Financial Statements 2007-2008

The Office of the Registrar of the Supreme Court of Canada

Statement of Management Responsibility
Statement of Operations (Unaudited)
Statement of Financial Position (Unaudited)
Statement of Equity of Canada (Unaudited)
Statement of Cash Flow (Unaudited)
Notes to Financial Statements (Unaudited)

 

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Office of the Registrar of the Supreme Court of Canada's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by 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 regulations, policies, standards and managerial authorities are understood throughout the department.

The financial statements of the Office of the Registrar of the Supreme Court of Canada have not been audited.

 

Anne Roland
Registrar
Ottawa, Ontario
August 8, 2008

 

Cathy Gaudet
Acting Director General,
Corporate Services
Ottawa, Ontario
August 8, 2008

Statement of Operations (unaudited)

For the Year Ended March 31
(in dollars)

2008 2007
Expenses
Salaries and benefits 22,524,471 21,656,104
Professional services 5,726,627 5,869,189
Accommodation 4,583,620 4,531,860
Amortization of tangible capital assets 1,380,465 1,168,011
Materials, office supplies and equipment 1,838,365 1,060,340
Library materials 1,187,141 1,023,089
Travel 713,080 766,991
Telecommunications services 297,873 363,817
Equipment rentals 189,883 207,999
Repairs and maintenance 192,387 207,935
Printing services 202,425 187,216
Postage and courier 65,153 61,765
Other 66,683 14,370
 
Total expenses 38,968,173 37,118,686
 
Revenues 242,059 261,250
 
Net cost of Operations 38,726,114 36,857,436

The accompanying notes form an integral part of these financial statements.

Statement of Financial Position (unaudited)

as at March 31
(in dollars)

2008 2007
Assets
Financial assets
Accounts receivable and advances (Note 4) 202,305 349,647
 
Total financial assets 202,305 349,647
 
Non-financial assets
Prepaid expenses 113,536 225,211
Tangible capital assets (Note 5) 8,018,457 6,806,742
 
Total non-financial assets 8,131,993 7,031,953
 
Total 8,334,298 7,381,600
 
Liabilities
Accounts payable and accrued liabilities 1,823,485 2,597,164
Vacation pay and compensatory leave 694,470 660,491
Employee severance benefits (Note 6) 2,431,444 2,313,128
Other liabilities (Note 8) 1,726,154 1,615,120
 
Total 6,675,553 7,185,903
 
Equity of Canada 1,658,745 195,697
 
Total 8,334,298 7,381,600

The accompanying notes form an integral part of these financial statements.

Statement of Equity of Canada (unaudited)

as at March 31
(in dollars)

2008 2007
Equity of Canada, beginning of year 195,697 (614,447)
Net cost of operations (38,726,114) (36,857,436)
Current year appropriations used (Note 3) 30,744,769 29,544,355
Revenue not available for spending (241,930) (251,641)
Revenue available for spending in future years (137) (9,610)
Refund of prior year's expenditures (37,077) (23,539)
Net change in Consolidated Revenue Fund (Note 3) 516,098 (621,083)
Services provided without charge from other government departments (Note 7a) 9,207,439 9,029,098
 
Equity of Canada, end of year 1,658,745 195,697

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flow (unaudited)

For the Year Ended March 31
(in dollars)

2008 2007
Operating activities
Net cost of operations 38,726,114 36,857,436
Non-cash items:
Amortization of tangible capital assets (1,380,465) (1,168,011)
Gain (Loss) on disposal of tangible capital assets (8,217) 9,610
Services provided without charge from other government departments (note 7) (9,207,439) (9,029,098)
  28,129,993 26,669,937
Increase (decrease) in accounts receivable and advances (147,342) 151,883
Increase (decrease) in prepaid expenses (111,675) 18,017
Decrease (increase) in liabilities 510,350 (712,518)
 
Cash used by operating activities 28,381,326 26,127,319
 
Capital investment activities
Acquisitions of tangible capital assets 2,600,398 2,520,773
Proceeds from disposal of tangible capital assets - (9,610)
 
Cash used by capital investment activities 2,600,398 2,511,163
 
Financing Activities
 
Net Cash Provided by Government of Canada (30,981,724) (28,638,482)

The accompanying notes form an integral part of these financial statements.

Notes to Financial Statements (Unaudited)

1. Authority and Objectives

The Supreme Court of Canada was constituted in 1875 by an act of Parliament and is now governed by the Supreme Court Act. It is comprised of a Chief Justice and eight puisne judges (puisne meaning ranked after), all appointed by the Governor in Council for terms of "good behaviour", with a minimum of three judges coming from Québec.

The mandate of the Supreme Court of Canada is to have and exercise an appellate, civil and criminal jurisdiction within and throughout Canada. As the final court of appeal, the Supreme Court of Canada serves Canadians by leading the development of common and civil law through its decisions on questions of public importance.

The Supreme Court of Canada is committed to the rule of law; independence and impartiality and accessibility to justice. The Office of the Registrar of the Supreme Court of Canada supports the Supreme Court of Canada by providing responsive administrative services; nurturing the dedication, pride and professionalism of its employees; respecting diversity and linguistic duality and collaborating with other courts and legal institutions.

The Supreme Court of Canada is Canada's highest court and one of its most important national institutions. It hears appeals from courts of appeal of the provinces and territories as well as from the Federal Court of Appeal. In addition, the Supreme Court of Canada is required to give its opinion on any question referred to it by the Governor in Council.

The importance of the decisions of the Supreme Court of Canada for Canadian society is well recognized. The Supreme Court of Canada assures uniformity, consistency and correctness in the articulation, development and interpretation of legal principles throughout the Canadian judicial system. Its jurisdiction is derived from the Supreme Court Act and other Acts of Parliament such as the Criminal Code.

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations – The Office of the Registrar of the Supreme Court of Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Office of the Registrar of the Supreme Court of Canada do not parallel financial reporting according to Canadian generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and in the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net Cash Provided by Government – The Office of the Registrar of the Supreme Court of Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Office of the Registrar of the Supreme Court of Canada is deposited to the CRF and all cash disbursements made by the Office of the Registrar of the Supreme Court of Canada are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

(c) Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Office of the Registrar of the Supreme Court of Canada. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues: Sales and other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(e) Expenses - Expenses are recorded on the accrual basis:

  1. Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
  2. Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, legal services, workers compensation, interpretation services and security services are recorded as operating expenses at their estimated cost.

(f) Employee and federally appointed Supreme Court of Canada judges future benefits

  1. Employee pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi employer plan administered by the Government of Canada. The Office of the Registrar of the Supreme Court of Canada's contributions to the Plan are charged to expenses in the year incurred and represent its total obligation to the Plan. Current legislation does not require the Office of the Registrar of the Supreme Court of Canada to make contributions for any actuarial deficiencies of the Plan.
  2. Employee severance benefits: Employees are entitled to severance benefits under l about contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
  3. Federally appointed Supreme Court of Canada judges pension benefits: Eligible federally appointed judges and their survivors are entitled to fully indexed annuities providing that the judges meet minimum age and service requirements. The main benefits paid from this plan are recorded on a pay-as-you-go basis. They are included in the Statement of Operations as a component of salaries and benefits and the judges' contributions are credited to revenue. Contributions made by the Office and judges pertaining to the portion of the plan that relates to indexation of benefits is recorded in a Supplementary Retirement Benefits Account, which is presented on the Statement of Financial Position as part of Other liabilities, with additional detail provided in Note 8. The Office's contribution towards indexation is expensed at the time it is accrued in the Account in accordance with the legislation. The actuarial liability associated with the Judges Pension Plan is recorded in the financial statements of the Government of Canada, the ultimate sponsor of the plan.

(g) Accounts and advances receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(h) Contingent liabilities – Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(i) Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The Office of the Registrar of the Supreme Court of Canada has many works of art and historically significant assets such as rare books, paintings, busts, clocks and other works of art. In accordance with Treasury Board of Canada Secretariat policy, these values are not capitalized as they are considered non-operational heritage assets. Intangible assets are not capitalized.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset Class Amortization Period
Machinery and equipment 5 to 10 years
Office furniture and equipment 5 to 10 years
Computer equipment 3 years
Computer software 3 years
Motor vehicles 3 years
Leasehold improvements 5 years
Assets under construction Once in service, in accordance with asset type

 j) Measurement uncertainty– The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee severance benefits, allowances for employee vacation and compensatory benefits, prepaid expenses, employer's contribution to health and dental insurance plans and the useful life of tangible capital assets. Actual results could significantly differ 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. Parliamentary Appropriations

The Office of the Registrar of the Supreme Court of Canada receives all of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Office of the Registrar of the Supreme Court of Canada has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used:
(in dollars)

2008 2007
Net cost of operations 38,726,114 36,857,436
Adjustments for items affecting net cost of operations but not affecting appropriations
Add (Less):
Services provided without charge from other government departments (9,207,439) (9,029,098)
Amortization of tangible capital assets (1,380,465) (1,168,011)
Legal services provided by the Department of Justice - (3,689)
Refund of prior years expenditures 37,077 23,539
Revenue not available for spending 241,930 251,641
Gain (loss) on disposal of capital assets (8,217) 9,610
Increase - Vacation and compensatory leave (33,979) (20,246)
Decrease (Increase)- Employee severance benefits (118,316) 84,208
Other (659) 175
Adjustments for items not affecting net cost of operations but affecting appropriations
Add (Less):
Acquisition of tangible capital assets 2,600,398 2,520,773
Increase - Prepaid expenses (111,675) 18,017
 
Current year appropriations used 30,744,769 29,544,355

(b) Appropriations provided and used:
(in dollars)

2008 2007
Vote 50 Operating expenditures 25,659,109 23,462,350
Contributions to employee benefits plan 2,281,627 2,159,231
Judges salaries, allowances and annuities 5,169,897 5,366,935
Spending of amounts equivalent to proceeds from disposal of capital assets 9,747 29,261
  33,120,380 31,017,777
Less:
Lapsed appropriations: (1,680,864) (1,451,930)
Operating (9,610) (11,882)
Proceeds from disposal of assets (1,690,474) (1,463,812)
Available for spending in future years (685,137) (9,610)
 
Total appropriations used 30,744,769 29,544,355

(c) Reconciliation of net cash provided by Government to current year appropriations used:
(in dollars)

2008 2007
Net cash provided by Government 30,981,724 28,638,482
Revenue not available for spending 241,930 251,641
Proceeds available for use in future years 137 9,610
Refund of prior years expenditures 37,077 23,539
Other (1) -
 
  31,260,867 28,923,272
Change in net position in the Consolidated Revenue Fund
Variation in account receivable and advances 147,342 (151,883)
Variation in account payable and accrued liabilities (773,679) 678,590
Variation in other liabilities 111,034 97,890
Legal services provided by the Department of Justice - (3,689)
Other adjustments (795) 175
 
  (516,098) 621,083
 
Current year appropriations used 30,744,769 29,544,355

4. Accounts Receivable and Advances

The following table presents details of the accounts receivable:
(in dollars)

2008 2007
Receivable from other Federal Government departments and agencies 186,038 313,323
Receivable from external parties 14,303 34,578
Standing advances 2,400 2,401
  202,741 350,302
Less: allowance for doubtful accounts on external receivables 436 655
 
Total 202,305 349,647

5. Tangible Capital Assets

(in dollars)

Cost
Capital asset class Opening
Balance
Acquisitions Disposals Closing balance
Machinery and equipment 568,345 388,323 - 956,668
Office furniture and equipment 1,388,394 326,062 27,395 1,687,061
Computer equipment 355,211 288,532 - 643,743
Computer software 576,022 48,499 - 624,521
Motor vehicles 164,229 24,909 - 189,138
Leasehold Improvements 4,683,119 4,034,753 - 8,717,872
Assets under construction 2,813,223 (2,510,680) - 302,543
 
Total 10,548,543 2,600,398 27,395 13,121,546

 

Accumulated amortization
Capital asset class Opening balance Amortization Disposals Closing balance
Machinery and equipment 148,016 93,619 - 241,635
Office furniture and equipment 971,934 90,672 19,177 1,043,429
Computer equipment 282,324 87,933 - 370,257
Computer software 176,205 52,493 - 228,698
Motor vehicles 127,827 24,505 - 152,332
Leasehold Improvements 2,035,495 1,031,243 - 3,066,738
Assets under construction - - - -
 
Total 3,741,801 1,380,465 19,177 5,103,089

 

Capital asset class 2008
Net Book Value
2007
Net Book Value
Machinery and equipment 715,033 420,329
Office furniture and equipment 643,632 416,460
Computer equipment 273,486 72,887
Computer software 395,823 399,817
Motor vehicles 36,806 36,402
Leasehold Improvements 5,651,134 2,647,624
Assets under construction 302,543 2,813,223
 
Total 8,018,457 6,806,742

Amortization expense for the year ended March 31, 2008 is $1,380,465 (2007 - $1,168,011).

6. Employee Benefits

(a) Pension benefits: The Office of the Registrar of the Supreme Court of Canada's employees 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 2 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 Plans benefits and they are indexed to inflation.

Both the employees and the Office of the Registrar of the Supreme Court of Canada contribute to the cost of the Plan. The 2007-08 expense amounts to $1,663,306 ($1,591,353 in 2006-07), which represents approximately 2.1 times (2.2 in 2006-2007) the contributions by employees.

The Office'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.

(b) Severance benefits: The Office of the Registrar of the Supreme Court of Canada provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)

2008 2007
Accrued benefit obligation, beginning of year 2,313,128 2,397,337
Expense for the year 266,308 75,387
Benefits paid during the year (147,992) (160,046)
 
Accrued benefit obligation, end of year 2,431,444 2,313,128
7. Related Party Transactions

The Office of the Registrar of the Supreme Court of Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Office of the Registrar of the Supreme Court of Canada enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Office of the Registrar of the Supreme Court of Canada received services which were obtained without charge from other Government departments as presented in part (a).

(a) Services provided without charge

During the year the Office of the Registrar of the Supreme Court of Canada received services without charge from other government departments. These services without charge have been recognized in the Office of the Registrar of the Supreme Court of Canada's Statement of Operations as follows:

(in dollars)

2008 2007
Accommodation 4,583,620 4,531,860
Employer's contribution to the health and dental insurance plans 1,293,363 1,263,820
Legal services - 12,458
Worker's compensation cost provided by Human Resources and Skills Development Canada 43,703 41,935
Interpretation services provided by PWGSC 167,340 83,025
Security services provided by the RCMP 3,119,323 3,096,000
 
  9,207,439 9,029,098

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada are not included as an expense in the Office of the Registrar of the Supreme Court of Canada's Statement of Operations.

(b) Payables and receivables outstanding at year-end with related parties:

(in dollars)

2008 2007
Accounts receivable with other government departments and agencies 186,038 313,323
Accounts payable to other government departments and agencies 253,751 512,786
8. Other Liabilities

The following table presents details of other liabilities:
(in dollars)

2008 2007
Trust Account - Security Deposit
Liability, beginning of year 385,993 394,091
Deposits 5,500 3,000
Interest 2,317 2,854
Reimbursements (2,678) (13,952)
 
Liability, end of year 391,132 385,993
 
Supplementary Retirement Benefit Account (SRBA)
Liability, beginning of year 1,229,127 1,123,139
Deposits 54,444 58,953
Interest 51,451 47,035
 
Liability, end of year 1,335,022 1,229,127
 
Total 1,726,154 1,615,120

Security deposit account was established to record security to the value of $500 deposited by an Appellant with the Registrar of the Supreme Court of Canada in accordance with paragraph 60(1)(b) of the Supreme Court Act. As per section 87 of the Rules of the Supreme Court of Canada, interest is paid on money deposited as security.

Supplementary Retirement Benefit Account (“SRBA”) records contributions made by Supreme Court of Canada Judges and the matching contributions made by the Employer in accordance with the SRBA Act and the Judges Act.