Quarterly Financial Report for the Quarter Ended June 30, 2020

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 is to be noted however that, unlike prior years, supply was not fully granted as at June 30, 2020. Rather, the ORSCC was granted 9/12ths of the Main Estimates; the remaining 3/12ths will be granted later this fiscal year. This report 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 2020-21 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, and is consistent with a prorated version of the 2020-21 Main Estimates. 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, 2020 compared to the same quarter of the prior year. It should be noted that full supply for the Main Estimates had not yet been approved by Parliament because of the COVID-19 pandemic. In the interim, the ORSCC received 9/12ths of its full supply, which contributed to a decrease in its authorities of 14.9%, while quarterly spending decreased by 5.5% over the same quarter ending June 30, 2019. The overall proportion of authorities used on a year-to-date basis (23.8%) is slightly higher than that of the previous year (21.5%). This is  mainly due to the pending voted authorities of 3/12ths in the first quarter of 2020-21($6.61 million) that is forthcoming later this fiscal year.

2.1 Changes to Granted Authorities

A decrease of $6,610,000 in the 2020-21 authorities available for use is due to the reduced supply of the Main Estimates. Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall. The ORSCC is expected to receive full supply for the 2020-21 Main Estimates in December 2020.

As at June 30, 2020, the total authorities provided to the ORSCC have decreased by $5,505,000 compared to the same quarter of the prior year. This net decrease consists of:

• A decrease in Vote 1 – Net Operating Expenditures ($5,885,000); and
• An increase in Statutory authorities ($380,000).

The decrease of $5,885,000 in Vote 1 – Net Operating Expenditures primarily consists of:

• A net decrease of $6,610,000 in 2020-21 funding received (Interim Supply) as noted above; offset by
• An allocation of $521,000 from TB Vote 15 (Collective Agreements);
• A temporary allotment adjustment of $37,000 to support human resources modernization initiatives; and
• A net increase of $167,000 in operational funding.

The increase of $380,000 in Statutory authorities consists of:

• A net decrease of $13,000 in contributions to Employee Benefit Plans (EBP); offset by
• A net increase of $393,000 in personnel and operating funding for Judges’ salaries, allowances, as well as annuities for retired Judges or their spouse.

2.2 Significant Changes to Budgetary Expenditures

As at June 30, 2020, total net budgetary expenditures decreased by 5.5% ($435,000) compared to the same quarter of the previous year. This variance comprises:

• A decrease of 2% ($117,000) in Vote 1 – Net Operating Expenditures; and
• A decrease of 16 % ($318,000) in Statutory Expenditures.

The above decrease of 2 % ($117,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $329,000 due to general increase in salary expenditures in comparison to the same period last fiscal year; offset by
• A non-salary decrease of $446,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net decrease of 16% ($318,000) in Statutory Expenditures in comparison to the same quarter of the previous year is attributed to general decreases in statutory 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 – Statutory Authorities as at June 30, 2019 and 2020.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at June 30, 2019 and 2020: $36,856,809 in 2019-20 and $31,351,659 in 2020-21.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at June 30, 2019 and 2020 respectively: $7,907,048 and $7,472,347.

Authorities used – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $5,923,212 for the first quarter of 2019-20 and $5,806,179 for the first quarter of 2020-21.

Authorities used – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $1,983,836 for the first quarter of 2019-20 and $1,666,168 for the first quarter of 2020-21.

3. Risks and Uncertainties

This departmental quarterly financial report reflects the results of the current fiscal period in relation to the partial allocation of the 2020-21 Main Estimates, whereas the first quarter results of the last fiscal year were compared to the full supply of the 2019-20 Main Estimates. The Governor General Special Warrant providing additional interim supply for a total of 9/12ths of the 2020-21 Main Estimates was issued on June 26, 2020.

The environment and context in which the Court manages and decides cases is continuously evolving, which in turn produces new risks and challenges. In the current COVID-19 context in particular, the Court has had to pursue its work towards the adaptation of its business processes to an electronic environment in an expedited fashion, which, for instance, enabled the Court to hold its first virtual hearings by Zoom in June. Although the first virtual hearings were successful, the uncertainty of the current events is such that it is difficult to fully assess the financial impact it may pose in 2020-21 and beyond. In the meantime, the ORSCC continues to mitigate its financial risks by dedicating time and efforts 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 contributing 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

The Registrar of the Supreme Court of Canada, Roger Bilodeau, Q.C., retired on May 31, 2020. The appointment process is currently underway. In the interim, as provided for in section 19 of the Supreme Court Act, the Deputy Registrar, David Power, has assumed all the powers and duties of the Registrar. There is no financial impact in relation to this announcement for the first quarter of 2020-21.

As a result of the COVID-19 pandemic, there were changes in the ORSCC’s operations over this reporting period. For instance, investments were made in information technology to enable employees to work remotely. Also, as mentioned above in Part 3, business processes were revised to enable the Court’s first virtual hearings to be held.

Approval by Senior Officials

Approved by:

 

Original approved by

David Power, Deputy Registrar
Ottawa, Ontario

August 24, 2020

 

Original approved by 

Catherine Laforce, Chief Financial Officer

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2020-2021

	Total available for use for the year ending March 31, 2021*	Used during the quarter ended June 30, 2020	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	19,829,184	5,806,179	5,806,179
Judges' Salaries, Allowances & Annuities	8,602,919	936,279	936,279
Contributions to Employee Benefit Plans	2,919,556	729,889	729,889
Refunds of amounts credited to revenues in previous years	-	-	-
Statutory authorities	11,522,475	1,666,168	1,666,168
Total authorities	31,351,659	7,472,347	7,472,347

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
Judges' Salaries, Allowances & Annuities	8,209,650	1,250,538	1,250,538
Contributions to Employee Benefit Plans	2,932,892	733,223	733,223
Refunds of amounts credited to revenues in previous years	-	75	75
Statutory authorities	11,142,542	1,983,836	1,983,836
Total authorities	36,856,809	7,907,048	7,907,048

* Includes only Authorities available for use and granted by Parliament at quarter-end. In the first quarter of 2020-21, the interim supply for voted authorities represented 9/12ths of the Main Estimates.

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

Fiscal year 2020-2021

Expenditures	Planned expenditures for the year ending March 31, 2021*	Expended during the quarter ended June 30, 2020	Year to date used at quarter-end
Personnel	25,858,774	6,534,498	6,534,498
Transportation and communications	993,793	68,176	68,176
Information	174,313	19,485	19,485
Professional and special services	1,698,482	346,389	346,389
Rentals	502,702	270,563	270,563
Repair and maintenance	321,398	4,280	4,280
Utilities, materials and supplies	768,162	160,586	160,586
Acquisition of machinery and equipment	994,545	56,943	56,943
Other subsidies and payments	39,490	11,427	11,427
Total net budgetary expenditures	31,351,659	7,472,347	7,472,347

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

* Includes only Authorities available for use and granted by Parliament at quarter-end. In the first quarter of 2020-21, the interim supply for voted authorities represented 9/12ths of the Main Estimates.