Quarterly Financial Report for the Quarter Ended June 30, 2017

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. 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 2017-18 Main Estimates.

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 for the 2017-18 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 money 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 results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results^{Footnote 1}

This section highlights the changes in authorities provided and expenditures incurred as at June 30, 2017 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 2% while quarterly spending increased by 6% over the same quarter ending June 30, 2016. The overall proportion of authorities used on a year-to-date basis (19.6%), is comparable to the previous year (18.8%).

2.1 Changes to Granted Authorities

As at June 30, 2017, the total authorities provided to the ORSCC have increased by $652,440 compared to the same quarter of the prior year. This net increase consists of:

• An increase in Vote 50 – Net Operating Expenditures ($576,688); and
• An increase in Budgetary Statutory authorities ($75,752).

The increase of $576,688 in Vote 50 – Net Operating Expenditures consists of:

• A net increase of $593,892 in funding received to enhance security at the Supreme Court of Canada;
• A permanent allocation from TB Vote 15 (Collective Agreements) for the LC collective agreement ($71,796); offset by
• A permanent decrease of $89,000 in operational funding arising from the Budget 2016 reduction.

The increase of $75,752 in Budgetary Statutory authorities consists of:

• A net decrease of $207,721 in contributions to employee benefit plans (EBP), mostly due to a reduction in EBP rates from 17.2% in 2016-17 to 15.7% in 2017-18; and
• An increase in personnel and operating funding of $283,473 for Judges’ salaries, allowances, as well as annuities for retired Judges.

2.2 Changes to Planned Expenditures

The allocation of planned expenditures between both fiscal years slightly increased due to funding received to enhance security at the Supreme Court of Canada. The planned expenditures will be allocated to security services and assets, salaries and employee benefits.

2.3 Significant Changes to Budgetary Expenditures

As at June 30, 2017, total net budgetary expenditures increased by 6% ($390,133) compared to the same quarter of the previous year. This variance comprises:

• An increase of 8 % ($370,484) in Vote 50 – Net Operating Expenditures; and
• An increase of 1 % ($19,649) in Budgetary Statutory expenditures.

The above increase of 8 % ($370,484) 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 increase of $267,682 due to retroactive salary payments arising from the settlement of certain collective agreements and general increases in salary expenditures; and
• A non-salary increase of $102,802 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The increase of 1% ($19,649) in Budgetary Statutory Expenditures in comparison to the same quarter of the previous year is attributed to an increase in operating expenditures.

Figure 1: Comparison of Authorities Granted and Used

Description of image

Comparison of First Quarter Authorities Granted and Used – The diagram illustrates the variation in thousands of dollars for the Annual Net Budgetary Authorities Granted, the authorities used – Vote 50 – Net Operating Expenditures and the authorities used – Budgetary Statutory Authorities as at June 30, 2016 and 2017.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the ORSCC planned to spend as at June 30, 2016 and 2017: $34,230,482 in 2016-17 and $34,882,922 in 2017-18.

Authorities used – Vote 50 – Net Operating Expenditures – Figures showing the amounts the ORSCC spent: $4,905,443 for the first quarter of 2016-17 and $5,275,927 for the first quarter of 2017-18.

Authorities used – Budgetary Statutory Authorities – Figures showing the amounts the ORSCC spent: $1,537,054 for the first quarter of 2016-17 and $1,556,703 for the first quarter of 2017-18.

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 23, 2017.

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

With the exception of new funding received for enhancing security beginning in 2016-17, the ORSCC’s operating budget has remained fairly stable for several years. The fiscal restraint on its operations continues to pose a serious challenge as the organization must continue to absorb rising operating costs which in turn, results in limited funding available for investments in its aging asset base and strategic priorities.

Following the 2013 Speech from the Throne, the ORSCC, like other government departments, must also contend with an operating budget freeze.  Funding for wage and salary increases resulting from collective agreement settlements taking effect during fiscal years 2014-15 and 2015-16 will not be received nor will the ongoing impact of these adjustments be funded. The financial impact arising from the implementation of collective agreements is being closely monitored. Funding has been set aside for these estimated costs.

The ORSCC continues to mitigate 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. Greater financial controls and improved resource planning, forecasting and investment prioritization are also helping to mitigate these risks. Despite these strategies, gaps and deficiencies still exist and the ORSCC must be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

On June 12, 2017, the Right Honourable Beverley McLachlin, Chief Justice of Canada, announced that she will retire from the Supreme Court of Canada effective December 15, 2017. There is no financial impact in relation to this announcement for the first quarter of 2017-18.

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

Approval by Senior Officials

Approved by:

 

Original signed by

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

August 18, 2017

 

Original signed by 

Catherine Laforce, Chief Financial Officer

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2017-2018

	Total available for use for the year ending March 31, 2018*	Used during the quarter ended June 30, 2017	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	24,916,433	5,275,927	5,275,927
Budgetary statutory authorities	9,966,489	1,556,703	1,556,703
Total authorities	34,882,922	6,832,630	6,832,630

Fiscal year 2016-2017

	Total available for use for the year ending March 31, 2017*	Used during the quarter ended June 30, 2016	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	24,339,745	4,905,443	4,905,443
Budgetary statutory authorities	9,890,737	1,537,054	1,537,054
Total authorities	34,230,482	6,442,497	6,442,497

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

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

Fiscal year 2017-2018

Expenditures	Planned expenditures for the year ending March 31, 2018	Expended during the quarter ended June 30, 2017	Year to date used at quarter-end
Personnel	23,867,193	5,722,606	5,722,606
Transportation and communications	1,716,055	249,545	249,545
Information	135,666	215	215
Professional and special services	3,401,775	415,097	415,097
Rentals	1,092,231	137,360	137,360
Repair and maintenance	279,963	22,258	22,258
Utilities, materials and supplies	2,191,970	225,204	225,204
Acquisition of machinery and equipment	1,996,386	58,071	58,071
Other subsidies and payments	201,683	2,274	2,274
Total net budgetary expenditures	34,882,922	6,832,630	6,832,630

Fiscal year 2016-2017

Expenditures	Planned expenditures for the year ending March 31, 2017	Expended during the quarter ended June 30, 2016	Year to date used at quarter-end
Personnel	23,675,602	5,494,563	5,494,563
Transportation and communications	1,558,578	142,865	142,865
Information	154,316	524	524
Professional and special services	3,724,804	377,996	377,996
Rentals	976,142	146,148	146,148
Repair and maintenance	301,309	9,033	9,033
Utilities, materials and supplies	1,999,921	209,625	209,625
Acquisition of machinery and equipment	1,736,409	33,931	33,931
Other subsidies and payments	103,401	27,812	27,812
Total net budgetary expenditures	34,230,482	6,442,497	6,442,497