Quarterly Financial Report for the Quarter Ended December 31, 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 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 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 December 31, 2020 compared to the same quarter of the prior year. It should be noted that full supply for the 2020-21 Main Estimates was recently approved by Parliament on December 14, 2020. Overall, the ORSCC’s authorities increased by 1.2%, while quarterly spending increased by 0.1% over the same quarter ending December 31, 2019. The overall proportion of authorities used on a year-to-date basis (65.9%) is lower than the previous year (68.1%).

2.1 Changes to Granted Authorities

As at December 31, 2020, the total authorities provided to the ORSCC have increased by $469,000. This net increase consists of:

Previously reported:

• A decrease in total authorities of $5,484,000, explained by:
  • A decrease in Vote 1 – Net Operating expenditures ($5,864,000) due to the delay in allocating full supply for the 2020-21 Main Estimates; offset by
  • An increase in Statutory authorities ($380,000).

Current quarter:

• An increase in total authorities of $5,953,000, explained by:
  • An increase in Vote 1 – Net Operating expenditures ($5,953,000), which consists of:
    • The release of the full supply for the 2020-21 Main Estimates on December 14, 2020, which consist of $1,678,000 in Operating and $4,932,000 in Personnel for Voted Authorities;
    • An allocation of $79,000 from Supplementary Estimates (B) received in the third quarter of 2020-21; offset by
    • A transfer of $169,000 to Treasury Board Secretariat occurred during the third quarter of 2020-21 for the Government of Canada Financial Management Project;
    • A Paylist allocation from TB Vote 30 of $262,000 was received during the third quarter of 2020-21; whereas the allocation for that item received in the same quarter of 2019-20 was $264,000; and
    • In 2019-20, a compensation allocation of ($565,000) was received during the third quarter; no such allocation was received in the third quarter of 2020-21.

2.2 Significant Changes to Budgetary Expenditures

As at December 31, 2020, total net budgetary expenditures decreased by 2.1% ($544,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• A decrease of 3.2% ($549,000) in net budgetary expenditures explained by:
  • A decrease of 1.3% ($165,000) in Vote 1 – Net Operating expenditures; and
  • A decrease of 8.0% ($384,000) in Statutory expenditures.

Current quarter:

• An increase of 0.1% ($5,000) in net budgetary expenditures explained by:
  • An increase of 3.6% ($232,000) in Vote 1 – Net Operating expenditures; offset by
  • A decrease of 7.6% ($227,000) in Statutory expenditures.

The above current quarter increase of 3.6 % ($232,000) noted in Vote 1 – Net Operating expenditures is attributed to:

• A net salary increase of $17,000; and
• A non-salary increase of $215,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects;
  • Fluctuating replacement or maintenance schedules.

The net decrease of 7.6% ($227,000) 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 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, 2019 and 2020.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at December 31, 2019 and 2020: $38,886,433 in 2019-20 and $39,355,502 in 2020-21.

Year to Date used:
Figures present the cumulative amounts the ORSCC spent as at December 31, 2019 and 2020 respectively: $26,464,960 and $25,921,077.

Authorities Used during the Third Quarter – Vote 1 – Net Operating expenditures:
Figures showing the amounts the ORSCC spent: $6,395,981 for the third quarter of 2019-20 and $6,628,069 for the third quarter of 2020-21.

Authorities Used during the Third Quarter – Statutory authorities:
Figures showing the amounts the ORSCC spent: $2,990,838 for the third quarter of 2019-20 and $2,763,408 for the third 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 2020-21 Main Estimates, for which full supply was released on December 14, 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

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

David Power, Acting Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
February 15, 2021

 

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 December 31, 2020	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	27,833,027	6,628,069	18,740,331
Judges' Salaries, Allowances & Annuities	8,602,919	2,032,744	4,990,304
Contributions to Employee Benefit Plans	2,919,556	729,889	2,189,667
Refunds of amounts credited to revenues in previous years	-	775	775
Statutory authorities	11,522,475	2,763,408	7,180,746
Total authorities	39,355,502	9,391,477	25,921,077

 

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
Judges' Salaries, Allowances & Annuities	8,209,650	2,257,615	5,592,272
Contributions to Employee Benefit Plans	2,932,892	733,223	2,199,669
Refunds of amounts credited to revenues in previous years	-	-	75
Statutory authorities	11,142,542	2,990,838	7,792,016
Total authorities	38,886,433	9,386,819	26,464,960

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

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 December 31, 2020	Year to date used at quarter-end
Personnel	31,289,076	7,649,705	21,966,351
Transportation and communications	1,310,132	105,983	391,011
Information	266,534	56,357	146,903
Professional and special services	2,569,612	477,403	1,212,669
Rentals	678,893	260,435	675,334
Repair and maintenance	491,433	274,885	374,047
Utilities, materials and supplies	1,168,732	330,056	737,630
Acquisition of machinery and equipment	1,520,708	217,569	366,084
Other subsidies and payments	60,382	19,084	51,048
Total net budgetary expenditures	39,355,502	9,391,477	25,921,077

 

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