Quarterly Financial Report for the Quarter Ended September 30, 2020

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 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. 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 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 and approved allotment adjustments from Treasury Board Central Votes. 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, 2020 compared to the same quarter of the prior year. It should be noted that full supply for the Main Estimates has not yet been approved by Parliament because of the COVID-19 pandemic. In the interim, the ORSCC received 9/12th of its full supply, which mainly contributed to a decrease in its authorities of 14.4%, while quarterly spending decreased by 1.2% over the same quarter ending September 30, 2019. The overall proportion of authorities used on a year-to-date basis (50.8%) is significantly higher than the previous year (44.9%), a result that is mainly due to pending voted authorities of 3/12ths in 2020-21 ($6.61 million). It is worth noting that the overall proportion of authorities used on a year-to-date basis decreases to 42.2% for 2020-21 if pending voted authorities of $6.61 million (remaining 3/12ths) are considered.

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 a result, the total authorities provided to the ORSCC as at September 30, 2020 were lower than total authorities provided for the same quarter of the prior year. This net decrease of $5,484,000 consists of:

Previously reported:

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

Current quarter:

• An increase in Vote 1 – Net Operating Expenditures ($21,000) which consists of:
  • An allotment transfer from TB Vote 25 (Operating Budget Carry Forward) of $1,222,000 received in the second quarter of 2020-21; funding for this item increased by $60,000 compared to the amount of $1,162,000 received in the same quarter last fiscal year;
  • An allotment adjustment of $39,000 was received from the Treasury Board Secretariat in the second quarter of 2019-20 to support human resources modernization initiatives, while no such adjustment was received in the second quarter of 2020-21.

2.2 Significant Changes to Budgetary Expenditures

As at September 30, 2020, total net budgetary expenditures decreased by 3.2% ($549,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• A decrease of 5.5% ($435,000) in net budgetary expenditures explained by:
• A decrease of 2% ($117,000) in Vote 1 – Net Operating Expenditures; and
• A decrease of 16% ($318,000) in the budget of the Statutory Expenditures.

Current quarter:

• A decrease of 1.2% ($114,000) in net budgetary expenditures explained by:
• A decrease of 0.8% ($48,000) in Vote 1 – Net Operating Expenditures; and
• A decrease of 2.4% ($66,000) in the budget of the Statutory Expenditures.

The above current quarter decrease of 0.8 % ($48,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $329,000 mainly due to general increase in salary expenditures in comparison to the same period last fiscal year; offset by
• A non-salary decrease of $377,000 resulting from:
• Timing differences;
• Price variances;
• Special projects;
• Fluctuating replacement or maintenance schedules; and
• General reduction in travel and hospitality expenditures due to the COVID-19 pandemic.

The net decrease of 2.4% ($66,000) in Statutory Expenditures in comparison to the same quarter of the previous year is essentially attributed to a general decrease 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, 2019 and 2020.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at September 30, 2019 and 2020: $38,057,456 in 2019-20 and $32,573,497 in 2020-21.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at September 30, 2019 and 2020 respectively: $17,078,141 and $16,529,600.

Authorities Used During the Second Quarter – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $6,353,751 for the second quarter of 2019-20 and $6,306,083 for the second quarter of 2020-21.

Authorities Used During the Second Quarter – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $2,817,342 for the second quarter of 2019-20 and $2,751,170 for the second 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 second 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 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

As a result of the COVID-19 pandemic, there were further changes in the ORSCC’s operations over this reporting period. For instance, investments were made in the courtroom in order to respect the health and safety protocols required by public health authorities for the resumption of in-person hearings in September.

Approval by Senior Officials

Approved by:

 

David Power, Acting Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
November 16, 2020

 

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 September 30, 2020	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	21,051,022	6,306,083	12,112,262
Judges' Salaries, Allowances & Annuities	8,602,919	2,021,281	2,957,560
Contributions to Employee Benefit Plans	2,919,556	729,889	1,459,778
Refunds of amounts credited to revenues in previous years	-	-	-
Statutory authorities	11,522,475	2,751,170	4,417,338
Total authorities	32,573,497	9,057,253	16,529,600

 

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
Judges' Salaries, Allowances & Annuities	8,209,650	2,084,119	3,334,657
Contributions to Employee Benefit Plans	2,932,892	733,223	1,466,446
Refunds of amounts credited to revenues in previous years	-	-	75
Statutory authorities	11,142,542	2,817,342	4,801,178
Total authorities	38,057,456	9,171,093	17,078,141

* Includes only Authorities available for use and granted by Parliament at quarter-end. In the second 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 September 30, 2020	Year to date used at quarter-end
Personnel	26,095,352	7,782,148	14,316,646
Transportation and communications	1,110,819	216,852	285,028
Information	208,429	71,061	90,546
Professional and special services	2,020,747	388,877	735,266
Rentals	601,089	144,336	414,899
Repair and maintenance	384,300	94,882	99,162
Utilities, materials and supplies	916,349	246,988	407,574
Acquisition of machinery and equipment	1,189,193	91,572	148,515
Other subsidies and payments	47,219	20,537	31,964
Total net budgetary expenditures	32,573,497	9,057,253	16,529,600

 

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

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