Future-oriented Statement of Operations for the Years Ending March 31, 2017 and March 31, 2018

The Office of the Registrar of the Supreme Court of Canada

Future-oriented Statement of Operations (Unaudited)

For the Year Ending March 31
(in dollars)

Expenses
	Forecast results 2016-17	Planned results 2017-18
Court Operations	21,135,252	20,577,628
Payments to Judges of the Supreme Court of Canada Pursuant to the Judges Act	7,425,442	7,708,915
Internal Services	14,097,636	14,758,054
Total expenses	42,658,330	43,044,597

Revenues
Sale of information documents and other fees	170,546	181,647
Pension contribution revenues	115,046	128,852
Revenues earned on behalf of Government	(285,044)	(310,499)
Total revenues	548	-

Net cost of operations before government funding and transfers	42,657,782	43,044,597

The accompanying notes form an integral part of the future-oriented statement of operations.

Notes to the Future-Oriented Statement of Operations (Unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of the priorities and plans of the Office of the Registrar of the Supreme Court of Canada (ORSCC) as described in its Departmental Plan.

The information in the forecast results for fiscal year 2016-17 is based on actual results as at November 30, 2016 and on forecasts for the remainder of that fiscal year. Forecasts have been made for the planned results for fiscal year 2017-18.

The main assumptions underlying the forecasts are as follows:

The ORSCC's activities will remain substantially the same as in the previous year.
Expenses and revenues, including the determination of amounts internal and external to the government, are based on past experience. The general historical pattern is expected to continue.
No assumption has been made with regard to the implementation of new collective agreements in preparing this future-oriented statement of operations (FOSO). Since those agreements were not yet signed at the time this report was prepared, no assumptions were included in the forecast. The authorities available for use in 2016-17 were limited to the Estimates, which leaves the operating budget carry-forward available for future adjustments, whether they occur in this fiscal year or next.

These assumptions were made as at January 16, 2017.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2016-17 and for 2017-18, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the Office of the Registrar of Supreme Court of Canada has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

the timing and amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
the implementation of new collective agreements;
economic conditions, which may affect the amount of revenue earned;
other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After its Departmental Plan is tabled in Parliament, the Office of the Registrar of the Supreme Court of Canada will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the subsequent Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for fiscal year 2016-17, and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Expenses:

Expenses are recorded on an accrual basis. Expenses for the ORSCC's operations are recorded when goods are received or services are rendered, including services provided without charge for accommodation, employer contributions to health and dental insurance plans, legal services, worker's compensation, security services and interpretation services, which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave, as well as severance benefits, are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment.

Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

b) Revenues:

Funds received from external parties for annual subscriptions to Canada Supreme Court Reports are recorded upon receipt as deferred revenues. These revenues are recognized on a monthly basis in the fiscal year covered by the annual subscription.

Sales and other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

Revenues that are non-respendable are not available to discharge the ORSCC's liabilities. Although the Registrar is expected to maintain accounting control, he has no authority over the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the ORSCC's gross revenues.

4. Parliamentary Authorities

The ORSCC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the ORSCC differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the ORSCC has different net cost 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 requested authorities
(in dollars)

Adjustment for items affecting net cost of operations but not affecting authorities:
	Forecast results 2016-17	Planned results 2017-18
Net cost of operations before government funding and transfers	42,657,782	43,044,597
Amortization of tangible capital assets	(359,450)	(473,235)
Gain (loss) on disposal of tangible capital assets	548	-
Services provided without charge by other government departments	(8,786,039)	(8,867,271)
Decrease (increase) in employee future benefits	18,531	44,334
Refund of prior year's expenditures	25,841	-
Total items affecting net cost of operations but not affecting authorities	(9,100,569)	(9,296,172)

Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	791,308	1,134,497
Total items not affecting net cost of operations but affecting authorities	791,308	1,134,497
Requested authorities	34,348,521	34,882,922

b) Authorities requested
(in dollars)

Authorities requested:
	Forecast results for 2016-17	Planned results for 2017-18
Vote 50 - operating expenditures	24,457,784	24,916,433
Statutory amounts	9,890,737	9,966,489
Total authorities requested	34,348,521	34,882,922