Quarterly Financial Report for the Quarter Ended September 30, 2021

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 TB Central Votes. 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 and approved allotment adjustments from TB 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, 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 at the end of the second quarter last fiscal year. This explains this year’s increase in authorities of 25.5%, as full supply was received June 24th for 2021-22.  Similarly, the overall proportion of authorities used on a year-to-date basis (43.1%) decreased in comparison to the previous year (50.8%), 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 8.0% over the same quarter ending September 30, 2020.

2.1 Changes to Granted Authorities

As at September 30, 2021, the total authorities provided to the ORSCC have increased by $8,306,000 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

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

Current quarter:

• An increase in Vote 1 – Net Operating Expenditures ($22,000) which consists of:
  • An allotment transfer from TB Vote 25 (Operating Budget Carry Forward) of $1,244,000 received in the second quarter of 2021-22; funding for this item increased by $22,000 compared to the amount of $1,222,000 received in the same quarter last fiscal year.

2.2 Significant Changes to Budgetary Expenditures

As at September 30, 2021, total net budgetary expenditures increased by 6.7% ($1,103,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 5.1% ($380,000) in net budgetary expenditures explained by:
  • An increase of 5.1% ($296,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 5.0% ($84,000) in Statutory Expenditures.

Current quarter:

• An increase of 8.0% ($723,000) in net budgetary expenditures explained by:
  • An increase of 9.6% ($608,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 4.2% ($115,000) in Statutory Expenditures.

The above increase of 9.6% ($608,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $424,000 mainly due to a general increase in salary expenditures in comparison to the same period last fiscal year; and
• A non-salary increase of $184,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net increase of 4.2% ($115,000) 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 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, 2020 and 2021.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at September 30, 2020 and 2021: $32,573,497 in 2020-21 and $40,879,359 in 2021-22.

Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at September 30, 2020 and 2021 respectively: $16,529,600 and $17,632,605.

Authorities Used During the Second Quarter – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $6,306,083 for the second quarter of 2020-21 and $6,913,472 for the second quarter of 2021-22.

Authorities Used During the Second Quarter – Statutory Authorities:
Figures showing the amounts the ORSCC spent: $2,751,170 for the second quarter of 2020-21 and $2,866,513 for the second 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 second 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

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:

 

David Power, Acting Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
November 10, 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 September 30, 2021	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	28,680,144	6,913,472	13,015,953
Judges' Salaries, Allowances & Annuities	9,157,676	2,114,988	3,113,602
Contributions to Employee Benefit Plans	3,041,539	751,525	1,503,050
Statutory authorities	12,199,215	2,866,513	4,616,652
Total authorities	40,879,359	9,779,985	17,632,605

 

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
Statutory authorities	11,522,475	2,751,170	4,417,338
Total authorities	32,573,497	9,057,253	16,529,600

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

NB: 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 2021-2022

Expenditures	Planned expenditures for the year ending March 31, 2022*	Expended during the quarter ended September 30, 2021	Year to date used at quarter-end
Personnel	33,311,827	8,283,328	15,141,291
Transportation and communications	1,341,277	296,489	358,029
Information	256,499	21,005	74,395
Professional and special services	2,749,039	460,997	813,266
Rentals	1,053,190	206,256	431,092
Repair and maintenance	523,324	34,572	49,659
Utilities, materials and supplies	1,119,865	271,667	507,811
Acquisition of machinery and equipment	443,639	196,211	219,287
Other subsidies and payments	80,699	9,460	37,775
Total net budgetary expenditures	40,879,359	9,779,985	17,632,605

 

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

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

NB: In the second quarter of 2020-21, the interim supply for voted authorities represented 9/12ths of the Main Estimates.