Quarterly Financial Report for the Quarter Ended September 30, 2013

The Office of the Registrar of the Supreme Court of Canada

1. Introduction

This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board (TB). This quarterly report should be read in conjunction with the Main Estimates and approved allotment transfers from Treasury Board Central Votes. It has not been subject to an external audit or review.

1.1 Authority, Mandate and Programs

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. The Supreme Court of Canada is an important national institution, positioned at the pinnacle of the judicial branch of government in Canada, separate from and independent of the executive and legislative branches of government.

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.

Further information on the Office's authority, mandate and programs may be found in its Report on Plans and Priorities 2013-2014.

1.2 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Office's spending authorities granted by Parliament and those used by the Office, consistent with the Main Estimates and approved allotment transfers from Treasury Board Central Votes for the 2013-14 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Office uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of Fiscal Quarter and Fiscal Year to Date Results

This section highlights changes in authorities provided and expenditures incurred as at September 30, 2013 compared to the same quarter of the prior year. Overall, both the Office's authorities and quarterly spending increased by 1% over the same quarter ending September 30, 2012. The overall proportion of authorities used on a year-to-date basis (45%) is identical to the previous year (45%).

2.1 Changes to Granted Authorities

As at September 30, 2013, the total authorities provided to the Office of the Registrar of the Supreme Court of Canada have increased by $365,054, compared to the same quarter in the prior year.  This net increase consists of:

Previously reported:

• An increase in Vote 50 - Net Operating Expenditures ($181,723); and
• An increase in Budgetary Statutory authorities ($657,630).

Current quarter:

• A decrease in Vote 50 – Net Operating Expenditures ($474,299) in the second quarter of 2013-14 which consists of timing differences due to:
  • An allocation from TB Vote 25 (Operating Budget Carry Forward) of $933,257 received in the second quarter of 2012-13; offset by
  • An allocation from TB Vote 30 (Paylist Requirements) of $458,958 received in the second quarter of 2013-14.

2.2 Changes to Planned Expenditures

The allocation of planned expenditures between both fiscal years has remained stable as there are no significant changes to the Office's programs. Additional authorities received in the second quarter of 2013-14 will be used to offset Paylist Requirements (such as severance pay and parental benefits), thus increasing the planned Personnel expenditures.

2.3 Significant Changes to Budgetary Expenditures

As at September 30, 2013, total net budgetary expenditures increased by 2% ($245,362) compared to the same quarter of the previous year. This variance is comprised of:

Previously reported:

• An increase in net budgetary expenditures ($137,118).

Current quarter:

• An increase of 1% ($108,244) in net budgetary expenditures explained by:
  • A decrease (< 1%) in Vote 50 – Net Operating Expenditures; and
  • An increase (7%) in Budgetary Statutory spending.

A slight decrease of $25,021 was noted in total operating expenditures (Vote 50) in comparison to the same quarter of the previous year. The variance between the two quarters is attributed to:

• A net salary increase of $224,571 mainly due to:
  • An increase in severance expenditures in the second quarter of 2013-14; and
  • Other various salary increases.
• A non-salary decrease of $249,592 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects;
  • Fluctuating replacement or maintenance schedule; and
  • Overall decrease in travel costs.

An increase of 7% ($133,265) was noted in total Budgetary Statutory expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is essentially attributed to an increase in statutory pension expenditures. Other expenditures have remained stable in comparison to the same quarter of the previous year.

Figure 1: Comparison of Authorities Granted and Used

Description of image

Comparison of Second Quarter Authorities Granted and Used – The diagram illustrates the variation in thousands of dollars for the Annual Net Budgetary Authorities Granted, the year to date used, the authorities used – Vote 50 – Net Operating Expenditures and the authorities used – Budgetary Statutory Authorities as at September 30, 2012 and 2013.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the Office planned to spend as at September 30, 2012 and 2013: $30,750,115 in 2012-13 and $31,115,169 in 2013-14.

Year to Date Used – Figures present the cumulative amounts the Office received as at September 30, 2012 and 2013 respectively: $13,853,933 and $14,099,295.

Authorities used – Vote 50 – Net Operating Expenditures – Figures showing the amounts the Office received: $5,437,308 for the second quarter of 2012-13 and $5,412,287 for the second quarter of 2013-14.

Authorities used – Budgetary Statutory Authorities – Figures showing the amounts the Office received: $1,991,338 for the second quarter of 2012-13 and $2,124,603 for the second quarter of 2013-14.

3. Risks and Uncertainties

This departmental quarterly financial report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 20, 2013.

The Office of the Registrar of the Supreme Court of Canada is funded through voted parliamentary spending authorities (72%) and statutory authorities (28%) for operating and personnel expenditures.

The Office continues to operate within its existing reference levels, which have remained constant for several years. This remains a serious challenge as the Court must continue to evolve from a technical standpoint as well as respond to an increase in the complexity of cases being heard.  The lack of new funding and the focus on addressing gaps and deficiencies at the operating level has limited the Office's ability to make investments in new strategic priorities. The Office is facing aging legacy IT systems and infrastructure, IT security (cyber threats), an aging building, as well as a need to strengthen physical security in light of the changing nature of cases coming before the Court. The growing influence of privacy, national security and human rights issues continues to increase the complexity and sensitivity of cases and results in a need for more robust security measures. The Office has been trying to respond to these challenges by reallocating internal resources and identifying efficiencies. However, this is proving to be more and more difficult and options to acquire additional funding are being explored.

Through its Business Transformation Initiative, the Office is continuing to explore various ways to leverage recent investments in technology by adapting work processes to the new technological environment. As the Office continues to strive towards more efficient and effective processes, it must balance the need to respond to gaps and deficiencies at the operational level (IT Infrastructure, IT Security, Physical Security, etc.) while trying to undertake transformational activities. Given its limited resources, the Office must continue to be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

The Honourable Mr. Justice Fish retired on August 31, 2013. Financial impacts were minimal in the second quarter of 2013-14.

There were no other significant changes in the Office's operations, personnel and programs over this reporting period.

Approval by Senior Officials

Approved by:

 

Roger Bilodeau, Q.C., Registrar
Ottawa, Ontario
November 29, 2013

 

Catherine Laforce, Chief Financial Officer

Statement of Authorities (unaudited)
(in dollars)

	Fiscal year 2013-2014
	Total available for use for the year ending March 31, 2014*	Used during the quarter ended September 30, 2013	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	22,361,694	5,412,287	10,509,401
Budgetary statutory authorities	8,753,475	2,124,603	3,589,894
Total authorities	31,115,169	7,536,890	14,099,295

	Fiscal year 2012-2013
	Total available for use for the year ending March 31, 2013*	Used during the quarter ended September 30, 2012	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	22,654,270	5,437,308	10,373,681
Budgetary statutory authorities	8,095,845	1,991,338	3,480,252
Total authorities	30,750,115	7,428,646	13,853,933

* Includes only Authorities available for use and granted by Parliament at quarter-end.

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)

	Fiscal year 2013-2014
	Planned expenditures for the year ending March 31, 2014	Expended during the quarter ended September 30, 2013	Year to date used at quarter-end
Expenditures
Personnel	22,459,479	6,397,848	12,221,393
Transportation and communications	1,967,482	328,616	444,770
Information	260,297	29,966	30,168
Professional and special services	3,056,514	349,783	577,902
Rentals	178,562	95,284	206,436
Repair and maintenance	168,784	22,017	30,313
Utilities, materials and supplies	1,745,656	237,289	492,421
Acquisition of machinery and equipment	858,663	74,083	93,887
Other subsidies and payments	419,732	2,004	2,005
Total net budgetary expenditures	31,115,169	7,536,890	14,099,295

	Fiscal year 2012-2013
	Planned expenditures for the year ending March 31, 2013	Expended during the quarter ended September 30, 2012	Year to date used at quarter-end
Expenditures
Personnel	21,361,168	6,069,226	11,418,978
Transportation and communications	1,741,861	313,638	666,183
Information	230,383	30,669	42,357
Professional and special services	3,517,986	442,677	651,904
Rentals	292,155	145,683	227,808
Repair and maintenance	228,563	29,834	69,640
Utilities, materials and supplies	1,865,499	278,768	503,016
Acquisition of machinery and equipment	1,055,583	118,106	274,032
Other subsidies and payments	456,917	15	15
Total net budgetary expenditures	30,750,115	7,428,646	13,853,933