Canada Border Services Agency Quarterly Financial Report:
December 31, 2019

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, Supplementary Estimates A, Canada’s Economic Action Plan 2018 (Budget 2018) and Canada’s Economic Action Plan 2019 (Budget 2019).

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.

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 and Supplementary Estimates (as applicable) for the 2018 to 2019 and 2019 to 2020 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 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 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 December 31, 2019.

2.1 Significant changes to authorities

For the period ending December 31, 2019, the authorities provided to the CBSA comprise of the Main Estimates, Treasury Board (TB) approved Budget 2019 measures included in the Budget Implementation Act, Supplementary Estimates A and any unused spending authorities carried forward from the previous fiscal year. For the period ending December 31, 2018, the authorities provided to the CBSA comprise of the Main Estimates, Supplementary Estimates A & B and any unused spending authorities carried forward from the previous fiscal year.

The statement of authorities (Table 1) presents a net decrease of $50.0 million or 2.0% of the Agency’s total authorities of $2,451.1 million at December 31, 2019 compared to $2,501.1 million total authorities at the same quarter last year.

This net decrease in the authorities available for use is the result of a decrease in vote 1 – Operating Expenditures of $62.9 million, a decrease in vote 5 – Capital of $19.2 million and an increase in budgetary statutory authorities of $32.1 million, as detailed below

Vote 1: Operating^{Footnote 1}

The agency’s vote 1 operating decreased by $62.9 million or 3.1%, which is attributed to the net effect of the following significant items (excluding the statutory authorities):

Increases are mainly attributed to:

• $105.1 million in funding for enhancing the integrity of Canada's borders and asylum system^{Footnote 2}
• $79.1 million in funding for economic increases for signed collective agreements and salary awards
• $61.3 million in funding for sustainability and modernization of Canada's border operations
• $17.5 million as described in the CBSA Supplementary Estimates (A) for fiscal year 2019 to 2020
• $12.9 million in funding for helping travellers visit Canada
• $12.4 million in funding for the 2018 to 2020 Immigration Levels Plan
• $4.9 million in funding for addressing the challenges of African swine fever
• $4.6 million in funding to strengthen investigative and compliance capacity under the Special Import Measures Act and to monitor imports
• $3.5 million in funding to take action against gun and gang violence and
• $13.4 million in funding for various other projects

Decreases are mainly attributed to:

• $205.1 million for Treasury Board Vote 15 - Compensation Allocations
• $85.7 million in funding compared to the third quarter of fiscal year 2018 to 2019 for CBSA Supplementary Estimates (B)
• $26.0 million in funding for irregular migration enforcement^{footnote 2}
• $21.3 million due to a smaller carry forward of unused spending authorities
• $7.8 million in funding to expand biometrics screening in Canada's immigration proceedings
• $6.7 million in funding for the Budget 2018 fiscal dividend
• $6.1 million in funding for Treasury Board Vote 30 - Paylist Allocations related to parental and maternity allowances, entitlements on cessation of service or employment
• $5.9 million in funding to enhance the Passenger Protection Program (PPP)
• $1.4 million in funding to remove the visa requirement for citizens of Mexico
• $1.3 million in funding for the CBSA Assessment and Revenue Management project (CARM) and
• $10.3 million in funding for various other projects

Vote 5: Capital

The agency’s vote 5 capital decreased by $19.2 million or 7.3%, which is attributed to the net effect of the following significant items:

Increases are mainly attributed to:

• $23.4 million as described in the CBSA Quarterly Financial Report for the quarter ended June 30, 2019
• $13.0 million as described in the CBSA Quarterly Financial Report for the quarter ended September 30, 2019
• $45.8 million as described in the CBSA Supplementary Estimates (A) for fiscal year 2019 to 2020

Decreases are mainly attributed to:

• $95.7 million as described in the CBSA Quarterly Financial Report for the quarter ended June 30, 2019
• $3.2 million in funding to address the opioid crisis and
• $2.4 million in funding compared to the third quarter of fiscal year 2018 to 2019 for CBSA Supplementary Estimates (B)

Budgetary statutory authorities

The agency’s statutory authority related to the employee benefit plan (EBP) increased by $32.1 million, or 16.7% from the previous year.

2.2 Explanations of significant variances in expenditures from previous year

As indicated in the statement of authorities (Table 1), the agency’s expenditures for year-to-date, at quarter end December 31, 2019 were $1,426.0 million, as compared to $1,504.8 million for year-to-date, quarter ending December 31, 2018. The net decrease of $78.8 million or 5.2% in expenditures is mainly due to the following items:

• Decrease of $98.1 million or 7.5% in Vote 1 Operating Expenditures year-to-date used at quarter end ($1,210.7 million versus $1,308.8 million same time last year). The bulk of the difference in spending is attributed to a decrease in personnel expenditures due to the ratification of the collective agreement for the Border Service Group (FB) and associated back pay adjustment, which occurred in the second quarter of fiscal year 2018 to 2019
• Increase of $3.8 million or 5.6% in Vote 5 Capital Expenditures year-to-date used at quarter end ($72.0 million versus $68.2 million at the same time last year). The increase in expenditures is mainly related to the use of IT consultants to advance the CBSA Assessment and Revenue Management (CARM) project
• Increase of $15.5 million in statutory expenditures

As indicated in the departmental budgetary expenditures by standard object (table 2), the increases by standard object are mainly attributed to:

• Decrease of $135.2 million in personnel costs as a result of the ratification of the collective agreement for the Border Services Group (FB) and associated back pay adjustment which occurred in the second quarter of fiscal year 2018 to 2019
• Increase of $45.0 million in Professional and special services as a result of information management consultants and property management fees

The planned revenue from the sales of services reflects the agency’s revenue respending authority. The year-to-date revenue from the charge of services has increased by $3.3 million or 20.9% due to increases in fees collected from the NEXUS program.

3. Risks and uncertainties

No additional risks and uncertainties were identified other than those previously mentioned in the CBSA Quarterly Financial Report for the quarter ended June 30, 2019 and in the CBSA Quarterly Financial Report for the quarter ended September 30, 2019.

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

4.1 Key senior personnel

Effective November 20th, The Honourable Bill Blair became the new Minister of Public Safety and Emergency Preparedness.

Effective October 28th, Louise Youdale became the new Vice-President of the Human Resources Branch.

5. Approval by senior officials

6. Table 1: Statement of authorities (unaudited)

7. Table 2: Departmental budgetary expenditures by standard object, in thousands of dollars (unaudited)

Date modified:

2020-02-28