Quarterly Financial Report for the quarter ended June 30, 2024

1. Introduction

This quarterly 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 Treasury Board. This quarterly report should be read in conjunction with the 2024-25 Main Estimates Part II and the 2023-24 Quarterly Financial Report for the quarter ended June 30, 2023.

A summary description of Immigration, Refugees and Citizenship Canada (IRCC) programs may be found in Part II of the Main Estimates and the 2024-25 Departmental Plan.

1.1 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Department’s spending authorities granted by Parliament and those used by the Department consistent with the Main Estimates for the 2024-25 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 money 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.

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 Report process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.2 IRCC’s Financial Framework

In order to deliver on its mandate, IRCC is funded through three budgetary mechanisms:

i. Appropriations

• Voted appropriations:
  • Vote 1 – Operating Expenditures;
  • Vote 5 – Capital Expenditures; and
  • Vote 10 – Grants and Contributions (G&C)
• Special Purpose Allotments including the Interim Federal Health Program and the Immigration and Refugee Protection Act’s Division 9.
• Budgetary statutory authorities is comprised of Employee Benefit Plan.

ii. Vote-Netted Revenue (VNR under Vote 1)

• International Experience Canada (IEC) Program

iii. Revolving Fund

• Statutory authorities also includes the Passport Program Revolving

Additionally, IRCC’s non-budgetary authorities consist of Immigration loans, mainly to resettled refugees to help defray the cost of their travel to Canada and to their final destination within Canada.

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

The 2024-25 Main Estimates include authorities that were approved up until January 2024. Funding approved afterwards is sought via the Supplementary Estimates process.

In 2024-25, IRCC’s total authorities as at June 30, 2024 include full supply for the Main Estimates and incremental funding provided through the Supplementary Estimates (A) to provide health care services to refugees and asylum seekers under the Interim Federal Health Program, to ensure that provinces and municipalities are provided reimbursements for cost incurred in the housing of asylum claimants as part of the Interim Housing Assistance Program, to continue providing temporary accommodations and support services to asylum claimants and to proceed with building Canada’s modern, digital and data-driven migration system.

A. Significant changes to authorities

The following table shows the total budget available for use by IRCC. Only authorities available for use and granted by Parliament as at June 30, 2024 are included.

IRCC’s total budgetary authorities available for use in fiscal year 2024-25 increased by approximately $77.0 million (2%) compared to the same quarter in 2023-24.

i. Authorities for Vote 1 – Operating Expenditures

The Department’s Vote 1 – Operating Expenditures authorities decreased by $285.1 million (12%), which is mainly explained by the following items:

• Decrease in funding of $226.5 million related to the temporary accommodations and support services provided to asylum claimants;
• Decrease in funding of $103.4 million as the department realized its commitment to resettle 40,00 Afghan nationals by the end of 2023;
• Decrease in funding of $77.1 million due to funding fluctuations related to IRCC’s immigration approach to provide temporary and permanent pathways to bring Ukrainian Nationals and their families to safety in Canada;
• Decrease in funding of $57.8 million related to the provision of health care services to refugees and asylum seekers under the Interim Federal Health Program;
• Decrease in funding of $45.3 million following the Budget 2023 announcement on Refocusing Government Spending;
• Decrease in funding of $27.8 million due to funding fluctuations related to the Digital Platform Modernization Initiative;
• Decrease in funding of $17.4 million related to transfers to Global Affairs Canada to support departmental staff located at missions abroad;
• New funding of $13.5 million to support the International Student Program and visa centres through Canada's Indo-Pacific Strategy and the Asia Pacific Foundation of Canada;
• New funding of $46.5 million to stabilize resources available for temporary resident processing;
• Incremental funding of $77.2 million to address negotiated salary increases arising from newly signed collective agreements and other compensation-related adjustments for agreements; and
• Incremental funding of $116.7 million to implement the multi-year Immigration Levels Plans.

ii. Authorities for Vote 5 – Capital Expenditures

The Department’s Vote 5 – Capital Expenditures authorities decreased by $6.2 million (34%), which is mainly explained by the following items:

• Decrease in funding of $4.3 million due to funding fluctuations related to enhance the integrity of Canada’s borders and asylum system;
• Decrease in funding of $4.3 million related to an internal transfer to Vote 1 to meet operational requirements;
• Incremental funding of $1.2 million to support the implementation of the administrative penalties regime under the Immigration and Citizenship Consultants project;
• Incremental funding of $1.1 million to create a new Agriculture and Fish Processing stream within the Temporary Foreign Worker Program.

iii. Authorities for Vote 10 – Grants and Contributions (G&C)

The Department’s Vote 10 – Grants and Contributions authorities increased by $315.6 million (13%), which is mainly explained by the following items:

• Incremental funding of $316.7 million to implement the multi-year Immigration Levels Plans;
• Funding of $314.5 million carried over from 2023-24 to compensate provinces and municipalities for the interim housing of asylum claimants under the Interim Housing Assistance Program (IHAP);
• Incremental funding of $48.3 million for the grant related to the Canada-Quebec Accord on Immigration;
• Decrease in funding of $259.3 million as the department realizes its commitment to resettle 40,00 Afghan nationals by the end of 2023; and
• Decrease in funding of $127.3 million due to funding fluctuations related to IRCC’s immigration approach to provide temporary and permanent pathways to bring Ukrainian Nationals and their families to safety in Canada.

iv. Budgetary Statutory Authorities

The 2024-25 statutory authority level in the first quarter increased by $52.7 million (37%) compared to 2023-24, which is explained as follows:

• An increase of $34.5 million in the Passport Program as a result of a slight increase in revenues offset by a net increase in planned expenditures mainly due to newly signed collective agreements and an increase in freight and material costs reflective of the deployment of the ePassport Next Generation Project;
• An increase of $13.3 million for the Employee Benefit Plans as a result of new personnel funding received in Vote 1 – Operating Expenditures; and
• An increase of $4.9 million related to other statutory authorities.

B. Significant changes to departmental budgetary expenditures by standard object

Quarter over quarter analysis

The following table shows IRCC’s budgetary expenditures and revenues netted against expenditures for the period, and their comparison with the same period last fiscal year.

Note: Numbers may not add up due to rounding.

The total gross budgetary expenditures during the quarter ending June 30, 2024 increased by $38.3 million (3%) compared to the same quarter in 2023-24, which is mainly explained as follows:

i. Salaries and Employment Benefits have increased by $36.7 million (13%) which is mainly attributable to increases in full-time equivalents to support various initiatives such as the implementation of the multi-year Immigration Levels Plan; the stabilization of resources available for Temporary Resident processing, and the implementation of the Digital Platform Modernization. The increase is also attributable to salary increases arising from newly signed collective agreements and other compensation-related adjustments for agreements.

ii. Transportation and Communications expenditures have increased by $5.1 million (37%) related to courier services due to an increase in the volume of travel documents seen this quarter compared to the quarter ended June 30, 2023.

iii. Professional and Special Services expenditures have increased by $24.3 million (10%) which is mainly related to an increase in reimbursements paid to Interim Federal Health Program (IFHP) health-care providers due to an increase in users, and International Organization for Migration (IOM) billing delays predominantly in fiscal year 2023-24; as well as an increase in payments this quarter to Employment and Social Development Canada (ESDC) for the passport delivery services as a result of the increase in passport volumes and associated processing cost. These increases are offset by a decrease in temporary accommodation to support Ukrainian nationals; a decrease in cloud credits due to the timing of the purchase this fiscal year, a decrease in payments to Shared Service Canada for the GCMS Disaster Recovery due to billing delays; as well as the increased impact of the Refocusing Government Spending reduction in 2024-25.

iv. Rentals expenditures have decreased by $3.7 million (4%) which is attributed to a decrease in temporary accommodation costs following a decrease in asylum claimants seen so far this fiscal year compared to the first quarter of 2023-24 and a difference in timing for the payment of invoices between the two fiscal years.

v. Utilities, Materials and Supplies expenditures have increased by $5.2 million (60%) which is attributable to lower expenses in the first quarter of 2023-24 due to an accumulated passport inventory, a higher volume of passports issued this quarter and an increase in freight costs.

vi. Transfer Payments have decreased by $43.0 million (5%) which is mainly explained by decreased payments to refugees under the Resettlement Assistance Program (RAP), as well as decreased payments to local non-profit organizations and other international organizations under the RAP program in support of the Afghanistan commitment. The decrease is also offset by an increase in spending for the Canada-Quebec Accord.

vii. Other Subsidies and Payments have increased by $15.3 million (189%) which is mainly explained by an increase in remission payments on service fees under the passport program as a consequence of the passport delivery outside service standards; as well as an increase in refunds of revenues collected in previous years from applicants for services that were not rendered.

Through the Passport Program and International Experience Canada, IRCC generated $175.1 million and $3.4 million respectively in re-spendable revenues in the first quarter of 2024-25. Overall, this resulted in net budgetary expenditures of $1,319.5 million as of June 30, 2024, compared to $1,332.3 million in the same quarter of 2023-24.

i. Passport re-spendable revenues have increased by $50.5 million (41%) compared to the same quarter in the previous fiscal year due to an increase in issued passports and to a higher proportion of adult passports that went from 59% to 78% respectively.

ii. International Experience Canada revenues have increased by $0.6 million (22%) compared to the same quarter in the previous fiscal year as a result of an increase in the number of participants in the Program.

3. Risks and Uncertainties

IRCC operates in a constantly changing environment. Its strategic directions as well as its policies and operations are influenced by external factors such as emerging events, impacts of climate change on migration, the Canadian and global economic, social or political contexts, increasing cyber security threats and shifting migration trends.

Internal or management risks also may present as threats, opportunities or events that may influence the operations and service delivery of the Department. Risks such as system outages or the potential for workplace disruptions have a direct impact on IRCC’s ability to deliver on its mandate and are therefore also factored into the Department’s forward thinking and planning.

Given IRCC’s ongoing efforts to review the scope of its mandate and modernize its organization, operations, and service delivery model, the department will operate in a challenging environment and is expected to continue to maintain pace and focus on the breadth of challenges, innovations and opportunities it seeks to address.

3.1 Crisis Management

It has become evident that unforeseen negative events can have significant effects on IRCC’s operations. They can affect IRCC directly when they occur in places where our offices and employees are located and may also affect the Department’s clients.

Moreover, the Department continues to facilitate the evacuation of Afghan, Ukraine, and Uyghurs nationals and to help them settle in Canada, and support the implementation of the Gazan, Sudanese and Americas humanitarian pathways. Adding to these crises, the Department continues to monitor and manage irregular migration crossings at the Canada-US border, as well as an increased demand for services such as passports. While IRCC works towards addressing these emerging priorities, efforts remain in place towards improving its own internal processes and systems through change initiatives.

3.2 Litigation and Legal

IRCC operates in a very high volume litigation environment which includes complex, high profile and high impact files. Sound management practices are in place to manage all of these challenges in a consistent and coordinated fashion, including consultations with Justice and other partner departments.

4. Significant Changes in Relation to Operations, Personnel and Programs

On January 12, 2024, the Prime Minister announced changes in the senior management ranks of the Public Service. Among those changes was the news that, effective January 27, 2024, Christiane Fox would take on a new role as Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet. Consequently, Dr. Harpreet S. Kochhar was appointed Deputy Minister of IRCC.

There have been no other significant changes in relation to operations, personnel and programs during the quarter.

Approved by Senior Officials

Approved by:

Note: Numbers may not add up due to rounding.