Quarterly Financial Report for the Quarter Ended June 30, 2018

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 2018-19 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 2018-19 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, 2018 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 0.4% while quarterly spending increased by 7.6% over the same quarter ending June 30, 2017. The overall proportion of authorities used on a year-to-date basis (21%) is comparable to the previous year (19.6%).

2.1 Changes to Granted Authorities

As at June 30, 2018, the total authorities provided to the ORSCC have increased by $152,927 compared to the same quarter of the prior year. This net increase consists of:

• A decrease in Vote 1 – Net Operating Expenditures ($395,908); offset by
• An increase in Budgetary Statutory authorities ($548,835).

The decrease of $395,908 in Vote 1 – Net Operating Expenditures consists of:

• A net decrease of $1,022,794 in funding received to enhance security at the Supreme Court of Canada; offset by
• A compensation allocation of $426,442;
• An allotment adjustment for collective bargaining reprofiles from previous years’ frozen allotments amounting to $150,000; and
• An increase of $50,444 in operational funding.

The increase of $548,835 in Budgetary Statutory authorities consists of:

• A net increase of $16,377 in contributions to employee benefit plans (EBP), due to the compensation allocation, offset by a reduction in EBP rates from 15.7% in 2017-18 to 15.2% in 2018-19; and
• An increase in personnel and operating funding of $532,458 for Judges’ salaries, allowances, as well as annuities for retired Judges or their spouse.

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. The net authority increase of $152,927 noted above will be allocated to salaries and employee benefits.

2.3 Significant Changes to Budgetary Expenditures

As at June 30, 2018, total net budgetary expenditures increased by 7.6% ($520,630) compared to the same quarter of the previous year. This variance comprises:

• An increase of 9.8 % ($514,882) in Vote 1 – Net Operating Expenditures; and
• An increase of 0.4 % ($5,748) in Budgetary Statutory expenditures.

The above increase of 9.8 % ($514,882) was noted in Vote 1 – 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 $388,158 due to general increases in salary expenditures and retroactive salary payments arising from the settlement of certain collective agreements; and

• A non-salary increase of $126,724 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The increase of 0.4% ($5,748) 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 1 – Net Operating Expenditures and the authorities used – Budgetary Statutory Authorities as at June 30, 2017 and 2018.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the ORSCC planned to spend as at June 30, 2017 and 2018: $34,882,922 in 2017-18 and $35,035,849 in 2018-19.

Authorities used – Vote 1 – Net Operating Expenditures – Figures showing the amounts the ORSCC spent: $5,275,927 for the first quarter of 2017-18 and $5,790,809 for the first quarter of 2018-19.

Authorities used – Budgetary Statutory Authorities – Figures showing the amounts the ORSCC spent: $1,556,703 for the first quarter of 2017-18 and $1,562,451 for the first quarter of 2018-19.

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 22, 2018.

The ORSCC is funded through voted parliamentary spending authorities (70%) and statutory authorities (30%) 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.

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

There were no 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 15, 2018

 

Original signed by 

Catherine Laforce, Chief Financial Officer

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2018-2019

	Total available for use for the year ending March 31, 2019*	Used during the quarter ended June 30, 2018	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	24,520,525	5,790,809	5,790,809
Budgetary statutory authorities	10,515,324	1,562,451	1,562,451
Total authorities	35,035,849	7,353,260	7,353,260

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 1 - 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

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

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

Fiscal year 2018-2019

Expenditures	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended June 30, 2018	Year to date used at quarter-end
Personnel	24,806,778	6,161,056	6,161,056
Transportation and communications	1,660,351	182,740	182,740
Information	107,857	38,783	38,783
Professional and special services	3,193,547	382,732	382,732
Rentals	1,029,588	206,311	206,311
Repair and maintenance	527,344	10,264	10,264
Utilities, materials and supplies	1,833,768	216,382	216,382
Acquisition of machinery and equipment	1,786,705	123,185	123,185
Other subsidies and payments	89,911	31,807	31,807
Total net budgetary expenditures	35,035,849	7,353,260	7,353,260

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