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Canada Border Services Agency: Quarterly financial report for the first quarter of fiscal year 2025 to 2026

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1. Introduction

This Quarterly Financial Report (QFR) has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates.

Information on the raison d’être, mandate, role and core responsibilities of the Canada Border Services Agency (CBSA) can be found in Part III Departmental Plan and Part II of the Main Estimates.

The QFR has not been subjected to an external audit or review, but has been reviewed internally by the departmental Audit Committee.

1.1 Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying statement of authorities (Table 1) includes the department's spending authorities granted by Parliament, and those used by the department consistent with the Main Estimates for the to and to fiscal years. 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 money can be spent by Government departments. 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the consolidated revenue fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results

This section highlights the significant items that contributed to the net increase or decrease in resources available for the year and actual expenditures as of the quarter ended .

Graph 1: Comparison of net budgetary authorities and expenditures as of , and (in thousands $)

graph1
Image description

Comparison of net budgetary authorities and expenditures as of and (in thousands $)

  - -
Net Budgetary Authorities 2,808,229 2,992,972
Net Expenditures for the quarter ending June 30 553,932 621,996

2.1 Significant changes to authorities

For the period ending , the authorities provided to the CBSA are comprised of the Main Estimates.

The statement of authorities (Table 1) presents a net increase of $184.7 million or 6.6% of the agency’s total authorities of $2,992.9 million on , compared to $2,808.2 million total authorities at the same quarter last year.

This net increase in the authorities available for use is the result of an increase in Vote 1 – Operating Expenditures of $188.8 million, a decrease in Vote 5 – Capital Expenditures of $70.2 million and an increase in budgetary statutory authorities of $66.1 million, as detailed below.

Vote 1: Operating

The agency’s Vote 1 increased by $188.8 million or 8.0% (excluding the statutory authorities), compared to the same period last fiscal year. The increase is attributed to the net effect of the following significant items:

  • $309.5 million net increases in Main Estimates
    • The main increases contributing to the changes in operating funding include:
      • $109.1 million Funding for compensation adjustments for public service employees
      • $92.1 million Funding to further stabilize and streamline process around Irregular Migration & Incremental Asylum
      • $85.8 million Funding to increase capacity of the Immigration Holding Centres
      • $28.1 million Funding to support Border Detection and Examination
  • $120.7 million decrease due to the timing of receiving the carry forward of unused spending authorities

Vote 5: Capital

The agency’s Vote 5 decreased by $70.2 million or 28.8% (excluding the statutory authorities), compared to the same period last fiscal year. The decrease is attributed to the net effect of the following significant items:

  • $37.9 million in decrease due to the timing of receiving the carry forward of unused spending authorities
  • $32.3 million net decreases in Main Estimates
    • The main decreases contributing to the changes in capital funding include:
      • $25.2 million Planned funding profile change for Gordie Howe International Bridge
      • $22.9 million Planned funding profile change for Guns and Gangs
    • These decreases are partially offset by an increase in funding for the Land Border Crossing Project

Budgetary statutory authorities

The agency’s Statutory Authority related to the employee benefit plan (EBP) increased by $66.1 million, or 30.8% from the previous year, due to an EBP adjustment set by the Treasury Board.

2.2 Explanations of significant variances in expenditures from previous year

As indicated in the statement of authorities (Table 1), the agency’s year-to-date expenditures, at quarter end , were $622.0 million, compared to $553.9 million for year-to-date, quarter ending . The net increase of $68.1 million or 12.3% in expenditures is mainly due to the following items:

  • Increase of $52.4 million or 10.7% in Vote 1 Operating Expenditures. The increase in expenditures is mainly attributed to increase in salaries attributed to the new negotiated collective agreements
  • Decrease of $0.8 million or 7.9% in Vote 5 Capital Expenditures, mainly attributed to timing of expenses for laboratory and medical equipment for detection technology
  • Increase of $16.5 million in statutory expenditures related to employee benefits

As indicated in the departmental budgetary expenditures by standard objects (Table 2), the net increase by standard object is mainly attributed to:

  • Increase of $52.5 million for Personnel due to salaries, which is mainly attributed to the newly negotiated collective agreements
  • Increase of $11.8 million for Professional and special services, which can be mainly attributed to increase in expenses for National Guards Contract
  • Increase of $4.1 million for Rentals, which is related to the rental of message/data equipment and computer software
  • Decrease of $1.9 million for Transportation and communications, which can be mainly attributed to the reductions in public servant travels and expenses for mobile radio

Graph 2: Comparison of vote netted revenue budget and revenue collected as of , and (in thousands $)

graph2
Image description

Comparison of vote netted revenue budget and revenue collected as of and (in thousands $)

  - -
Vote Netted Revenue budget 24,030 29,030
Revenue collected for the quarter ending June 30 7,133 6,822

The planned revenue from the sales of services reflects the agency’s revenue respending authority. The year-to-date revenue from services has decreased by $0.3 million or 4.4%.

3. Risks and uncertainties

CBSA maintains an Enterprise Risk Profile (ERP) which highlights the most important risks that could impact the agency's objectives. ERP updates are presented quarterly to the CBSA Executive Committee and include mitigation strategies for the agency's top risks. Risk drivers that could have a financial impact on CBSA's operations include delivery of major projects and reliance on temporary funding.

3.1 Delivery of major projects

The agency is pursuing several large information technology (IT) and physical infrastructure projects; most are multi-year in nature and represent substantial investments. Since the CBSA depends on other government departments and/or external stakeholders for the development and implementation of many of these projects, any delays due to limited labour availability and affordability within and outside the agency can have an impact on these major projects. Even short delays may lead to additional costs for materials, commodities and other market rate priced services.

Despite these conditions, the agency has met key deadlines and deliverables on many of the major projects currently underway and is on track for the next set of deliverables. The agency strives to mitigate financial risks by risk-rating its projects, conducting periodic project reviews, and by holding regular budget discussions. Such activities are informed and supported by the agency's quarterly integrated project reporting processes.

The CBSA invests in a number of information technology (IT) projects as part of its transformation agenda towards creating a more modernized organization. A list of key IT projects with a budget over $1 million can be consulted.

3.2 Reliance on time-limited funding

The agency has a mix of permanent and project funding and is increasingly relying on time-limited funding for on-going operations. To deliver on core commitments, attract the best resources and ensure a stable workforce, most of the CBSA's employees are indeterminate. To mitigate the gap between the funding horizon and the permanent obligations related to salaries, the agency develops flexible plans through its annual Integrated Business Planning process and three-year financial plan. This increased oversight is critical to ensure the multi-year affordability of the organization.

4. Significant changes in relation to operations, personnel and programs

4.1 Key senior personnel

On , Michael Prosia was appointed as Regional Director General of the Southern Ontario Region. Michael had been acting in this position since October 2024.

On , the Prime Minister appointed the Honourable Gary Anandasangaree as Minister of Public Safety, as well as the Honourable Ruby Sahota as Secretary of State (Combating Crime).

5. Approval by senior officials

Approved by:

Erin O'Gorman
President
Ottawa, Canada
Date:

Ryan Pilgrim
Chief Financial Officer
Ottawa, Canada
Date:

6. Table 1: Statement of authorities (unaudited)

Fiscal year to
(in thousands of dollars) Total available for use for the year ending Footnote 1 Used during the quarter ended Year-to-date used at quarter end
Vote 1: Operating expenditures 2,538,381 542,021 542,021
Vote 5: Capital expenditures 173,374 9,662 9,662
Statutory authority — Contributions to employee benefit plans 281,217 70,304 70,304
Statutory authority — Refunds of amounts credited to revenues in previous years 0 0 0
Statutory authority — Spending of proceeds from the disposal of surplus Crown assets 0 9 9
Total budgetary authorities 2,992,972 621,996 621,996
Non-budgetary authorities 0 0 0
Total authoritiesFootnote 2 2,992,972 621,996 621,996
Fiscal year to
(in thousands of dollars) Total available for use for the year ending Footnote 1 Used during the quarter ended Year-to-date used at quarter end
Vote 1: Operating expenditures 2,349,587 489,662 489,662
Vote 5: Capital expenditures 243,613 10,493 10,493
Statutory authority — Contributions to employee benefit plans 215,029 53,757 53,757
Statutory authority — Refunds of amounts credited to revenues in previous years 0 13 13
Statutory authority — Spending of proceeds from the disposal of surplus Crown assets 0 7 7
Total budgetary authorities 2,808,229 553,932 553,932
Non-budgetary authorities 0 0 0
Total authoritiesFootnote 2 2,808,229 553,932 553,932

7. Table 2: Departmental budgetary expenditures by standard objects (unaudited)

Fiscal year to
(in thousands of dollars) Planned expenditures for the year ending March 31, 2026Footnote 1 Expended during the quarter ended June 30, 2025 Year-to-date used at quarter end
Expenditures
Personnel 2,119,237 534,222 534,222
Transportation and communications 79,326 9,239 9,239
Information 3,107 853 853
Professional and special services 485,132 61,465 61,465
Rentals 13,496 5,601 5,601
Repair and maintenance 58,445 2,567 2,567
Utilities, materials and supplies 58,296 3,158 3,158
Acquisition of land, buildings and works 89,557 2,975 2,975
Acquisition of machinery and equipment 90,925 5,590 5,590
Transfer payments 0 0 0
Other subsidies and payments 24,481 3,148 3,148
Total gross budgetary expenditures 3,022,002 628,818 628,818
Less revenues netted against expenditures
Sales of services 29,030 6,822 6,822
Other revenue 0 0 0
Total revenues netted against expenditures 29,030 6,822 6,822
Total net budgetary expendituresFootnote 2 2,992,972 621,996 621,996
Fiscal year to
(in thousands of dollars) Planned expenditures for the year ending Footnote 1 Expended during the quarter ended Year-to-date used at quarter end
Expenditures
Personnel 1,784,923 481,718 481,718
Transportation and communications 88,047 11,127 11,127
Information 3,566 740 740
Professional and special services 592,691 49,624 49,624
Rentals 19,125 1,473 1,473
Repair and maintenance 63,621 3,582 3,582
Utilities, materials and supplies 37,321 2,991 2,991
Acquisition of land, buildings and works 82,255 1,839 1,839
Acquisition of machinery and equipment 122,508 4,552 4,552
Transfer payments 0 0 0
Other subsidies and payments 38,202 3,419 3,419
Total gross budgetary expenditures 2,832,259 561,065 561,065
Less revenues netted against expenditures
Sales of services 24,030 7,146 7,146
Other revenue 0 -13 -13
Total revenues netted against expenditures 24,030 7,133 7,133
Total net budgetary expendituresFootnote 2 2,808,229 553,932 553,932

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