Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2019, and all information contained in these financial statements rests with the management of the Immigration and Refugee Board of Canada (IRB). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.
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 IRB’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the IRB’s Departmental Results Report, is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) 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 and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.
The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The IRB will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Financial Management.
The financial statements of the Immigration and Refugee Board of Canada have not been audited.
The accompanying notes form an integral part of these financial statements.
Notes to the Financial Statements (Unaudited)
For the year ended March 31
1. Authority and objectives
The Immigration and Refugee Board (IRB) is an independent, accountable administrative tribunal established by Parliament on January 1, 1989 to resolve immigration and refugee cases fairly, efficiently and in accordance with the law. The IRB ensures continued benefits to Canadians: by only accepting refugee claimants needing protection in accordance with international obligations and Canadian law; by contributing to the integrity of the immigration system, the safety and security of Canadians and upholding Canada's reputation of justice and fairness for individuals; and promoting family reunification. The IRB also contributes to the quality of life of Canada's communities by strengthening our country's social fabric and by reflecting and reinforcing core values that are important to Canadians. These include respect for human rights, peace, security and the rule of law.
The Board strategic outcome is to resolve immigration and refugee cases efficiently, fairly and in accordance with the law.
Two programs support this strategic outcome:
Adjudication of immigration and refugee cases
The Immigration and Refugee Board renders quality decisions and resolves cases in a timely manner regarding immigration and refugee protection cases. This includes determining refugee protection claims and appeals and applications to vacate or cease refugee protection. It also includes making decisions in admissibility hearings and detention reviews, and on appeals on certain immigration cases.
This program is split into 4 department specific activities:
Refugee Protection Division
The Refugee Protection Division (RPD) delivers the IRB's Refugee Protection program. It renders quality decisions and resolves cases in a timely manner regarding refugee protection claims made by persons in Canada, and pre-removal risk assessments of persons subject to a removal order.
Refugee Appeal Division
The Refugee Appeal Division (RAD) delivers the IRB's Refugee Appeal program. It renders quality decisions and 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
The Immigration Division (ID) delivers the Admissibility Hearings and Detention Reviews program. It renders quality decisions and resolves cases in a timely manner regarding foreign nationals or permanent residents who are alleged to be inadmissible to Canada pursuant to the Immigration and Refugee Protection Act (IRPA) and foreign nationals or permanent residents who are detained under IRPA authority.
Immigration Appeal
The Immigration Appeal Division (IAD) delivers the Immigration Appeal program. It renders quality decisions and resolves cases in a timely manner regarding sponsorship applications refused by the Department of Immigration, Refugees and Citizenship Canada; certain removal orders made against permanent residents, refugees and other protected persons and holders of permanent resident visas; permanent residents outside of Canada who have been found not to have fulfilled their residency obligation; and appeals by the Minister of Public Safety Canada against a decision of the Immigration Division on admissibility.
Internal Services
Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities are Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services and Other Administrative Services.
2. Summary of significant accounting policies
These financial statements have been prepared using the Government's accounting policies stated below, 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:
(a) 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 Departmental Net Financial Position and in 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. The planned results amount in the "Expenses" and "Revenue" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future- oriented Statement of Operations included in the 2018-19 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2018-19 Departmental Plan.
(b) 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.
(c) 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 authorities to discharge its liabilities.
(d) Revenues
Other revenues are recognized in the period the event giving rise to the revenues occurred. The IRB does not charge for its services and its only revenue stems from gains on disposals 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.
(e) 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, employer contributions to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.
(f) Employee future benefits
- Pension benefits: Eligible employees participate in the Public Service Pension Plan (the "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. 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.
- Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
(g) Accounts receivables
Accounts receivable are initially recorded at cost. When necessary, an allowance is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.
(h) Non-financial assets
The costs of acquiring equipment and other capital property are capitalized as tangible capital assets and are amortized to expense over the estimated useful lives of the assets, as described in Note 7. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost.
(i) Contingent liabilities
Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
(j) Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, the liability for employee future 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 Departmental Net Financial Position 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)
| 2019 | 2018 |
---|
Net cost of operations before government funding | 189,388 | 160,054 |
Adjustments for items affecting net cost of operations but not affecting authorities: |
---|
Add (Less) |
Services provided without charge by other government departments (note 10) | (30,698) | (26,619) |
Amortization of tangible capital assets (note 7) | (996) | (2,629) |
Amortization of tangible capital assets transferred from other government departments (note 7) | (21) | - |
Decrease (increase) in employee future benefits | 74 | (60) |
Increase in vacation pay and compensatory leave | (981) | (919) |
Decrease (increase) in charges for contingent liabilities | - | 20 |
Increase in allowance for bad debt | - | (21) |
Prepaid expenses previously charged to appropriation | (294) | (263) |
Adjustments to prior years’ accounts payable (PAYE) | 683 | 77 |
Refunds of previous year's expenses | 168 | 105 |
Other | (129) | (59) |
Total | (32,194) | (30,368) |
Adjustments for items not affecting net cost of operations but affecting authorities: |
---|
Add (Less) |
Acquisition of tangible capital assets (note 7) | - | 784 |
Transfer of tangible capital asset from other government department (note 7) | 22 | - |
Salary overpayments to be recovered | 854 | 938 |
Increase in prepaid expenses | 285 | 239 |
Transition payment - pay in arrears | 2 | |
Temporary advance | 1 | 46 |
Total | 1,164 | 2,007 |
Current year authorities used | 158,358 | 131,693 |
(b) Authorities Provided and used:
(in thousands of dollars)
| 2019 | 2018 |
---|
Authorities Provided: |
---|
Vote 1 - Operating expenditures | 124,732 | 124,372 |
Statutory amounts | 15,359 | 13,329 |
Less: |
---|
Lapsed authorities: Operating | 18,267 | (6,368) |
Current year authorities used | 158,358 | 131,693 |
4. Accounts payable and accrued liabilities
The following table presents details of the IRB's accounts payable and accrued liabilities:
(in thousands of dollars)
| 2019 | 2018 |
---|
Accounts payable - Other government departments and agencies | 4,144 | 1,982 |
Accounts payable - External parties | 2,661 | 1,457 |
| 6,805 | 3,439 |
Accrued liabilities | 13,539 | 9,817 |
Total accounts payable and accrued liabilities | 13,256 | 13,256 |
In Canada’s Economic Action Plan 2012, the Government announced savings measures to be implemented by departments starting in 2012‒2013 and extending over the three subsequent fiscal years. To this effect, the Department has recorded an obligation for termination benefits as part of accrued liabilities to reflect the estimated workforce adjustment costs. The remaining balance of these measures is nil as of March 31, 2019 ($ 293,764 as of March 31, 2018).
5. Employee future benefits
(a) Pension benefits
The IRB’s employees participate in the Public Service Pension Plan (the "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.
Both the employees and the IRB contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
The 2018-19 expense amounts to $10.7 million ($9.1 million in 2017-18). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2017-18) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2017-18) the employee’s contributions.
The IRB’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan’s sponsor.
(b) Severance benefits
Severance benefits provided to the IRB’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2019, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.
The changes in the obligations during the year were as follows:
(in thousands of dollars)
| 2019 | 2018 |
---|
Accrued benefit obligation, beginning of the year | 3,764 | 3,704 |
Expense for the year | 679 | 735 |
Benefits paid during the year | (753) | (675) |
Accrued benefit obligation, end of the year | 3,690 | 3,764 |
6. Accounts receivable and advances
The following table presents details of the IRB's accounts receivable and advances balances:
(in thousands of dollars)
| 2019 | 2018 |
---|
Receivables - other government departments and agencies | 532 | 1,319 |
Receivables - external parties | 2,702 | 1,815 |
Employee advances | 181 | 88 |
Gross accounts receivable | 3,415 | 3,222 |
Accounts receivable held on behalf of Government | (2,702) | (1,815) |
Net accounts receivable | 713 | 1,407 |
7. Tangible capital assets
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:
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 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.
Cost
(in thousands of dollars)
| Opening Balance | Acquisitions | Transfers from other government departments | Disposals and Write-Offs | Closing Balance |
---|
Informatics Hardware | 2,333 | - | - | - | 2,333 |
Informatics Software | 21,134 | - | - | - | 21,134 |
Machinery and Equipment | 429 | - | 22 | - | 451 |
Leasehold Improvements | 8,825 | - | - | 281 | 9,106 |
Assets under construction | 725 | - | - | (281) | 444 |
| 33,446 | - | 22 | - | 33,468 |
Accumulated amortization
(in thousands of dollars)
| Opening Balance | Amortization | Transfers from other government departments | Disposals and Write-Offs | Closing Balance |
---|
Informatics Hardware | 2,225 | 56 | | - | 2,225 |
Informatics Software | 20,663 | 386 | | - | 20,663 |
Machinery and Equipment | 248 | 44 | 21 | - | 248 |
Leasehold Improvements | 7,462 | 510 | | - | 7,462 |
| 30,598 | 996 | 21 | - | 30,598 |
Net book value
(in thousands of dollars)
| 2018 | 2019 |
---|
Informatics Hardware | 108 | 52 |
Informatics Software | 471 | 85 |
Machinery and Equipment | 181 | 138 |
Leasehold Improvements | 1,363 | 1,134 |
Assets under construction | 725 | 444 |
Net Book Value | 2,848 | 1,853 |
8. Contractual Obligations
The nature of the IRB's activities can result in some large multi-year contracts and obligations whereby the IRB will be obligated to make future payments when the services or goods are received. Due to the fact that IRB has no contracting delegation over 2 million dollars, there are no significant multi-year contracts to report.
9. Contingent liabilities
Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.
Claims and litigation
Claims have been made against the IRB in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management is nil at March 31, 2019 ($0 in 2017-18).
10. Related party transactions
The IRB is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual. 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. These services provided without charge have been recorded at the carrying value in the IRB’s Statement of Operations and Departmental Net Financial Position as follows:
(in thousands of dollars)
| 2019 | 2018 |
---|
Accommodation | 21,562 | 17,941 |
Employer's contribution to the health and dental insurance plans | 9,136 | 8,678 |
Total | 30,698 | 26,619 |
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 Services and Procurement Canada are not included in the IRB’s Statement of Operations and Departmental Net Financial Position.
(b) Other transactions with other government departments and agencies
(in thousands of dollars)
| 2019 | 2018 |
---|
Expenses - Other Government departments and agencies | 31,644 | 22,858 |
11. Segmented information
Presentation by segment is based on the IRB's core responsibility. 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 core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:
(in thousands of dollars)
| Refugee Protection | Refugee Appeal | Admissibility Hearings & Detention Reviews | Immigration Appeal | Adjudication of Immigration and Refugee cases | Internal Services | 2019 | 2018 |
---|
Operating Expenses |
---|
Salaries and employee benefits | 60,828 | 14,331 | 9,587 | 14,418 | 99,164 | 33,083 | 132,247 | 117,187 |
Accommodation | 8,054 | 1,621 | 2,852 | 2,730 | 15,257 | 6,305 | 21,562 | 17,940 |
Rentals | 82 | 2 | 23 | 9 | 116 | 1,168 | 1,284 | 935 |
Professional and special services | 6,476 | 2,513 | 2,382 | 3,568 | 14,939 | 5,539 | 20,478 | 14,990 |
Amortization of tangible capital assets | 185 | 0 | 104 | 0 | 289 | 706 | 995 | 2,628 |
Transportation and telecommunications | 1,443 | 334 | 259 | 299 | 2,335 | 2,225 | 4,560 | 2,805 |
Repair and maintenance | 4 | 1 | 0 | 1 | 6 | 3,111 | 3,117 | 824 |
Acquisition of equipment | 578 | 5 | 57 | 6 | 646 | 3,316 | 3,962 | 1,655 |
Utilities, materials and supplies | 331 | 27 | 34 | 39 | 431 | 251 | 682 | 502 |
Information | 187 | 3 | 9 | 2 | 201 | 311 | 512 | 468 |
Other | 4 | 1 | 1 | 0 | 6 | (17) | (11) | 120 |
Total operating expenses | 78,172 | 18,838 | 15,308 | 21,072 | 133,390 | 55,998 | 189,388 | 160,054 |
Revenues |
---|
Miscellaneous | 0 | 0 | 0 | 0 | 0 | 4 | 4 | 3 |
Revenues earned on behalf of government | 0 | 0 | 0 | 0 | 0 | (4) | (4) | (3) |
Total Revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net cost of operations | 78,172 | 18,838 | 15,308 | 21,072 | 133,390 | 55,998 | 189,388 | 160,054 |