Passport Canada Revolving Fund

Public Accounts of Canada 2025 Volume III—Top of the page Navigation

Statement of management responsibility

We have prepared the accompanying financial statements of the Passport Canada Revolving Fund as required by and in accordance with the Treasury Board Directive on Charging and Special Financial Authorities and with the Receiver General reporting requirements. These financial statements were prepared by the management of the Fund in accordance with the significant accounting policies set out in note 2 of the financial statements, on a basis consistent with that of the preceding year.

Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, the Fund maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Results Report is consistent with these financial statements.

The Fund's directorate of financial services develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of accounting and financial management. The Fund maintains systems of financial management and internal control which gives due consideration to costs, benefits and risks. The systems are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of Government funds and safeguard the assets under the Fund's administration. Financial management and internal control systems are augmented by the maintenance of internal audit programs. The Fund also seeks to ensure the objectivity and integrity of data in its financial statements by the careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that its regulations, policies, standards and managerial authorities are understood throughout the organization.

Approved by:

Nathalie Proulx, CPA
Acting / Chief Financial Officer Officer | Assistant Deputy Minister
Chief Financial Officer Officer Sector
Immigration, Refugees and Citizenship Canada

June 13, 2025
Gatineau, Canada

**Table 1:Statement of authority used (unaudited) for the year ended March 31, 2025**^{Links to footnote * in Table 1}
(in thousands of dollars)
	Estimates^{Links to footnote 1 in Table 1}	Actual	Estimates^{Links to footnote 1 in Table 1}	Actual
	2025		2024
Net results	(negative 28,645)	(negative 96,320)	7,858	(negative 153,505)
Items not requiring use of funds	546	3,178	559	1,358
Operating source (use) of funds	(negative 28,099)	(negative 93,142)	8,417	(negative 152,147)
Items requiring use of funds :
Net tangible capital assets acquisitions	(negative 12,999)	(negative 3,878)	(negative 15,000)	(negative 6,472)
Net other assets and liabilities	–	(negative 23,607)	–	57,257
Authority used	(negative 41,098)	(negative 120,627)	(negative 6,583)	(negative 101,362)
Table 1 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 1 Table note 1 The amounts in the current and previous year "Estimates" columns result from, when available, the current year's Estimates, Part II—Main Estimates. Return to table note 1 referrer in Table 1

**Table 2:Reconciliation of unused authority (unaudited) as at March 31, 2025**
(in thousands of dollars)
	2025	2024
Debit balance in the accumulated net charge against the Fund's authority	104,020	249,622
Payables charged against the appropriation at year-end	(negative 62,917)	(negative 92,741)
Receivables credited to the appropriation at year-end	32,408	37,257
Net authority provided, end of year	73,511	194,138
Unused authority carried forward	73,511	194,138

**Table 3:Statement of financial position (unaudited) as at March 31, 2025**^{Links to footnote * in Table 3}
(in thousands of dollars)
Assets
	2025	2024
Financial assets
Accounts receivable (note 3)	33,923	38,856
Inventory held for resale (note 4)	23,441	24,041
Total financial assets	57,364	62,897
Non-financial assets
Prepaid expenses (note 5)	38,938	39,943
Inventory held for consumption (note 4)	7,742	5,930
Tangible capital assets (note 6)	17,798	17,156
Total non-financial assets	64,478	63,029
Total assets	121,842	125,926
Liabilities
Accounts payable and accrued liabilities (note 7)	72,544	103,587
Vacation pay and compensatory leave	5,401	5,704
Deferred revenue (note 8)	19,683	41,645
Employee future benefits (note 9)	1,661	1,719
Total liabilities	99,289	152,655
Net assets (liabilities) (note 10)	22,553	(negative 26,729)
Net financial position of the Fund	121,842	125,926
Table 3 notes General notes: Contractual obligations (note 11) Contingent liabilities (note 12) The accompanying notes form an integral part of these financial statements. Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 3

**Table 4:Statement of operations and net assets (liabilities) (unaudited) for the year ended March 31, 2025**^{Links to footnote * in Table 4}
(in thousands of dollars)
Revenues
	2025	2024
Fees earned	631,494	553,732
Funding to stabilize the Passport Program	–	25,000
Miscellaneous revenues	337	371
Total revenues	631,831	579,103
Expenses
Professional and special services	457,591	474,987
Salaries and employee benefits	106,449	117,168
Passport materials	60,745	40,425
Freight, express and cartage	56,910	57,443
Passport operations at missions abroad	20,476	19,003
Rentals	8,743	10,194
Accommodation	5,188	4,715
Printing, stationery and supplies	4,906	3,422
Amortization of tangible capital assets	3,175	1,414
Information	2,926	2,578
Travel and relocation	559	811
Repair and maintenance	137	262
Other	346	186
Total expenses	728,151	732,608
Net results	(negative 96,320)	(negative 153,505)
Net liabilities, beginning of year	(negative 26,729)	(negative 20,813)
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year	145,602	147,589
Net assets (liabilities), end of year (note 10)	22,553	(negative 26,729)
Table 4 notes General notes: The accompanying notes form an integral part of these financial statements. Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 4

**Table 5:Statement of cash flows (unaudited) for the year ended March 31, 2025**^{Links to footnote * in Table 5}
(in thousands of dollars)
Operating activities
	2025	2024
Net results	(negative 96,320)	(negative 153,505)
Items not requiring use of funds
Amortization of tangible capital assets	3,175	1,414
Net loss on disposal of tangible capital assets	61	–
Provision for employee future benefits	(negative 58)	(negative 56)
Subtotal	(negative 93,142)	(negative 152,147)
Variations in statement of financial position
Decrease (increase) in accounts receivable	4,933	(negative 10,316)
Decrease (increase) in prepaid expenses	1,005	(negative 2,662)
Decrease (increase) in inventory held for resale	600	8,401
Decrease (increase) in inventory held for consumption	(negative 1,812)	239
Increase (decrease) in accounts payable and accrued liabilities	(negative 31,043)	(negative 26,540)
Increase (decrease) in vacation pay and compensatory leave	(negative 303)	263
Increase (decrease) in deferred revenue	(negative 21,962)	41,645
Net financial resources used by operating activities	(negative 141,724)	(negative 141,117)
Capital investing activity
Acquisitions of tangible capital assets	(negative 3,878)	(negative 6,472)
Net financial resources used and change in the accumulated net charge against the Fund's authority during the year	(negative 145,602)	(negative 147,589)
Accumulated net charge against the Fund's authority, beginning of year	249,622	397,211
Accumulated net charge against the Fund's authority, end of year (note 10)	104,020	249,622
Table 5 notes General notes: The accompanying notes form an integral part of these financial statements. Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 5

Notes to the financial statements (unaudited) for the year ended March 31, 2025

1. Authority and purpose

The Passport Canada Revolving Fund (the Fund) was established in 1969 to provide for the issuance of passports and other travel document services in Canada and at posts abroad. The Revolving Funds Act authorizes the operation of the Fund.

The Fund has a continuing non-lapsing authority from Parliament, in the amount of $1, to make payments out of the Consolidated Revenue Fund for working capital and tangible capital acquisitions.

2. Significant accounting policies

The financial statements have been prepared in accordance with the reporting requirements of the Receiver General for Canada for revolving funds. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because:

the net debt indicator and the statement of change in net debt are not presented in the financial statements;
the services received without charge from other government departments and agencies are not reported as expenses;
the expenses are reported by type in the statement of operations and net assets (liabilities) and not by function or major program; and
no liability is recorded for sick leave.

Significant accounting policies are as follows:

(a) Revenues and deferred revenues

The recognition of revenue from passport fees is deferred until a final decision has been made. Deferred revenue consists of amounts received in advance for the delivery of goods and provision of services that will be recognized as revenue in a subsequent fiscal year when it will be earned.

In 2024–2025, no revenue was recognized to stabilize the Passport Program. In 2023–2024, $25 million in one-time funding was recognized for this purpose and was not a result of the Passport Office's recurring activities. This one-time injection of funds was needed after historically low application volumes followed by an increase in demand in recent years. The Passport Program strives to balance service delivery standards with the need to maintain the integrity and international reputation of the Canadian passport, while delivering services as cost-effectively as possible. These funds served to support client access to passport services, maintain processing capacity within service standards and to safeguard against passport service delivery issues.

(b) Expenses

Expenses are recorded on an accrual basis.

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective term of employment.

(c) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables when a recovery is considered uncertain.

(d) Inventory

Inventory of materials and supplies is carried at the lower of cost (using the average cost method) and net realizable value.

(e) Tangible capital assets

Tangible capital assets are recorded at cost and amortized on a straight-line basis over their estimated useful lives, as follows:

**Depreciation policy**
Asset class	Amortization period
Office furniture	10 years
Vehicles	8 years
Informatics hardware	5 to 10 years
Software (purchased and developed)	3 to 10 years
Machinery and equipment	15 years
Leasehold improvements	Lesser of the remaining term of the lease or estimated useful life of the improvement

Assets under construction are recorded in the applicable capital asset class in the year they became ready for productive use and are not amortized until then.

(f) Employee future benefits

Pension benefits

Eligible employees of the Fund participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada. The Fund's contributions to the Plan are charged to expenses in the year incurred and represent the Fund's total obligation to the Plan. The Fund's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

Severance benefits

The accumulation of severance benefits for voluntary departures ceased for substantially all employees. The remaining obligation for the Fund's employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If it is probable that the future event will or will not occur and a reasonable estimate of the loss can be made, a provision is made and an expense recorded. If the likelihood of the event is not determinable or a reasonable estimate cannot be made, the contingency is disclosed in the notes to the financial statements.

(h) Measurement uncertainty

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes as at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the deferred revenues, the liability for employee future benefits, the estimated useful life of tangible capital assets, contingent liabilities and the allowance for doubtful accounts. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Accounts receivable

The following table presents details of the Fund's accounts receivable:

**Table 7:Accounts receivable**
(in thousands of dollars)
Accounts receivable
	2025	2024
Accounts receivable—Government of Canada	33,900	38,679
Accounts receivable—Outside parties	41	193
Subtotal	33,941	38,872
Allowance for doubtful accounts on receivables from external parties	(negative 18)	(negative 16)
Net accounts receivable	33,923	38,856

4. Inventory

The following table presents details of the inventory, measured at the lower of cost (using the average cost method) and net realizable value:

**Table 8:Inventory**
(in thousands of dollars)
Inventories
	2025	2024
Inventory held for resale	23,441	24,041
Inventory held for consumption	7,742	5,930
Total	31,183	29,971

Inventory held for resale consists of passport booklets. Inventory held for consumption primarily includes prepaid envelopes and informatics hardware.

The cost of consumed inventory recognized as an expense in the Statement of operations and net assets (liabilities) is $102,050,987 for 2024–2025 ($83,455,195 for 2023–2024).

5. Prepaid expenses

The following table presents details of the Fund's prepaid expenses:

**Table 9:Prepaid expenses**
(in thousands of dollars)
Prepaid expenses
	2025	2024
Prepaid expenses—Modernization initiative	37,848	38,950
Prepaid expenses—Other	1,090	993
Total	38,938	39,943

As part of the modernization, the Passport program is transitioning to the Immigration, Refugees and Citizenship Canada Global Case Management System and the Integrated Payment Revenue Management System for the processing of passport applications. The costs incurred for this initiative and financed by the Fund are recorded as prepaid expenses, as the systems are owned by Immigration, Refugees and Citizenship Canada. These prepaid expenses are gradually recognized as expenses over time to reflect the Fund's use of Immigration, Refugees and Citizenship Canada's systems.

6. Tangible capital assets

The following table presents details of the tangible capital assets held by the Fund during the fiscal year:

**Table 10:Cost**^{Links to footnote * in Table 10}
(in thousands of dollars)
	Balance at beginning of year	Acquisitions	Adjustments	Disposals	Balance at end of year
Technology Enhancement Plan Project	2,906	–	–	–	2,906
Leasehold improvements	4,353	–	–	–	4,353
Office furniture	156	–	–	–	156
Informatics hardware	15,839	–	6,196	(negative 4,138)	17,897
Software	24,891	–	–	–	24,891
Machinery and equipment	666	–	–	(negative 357)	309
Assets under construction	7,786	3,878	(negative 6,196)	–	5,468
Total	56,597	3,878	–	(negative 4,495)	55,980
Table 10 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 10

**Table 11:Accumulated amortization**^{Links to footnote * in Table 11}
(in thousands of dollars)
	Balance at beginning of year	Amortization	Disposals	Balance at end of year
Technology Enhancement Plan Project	2,906	–	–	2,906
Leasehold improvements	4,353	–	–	4,353
Office furniture	68	11	–	79
Informatics hardware	7,003	2,967	(negative 4,138)	5,832
Software	24,729	162	–	24,891
Machinery and equipment	382	35	(negative 296)	121
Total	39,441	3,175	(negative 4,434)	38,182
Table 11 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 11

**Table 12:Net book value**^{Links to footnote * in Table 12}
(in thousands of dollars)
	2025	2024
Technology Enhancement Plan Project	–	–
Leasehold improvements	–	–
Office furniture	77	88
Informatics hardware	12,065	8,836
Software	–	162
Machinery and equipment	188	284
Assets under construction	5,468	7,786
Total	17,798	17,156
Table 12 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 12

7. Accounts payable and accrued liabilities

The following table presents details of the Fund's accounts payable and accrued liabilities:

**Table 13:Accounts payable and accrued liabilities**
(in thousands of dollars)
Accounts payable and accrued liabilities
	2025	2024
Accounts payable—Government of Canada	60,289	77,921
Accounts payable—Outside parties	9,884	17,330
Accrued liabilities—Outside parties	2,354	5,782
Contractors' holdbacks	17	2,554
Total	72,544	103,587

8. Deferred revenue

The deferred revenue account was established to record revenues from passport fees in the Fund derived from the Revolving Funds Act for services that have yet to be rendered.

The following table presents details of the deferred revenue account:

**Table 14:Deferred revenue^{Links to footnote * in Table 14}**
(in thousands of dollars)
	2025	2024
Opening balance	41,645	–
Amounts received	642,769	601,864
Revenue recognized	(negative 664,731)	(negative 560,219)
Closing balance	19,683	41,645
Table 14 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 14

9. Employee future benefits

a) Pension benefits

Employees of the Fund participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and are indexed to inflation.

Both the employees and the Fund contribute to the cost of the Public Service Pension Plan. As a result of amendments to the Public Service Superannuation Act following the implementation of provisions related to the Economic Action Plan 2012, employee contributors have been divided into two groups. Group 1 relates to existing plan members as of December 31, 2012, and Group 2 relates to members joining the Public Service Pension Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2024–2025 expense amounts to $8,124,647 ($8,292,670 in 2023–2024). For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2023–2024) the employee contributions, and for Group 2 members, approximately 1.00 times (1.00 times in 2023–2024) the employee contributions.

b) Severance benefits

Severance benefits provided to employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011, the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2025, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligation during the year were as follows:

**Table 15:Employee future benefits**
(in thousands of dollars)
	2025	2024
Accrued benefit obligation, beginning of year	1,719	1,775
Expense for the year	23	(negative 12)
Benefits paid, during the year	(negative 81)	(negative 44)
Accrued benefit obligation, end of year	1,661	1,719

10. Net assets (liabilities)

The accumulated surplus is the accumulation of each fiscal year's surplus net of deficits since the inception of the Fund.

The accumulated net charge against the Fund's authority represents the cumulative receipts and disbursements over the life of the Fund.

The contributed capital represents the value of capital assets financed from capital contributions at the inception of the Fund.

**Table 16:Net liabilities**
(in thousands of dollars)
	2025	2024
Accumulated surplus, beginning of year	142,419	295,924
Net results	(negative 96,320)	(negative 153,505)
Accumulated surplus, end of year	46,099	142,419
Accumulated net charge against the Fund's authority, beginning of year	(negative 249,622)	(negative 397,211)
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year	145,602	147,589
Accumulated net charge against the Fund's authority, end of year	(negative 104,020)	(negative 249,622)
Contributed capital	80,474	80,474
Net asset (liabilities), end of year	22,553	(negative 26,729)

11. Contractual obligations

Because of the nature of its activities, the Fund is engaged in contractual obligations for the purchase of goods and other services.

The maximum future payments under contracts for the procurement of blank passports, rental of premises and other goods and services worth approximately:

**Table 17:Contractual obligations**
(in thousands of dollars)

2026	57,290
2027	53,628
2028	52,731
2029	36,702
2030	34,576
2031 and thereafter	103,988
Total	338,915

12. Contingent liabilities

In the normal course of its operations, the Fund may become involved in various legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to $1,250 as at March 31, 2025 ($1,250 as at March 31, 2024).

13. Related party transactions

Through common ownership, the Fund is related to all Government of Canada created departments, agencies and Crown corporations. Payments for passport operations at missions abroad, passport delivery and processing services throughout Canada, accommodation and legal services, and the employer's contributions to the health and dental insurance plans are made to related parties in the normal course of business. All related party transactions are accounted for at the exchange amount, which represents the consideration agreed to by both parties.

Expenses reported as professional and special services in the Statement of operations and net assets (liabilities) include the following transactions with Shared Services Canada and Employment and Social Development Canada:

**Table 18:Related party transactions**^{Links to footnote * in Table 18}
(in thousands of dollars)
Related party transactions
	2025	2024
Service delivery, operations and internal services (Employment and Social Development Canada)	352,988	350,562
Receiving agents (Employment and Social Development Canada)	36,779	31,347
Information technology services (Shared Services Canada)	18,793	19,245
3rd processing and printing centre (Employment and Social Development Canada)	8,897	10,018
Transition and modernization (Employment and Social Development Canada)	4,608	9,923
e-Passport (Employment and Social Development Canada)	2,899	14,770
Passport Digital Services (Employment and Social Development Canada)	–	801
Total	424,964	436,666
Table 18 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 18

The following table presents the total of other transactions with related parties, such as passport operations at missions abroad, accommodation, legal services, employer's contributions to the health and dental insurance plans and passport revenues from other government departments and organizations:

**Table 19:Related party transactions: Other government departments**
(in thousands of dollars)
	2025	2024
Expenses—Other government departments	54,365	52,826
Revenues—Other government departments	(negative 3,942)	(negative 27,785)

In 2024–2025, the Fund did not receive funding to stabilize the Passport Program. However, in 2023–2024, the Fund received funding of $25 million from Immigration, Refugees and Citizenship Canada to stabilize the Passport Program.

Also, as part of its operations, the Fund collects Consular fees on behalf of Global Affairs Canada. These fees are not recorded as revenues in the Statement of operations and net assets (liabilities). In 2024–2025, the Fund collected and remitted to Global Affairs Canada $100,066,717 ($86,874,909 in 2023–2024) in consular fees.

Public Accounts of Canada 2025 Volume III—Bottom of the page Navigation

Date modified:: 2025-11-13

Language selection

Search