2013-14 and for 2014-15, 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 historical statement of operations include:

  1. The timing and amounts of acquisition and disposals of tangible capital assets may affect 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.

Once the Report on Plans and Priorities 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 Departmental Performance Report.

3. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using the Government's accounting policies that came into effect for the 2011-12 fiscal year 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. 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.

  2. 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, 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.

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 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 requested authorities (in thousands of dollars)
Estimated
2013-14
Planned
2014-15
Net cost of operations 154,540 146,016
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (23,880) (23,741)
Amortization of tangible capital assets (5,681) (4,311)
Decrease (increase) in employee future benefits (1,281) 285
Decrease (increase) in vacation pay and compensatory leave (104) 108
Total items affecting net cost of operations but not affecting authorities (30,946) (27,659)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 1,870 2,704
Total items not affecting net cost of operations but affecting authorities 1,870 2,704
Requested authorities 125,464 121,061
(b) Authorities requested (in thousands of dollars)
Authorities requested: Estimated
2013-14
Planned
2014-15
Vote 10 - Operating expenditures 111,175 107,870
Statutory amounts 14,289 13,191
Requested authorities 125,464 121,061