Quarterly Financial Report for the Quarter Ended September 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 and approved allotment adjustments 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 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 and approved allotment adjustments from Treasury Board Central Votes 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

This section highlights the changes in authorities provided and expenditures incurred as at September 30, 2019 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 5.8% while quarterly spending decreased by 0.8% over the same quarter ending September 30, 2018. The overall proportion of authorities used on a year-to-date basis (44.9%) is comparable to the previous year (46.1%).

2.1 Changes to Granted Authorities

As at September 30, 2019, the total authorities provided to the ORSCC have increased by $2,079,000 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• An increase in total authorities of $1,821,000, explained by:
  • An increase in Vote 1 – Net Operating Expenditures ($1,194,000); and
  • An increase in the budget of the Statutory Authorities ($627,000).

Current quarter:

• An increase in Vote 1 – Net Operating Expenditures ($258,000) which consists of:
  • An allotment transfer from TB Vote 25 (Operating Budget Carry Forward) of $1,162,000 received in the second quarter of 2019-20; funding for this item increased by $163,000 compared to the amount of $999,000 received in the same quarter last fiscal year;
  • An allotment adjustment of $39,000 was received from the Treasury Board Secretariat to support human resources modernization initiatives, while no such adjustment was received last fiscal year; and
  • In the second quarter of 2018-19, a contribution of $56,000 was made to the Comptroller General of Canada’s Government-Wide Initiative for Back Office Transformation while no such contribution was paid this fiscal year.

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 new funding for ‟Supporting Canada’s Courts Systemˮ (Federal Budget 2018). Additional authorities of $1,162,000 received for the Operating Budget Carry Forward 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 September 30, 2019, total net budgetary expenditures increased by 2.9% ($476,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 7.5% ($554,000) in net budgetary expenditures explained by:
  • An increase of 2.3% ($132,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 27% ($422,000) in the budget of the Statutory Expenditures.

Current quarter:

• A decrease of 0.8% ($78,000) in net budgetary expenditures explained by:
  • A decrease of 0.7% ($46,000) in Vote 1 – Net Operating Expenditures; and
  • A decrease of 1.1% ($32,000) in the budget of the Statutory Expenditures.

The above current quarter decrease of 0.7% ($46,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary decrease of $285,000 mainly 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 $239,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net current quarter decrease of 1.1% ($32,000) noted in the budget of the Statutory Expenditures is essentially attributed to:

• A net increase of $228,000 in contributions for Employee Benefit Plans (EBP), in statutory salary and in pension expenditures for retired judges or their survivors; offset by
• A net decrease of $260,000 in Statutory Operating Expenditures.

 

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 authorities used – Vote 1 – Net Operating Expenditures and the authorities used – Statutory Authorities as at September 30, 2018 and 2019.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at September 30, 2018 and 2019: $35,978,487 in 2018-19 and $38,057,456 in 2019-20.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at September 30, 2018 and 2019 respectively: $16,601,794 and $17,078,141.

Authorities Used During the Second Quarter – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $6,399,463 for the second quarter of 2018-19 and $6,353,751 for the second quarter of 2019-20.

Authorities Used During the Second Quarter – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $2,849,071 for the second quarter of 2018-19 and $2,817,342 for the second 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 (71%) and statutory authorities (29%) for operating and personnel expenditures.

As announced in the 2018 Federal Budget, the ORSCC received new funding for ‟Supporting Canada’s Courts Systemˮ 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

As announced on April 15, 2019 by the Right Honourable Richard Wagner, Chief Justice of Canada, the Honourable Clément Gascon retired from the Supreme Court of Canada on September 15, 2019.

As announced on August 7, 2019 by Prime Minister Justin Trudeau, the Honourable Nicholas Kasirer was appointed to the Supreme Court of Canada on September 16, 2019. Justice Kasirer’s appointment fills the seat left vacant by the retirement of Justice Gascon.

Financial impacts following these changes were minimal in the second 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 September 30, 2019	Year to date used at quarter-end**
Vote 1 - Net Operating expenditures	26,914,914	6,353,751	12,276,963
Statutory authorities	11,142,542	2,817,342	4,801,178
Total authorities	38,057,456	9,171,093	17,078,141

 

Fiscal year 2018-2019

	Total available for use for the year ending March 31, 2019*	Used during the quarter ended September 30, 2018	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	25,463,163	6,399,463	12,190,272
Statutory authorities	10,515,324	2,849,071	4,411,522
Total authorities	35,978,487	9,248,534	16,601,794

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

** The Total Year to date used at quarter-end has 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 September 30, 2019	Year to date used at quarter-end*
Personnel	30,030,072	7,400,516	13,584,775
Transportation and communications	1,408,402	427,957	906,313
Information	77,525	42,124	82,956
Professional and special services	2,247,680	685,941	1,224,434
Rentals	622,469	226,022	495,985
Repair and maintenance	502,839	50,712	71,089
Utilities, materials and supplies	1,251,994	226,848	459,119
Acquisition of machinery and equipment	1,804,247	77,030	214,302
Other subsidies and payments	112,228	33,943	39,168
Total net budgetary expenditures	38,057,456	9,171,093	17,078,141

* The Year to date used at quarter-end has been revised to reflect that $467,761 was removed, as following: -$92,400 Information; -$88,877 Repair and maintenance; -$150,357 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 September 30, 2018	Year to date used at quarter-end
Personnel	24,806,778	7,457,954	13,619,010
Transportation and communications	1,765,517	634,858	817,598
Information	118,492	33,490	72,273
Professional and special services	3,503,004	623,780	1,006,512
Rentals	1,131,104	117,199	323,510
Repair and maintenance	579,340	25,226	35,490
Utilities, materials and supplies	2,012,604	253,578	469,960
Acquisition of machinery and equipment	1,962,872	68,195	191,380
Other subsidies and payments	98,776	34,254	66,061
Total net budgetary expenditures	35,978,487	9,248,534	16,601,794