Quarterly Financial Report for the quarter ended September 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.

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 32% 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 (29% increase) and in professional and special services costs (47% increase). Second quarter expenditures represent 24% of total authorities available for use compared to 24% spent in the same period in the previous year.

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.

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 IRB 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 public servant decision-makers 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:

Ottawa, Canada
November 29, 2011

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Statement of Authorities (unaudited)

Fiscal year 2011-2012 (in thousands of dollars)
	Total available for use for the year ending March 31, 2012*	Used during the quarter ended September 30, 2011	Year to date used at quarter-end
Vote 10 – Net Operating expenditures	136,541	32,785	58,681
Budgetary statutory authorities	16,459	4,115	8,231
Total authorities	153,000	36,900	66,912

Statement of Authorities (unaudited)

Fiscal year 2010-2011 (in thousands of dollars)
	Total available for use for the year ending March 31, 2011*	Used during the quarter ended September 30, 2010	Year to date used at quarter-end
Vote 10 – Net Operating expenditures	103,924	24,734	47,038
Budgetary statutory authorities	13,136	3,284	6,568
Total authorities	117,060	28,018	53,606

More information is available in the attached table.

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2011-12 (in thousands of dollars)
	Planned expenditures for the year ending March 31, 2012	Expended during the quarter ended September 30, 2011	Year to date used at quarter-end
Expenditures:
Personnel	107,901	30,027	55,103
Transportation and communications	3,530	1,003	1,834
Information	92	37	48
Professional and special services	29,032	5,034	7,975
Rentals	1,037	(7)	163
Repair and maintenance	6,048	375	1,057
Utilities, materials and supplies	1,109	164	327
Acquisition of machinery and equipment	4,149	265	401
Other subsidies and payments	102	2	4
Total net budgetary expenditures	153,000	36,900	66,912

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2010-11 (in thousands of dollars)
	Planned expenditures for the year ending March 31, 2011	Expended during the quarter ended September 30, 2010	Year to date used at quarter-end
Expenditures:
Personnel	90,405	23,220	44,699
Transportation and communication	3,937	724	1,433
Information	295	2	3
Professional and special services	18,463	3,425	5,784
Rentals	614	200	413
Repair and maintenance	1,110	184	873
Utilities, materials and supplies	1,048	163	250
Acquisition of machinery and equipment	887	86	119
Other subsidies and paymentss	301	14	32
Total net budgetary expenditures	117,060	28,018	53,606