Financial Statements 2010-2011

The Office of the Registrar of the Supreme Court of Canada

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

 

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ending March 31, 2011, and all information contained in these statements rests with the management of the Office of the Registrar of the Supreme Court of Canada. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on 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 institution's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Departmental Performance Report of the Office of the Registrar of the Supreme Court of Canada, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the institution.

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

 

Roger Bilodeau, Q.C.
Registrar
Ottawa, Ontario
August 10, 2011

 

Catherine Laforce
Director General and Chief Financial Officer
Corporate Services

 

Statement of Financial Position (Unaudited)

As at March 31
(in dollars)

Assets

2011 2010
Restated (Note 12)
Financial assets
Due from Consolidated Revenue Fund 3,633,732 3,307,488
Accounts receivable and advances (Note 4) 91,242 63,319
Total financial assets 3,724,974 3,370,807
 
Non-financial assets
Prepaid expenses 136,338 131,482
Tangible capital assets (Note 5) 3,575,358 5,062,982
Total non-financial assets 3,711,696 5,194,464
 
Total 7,436,670 8,565,271

 

Liabilities and Equity of Canada

2011 2010
Restated (Note 12)
Liabilities
Accounts payable and accrued liabilities (Note 6) 1,713,197 1,448,687
Vacation pay and compensatory leave 768,037 762,820
Employee future benefits (Note 7b) 2,808,658 2,645,610
Other liabilities (Note 8) 2,005,615 1,910,537
Total 7,295,507 6,767,654
 
Equity of Canada 141,163 1,797,617
 
Total 7,436,670 8,565,271

Contractual obligations (Note 9)

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

 

Roger Bilodeau, Q.C.
Registrar
Ottawa, Ontario
August 10, 2011

 

Catherine Laforce
Director General and Chief Financial Officer
Corporate Services

Statement of Operations (Unaudited)

For the Year Ended March 31
(in dollars)

2011
Planned Results
2011 2010
Expenses
Process hearings and decisions 31,058,555 27,210,284 25,664,597
Internal services 11,227,407 13,999,568 14,154,441
Total Expenses 42,285,962 41,209,852 39,819,038
 
Revenues
Process hearings and decisions 200,000 39,312 53,479
Internal services - 132,489 149,386
Total Revenues 200,000 171,801 202,865
 
Net Cost of Operations 42,085,962 41,038,051 39,616,173

Segmented information (Note 11)

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

Statement of Equity of Canada (Unaudited)

For the Year Ended March 31
(in dollars)

2011 2010
Restated (Note 12)
 
Equity of Canada, beginning of year 1,797,617 3,144,636
Net cost of operations (41,038,051) (39,616,173)
Net cash provided by Government 29,650,327 29,591,209
Change in due from the Consolidated Revenue Fund 326,244 (797,192)
Services provided without charge from other government departments (Note 10a) 9,405,024 9,475,137
Other 2 -
Equity of Canada, end of year 141,163 1,797,617

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

Statement of Cash Flow (Unaudited)

For the Year Ended March 31
(in dollars)

2011 2010
Operating Activities
Net cost of operations 41,038,051 39,616,173
Non-cash items
Amortization of tangible capital assets ( Note 5) (1,681,939) (1,946,206)
Gain (loss) on disposal of tangible capital assets 3,670 12,100
Services provided without charge from other government departments ( Note 10a) (9,405,024) (9,475,137)
  29,954,758 28,206,930
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances 27,923 (42,102)
Increase (decrease) in prepaid expenses 4,856 28,659
Decrease (increase) in liabilities (527,853) 1,132,726
 
Cash used by operating activities 29,459,684 29,326,213
 
Capital Investment Activities
Acquisitions of tangible capital assets ( Note 5) 197,708 277,097
Proceeds from disposal of tangible capital assets (7,065) (12,100)
Cash used by capital investment activities 190,643 264,997
 
Net Cash Provided by Government of Canada (29,650,327) (29,591,209)

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

Notes to the Financial Statements (Unaudited)

For the Year Ended March 31

1. Authority and Objectives

Created by an Act of Parliament in 1875, the Supreme Court of Canada is Canada's final court of appeal. It serves Canadians by deciding legal issues of public importance, thereby contributing to the development of all branches of law applicable within Canada. The independence of the Court, the quality of its work and the esteem in which it is held both in Canada and abroad contribute significantly as foundations for a secure, strong and democratic country founded on the Rule of Law. In accordance with the Supreme Court Act, the Supreme Court of Canada consists of the Chief Justice and the eight puisne judges. The Supreme Court of Canada is an important national institution, positioned at the pinnacle of the judicial branch of government in Canada.

The Office of the Registrar of the Supreme Court of Canada (Office) provides all necessary services and support for the Court to process, hear and decide cases. It also serves as the interface between litigants and the Court. The Office has a single strategic outcome: The administration of Canada's final court of appeal is effective and independant. The strategic outcome is further supported by two program activities: process hearings and decisions and internal services.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

  1. Parliamentary authorities – The Office of the Registrar of the Supreme Court of Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations are the amounts reported in the future-oriented financial statements included in the 2010-11 Report on Plans and Priorities.
  2. 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 is deposited to the CRF and all cash disbursements made by the Office 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 Government.
  3. Due from the Consolidated Revenue Fund – Amount due from the CRF is the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amount due from the CRF represents the net amount of cash that the Office of the Registrar of the Supreme Court of Canada is entitled to draw from the CRF without further appropriations to discharge its liabilities.
  4. 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.
  5. Expenses – Expenses are recorded on the accrual basis:
    1. Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
    2. Services provided without charge from other government departments for accommodation, employer contributions 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.
  6. 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 multiemployer pension 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 to make contributions for any actuarial deficiencies of the Plan.
    2. Employee severance benefits: Employees are entitled to severance benefits under labour 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 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 in 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.
  7. Accounts receivable and advances – Accounts receivable and advances are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.
  8. 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 does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

    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 3 to 10 years
    Office furniture and equipment 5 to 10 years
    Computer equipment 3 to 10 years
    Computer software 3 to 10 years
    Motor vehicles 3 years
    Leasehold improvements 5 years


    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
  9. Measurement of uncertainty – The preparation of these 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. 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, employer's contribution to health and dental insurance plans, allowance for doubtful accounts 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 Authorities

The Office of the Registrar of the Supreme Court of Canada receives all of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Office 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 authorities used
(in dollars)

2011 2010
Net cost of operations 41,038,051 39,616,173
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge from other government departments (9,405,024) (9,475,137)
Amortization of tangible capital assets (1,681,939) (1,946,206)
Refund of prior years expenditures 140,708 59,765
Revenue not available for spending 165,141 190,765
Gain (loss) on disposal of capital assets 3,670 12,100
Decrease (increase) in vacation pay and compensatory leave (5,217) (36,551)
Decrease (increase) in employee future benefits (163,048) 326,226
Other 785 (3,133)
 
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 197,708 277,097
Increase (decrease) in prepaid expenses 4,856 28,659
 
Current year authorities used 30,295,691 29,049,758


b. Authorities provided and used
(in dollars)

2011 2010
Authorities provided:
Vote 50 - Operating expenditures 23,815,609 23,439,147
Contributions to employee benefits plan 2,727,192 2,579,168
Judges' salaries, allowances and annuities 5,045,422 5,160,407
Proceeds from disposal of Crown assets 7,091 20,250
  31,595,314 31,198,972
Lapsed authorities:
Operating (1,292,532) (2,149,188)
Proceeds from disposal of Crown assets (26) -
  (1,292,558) (2,149,188)
Available for spending in future years (7 065) (26)
 
Current year authorities used 30,295,691 29,049,758

4. Accounts Receivable and Advances

The following table presents details of the Office's accounts receivable and advances:
(in dollars)

2011 2010
Receivables from other government departments and agencies 60,681 28,153
Receivable from external parties 18,254 23,787
Standing advances 16,650 16,650
  95,585 68,590
Allowance for doubtful accounts on external receivables from external parties (4,343) (5,271)
Total 91,242 63,319

5. Tangible Capital Assets

(in dollars)

Cost

Capital asset class Opening Balance Acquisitions Disposals Closing balance
Machinery and equipment 964,868 8,302 (6,666) 966,504
Office furniture and equipment 1,789,077 10,976 (21,779) 1,778,274
Computer equipment 795,313 26,827 - 822,140
Computer software 700,332 60,659 - 760,991
Motor vehicles 193,340 - (31,319) 162,021
Leasehold improvements 9,626,884 66,148 - 9,693,032
Assets under construction 21,366 24,796 - 46,162
Total 14,091,180 197,708 (59,764) 14,229,124

 

Accumulated amortization

Capital asset class Opening balance Amortization Disposals Closing balance
Machinery and equipment 513,925 113,269 (4,000) 623,194
Office furniture and equipment 1,183,527 102,729 (21,053) 1,265,203
Computer equipment 539,269 148,711 - 687,980
Computer software 361,387 82,581 - 443,968
Motor vehicles 135,908 27,851 (31,319) 132,440
Leasehold improvements 6,294,183 1,206,798 - 7,500,981
Assets under construction - - - -
Total 9,028,199 1,681,939 (56,372) 10,653,766

 

Net book value

Capital asset class 2011 2010
Machinery and equipment 343,310 450,943
Office furniture and equipment 513,071 605,550
Computer equipment 134,160 256,044
Computer software 317,023 338,945
Motor vehicles 29,581 57,432
Leasehold improvements 2,192,051 3,332,701
Assets under construction 46,162 21,366
Total 3,575,358 5,062,982

6. Accounts Payable and Accrued Liabilities

The following table presents details of the Office's accounts payable and accrued liabilities:
(in dollars)

2011 2010
Accounts payable to other government departments and agencies 543,623 477,398
Accounts payable to external parties 612,501 537,228
  1,156,124 1,014,626
 
Accrued liabilities 557,073 434,061
Total 1,713,197 1,448,687

7. Employee Future Benefits

  1. 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 2010-11 expense amounts to $1,914,488 ($1,862,160 in 2009-10), which represents approximately 1.9 times (1.9 in 2009-10) 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.
  2. 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 authorities. Information about the severance benefits, measured as at March 31, is as follows:

    (in dollars)
    2011 2010
    Accrued benefit obligation, beginning of year 2,645,610 2,971,836
    Expense for the year 163,048 (326,226)
    Benefits paid during the year - -
     
    Accrued benefit obligation, end of year 2,808,658 2,645,610

8. Other Liabilities

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

2011 2010
Trust Account - Security Deposit
Liability, beginning of year 390,235 391,979
Deposits 1,000 2,500
Interest 148 80
Reimbursements (1,517) (4,324)
     
Liability, end of year 389,866 390,235
 
Supplementary Retirement Benefit Account (SRBA)
Liability, beginning of year 1,520,302 1,428,208
Deposits 58,639 57,733
Interest 36,808 34,361
     
Liability, end of year 1,615,749 1,520,302
 
Total 2,005,615 1,910,537

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.

9. Contractual Obligations

The nature of the Office's activities can result in some large multi-year contracts and obligations whereby the Office will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars) Goods and Services Operating Leases Total
2012 56,368 49,200 105,568
2013 46,803 49,200 96,003
2014 4,000 41,000 45,000
2015 4,000 - 4,000
2016 and thereafter - - -
Total 111,171 139,400 250,571
10. 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 enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office received common services which were obtained without charge from other government departments as disclosed below:

a. Common services provided without charge by other government departments:

During the year, the Office received services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans, workers' compensation coverage, interpretation services and security services. These services provided without charge have been recorded in the Office's Statement of Operations as follows:

(in dollars)

2011 2010
Accommodation services provided by Public Works and Government Service Canada (PWGSC) 5,251,877 5,041,110
Employer's contribution to health and dental insurance plans 1,155,911 1,068,709
Worker's compensation cost provided by Human Resources and Skills Development Canada 40,236 42,455
Interpretation services provided by PWGSC 154,225 124,000
Security services provided by the RCMP 2,802,775 3,198,863
  9,405,024 9,475,137

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common services organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Office's Statement of Operations.

b. Other transactions with related parties:

(in dollars)

2011 2010
Accounts receivable from other government departments and agencies 60,681 28,153
Accounts payable to other government departments and agencies 543,623 477,398
Expenses to other government departments and agencies 5,466,396 5,537,329
Revenues from other government departments and agencies 45,027 61,875

11. Segmented Information

Presentation by segment is based on the Office's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

(in dollars)

Process Hearings and Decisions Internal Services Total 2011 Total 2010
Expenses
Salaries and benefits 17,048,599 7,932,979 24,981,578 23,232,116
Professional services 4,154,486 1,448,343 5,602,829 5,816,057
Accommodation 3,728,833 1,523,044 5,251,877 5,041,110
Amortization of tangible capital assets - 1,681,939 1,681,939 1,946,206
Library materials 1,093,889 2,408 1,096,297 1,162,908
Materials, office supplies and equipment 160,000 796,677 956,677 941,804
Travel 756,038 15,669 771,707 765,888
Telecommunications services 43,014 300,667 343,681 336,302
Equipment rentals 32,842 187,039 219,881 239,303
Printing services 136,593 36,798 173,391 194,022
Repairs and maintenance 17,221 63,856 81,077 94,951
Postage and courier 38,638 7,913 46,551 46,466
Other 131 2,236 2,367 1,905
 
Total Expenses 27,210,284 13,999,568 41,209,852 39,819,038
 
Revenues 39,312 132,489 171,801 202,865
Net Cost of Operations 27,170,972 13,867,079 41,038,051 39,616,173

12. Adoption of New Accounting Policies

During the year, the Office adopted the revised Treasury Board accounting policy (TBAS) 1.2: Departmental and Agency Financial Statements which is effective for the 2010-11 fiscal year. The major change in the accounting policies of the Office required by the adoption of the revised TBAS 1.2 is the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position.

The adoption of the new Treasury Board accounting policies have been accounted for retroactively with the following impact on the comparatives for 2009-10:

(in dollars)

2010 As previously stated Effect of changes 2010 Restated
Statement of Financial Position:
Assets 5,257,783 3,307,488 8,565,271
Equity of Canada (1,509,871) 3,307,488 1,797,617
 
Statement of Equity of Canada:
Equity of Canada, beginning of year (960,044) 4,104,680 3,144,636
Equity of Canada, end of year (1,509,871) 3,307,488 1,797,617

13. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.