Archived - Future-Oriented Financial Information

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Canada Border Services Agency (Agency Activities)
Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31, 2017
(in thousands of dollars)

  Forecast Results 2016 Planned Results 2017
Admissibility Determination 923,044 950,759
Internal Services 423,431 338,075
Risk Assessment 189,868 171,474
Immigration Enforcement 158,867 135,750
Revenue and Trade Management 99,850 97,089
Secure and Trusted Partnerships 42,744 44,312
Criminal Investigations 31,242 35,188
Recourse 12,205 12,119
Total expenses 1,881,251 1,784,766
Sales of goods and services 19,664 19,664
Other 2,550 2,550
Revenues earned on behalf of government (3,784) (3,784)
Total revenues 18,430 18,430
Net cost of operations 1,862,821 1,766,336

The accompanying notes form an integral part of the future-oriented statement of operations.

1. Methodology and Significant Assumptions

The future-oriented statement of operations (FOSO) has been prepared on the basis of government priorities and departmental plans as described in the Report on Plans and Priorities. Information on the Canada Border Services Agency's (CBSA) authority and objectives is provided in Section I of its 2016-2017 Report on Plans and Priorities.

The information in the forecast results for fiscal year 2015-2016 is based on actual results as at and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2016-2017 fiscal year.

The main assumptions underlying the forecasts are as follows:

  • The CBSA's activities will remain substantially the same as in the previous year.
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.
  • Estimated year-end information for 2015-2016 is used as the opening position for the 2016-2017 planned results.

These assumptions are adopted as at .

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2015-2016 and for 2016-2017, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this FOSO the CBSA 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 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 FOSO and the historical statement of operations include the following:

  • The timing and amount of acquisitions and disposals of tangible capital assets may affect gains/losses and amortization expense.
  • Implementation of new collective agreements.
  • Economic conditions may affect the amount of revenue earned and the collectability of accounts receivable.
  • 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 CBSA 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 FOSO has been prepared using the Government's accounting policies that came into effect for the 2011-2012 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:

a) Expenses

Expenses are recorded on an accrual basis. Expenses for the CBSA's operations are recorded when goods are received or services are rendered, including services provided without charge for accommodation, employer contributions to health and dental insurance plans, legal services and worker's compensation, which are recorded as expenses at their estimated cost.

Vacation pay and compensatory leave, as well as severance benefits, are accrued and expenses are recorded as the benefits are earned by employees under their terms of employment.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable and advances, as well as inventory obsolescence.

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.

b) Revenues

Revenues reported in this FOSO include regulatory fees collected on behalf of the Government of Canada under legislation such as the Immigration and Refugee Protection Act and the Canadian Food Inspection Agency Act.

Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

Revenues that are non-respendable are not available to discharge the CBSA's liabilities. While the president of the CBSA is expected to maintain accounting control, 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 as a reduction of the CBSA's gross revenues.

4. Parliamentary Authorities

The CBSA is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the CBSA do not parallel financial reporting according to generally accepted accounting principles because authorities are primarily based on cash flow requirements. Items recognized in the FOSO in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the CBSA has different net cost 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)

  Forecast Results
Planned Results
Net cost of operations before government funding and transfers 1,862,821 1,766,336
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (55,200) (49,364)
Loss on disposal of tangible capital assets (1,497) (559)
Services provided without charge by other government departments (166,774) (168,669)
Increase in vacation pay and compensatory leave (2,999) (2,999)
Decrease in employee future benefits 11,459 11,459
Bad debt expense (400) (400)
Refunds of previous years' expenditures 5,391 5,391
Total items affecting net cost of operations but not affecting authorities (210,020) (205,141)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 183,804 130,999
Proceeds from disposal of tangible capital assets (412) (412)
Decrease in inventory (6,051) -
Total items not affecting net cost of operations but affecting authorities 177,341 130,587
Requested authorities 1,830,142 1,691,782

b) Authorities requested
(in thousands of dollars)

  Forecast Results 2016 Planned Results 2017
Authorities requested
Vote 1 – Operating expenditures 1,508,972 1,427,970
Vote 5 – Capital expenditures 188,901 136,096
Statutory amounts 189,577 185,024
Total 1,887,450 1,749,090
Authorities available for future years (57,308) (57,308)
Requested authorities 1,830,142 1,691,782
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