Quarterly Financial Report for the Quarter Ended September 30, 2022

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 2022-23 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 2022-23 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, 2022 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 0.1% and quarterly spending increased by 6.0% over the same quarter ending September 30, 2021. The overall proportion of authorities used on a year-to-date basis (44.5%) is comparable to the previous year (43.1%).

2.1 Changes to Granted Authorities

As at September 30, 2022, the total authorities provided to the ORSCC have increased by $46,000 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• A decrease in Vote 1 – Net Operating Expenditures ($298,000); offset by
• An increase in Statutory authorities ($326,000).

Current quarter:

• An increase in Vote 1 – Net Operating Expenditures ($18,000) which consists of:
  • An allotment transfer from TB Vote 25 (Operating Budget Carry Forward) of $1,261,000 received in the second quarter of 2022-23; funding for this item increased by $18,000 compared to the amount received in the same quarter last fiscal year.

2.2 Significant Changes to Budgetary Expenditures

As at September 30, 2022, total net budgetary expenditures increased by 3.4% ($590,000) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• A decrease of 1.3% ($82,000) in Vote 1 – Net Operating Expenditures; offset by
• An increase of 5.2% ($90,000) in Statutory Expenditures.

Current quarter:

• An increase of 6.0% ($582,000) in net budgetary expenditures explained by:
  • An increase of 6.2% ($426,000) in Vote 1 – Net Operating Expenditures; and
  • An increase of 5.5% ($156,000) in Statutory Expenditures.

The above increase of 6.2% ($426,000) noted in Vote 1 – Net Operating Expenditures is attributed to:

• A net salary decrease of $10,000; offset by
• A non-salary increase of $436,000 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net increase of 5.5% ($156,000) 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, 2021 and 2022.

Annual Net Budgetary Authorities Granted:
Figures showing authorities available for use as at September 30, 2021 and 2022: $40,879,359 in 2021-22 and $40,925,143 in 2022-23.

Year to Date used:
Figures present the cumulative amounts the ORSCC spent as at September 30, 2021 and 2022 respectively: $17,632,605 and $18,222,693.

Authorities Used during the Second Quarter – Vote 1 – Net Operating expenditures:
Figures showing the amounts the ORSCC spent: $6,913,472 for the second quarter of 2021-22 and $7,338,727 for the second quarter of 2022-23.

Authorities Used during the Second Quarter - Statutory authorities:
Figures showing the amounts the ORSCC spent: $2,866,513 for the second quarter of 2021-22 and $3,022,989 for the second quarter of 2022-23.

3. Risks and Uncertainties

This departmental quarterly financial report reflects the results of the current fiscal period in relation to the 2022-23 Main Estimates for which full supply was released on June 24, 2022.

The ORSCC is funded through voted parliamentary spending authorities (69%) and statutory authorities (31%) for operating and personnel expenditures.

The environment and context in which the Court manages and decides cases is continuously evolving, which in turn produces new risks and challenges. 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 February 24, 2022, the Right Honourable Richard Wagner, Chief Justice of Canada, announced that the Honourable Justice Michael J. Moldaver had notified the Minister of Justice, the Honourable David Lametti, of his retirement from the Supreme Court of Canada, effective September 1, 2022. On August 19, 2022, the Prime Minister, Justin Trudeau, announced the nomination of the Honourable Justice Michelle O’Bonsawin to the Supreme Court of Canada to fill the vacancy created by the retirement of the Honourable Michael J. Moldaver.

There were no other significant changes in the ORSCC’s operations, personnel and programs over this reporting period.

Approval by Senior Officials

Approved by:

 

Chantal Carbonneau, Registrar
Catherine Laforce, Chief Financial Officer

 

Ottawa, Ontario
November 24, 2022

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2022-2023

	Total available for use for the year ending March 31, 2023*	Used during the quarter ended September 30, 2022	Year to date used at quarter-end
Vote 1 - Net Operating expenditures	28,400,265	7,338,727	13,359,176
Judges' Salaries, Allowances & Annuities	9,463,062	2,257,535	3,332,609
Contributions to Employee Benefit Plans	3,061,816	765,454	1,530,908
Statutory authorities	12,524,878	3,022,989	4,863,517
Total authorities	40,925,143	10,361,716	18,222,693

 

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

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

 

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)

Fiscal year 2022-2023

Expenditures	Planned expenditures for the year ending March 31, 2023*	Expended during the quarter ended September 30, 2022	Year to date used at quarter-end
Personnel	32,728,966	8,402,903	15,230,994
Transportation and communications	1,049,253	451,182	594,901
Information	259,036	98,241	105,950
Professional and special services	2,550,412	708,948	1,096,948
Rentals	1,133,533	323,468	522,785
Repair and maintenance	680,032	8,567	15,170
Utilities, materials and supplies	1,386,667	271,918	533,312
Acquisition of machinery and equipment	1,071,875	45,514	65,034
Other subsidies and payments	65,369	50,975	57,599
Total net budgetary expenditures	40,925,143	10,361,716	18,222,693

 

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

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