Quarterly Financial Report for the quarter ended June 30, 2011

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 Main Estimates. The report has not been subject to an external audit or review.

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.

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.

A summary description of the IRB activities can be found in Part II of the Main Estimates (PDF, 000).

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 consistent with the Main Estimates for the 2011-2012 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 moneys 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.

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

The Board's quarterly and year-to-date spending are similar in nature to the previous year. The significant increase of 17% over the same period in the previous year is due to a higher level of expenditures incurred in preparation for the implementation of the Balanced Refugee Reform Act, partially offset by reductions in spending resulting from the first round of the Government's Strategic Review. This net increase in expenditures is consistent with a net increase of $35.9 million in authorities available for use for the year ending March 31, 2012 which relates to sunset funding to prepare for and implement the reform of Canada's Refugee Determination System under the Balanced Refugee Reform Act. The increase in expenditures over the same quarter of the previous year consists primarily in personnel costs (17% increase) and in professional and special services costs (25% increase). First quarter expenditures represent 20% of total authorities available for use compared to 22% spent in the same period in the previous year.

First Quarter Expenditures Compared to Annual Authorities
Graph representing the first quarter expenditures compared to the annual authorities

[Alternate format]

The image illustrates a graphic. The vertical axis is dollars in millions and the horizontal axis are fiscal years 2011-2012 and 2010-2011:

  • For fiscal year 2011-2012, the first column indicates the total authorities of 153.0 million and the second column expenditures of 30.0 million.
  • For fiscal year 2010-2012, the first column indicates the total authorities of 117.1 million and the second column expenditures of 25.6 million.

Risks and Uncertainties

The IRB is funded through annual appropriations. As a result, its operations are impacted by any changes in funding approved through Parliament. In addition, the IRB's operations are affected by the intake of new immigration and refugee cases before the Board.

This Departmental Quarterly Financial Report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 27, 2011.

Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-2011 levels for the fiscal years 2011-2012 and 2012-2013. Consequently, increases in expenditures related to personnel costs and other operating expenditures have to be managed within the allocated budget. In addition, a Strategic Review was conducted resulting in net budget reduction of $5.7M over fiscal years 2010-2011, 2011-2012 and 2012-2013 to the Refugee Protection, the Admissibility Hearings and Detention Reviews and the Internal Services program activities. The impact on departmental activities has been managed through the following actions and mitigation strategies:

  • Increases in personnel costs due to collective agreements are absorbed through attrition due to retirements or other reasons; and
  • Increases to other operating costs are managed through reallocation of budgets from lower to higher priority items.

Significant changes in relation to operations, personnel and program

The operations of the Immigration and Refugee Board are impacted in 2011-2012 due to the preparation for the reform of Canada's Refugee Determination System under the Balanced Refugee Reform Act. Net authorities for the Board have increased by $35.9M over the previous year primarily to provide transition funding to implement changes to the refugee determination system. The implementation of the new refugee determination system will result in a new process from the point of claim to the first level hearing at the Refugee Protection Division by decision-makers as public servants and the second level appeal at the Refugee Appeal Division by Governor in Council (GIC) appointees. This second level appeal results in the creation of a new program activity, the Refugee Appeal. The incremental funding will enable the IRB to develop new rules and instructions for the reformed system; implement staffing and procurement actions as required for public servants and GICs; develop communication materials with regards to the new process; finalize requisite systems changes, fit up of space, develop training material and train decision-makers and staff.

Approval by Senior Officials

Approved by:

Ken Sandhu,
Acting Chairperson
Richard Kapune for Serge Gascon,
Chief Financial Officer

Ottawa, Canada
August 29, 2011


Statement of Authorities (unaudited) (in thousands of dollars)
Fiscal year 2011-2012
Total available for use for the year ending March 31, 2012 Note1 Used during the quarter ended June 30, 2011 Year to date used at quarter-end
Vote 10 - Net Operating expenditures 136,541 25,896 25,896
Budgetary statutory authorities 16,459 4,116 4,116
Total authorities 153,000 30,012 30,012
Statement of Authorities (unaudited) (in thousands of dollars)
Fiscal year 2010-2011
Total available for use for the year ending March 31, 2011 Note1 Used during the quarter ended June 30, 2010 Year to date used at quarter-end
Vote 10 - Net Operating expenditures 103,924 22,304 22,304
Budgetary statutory authorities 13,136 3,284 3,284
Total authorities 117,060 25,588 25,588

More information is available in the attached table.

Notes

Note 1

Includes only Authorities available for use and granted by Parliament at quarter-end.

Return to first note 1 referrer

Return to second note 1 referrer

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Fiscal year 2011-12
Expenditures Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended June 30, 2011 Year to date used at quarter-end
Personnel 107,901 25,076 25,076
Transportation and communications 3,530 831 831
Information 92 11 11
Professional and special services 29,032 2,941 2,941
Rentals 1,037 170 170
Repair and maintenance 6,048 682 682
Utilities, materials and supplies 1,109 163 163
Acquisition of machinery and equipment 4,149 136 136
Other subsidies and payments 102 2 2
Total net budgetary expenditures 153,000 30,012 30,012
 
Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Fiscal year 2010-11
Expenditures Planned expenditures for the year ending
March 31,
2011
Expended during the quarter ended
June 30, 2010
Year to date used at quarter-end
Personnel 90,405 21,479 21,479
Transportation and communication 3,937 709 709
Information 295 1 1
Professional and special services 18,463 2,359 2,359
Rentals 614 213 213
Repair and maintenance 1,110 689 689
Utilities, materials and supplies 1,048 87 87
Acquisition of machinery and equipment 887 33 33
Other subsidies and paymentss 301 18 18
Total net budgetary expenditures 117,060 25,588 25,588