Quarterly Financial Report for the Quarter Ended December 31, 2015

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). It 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 (ORSCC) 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 ORSCC’s authority, mandate and programs may be found in its Report on Plans and Priorities 2015-2016.

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 ORSCC’s spending authorities granted by Parliament and those used by the ORSCC, consistent with the Main Estimates and approved allotment transfers from Treasury Board Central Votes for the 2015-16 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 ORSCC 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 the changes in authorities provided and expenditures incurred as at December 31, 2015 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 2% while quarterly spending increased by 9% over the same quarter ending December 31, 2014. The overall proportion of authorities used on a year-to-date basis (67%), is in line with that of the previous year (68%).

2.1 Changes to Granted Authorities

As at December 31, 2015, the total authorities provided to the ORSCC have increased by $518,423 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• An increase in Vote 50 – Net Operating Expenditures ($259,079); and
• An increase in Budgetary Statutory authorities ($376,955).

Current quarter:

• A decrease in Vote 50 – Net Operating Expenditures ($117,611) in the third quarter of 2015-16 which consists of:
  • An allocation from Supplementary Estimates (B) of $118,300 received in the third quarter of 2014-15;
  • An allocation from TB Vote 15 (Collective Agreements) of $8,682 received in the third quarter of 2015-16; whereas the allocation for that item received in the third quarter of 2014-15 amounted to $18,773; and
  • A permanent transfer to the Canada School of Public Service of $10,780 during the third quarter of 2014-15.

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 ORSCC’s programs.

2.3 Significant Changes to Budgetary Expenditures

As at December 31, 2015, total net budgetary expenditures increased by 1% ($203,956) compared to the same reporting period of the previous year. This variance comprises:

Previously reported:

• A decrease in Vote 50 – Net Operating Expenditures ($854,066); and
• An increase in Budgetary Statutory expenditures ($395,746).

Current quarter:

• An increase of 9% ($662,276) in net budgetary expenditures explained by:
  • A decrease of 3% in Vote 50 – Net Operating Expenditures; and
  • An increase of 36% in Budgetary Statutory expenditures.

The above decrease of 3% ($131,664) was noted in Vote 50 – Net Operating Expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is attributed to:

• A net salary decrease of $266,768; offset by
• A non-salary increase of $135,104 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net increase of 36% ($793,940) was noted in total Budgetary Statutory Expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is attributed to an increase of $168,523 in statutory pension and salary expenditures for judges as well as an increase of $597,083 in relocation expenditures for judges. 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 Third 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 During the Third Quarter - Vote 50 - Net Operating Expenditures, and the Authorities Used During the Third Quarter - Budgetary Statutory Authority as at December 31, 2014 and 2015.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the ORSCC planned to spend as at December 31, 2014 and 2015: $32,340,585 in 2014-15 and $32,859,008 in 2015-16.

Year to Date Used – Figures present the cumulative amounts the ORSCC spent as at December 31, 2014 and 2015 respectively: $21,921,892 and $22,125,848.

Authorities used During the Third Quarter - Vote 50 - Net Operating Expenditures – Figures showing the amounts the ORSCC spent: $5,155,030 for the third quarter of 2014-15 and $5,023,366 for the third quarter of 2015-16.

Authorities used During the Third Quarter– Budgetary Statutory Authority – Figures showing the amounts the ORSCC spent: $2,198,596 for the third quarter of 2014-15 and $2,992,536 for the third quarter of 2015-16.

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 18, 2015.

The ORSCC is funded through voted parliamentary spending authorities (71%) and statutory authorities (29%) for operating and personnel expenditures.

The ORSCC’s operating budget has not been permanently increased for several years, other than for annual adjustments for collective bargaining increases. This continues to pose a serious challenge as the organization must continue to absorb rising operating costs which results in limited funding available for investments in its current asset base and strategic priorities. In addition, mandatory contributions to Central Agency initiatives also create further financial pressures.

Following the 2013 Speech from the Throne, the ORSCC, like other government departments, must also contend with an operating budget freeze for fiscal years 2014-15 and 2015-16.  Funding for wage and salary increases resulting from collective agreement settlements taking effect during this period will not be received. Depending on when these collective agreements are ratified, the effect of this budget freeze will likely be felt beyond the freeze period.

The ORSCC continues to reduce its financial risks by dedicating time and effort to ensure that all resources are used in the most efficient and effective manner possible. Opportunities aimed at increasing efficiency and reducing costs remain a priority for the organization. Strategies aimed at prioritizing new investments while postponing others that are less critical to the operations are utilized. Greater financial controls and improved resource planning and forecasting are also helping to mitigate these risks. Despite these strategies, gaps still exist and the ORSCC must be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

There were no significant changes in the ORSCC’s operations, personnel and programs over this reporting period.

Approval by Senior Officials

Approved by:

 

Roger Bilodeau, Q.C., Registrar
Ottawa, Ontario

February 10, 2016

 

 

Catherine Laforce, Chief Financial Officer

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2015-2016

	Total available for use for the year ending March 31, 2016*	Used during the quarter ended December 31, 2015	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	23,399,911	5,023,366	15,148,477
Budgetary statutory authorities	9,459,097	2,992,536	6,977,371
Total authorities	32,859,008	8,015,902	22,125,848

Fiscal year 2014-2015

	Total available for use for the year ending March 31, 2015*	Used during the quarter ended December 31, 2014	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	23,258,443	5,155,030	16,134,207
Budgetary statutory authorities	9,082,142	2,198,596	5,787,685
Total authorities	32,340,585	7,353,626	21,921,892

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

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

Fiscal year 2015-2016

Expenditures	Planned expenditures for the year ending March 31, 2016	Expended during the quarter ended December 31, 2015	Year to date used at quarter-end
Personnel	23,080,264	6,266,615	18,112,203
Transportation and communications	1,944,955	837,440	1,499,461
Information	235,042	24,236	40,796
Professional and special services	2,493,473	257,997	806,763
Rentals	1,118,775	138,352	413,070
Repair and maintenance	362,845	41,691	77,841
Utilities, materials and supplies	2,449,739	323,701	837,743
Acquisition of machinery and equipment	1,133,494	126,161	332,855
Other subsidies and payments	40,421	(291)	5,116
Total net budgetary expenditures	32,859,008	8,015,902	22,125,848

Fiscal year 2014-2015

Expenditures	Planned expenditures for the year ending March 31, 2015	Expended during the quarter ended December 31, 2014	Year to date used at quarter-end
Personnel	22,694,627	6,364,860	18,235,832
Transportation and communications	2,254,539	234,369	656,817
Information	234,126	19,081	36,019
Professional and special services	2,495,058	272,675	979,329
Rentals	1,111,422	80,720	354,454
Repair and maintenance	321,382	15,114	74,943
Utilities, materials and supplies	1,912,717	316,875	850,212
Acquisition of machinery and equipment	810,088	64,442	135,331
Other subsidies and payments	506,626	(14,510)	598,955
Total net budgetary expenditures	32,340,585	7,353,626	21,921,892