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Statement outlining results, risks and significant changes in operations, personnel and programs
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 the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.
A summary description of the Canada Border Services Agency (CBSA) program activities can be found in Part II of the Main Estimates.
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the CBSA's spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary 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.
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.
As part of the departmental performance reporting process, the CBSA prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian Generally Accepted Accounting Principles (GAAP) for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.
The quarterly report has not been subject to an external audit or review.
This section highlights the significant items that contributed to the net increase in resources available for the year and actual expenditures for the quarter ended June 30.
Graph 1:
As at June 30, 2011, total authorities available for the year have increased by $214.4 million, or 13% compared to the same quarter of the previous year, from $1,632.1 million in 2010-11 (comprised of Main Estimates and Supplementary Estimates (A)) to $1,846.5 million in 2011-12 (comprised of Main Estimates only).
Total authorities variance in Main Estimates only was an increase of $227.1 million, from $1,619.4 million to $1,846.5 million, once Supplementary Estimates (A) funding is excluded. There was $12.7 million in Supplementary Estimates (A) funding in 2010-11 and none in 2011-12.
The $227.1 million increase is mainly made up of the following items that have been grouped into four main categories, cash flow (redistribution of funding), growth (new funding), technical adjustments and off-sets (funding cuts):
Compared to the previous year, total gross budgetary expenditures recorded in the first quarter, ending June 30, 2011 increased by $27.9 million, from $384.2 million to $412.1 million as per the Table 1: Departmental budgetary expenditures by Standard Object. This represents an increase of 7.26% of expenditures recorded for the same period in 2010-2011.
Personnel expenditures have increased by $18.1 million from $282 million to $300.1 million, while professional and special services have increased by $10.5 million, from $77.2 million to $ 87.7 million.
Total expenditure and authority increases have not increased proportionately for the first quarter from 2010-11 to 2011-12. This is as a result of general project delays and timing of expenditures, as certain projects expenditures have not yet been incurred.
To a large extent, the movement of people and goods across the border is driven by factors beyond the CBSA's control, including economic and social factors, both in Canada and globally. This makes it difficult for the Agency to predict with certainty the type and volume of its workload from year to year.
Internal risks having a potential financial impact include:
This Departmental Quarterly Financial Report (QFR) reflects the results of the current fiscal period in relation to the Main Estimates (and Supplementary Estimates (A) as applicable) for which full supply was released on June 27, 2011.
Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-11 levels for the fiscal years 2011-12 and 2012-13. Management is reviewing various options to adjust to this constraint in funding and the impacts on departmental activities have been managed through mitigation strategies.
Budget 2011 announced that departmental budgets would be examined through a Strategic and Operating Review. Pursuant to this review, it is expected that future years' budgets will be reduced for fiscal years commencing in 2012-13. However, at this time the nature and extent of any reductions are not known.
There have been a number of changes to senior level personnel, most notably the appointment of a new President on November, 2010 and new Executive Vice-President on January 31, 2011.
There have also been significant internal changes in relation to operations, personnel and programs over the last year, all in an effort to build a more robust and adaptive Agency that can better react to any program and/or service delivery situations. Key examples of these changes include the Agency's Change Agenda and Strategic Review implementations.
Approval by Senior Officials
Approved by:
Fiscal Year 2011-2012 | Fiscal Year 2010-2011 | ||||||
---|---|---|---|---|---|---|---|
(in thousands of dollars) | Total available for use for the year ending March 31, 2012* | Used during the quarter ended June 30, 2011 | Year-to-date used at quarter end | Total available for use for the year ending March 31, 2011* | Used during the quarter ended June 30, 2010 | Year-to-date used at quarter end | |
Vote 10 - Net Operating Expenditures | 1,551,632 | 358,539 | 358,539 | 1,360,688 | 341,029 | 341,029 | |
Vote 15 - Capital Expenditures | 113,930 | 8,285 | 8,285 | 107,692 | 2,155 | 2,155 | |
Budgetory statutory authorities | 0 | 0 | 0 | 0 | 0 | 0 | |
Employee benefit plans | 180,893 | 45,223 | 45,223 | 163,702 | 40,926 | 40,926 | |
Other | 47 | 47 | 74 | 74 | |||
Total Budgetary authorities | 1,846,456 | 412,094 | 412,094 | 1,632,082 | 384,184 | 384,184 |
* Includes authorities available for use and granted by Parliament at quarter-end
Fiscal Year 2011-2012 | Fiscal Year 2010-2011 | ||||||
---|---|---|---|---|---|---|---|
(in thousands of dollars) | Planned expenditures for the year ending March 31, 2012* | Expended during the quarter ended June 30, 2011 | Year-to-date used at quarter end | Planned expenditures for the year ending March 31, 2011* | Expended during the quarter ended June 30, 2010 | Year-to-date used at quarter end | |
Expenditures: | |||||||
Personnel | 1,185,854 | 300,106 | 300,106 | 1,129,642 | 281,993 | 281,993 | |
Transportation and communications | 77,090 | 10,166 | 10,166 | 76,794 | 10,121 | 10,121 | |
Information | 2,834 | 186 | 186 | 2,244 | 133 | 133 | |
Professional and special services | 389,846 | 87,657 | 87,657 | 283,481 | 77,152 | 77,152 | |
Rentals | 10,450 | 1,248 | 1,248 | 5,833 | 1,315 | 1,315 | |
Repair and maintenance | 31,583 | 2,437 | 2,437 | 21,254 | 3,318 | 3,318 | |
Utilities, materials and supplies | 34,281 | 2,285 | 2,285 | 22,591 | 2,152 | 2,152 | |
Acquisition of land, buildings and works | 25,763 | 6,387 | 6,387 | 86,726 | 3,063 | 3,063 | |
Acquisition of machinery and equipment | 84,083 | 1,141 | 1,141 | 18,517 | 3,392 | 3,392 | |
Transfer payments | 0 | 0 | 0 | 0 | 0 | 0 | |
Other subsidies and payments | 14,381 | 447 | 447 | 2,709 | 1,545 | 1,545 | |
Total gross budgetary expenditures | 1,856,166 | 412,060 | 412,060 | 1,649,792 | 384,184 | 384,184 | |
Less Revenues netted against expenditures: | |||||||
Sales of Services | (9,710) | 0 | 0 | (17,710) | 0 | 0 | |
Other Revenue | 0 | (34) | (34) | 0 | 0 | 0 | |
Total Revenues netted against expenditures: | (9,710) | (34) | (34) | (17,710) | 0 | 0 | |
Total net budgetary expenditures | 1,846,456 | 412,026 | 412,026 | 1,632,082 | 384,184 | 384,184 |
* Includes authorities available for use and granted by Parliament at quarter-end