Quarterly Financial Report for the Quarter Ended June 30, 2021

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. 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 2021-22 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 2021-22 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, 2021 compared to the same quarter of the prior year. It should be noted that full supply for the Main Estimates was not approved by Parliament until the third quarter of 2020-21 because of the COVID-19 pandemic. As an interim measure, the ORSCC had only received 9/12ths of its full supply. This explains this year’s increase in authorities of 26.4%, as full supply was received June 24th for 2021-22.  Similarly, the overall proportion of authorities used on a year-to-date basis (19.8%) decreased in comparison to the previous year (23.8%), in conjunction with reduced authorities in 2020-21 (i.e. quarterly expenditures are calculated on reduced authorities of 9/12ths for 2020-21 vs 12/12ths for 2021-22). Quarterly spending increased by 5.1% over the same quarter ending June 30, 2020.

2.1 Changes to Granted Authorities

As at June 30, 2021, the total authorities provided to the ORSCC have increased by $8,284,000 compared to the same quarter of the prior year. This net increase consists of:

• An increase in Vote 1 – Net Operating Expenditures ($7,607,000); and
• An increase in Statutory authorities ($677,000).

The increase of $7,607,000 in Vote 1 – Net Operating Expenditures consists of:

• A net increase of $6,610,000 in 2021-22 funding received for Full Supply compared to the 2020-21 Interim Supply (9/12ths) of Main Estimates, as noted above;
• A net increase of $555,000 for allocation from TB Vote 15 (Collective Agreements);
• An allocation of $505,000 received in the 2021-22 to support the ‟Resumption of court operations” in response to the COVID-19 pandemic; offset by
• A temporary allotment adjustment of $39,000 to support human resources modernization initiatives received in 2020-21, while no such adjustment was received in 2021-22; and
• A transfer of $24,000 for the Government of Canada Financial Management Project.

The increase of $677,000 in Statutory authorities consists of:

• A net increase of $122,000 in contributions to Employee Benefit Plans (EBP); and
• A net increase of $555,000 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, 2021, total net budgetary expenditures increased by 5.1% ($380,000) compared to the same quarter of the previous year. This variance comprises:

• An increase of 5.1% ($296,000) in Vote 1 – Net Operating Expenditures; and
• An increase of 5.0 % ($84,000) in Statutory Expenditures.

The above increase of 5.1 % ($296,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $241,000 in comparison to the same period last fiscal year mainly due to compensation adjustments; and

• A non-salary increase of $55,000 resulting from:
• Timing differences;
• Price variances;
• Special projects; and
• Fluctuating replacement or maintenance schedules.

The net increase of 5.0% ($84,000) in Statutory Expenditures in comparison to the same quarter of the previous year is attributed to general increases 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, 2020 and 2021.

Annual Net Budgetary Authorities Granted:
Figures showing authorities available for use as at June 30, 2020 and 2021: $31,351,659 in 2020-21 and $39,635,739 in 2021-22.

Year to Date used:
Figures present the cumulative amounts the ORSCC spent as at June 30, 2020 and 2021 respectively: $7,472,347 and $7,852,620.

Authorities Used during the First Quarter – Vote 1 – Net Operating expenditures:
Figures showing the amounts the ORSCC spent: $5,806,179 for the first quarter of 2020-21 and $6,102,481 for the first quarter of 2021-22.

Authorities Used during the First Quarter – Statutory authorities:
Figures showing the amounts the ORSCC spent: $1,666,168 for the first quarter of 2020-21 and $1,750,139 for the first quarter of 2021-22.

3. Risks and Uncertainties

This departmental quarterly financial report reflects the results of the current fiscal period in relation to the 2021-22 Main Estimates for which full supply was released on June 24, 2021, whereas the first quarter results of last fiscal year were based on interim supply for a total of 9/12ths of the 2020-21 Main Estimates.

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 context of the COVID-19 pandemic in particular, the Court adapted its operations to ensure that hearings could resume quickly and safely in order to administer justice without delay. The ORSCC has had to pursue its work towards the adaptation of its business processes to an electronic environment in an expedited fashion, which enabled the Court to hold its first virtual hearings in fiscal year 2020-21. Since then, the Court hearings have been held both virtually and in-person, in accordance with public health protocols. 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 contributing to mitigate these risks. As financial pressures rise, the ORSCC continues to be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

On June 17, 2021, the Prime Minister, Justin Trudeau, announced the nomination of the Honourable Mahmud Jamal to the Supreme Court of Canada. This nomination will fill the vacancy created by the retirement of Justice Rosalie Silberman Abella. There is no financial impact in relation to this announcement for the first quarter of 2021-22.

As a result of the COVID-19 pandemic, there were changes in the ORSCC’s operations over this reporting period. Funding received to support the ‟Resumption of court operations” in response to the COVID-19 pandemic will ensure that Court hearings continue to be conducted in a safe and effective manner and Canadians can therefore continue to rely on these essential services.

Approval by Senior Officials

Approved by:

 

Original signed by

David Power, Acting Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
July 28, 2021

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2021-2022

	Total available for use for the year ending March 31, 2022*	Used during the quarter ended June 30, 2021	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	27,436,524	6,102,481	6,102,481
Judges' Salaries, Allowances & Annuities	9,157,676	998,614	998,614
Contributions to Employee Benefit Plans	3,041,539	751,525	751,525
Statutory authorities	12,199,215	1,750,139	1,750,139
Total authorities	39,635,739	7,852,620	7,852,620

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
Statutory authorities	11,522,475	1,666,168	1,666,168
Total authorities	31,351,659	7,472,347	7,472,347

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

** 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 2021-2022

Expenditures	Planned expenditures for the year ending March 31, 2022*	Expended during the quarter ended June 30, 2021	Year to date used at quarter-end
Personnel	32,068,207	6,857,963	6,857,963
Transportation and communications	1,341,277	61,540	61,540
Information	256,499	53,390	53,390
Professional and special services	2,749,039	352,269	352,269
Rentals	1,053,190	224,836	224,836
Repair and maintenance	523,324	15,087	15,087
Utilities, materials and supplies	1,119,865	236,144	236,144
Acquisition of machinery and equipment	443,639	23,076	23,076
Other subsidies and payments	80,699	28,315	28,315
Total net budgetary expenditures	39,635,739	7,852,620	7,852,620

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

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

** 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.