Quarterly Financial Report for the Quarter Ended December 31, 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 December 31, 2021 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 4.6%, while quarterly spending increased by 0.9% over the same quarter ending December 31, 2020. The overall proportion of authorities used on a year-to-date basis (65.86%) is the same as the previous year (65.86%).

2.1 Changes to Granted Authorities

As at December 31, 2021, the total authorities provided to the ORSCC have increased by $1,805,000 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• An increase in Vote 1 – Net Operating Expenditures ($1,019,000); and
• An increase in Statutory authorities ($677,000).

Current quarter:

• An increase in Vote 1 – Net Operating Expenditures ($109,000) which consists of:
• A net decrease of $262,000 for a Paylist allocation from TB Vote 30 received in 2020-21 but not yet received in 2021-22;
• An allocation of $79,000 from Supplementary Estimates (B) received in the third quarter of 2020-21 but not received in 2021-22;
• A net increase of $281,000 for compensation allocations received in 2021-22;
• A transfer of $169,000 to TBS for the Government of Canada Financial Management Project in 2020-21, which did not occur in the third quarter of 2021-22. (The allocation of $24,000 for this project in 2021-22 was transferred in the Main Estimates and was disclosed in Q1.) 

2.2 Significant Changes to Budgetary Expenditures

As at December 31, 2021, total net budgetary expenditures increased by 4.6% ($1,186,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 6.7% ($1,103,000) in net budgetary expenditures explained by:
• An increase of 7.5% ($904,000) in Vote 1 – Net Operating Expenditures; and
• An increase of 4.5% ($199,000) in Statutory Expenditures.

Current quarter:

• An increase of 0.9% ($83,000) in net budgetary expenditures explained by:
• A decrease of 1.8% ($122,000) in Vote 1 – Net Operating Expenditures; offset by
• An increase of 7.4% ($205,000) in Statutory Expenditures.

The above decrease of 1.8% ($122,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary increase of $259,000 mainly due to a general increase in salary expenditures in comparison to the same period last fiscal year; offset by
• A non-salary decrease of $381,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net increase of 7.4% ($205,000) 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 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, 2020 and 2021.

Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at December 31, 2020 and 2021: $39,355,502 in 2020-21 and $41,160,342 in 2021-22.

Year to Date used:
Figures present the cumulative amounts the ORSCC spent as at December 31, 2020 and 2021 respectively: $25,921,077 and $27,106,825.

Authorities Used during the Third Quarter – Vote 1 – Net Operating expenditures:
Figures showing the amounts the ORSCC spent: $6,628,069 for the third quarter of 2020-21 and $6,506,256 for the third quarter of 2021-22.

Authorities Used during the Third Quarter – Statutory authorities:
Figures showing the amounts the ORSCC spent: $2,763,408 for the third quarter of 2020-21 and $2,967,964 for the third 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.

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 December 20, 2021, The Honourable David Lametti, Minister of Justice and Attorney General of Canada, announced the appointment of Chantal Carbonneau as Registrar of the Supreme Court of Canada, effective December 17, 2021. This appointment fills the vacancy created by the retirement of Roger Bilodeau, Q.C., in May 2020. As well, the Deputy Registrar, David Power, retired in December 2021.There are no financial impacts in relation to these announcements for the third 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:

 

Chantal Carbonneau, Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
February 14, 2022

 

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 December 31, 2021	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	28,961,127	6,506,256	19,522,209
Judges' Salaries, Allowances & Annuities	9,157,676	2,216,439	5,330,041
Contributions to Employee Benefit Plans	3,041,539	751,525	2,254,575
Refunds of amounts credited to revenues in previous years	-	-	-
Statutory authorities	12,199,215	2,967,964	7,584,616
Total authorities	41,160,342	9,474,220	27,106,825

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

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

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 December 31, 2021	Year to date used at quarter-end
Personnel	33,592,810	8,069,384	23,210,675
Transportation and communications	1,341,277	132,489	490,518
Information	256,499	41,927	116,322
Professional and special services	2,749,039	527,118	1,340,384
Rentals	1,053,190	286,029	717,121
Repair and maintenance	523,324	67,907	117,566
Utilities, materials and supplies	1,119,865	286,206	794,017
Acquisition of machinery and equipment	443,639	38,325	257,612
Other subsidies and payments	80,699	24,835	62,610
Total net budgetary expenditures	41,160,342	9,474,220	27,106,825

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

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