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 2021 to 2022 and 2022 to 2023 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.

2.1 Significant changes to authorities

For the period ending December 31, 2022, the authorities provided to the CBSA comprise the Main Estimates, Supplementary Estimates B, and any unused spending authorities carried forward from the previous fiscal year.

The statement of authorities (Table 1) presents a net increase of $348.2 million or 14.3% of the Agency’s total authorities of $2,785.2 million on December 31, 2022, compared to $2,437.0 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 $250.4 million and an increase in Vote 5 – Capital of $56.5 million.

The Agency’s Statutory Authority related to the employee benefit plan (EBP) increased by $41.3 million, or 21.7% 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 ended December 31, 2022, were $1,767.3 million, as compared to $1,551.8 million for year-to-date, quarter ended December 31, 2021. The net increase of $215.4 million or 13.9% in expenditures is mainly due to the following items:

• Increase of $209.4 million or 15.7% in Vote 1 Operating Expenditures year-to-date used at quarter end. The increase in expenditures is mainly attributed to an increase in personnel expenditures, which are comprised of salary (including impact of newly negotiated collective agreements), overtime and vacation expenses.
• Decrease of $10.3 million or 13.4% in Vote 5 Capital Expenditures year-to-date used at quarter end. The decrease in expenditures is mainly attributed to a decrease in Facilities Capital Projects.
• Increase of $16.3 million or 11.4% in statutory expenditures.

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

• Increase of $178.5 million for Personnel due to salaries (including impact of newly negotiated collective agreements), overtime pay, meal allowance and vacation expenses.
• Increase of $19.7 million for Professional and Special Services can be attributed to a $11.0M increase for information technology consultants and a $8.7M increase in other professional services.
• Increase of $15.6 million for the Acquisition of machinery and equipment can mainly be attributed to a $4.6M increase in computer equipment, a $3.8M increase in video equipment and a $2.6M increase in laboratory equipment.
• Increase of $12.7 million for Transportation and Communications can be explained by a $12.0M increase in travel, following the lifting of COVID-19 restrictions.
• Increase of $7.8 million in revenues netted against the expenditures.
• Increase of $4.9 million in Repair and Maintenance can mainly be attributed to an increase in computer repairs, hardware & software and an increase in facilities non-capital projects.
• Increase of $2.3 million in Other Subsidies and Payments mainly due to an increase in claims against the Crown.
• Decrease of $13.8 million in Acquisition of Land, Buildings and Equipment due to a decrease in facilities capital projects.

Graph 2: Comparison of vote netted revenue and revenue collected as of December 31, 2021, and December 31, 2022 (in thousands $)

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 $7.8 million or 77.5% due to the reopening of borders and increased travel after the lifting of COVID-19 restrictions. The increased travel has resulted in higher revenues collected in programs such as Nexus.

4.1 Key senior personnel

Holly Flowers Code was appointed as the new Vice-President of the Human Resources Branch on December 19, 2022.

4.2 Operations

On October 1, 2022, the Government of Canada removed all COVID-19 entry restrictions, as well as testing, quarantine, and isolation requirements for anyone entering Canada. All travelers, regardless of citizenship, no longer have to:

• submit public health information through the ArriveCAN app or website
• provide proof of vaccination
• undergo pre- or on-arrival testing
• carry out COVID-19-related quarantine or isolation
• monitor and report if they develop signs or symptoms of COVID-19 upon arriving to Canada

Also on October 1, 2022, as part of the Traveller Modernization initiative, the Agency started to allow travellers to submit their customs and immigration declaration in advance of their arrival at several major airports by using the ArriveCan app (the previous CanBorder eDeclaration app was decommissioned). Since then, the use of the advance CBSA declaration feature in ArriveCan has been expanded to include the Halifax Stanfield International Airport and Quebec City’s Jean Lesage International Airport. Furthermore, Vancouver International Airport launched dedicated express lanes for travellers who submit their customs and immigration information in advance using ArriveCAN. For more information on the costs to develop, operate and maintain the ArriveCAN application, please consult ArriveCAN costs.