Quarterly Financial Report for the Quarter Ended June 30, 2019 Revised

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 2019-20 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 2019-20 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, 2019 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 5.2% while quarterly spending increased by 7.5% over the same quarter ending June 30, 2018. The overall proportion of authorities used on a year-to-date basis (21.5%) is comparable to the previous year (21%).

2.1 Changes to Granted Authorities

As at June 30, 2019, the total authorities provided to the ORSCC have increased by $1,821,000 compared to the same quarter of the prior year. This net increase consists of:

• An increase in Vote 1 – Net Operating Expenditures ($1,194,000); and
• An increase in Statutory authorities ($627,000).

The increase of $1,194,000 in Vote 1 – Net Operating Expenditures primarily consists of:

• A net increase of $1,602,000 in funding received for ‟Supporting Canada’s Courts System ˮ;
• A net compensation allocation increase of $158,000;
• A net increase of $221,000 in operational funding; offset by
• An allotment adjustment for collective bargaining reprofiles amounting to $150,000 was received in 2018-19 while no such adjustment was received this fiscal year; and
• A permanent transfer from Vote 1- Operating to Vote 1- Personnel at a cost of 20% ($637,000) for the Budgetary Statutory Employee Benefit Plans (EBP).

The increase of $627,000 in Statutory authorities consists of:

• A net increase of $659,000 in contributions to Employee Benefit Plans (EBP), due to funding received for ‟Supporting Canada’s Courts Systemˮ; compensation allocation; permanent transfer from Operating to Personnel and general increases in EBP rates; offset by
• A net decrease of $32,000 in personnel and operating funding 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 differs between both fiscal years due to a permanent transfer between Operating and Personnel - Vote 1 as well as the new funding received for ‟Supporting Canada’s Courts System ˮ. Additional authorities of $1,821,000 will be allocated to salaries and non-salary categories in proportion to the standard object distribution within the 2019-20 Main estimates.

2.3 Significant Changes to Budgetary Expenditures

As at June 30, 2019, total net budgetary expenditures increased by 7.5% ($554,000) compared to the same quarter of the previous year. This variance comprises:

• An increase of 2.3% ($132,000) in Vote 1 – Net Operating Expenditures; and
• An increase of 27% ($422,000) in Statutory expenditures.

The above increase of 2.3% ($132,000) noted in Vote 1 – Net Operating is attributed to:

• A net salary decrease of $135,000 due to vacant positions and a general decrease in salary expenditures in comparison to the same period last fiscal year; offset by
• A non-salary increase of $267,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The increase of 27% ($422,000) in Statutory Expenditures in comparison to the same quarter of the previous year is essentially attributed to increases in contributions for Employee Benefit Plans (EBP) as well as increases in statutory operating 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 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 – Statutory Authorities as at June 30, 2018 and 2019.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at June 30, 2018 and 2019: $35,035,849 in 2018-19 and $36,856,809 in 2019-20.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at June 30, 2018 and 2019 respectively: $7,353,260 and $7,907,048.

Authorities used – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $5,790,809 for the first quarter of 2018-19 and $5,923,212 for the first quarter of 2019-20.

Authorities used – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $1,562,451 for the first quarter of 2018-19 and $1,983,836 for the first quarter of 2019-20.

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 25, 2019.

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

As announced in the 2018 Federal Budget, the ORSCC received new funding for ‟Supporting Canada’s Courts System ˮ starting in 2018-19. This new funding will reduce certain operational risks and enable the replacement of some aging assets.  

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. The ORSCC continues to be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

On April 15, 2019, the Right Honourable Richard Wagner, Chief Justice of Canada, announced that Justice Clément Gascon will retire from the Supreme Court of Canada effective September 15, 2019. There is no financial impact in relation to this announcement for the first quarter of 2019-20.

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

February 21, 2020

 

Original signed by 

Catherine Laforce, Chief Financial Officer

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2019-2020

	Total available for use for the year ending March 31, 2020*	Used during the quarter ended June 30, 2019**	Year to date used at quarter-end**
Vote 1 - Net Operating expenditures	25,714,267	5,923,212	5,923,212
Statutory authorities	11,142,542	1,983,836	1,983,836
Total authorities	36,856,809	7,907,048	7,907,048

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
Statutory authorities	10,515,324	1,562,451	1,562,451
Total authorities	35,035,849	7,353,260	7,353,260

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

** The Total amounts used during the quarter ended June 30, 2019 and Year to date used at quarter-end have been revised to reflect that $467,761 was removed from Vote 1 - Net Operating expenditures.

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

Fiscal year 2019-2020

Expenditures	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended June 30, 2019*	Year to date used at quarter-end*
Personnel	29,813,022	6,184,259	6,184,259
Transportation and communications	1,289,699	478,356	478,356
Information	67,417	40,832	40,832
Professional and special services	1,953,230	538,493	538,493
Rentals	541,309	269,963	269,963
Repair and maintenance	437,277	20,377	20,377
Utilities, materials and supplies	1,088,754	232,271	232,271
Acquisition of machinery and equipment	1,568,506	137,272	137,272
Other subsidies and payments	97,595	5,225	5,225
Total net budgetary expenditures	36,856,809	7,907,048	7,907,048

* The Total amounts Expended during the quarter ended June 30, 2019 and Year to date used at quarter-end have been revised to reflect that $467,761 was removed, as following: -$92,400 Information; -$88,876 Repair and maintenance; -$150,358 Utilities, materials and supplies; -$96,031 Acquisition of machinery and equipment; and -$40,096 Other subsidies and payments.

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