Quarterly Financial Report for the Quarter Ended December 31, 2019

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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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 December 31, 2019 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 0.4% while quarterly spending increased by 8.0% over the same quarter ending December 31, 2018. The overall proportion of authorities used on a year-to-date basis (68.1%) is comparable with that of the previous year (65.3%).

2.1 Changes to Granted Authorities

As at December 31, 2019, the total authorities provided to the ORSCC have increased by $156,000 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• An increase in total authorities of $2,079,000, explained by:
  • An increase in Vote 1 – Net Operating Expenditures ($1,452,000); and
  • An increase in the budget of the Statutory Authorities ($627,000).

Current quarter:

• A decrease in total authorities of $1,923,000, explained by:
  • A decrease in Vote 1 – Net Operating Expenditures ($1,757,000) which consists of:
    • A decrease of $18,000 for paylist allocation from TB Vote 30, in the amount of $264,000 in comparison to $282,000 received during the same quarter last fiscal year;
    • In the third quarter of 2018-19, an allocation from Supplementary Estimates (A) was received in the amount of $115,000; whereas no allocation was received during this fiscal year;
    • In the third quarter of 2018-19, new funding was received for ‟Supporting Canada’s Courts System ˮ in the amount of $1,785,000 while this fiscal year, the funding was included in the Main Estimates (first quarter); offset by
    • An increase of $161,000 in funding received for compensation allocation from TB Vote 15 (Collective agreements). Funding received for this item in the third quarter of 2019-20 was $565,000 compared to $404,000 received in the same quarter last fiscal year.
  • A decrease of $166,000 in Statutory Authorities explained by:
    • Funding for Employee Benefit Plans (EBP) related to ‟Supporting Canada’s Courts System ˮ received during the third quarter of 2018-19; whereas it was received during the first quarter 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 System ˮ (Federal Budget 2018). Additional authorities of $829,000 received in the third quarter of 2019-20 for Compensation and Paylist allocations will be allocated to salaries.

2.3 Significant Changes to Budgetary Expenditures

As at December 31, 2019, total net budgetary expenditures increased by 4.6% ($1,171,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 2.9% ($476,000) in net budgetary expenditures explained by:
  • An increase of 0.7% ($86,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 8.8% ($390,000) in the budget of the Statutory Expenditures.

Current quarter:

• An increase of 8.0% ($695,000) in net budgetary expenditures explained by:
  • An increase of 4.6% ($284,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 15.9% ($411,000) in the budget of the Statutory Expenditures.

The above current quarter increase of 4.6 % ($284,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $177,000 in comparison to the same period last fiscal year, mainly due to retroactive salary adjustments; and
• A non-salary increase of $107,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net current quarter increase of 15.9% ($411,000) noted in the budget of the Statutory Expenditures is essentially attributed to:

• A net increase of $320,000 in contributions for Employee Benefit Plans (EBP), in statutory salary and in pension expenditures for retired judges or their survivors; and
• A net increase of $91,000 in Statutory Operating Expenditures.

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 authorities used – Vote 1 – Net Operating Expenditures and the authorities used – Statutory Authorities as at December 31, 2018 and 2019.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at December 31, 2018 and 2019: $38,730,695 in 2018-19 and $38,886,433 in 2019-20.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at December 31, 2018 and 2019 respectively: $25,294,348 and $26,464,960.

Authorities Used During the Third Quarter – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $6,112,310 for the third quarter of 2018-19 and $6,395,981 for the third quarter of 2019-20.

Authorities Used During the Third Quarter – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $2,580,244 for the third quarter of 2018-19 and $2,990,838 for the third 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 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

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

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 December 31, 2019	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	27,743,891	6,395,981	18,672,944
Statutory authorities	11,142,542	2,990,838	7,792,016
Total authorities	38,886,433	9,386,819	26,464,960

 

Fiscal year 2018-2019

	Total available for use for the year ending March 31, 2019*	Used during the quarter ended December 31, 2018	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	28,049,571	6,112,310	18,302,582
Statutory authorities	10,681,124	2,580,244	6,991,766
Total authorities	38,730,695	8,692,554	25,294,348

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

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 December 31, 2019	Year to date used at quarter-end
Personnel	30,859,049	7,676,733	21,261,508
Transportation and communications	1,408,288	401,065	1,307,378
Information	77,525	103,786	186,742
Professional and special services	2,247,680	615,134	1,839,568
Rentals	622,469	266,556	762,541
Repair and maintenance	502,839	48,710	119,799
Utilities, materials and supplies	1,251,994	182,253	641,372
Acquisition of machinery and equipment	1,804,361	100,839	315,141
Other subsidies and payments	112,228	(8,257)	30,911
Total net budgetary expenditures	38,886,433	9,386,819	26,464,960

 

Fiscal year 2018-2019

Expenditures	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended December 31, 2018	Year to date used at quarter-end
Personnel	26,487,552	7,180,270	20,799,280
Transportation and communications	1,806,017	304,651	1,122,249
Information	118,491	79,363	151,636
Professional and special services	3,596,435	640,843	1,647,355
Rentals	1,246,108	164,523	488,033
Repair and maintenance	579,340	21,206	56,696
Utilities, materials and supplies	2,112,604	304,051	774,011
Acquisition of machinery and equipment	2,685,372	54,499	245,879
Other subsidies and payments	98,776	(56,852)	9,209
Total net budgetary expenditures	38,730,695	8,692,554	25,294,348