Financial Statements 2009-2010

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 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, 2010 and all information contained in these statements rests with 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 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 institution's financial transactions. Financial information submitted to 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 maintains a system of financial management and internal controls 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 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 9, 2010

 

Lynn Potter
Director General,
Corporate Services
Ottawa, Ontario
August 9, 2010

Statement of Operations (unaudited)

For the year ended March 31
(in dollars)

2010 2009
Expenses
Salaries and benefits 23,232,116 24,083,388
Professional services 5,816,057 6,023,154
Accommodation 5,041,110 4,659,898
Amortization of tangible capital assets 1,946,206 2,249,317
Materials, office supplies and equipment 941,804 1,278,070
Library materials 1,162,908 1,171,250
Travel 765,888 731,789
Telecommunications services 336,302 358,016
Equipment rentals 239,303 201,871
Repairs & maintenance 94,951 77,282
Printing services 194,022 171,398
Postage and courier 46,466 49,029
Other 1,905 29,813
 
Total expenses 39,819,038 41,084,275
 
Revenues 202,865 222,276
 
Net cost of Operations 39,616,173 40,861,999

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

Statement of Financial Position (unaudited)

as at March 31
(in dollars)

2010 2009
Assets
Financial assets
Accounts receivable and advances ( Note 4) 63,319 105,421
Total financial assets 63,319 105,421
 
Non-financial assets
Prepaid expenses 131,482 102,823
Tangible capital assets ( Note 5) 5,062,982 6,732,090
 
Total non-financial assets 5,194,464 6,834,913
 
Total 5,257,783 6,940,334
 
Liabilities
Accounts payable and accrued liabilities 1,448,687 2,382,088
Vacation pay and compensatory leave 762,820 726,269
Employee severance benefits ( Note 6) 2,645,610 2,971,836
Other liabilities ( Note 8) 1,910,537 1,820,187
 
Total 6,767,654 7,900,380
 
Equity of Canada (1,509,871) (960,044)
 
Total 5,257,783 6,940,334

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

Statement of Equity of Canada (unaudited)

as at March 31
(in dollars)

2010 2009
Equity of Canada, beginning of year (960,044) 1,658,745
Net cost of operations (39,616,173) (40,861,999)
Current year appropriations used (Note 3a) 29,049,758 29,867,808
Revenue not available for spending (190,765) (215,326)
Revenues available for spending in future years - (8,150)
Refund of prior year's expenditures (59,765) (66,518)
Refund of prior year's revenues - 1,200
Net change in Consolidated Revenue Fund (Note 3c) 791,981 (745,869)
Services provided without charge from other government departments (Note 7a) 9,475,137 9,410,064
Equity of Canada, end of year (1,509,871) (960,044)

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

Statement of Cash Flow (unaudited)

For the year ended March 31
(in dollars)

2010 2009
Operating activities
Net cost of operations 39,616,173 40,861,999
Non-cash items:
Amortization of tangible capital assets ( Note 5) (1,946,206) (2,249,317)
(Loss) gain on disposal of tangible capital assets 12,100 (7,180)
Services provided without charge from other government departments ( Note 7a) (9,475,137) (9,410,064)
  28,206,930 29,195,438
Increase (decrease) in accounts receivable and advances (42,102) (96,884)
Increase (decrease) in prepaid expenses 28,659 (10,713)
Decrease (increase) in liabilities 1,132,726 (1,224,827)
 
Cash used by operating activities 29,326,213 27,863,014
 
Capital investment activities
Acquisitions of tangible capital assets ( Note5) 277,097 978,198
Proceeds from sale of crown assets (12,100) (8,069)
Cash used by capital investment activities 264,997 970,128
 
Financing Activities
Net Cash Provided by Government of Canada ( Note 3c) (29,591,209) (28,833,146)

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 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 on the Statement of Financial Position as part of 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 assets as follows:

2010

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 Once in service, in accordance with asset type

(j) Measurement of 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)

2010 2009
Net cost of operations 39,616,173 40,861,999
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge from other government departments (9,475,137) (9,410,064)
Amortization of tangible capital assets (1,946,206) (2,249,317)
Refund of prior years expenditures 59,765 66,518
Refund of prior years revenue - (1,200)
Revenue not available for spending 190,765 215,326
(Loss) gain on disposal of capital assets 12,100 (7,180)
Decrease (increase) - Vacation and compensatory leave (36,551) (31,799)
Decrease (increase) - Employee severance benefits 326,226 (540,391)
Other (3,133) (3,568)
Adjustments for items not affecting net cost of operations but affecting appropriations
Add (Less):
Acquisition of tangible capital assets 277,097 978,198
Increase (decrease) - Prepaid expenses 28,659 (10,713)
 
Current year appropriations used 29,049,758 29,867,808

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

2010 2009
Vote 50 - Operating expenditures 23,439,147 24,058,771
Contributions to employee benefits plan 2,579,168 2,347,308
Judges salaries, allowances and annuities 5,160,407 5,086,427
Spending of amounts equivalent to proceeds from disposal of capital assets 20,250 8,287
  31,198,972 31,500,794
Less:
Lapsed appropriations:
Operating (2,149,188) (1,624,699)
Proceeds from disposal of assets - (137)
  (2,149,188) (1,624,836)
Available for spending in future years (26) (8,150)
 
Total appropriations used 29,049,758 29,867,808

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

2010 2009
Net cash provided by Government 29,591,209 28,833,146
Revenue not available for spending 190,765 215,326
Recoveries available for use in future years - 8,150
Refund of prior years revenues - (1,200)
Refund of prior years expenditures 59,765 66,518
 
  29,841,739 29,121,939
Change in net position in the Consolidated Revenue Fund    
Variation in accounts receivable and advances 42,102 96,884
Variation in accounts payable and accrued liabilities (933,401) 558,603
Variation in other liabilities 90,350 94,033
Other adjustments 8,968 (3,651)
  (791,981) 745,869
 
Current year appropriations used 29,049,758 29,867,808

4. Accounts Receivable and Advances

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

2010 2009
Receivables from other Federal Government departments and agencies 28,153 37,219
Receivable from external parties 23,787 54,702
Standing advances 16,650 17,400
 
  68,590 109,321
Less: allowance for doubtful accounts on external receivables (5,271) (3,900)
 
Total 63,319 105,421

5. Tangible Capital Assets

(in dollars)

Cost
Capital asset class Opening Balance Acquisitions Disposals Closing balance
Machinery and equipment 964,868 - - 964,868
Office furniture and equipment 1,722,867 66,210 - 1,789,077
Computer equipment 843,719 69,673 (118,079) 795,313
Computer software 700,332 - - 700,332
Motor vehicles 194,093 30,101 (30,854) 193,340
Leasehold Improvements 9,423,661 103,147 100,076 9,626,884
Assets under construction 113,476 7,966 (100,076) 21,366
 
Total 13,963,017 277,097 (148,933) 14,091,180
Accumulated amortization
Capital asset class Opening balance Amortization Disposals Closing balance
Machinery and equipment 400,128 113,797 - 513,925
Office furniture and equipment 1,076,325 107,202 - 1,183,527
Computer equipment 489,287 168,061 (118,079) 539,269
Computer software 273,789 87,598 - 361,387
Motor vehicles 148,945 17,817 (30,854) 135,908
Leasehold Improvements 4,842,452 1,451,731 - 6,294,183
Assets under construction - - - -
 
Total 7,230,927 1,946,206 (148,933) 9,028,199

 

Capital asset class 2010
Net Book Value
2009
Net Book Value
Machinery and equipment 450,943 564,740
Office furniture and equipment 605,550 646,542
Computer equipment 256,044 354,432
Computer software 338,945 426,543
Motor vehicles 57,432 45,148
Leasehold Improvements 3,332,701 4,581,209
Assets under construction 21,366 113,476
 
Total 5,062,982 6,732,090

Amortization expense for the year ended March 31, 2010 is $1,946,206 (2009 - $2,249,317).

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 2009-10 expense amounts to $1,862,160 ($1,694,757 in 2008-09), which represents approximately 1.9 times (2 in 2008-2009) the contributions by employees.

The Office of the Registrar'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)

2010 2009
Accrued benefit obligation, beginning of year 2,971,836 2,431,444
Expense for the year (326,226) 881,472
Benefits paid during the year - (341,080)
 
Accrued benefit obligation, end of year 2,645,610 2,971,836
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 have been recognized in the Office 's Statement of Operations as follows:

(in dollars)

2010 2009
Accommodation 5,041,110 4,659,898
Employer's contribution to the health and dental insurance plans 1,068,709 1,434,752
Worker's compensation cost provided by Human Resources and Skills Development Canada 42,455 44,281
Interpretation services provided by PWGSC 124,000 116,270
Security services provided by the RCMP 3,198,863 3,154,863
  9,475,137 9,410,064

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)

2010 2009
Accounts receivable with other government departments and agencies 28,153 37,219
Accounts payable to other government departments and agencies 477,398 234,453

8. Other Liabilities

The following table presents details of other liabilities:

(in dollars)

2010 2009
Trust Account - Security Deposit
Liability, beginning of year 391,979 391,132
Deposits 2,500 3,000
Interest 80 977
Reimbursements (4,324) (3,131)
 
Liability, end of year 390,235 391,979
 
Supplementary Retirement Benefit Account (SRBA)
Liability, beginning of year 1,428,208 1,335,022
Deposits 57,733 53,077
Interest 34,361 40,109
 
Liability, end of year 1,520,302 1,428,208
 
Total 1,910,537 1,820,187

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.