Financial Statements 2018-2019
The Office of the Registrar of the Supreme Court of Canada
Statement of Management Responsibility Including Internal Control Over Financial Reporting
Statement of Financial Position (Unaudited)
Statement of Operations and Departmental Net Financial Position (Unaudited)
Statement of Change in Departmental Net Debt (Unaudited)
Statement of Cash Flows (Unaudited)
Notes to the Financial Statements (Unaudited)
Statement of Management Responsibility Including Internal Control Over Financial Reporting
Responsibility for the integrity and objectivity of the accompanying financial statements for the fiscal year ending March 31, 2019, as well as for all information contained in these statements, rests with the management of the Office of the Registrar of the Supreme Court of Canada (ORSCC). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the ORSCC’s financial transactions. Financial information submitted for the preparation of the Public Accounts of Canada, and included in the ORSCC's Departmental Results Report, is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR), designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.
Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the ORSCC, as well as by conducting an annual risk-based assessment of the effectiveness of the ICFR system.
The ICFR system is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and to make necessary adjustments.
The ORSCC is subject to periodic Core Control Audits performed by the Office of the Comptroller General (OCG) and uses the results of such audits to comply with the Treasury Board Policy on Financial Management.
The financial statements of the ORSCC have not been audited.
Roger Bilodeau, Q.C.,
Registrar
Ottawa, Canada
September 5, 2019
Catherine Laforce, Chief Financial Officer
Statement of Financial Position (Unaudited)
As at March 31
(in dollars)
2019 | 2018 restated (note 14) |
|
---|---|---|
Liabilities | ||
Accounts payable and accrued liabilities (note 4) | 3,306,255 | 3,278,757 |
Vacation pay and compensatory leave | 1,272,359 | 1,289,237 |
Deferred revenues (note 5) | - | - |
Employee future benefits (note 6) | 686,658 | 746,757 |
Security Deposit Trust Account (note 7) | 392,182 | 391,890 |
Judges' Supplementary Retirement Benefits Account (note 8) | 2,355,693 | 2,240,734 |
Total gross liabilities | 8,013,147 | 7,947,375 |
Liabilities held on behalf of Government | ||
Deferred revenues (note 5) | - | - |
Total liabilities held on behalf of Government | - | - |
Total net liabilities | 8,013,147 | 7,947,375 |
Financial assets | ||
Due from Consolidated Revenue Fund | 5,942,510 | 5,756,429 |
Accounts receivable and advances (note 9) | 173,355 | 296,358 |
Total gross financial assets | 6,115,865 | 6,052,787 |
Financial assets held on behalf of Government | ||
Accounts receivable and advances (note 9) | (87,962) | (169,078) |
Total financial assets held on behalf of Government | (87,962) | (169,078) |
Total net financial assets | 6,027,903 | 5,883,709 |
Departmental net debt | 1,985,244 | 2,063,666 |
Non-financial assets | ||
Prepaid expenses | 148,461 | 119,436 |
Tangible capital assets (note 10) | 1,281,656 | 1,438,636 |
Total non-financial assets | 1,430,117 | 1,558,072 |
Departmental net financial position | (555,127) | (505,594) |
Contractual obligations (note 11)
The accompanying notes form an integral part of these financial statements.
Roger Bilodeau, Q.C.,
Registrar
Ottawa, Canada
September 5, 2019
Catherine Laforce,
Chief Financial Officer
Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31
(in dollars)
2019
Planned Results |
2019 | 2018 restated (note 14) |
|
---|---|---|---|
Expenses | |||
The administration of Canada's final court of appeal | 29,058,085 | 31,183,395 | 30,024,690 |
Internal services | 13,669,724 | 14,144,540 | 15,177,393 |
Total expenses | 42,727,809 | 45,327,935 | 45,202,083 |
Revenues | |||
Sale of information documents and other fees | 168,746 | 172,650 | 171,859 |
Pension contribution revenues | 130,620 | 139,650 | 118,874 |
Revenues earned on behalf of Government | (296,292) | (300,525) | (290,403) |
Total revenues | 3,074 | 11,775 | 330 |
Net cost of operations before government funding and transfers | 42,724,735 | 45,316,160 | 45,201,753 |
Government funding and transfers | |||
Net cash provided by Government of Canada | 37,472,766 | 36,698,946 | |
Change in due from Consolidated Revenue Fund | 186,081 | 513,606 | |
Services provided without charge by other government departments (note 12) | 7,607,780 | 7,858,828 | |
Net cost of operations after government funding and transfers | 49,533 | 130,373 | |
Departmental net financial position - Beginning of year | (505,594) | (375,221) | |
Departmental net financial position - End of year | (555,127) | (505,594) |
Segmented information (note 13)
The accompanying notes form an integral part of these financial statements.
Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31
(in dollars)
2019 | 2018 restated (note 14) |
|
---|---|---|
Net cost of operations after government funding and transfers | 49,533 | 130,373 |
Change due to tangible capital assets: | ||
Acquisitions of tangible capital assets | 184,909 | 640,264 |
Amortization of tangible capital assets | (341,888) | (278,452) |
Proceeds from disposal of tangible capital assets | (11,775) | (330) |
Net gain (loss) on disposal of tangible capital assets including adjustments | 11,775 | 330 |
Total change due to tangible capital assets | (156,979) | 361,812 |
Change due to prepaid expenses | 29,024 | 19,170 |
Net increase (decrease) in departmental net debt | (78,422) | 511,355 |
Departmental net debt - Beginning of year | 2,063,666 | 1,552,311 |
Departmental net debt - End of year | 1,985,244 | 2,063,666 |
The accompanying notes form an integral part of these financial statements.
Statement of Cash Flows (Unaudited)
For the Year Ended March 31
(in dollars)
2019 | 2018 restated (note 14) |
|
---|---|---|
Operating activities | ||
Net cost of operations before government funding and transfers | 45,316,160 | 45,201,753 |
Non-cash items: | ||
Amortization of tangible capital assets | (341,888) | (278,452) |
Gain (loss) on disposal of tangible capital assets | 11,775 | 330 |
Services provided without charge from other government departments (note 12) | (7,607,780) | (7,858,828) |
Variations in Statement of Financial Position: | ||
Increase (decrease) in accounts receivable and advances | (41,887) | 2,724 |
Increase (decrease) in prepaid expenses | 29,024 | 19,170 |
Decrease (increase) in accounts payable and accrued liabilities | (27,498) | (510,320) |
Decrease (increase) in vacation pay and compensatory leave | 16,878 | (414,732) |
Decrease (increase) in employee future benefits | 60,099 | (1,908) |
Decrease (increase) in Security Deposit Trust Account | (292) | (162) |
Decrease (increase) in Judges' Supplementary Retirement Benefits Account | (114,959) | (100,563) |
Cash used in operating activities | 37,299,632 | 36,059,012 |
Capital investing activities | ||
Acquisitions of tangible capital assets | 184,909 | 640,264 |
Proceeds from disposal of tangible capital assets | (11,775) | (330) |
Cash used in capital investing activities | 173,134 | 639,934 |
Net cash provided by Government of Canada | 37,472,766 | 36,698,946 |
The accompanying notes form an integral part of these financial statements.
Notes to the Financial Statements (Unaudited)
For the Year Ended March 31
1. Authority and objectives
Created by the Supreme Court Act 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.
The ORSCC has a single Core Responsibility: The administration of Canada's final court of appeal. The ORSCC provide services and support for Canada's final court of appeal to process, hear and decide cases. It also supports communications and outreach to stakeholders. This Core Responsibility is further supported by two programs: Court Administration and Administration of the Judges Act for the Judges of the Supreme Court of Canada. In addition, as is the case with other federal government organizations, the ORSCC organization include Internal Services, which are services in support of programs and/or required to meet corporate obligations of the ORSCC.
2. Summary of significant accounting policies
These financial statements have been prepared using the ORSCC's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
Significant accounting policies are as follows:
- Parliamentary authorities
The ORSCC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the ORSCC do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2018-19 Department Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2018-19 Departmental Plan.
- Net cash provided by Government
The ORSCC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the ORSCC is deposited to the CRF, and all cash disbursements made by the ORSCC are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.
- Amounts due from or to the CRF
Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the ORSCC is entitled to draw from the CRF without further authorities to discharge its liabilities.
- Revenues:
Funds received from external parties for annual subscriptions to Canada Supreme Court Reports are recorded upon receipt as deferred revenues. Revenues are then recognized on a monthly basis in the fiscal year covered by the annual subscription.
Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.
Sales and other revenues are recognized in the period the event giving rise to the revenues occurred.
Revenues that are non-respendable are not available to discharge the ORSCC's liabilities. While the Registrar is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, these revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the ORSCC's gross revenues.
- Expenses
Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, workers' compensation, interpretation services and security services are recorded as operating expenses at their carrying value.
- Future benefits:
- Pension benefits:
Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The ORSCC’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The ORSCC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
Eligible federally appointed judges and their survivors are entitled to fully-indexed annuities providing that the judges meet minimum age and service requirements. The main benefits paid from this plan are recorded on a pay-as-you-go basis. They are included in the Statement of Operations and Departmental Net Financial Position as a component of salaries and benefits, and the judges' contributions are credited to revenues. Contributions made by the ORSCC and the judges pertaining to the portion of the plan that relates to indexation of benefits are recorded in the Judges' Supplementary Retirement Benefits Account, which is presented in the Statement of Financial Position. The ORSCC's contribution towards indexation is expensed at the time it is accrued in accordance with the Supplementary Retirement Benefits Act. The actuarial liability associated with the judges' pension plan is recorded in the financial statements of the Government of Canada, the ultimate sponsor of the Plan.
- Severance benefits:
The accumulation of severance benefits for voluntary departures ceased for applicable employee group. Employees were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
- Pension benefits:
- Accounts receivable
Accounts receivable are recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.
- Non-financial assets
The cost of acquiring equipment and other capital property are capitalized as tangible capital assets and are amortized to expense over the estimated useful lives of the assets, as described in Note 10. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The ORSCC does not capitalize intangibles assets, works of art and historical treasures that have cultural, aesthetic or historical value.
- Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
- Related party transactions
Related party transactions, other than inter-entity transactions, are recorded at the exchange amount. Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:- Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
- Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount. Other related party transactions, other than inter-entity transactions, are recorded at the exchange amount.
3. Parliamentary authorities
The ORSCC receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the ORSCC has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
a. Reconciliation of net cost of operations to current year authorities used
(in dollars)
2019 | 2018 restated (note 14) |
|
---|---|---|
Net cost of operations before government funding and transfers | 45,316,160 | 45,201,753 |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Amortization of tangible capital assets | (341,888) | (278,452) |
Gain (loss) on disposal of tangible capital assets | 11,775 | 330 |
Services provided without charge by other government departments | (7,607,780) | (7,858,828) |
Decrease (increase) in salary overpayment | - | 29,423 |
Decrease (increase) in vacation pay and compensatory leave | 16,879 | (414,732) |
Decrease (increase) in employee future benefits | 60,099 | (1,908) |
Bad debt expense | (150) | (15) |
Refund of prior year's expenditures | 39,101 | 17,318 |
Total items affecting net cost of operations but not affecting authorities | (7,821,964) | (8,506,864) |
Adjustments for items not affecting net cost of operations but affecting authorities: | ||
Acquisition of tangible capital assets | 184,909 | 640,264 |
Salary advances and overpayments to recover | 40,096 | 62,846 |
Increase (decrease) in prepaid expenses | 29,024 | 19,170 |
Total items not affecting net cost of operations but affecting authorities | 254,029 | 722,280 |
Current year authorities used | 37,748,225 | 37,417,169 |
b. Authorities provided and used
(in dollars)
2019 | 2018 | |
---|---|---|
Authorities provided: | ||
Vote 1 – Operating expenditures | 28,118,572 | 28,048,976 |
Contributions to employee benefits plan | 2,822,238 | 2,744,204 |
Judges' salaries, allowances and annuities | 8,350,383 | 7,990,851 |
Proceeds from the disposal of surplus Crown assets | 11,775 | 330 |
Less: | ||
Authorities available for future years | (11,775) | - |
Lapsed: Operating | (1,542,968) | (1,367,192) |
Current year authorities used | 37,748,225 | 37,417,169 |
4. Accounts payable and accrued liabilities
The following table presents details of the ORSCC's accounts payable and accrued liabilities:
(in dollars)
2019 | 2018 | |
---|---|---|
Accounts payable - Other government departments and agencies | 626,700 | 615,471 |
Accounts payable - External parties | 542,416 | 838,807 |
Total accounts payable | 1,169,116 | 1,454,278 |
Accrued liabilities | 2,137,139 | 1,824,479 |
Total accounts payable and accrued liabilities | 3,306,255 | 3,278,757 |
5. Deferred revenues
Deferred revenues represent the balance at year-end of unearned revenues stemming from amounts received from external parties for annual subscriptions to Canada Supreme Court Reports. Revenues are recognized on a monthly basis in the fiscal year covered by the annual subscription. Details of the transactions related to this account are as follows:
(in dollars)
2019 | 2018 | |
---|---|---|
Opening balance | - | - |
Amounts received | 8,400 | 9,800 |
Revenue recognized | (8,400) | (9,800) |
Gross closing balance | - | - |
Deferred revenues held on behalf of Government | - | - |
Net closing balance | - | - |
6. Employee future benefits
a. Pension benefits
The ORSCC’s employees participate in the public service pension plan (the "Plan"), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.
Both the employees and the ORSCC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups - Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
The 2018-2019 expense amounts to $1,968,229 ($1,868,803 in 2017-2018). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2017-2018) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2017-2018) the employee contributions.
The ORSCC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.
b. Severance benefits
Severance benefits provided to the ORSCC's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees.
Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2019, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.
The change in the obligations during the year were as follows:
(in dollars)
2019 | 2018 | |
---|---|---|
Accrued benefit obligation - Beginning of year | 746,757 | 744,849 |
Expense for the year | 116,758 | 201,813 |
Benefits paid during the year | (176,857) | (199,905) |
Accrued benefit obligation - End of year | 686,658 | 746,757 |
7. Security Deposit Trust Account
The following table presents details of the ORSCC's Trust Account liability:
(in dollars)
2019 | 2018 | |
---|---|---|
Liability - Beginning of year | 391,890 | 391,728 |
Deposits | - | - |
Interest | 292 | 162 |
Reimbursements | - | - |
Liability - End of year | 392,182 | 391,890 |
The Security Deposit Account was established to record security to the value of $500 deposited by an Appellant with the Office of the Registrar of the Supreme Court of Canada in accordance with paragraph 60(1)(b) of the Supreme Court Act. As per section 87 of the Rules of the Supreme Court of Canada, interest is paid on money deposited as security.
8. Judges' Supplementary Retirement Benefits Account (SRBA)
The following table presents details of the ORSCC's SRBA liability:
(in dollars)
2019 | 2018 | |
---|---|---|
Liability - Beginning of year | 2,240,734 | 2,140,171 |
Contributions | 70,092 | 68,704 |
Interest | 44,867 | 31,859 |
Liability - End of year | 2,355,693 | 2,240,734 |
The Judges' Supplementary Retirement Benefits Account records contributions made by judges of the Supreme Court of Canada and the matching contributions made by the ORSCC in accordance with the SRBA Act and the Judges Act.
9. Accounts receivable and advances
The following table presents details of the ORSCC's accounts receivable and advances balances:
(in dollars)
2019 | 2018 | |
---|---|---|
Receivables - Other government departments and agencies | 84,893 | 123,414 |
Receivables - External parties | 87,962 | 169,078 |
Employee Advances | 650 | 3,866 |
Subtotal | 173,505 | 296,358 |
Allowance for doubtful accounts on receivables from external parties | (150) | - |
Gross accounts receivable | 173,355 | 296,358 |
Accounts receivable held on behalf of Government | (87,962) | (169,078) |
Net accounts receivable | 85,393 | 127,280 |
10. Tangible capital assets
Capital Asset Class | Amortization Period |
---|---|
Machinery and equipment | 3 to 10 years |
Computer equipment | 3 to 10 years |
Computer software | 3 to 10 years |
Office furniture and equipment | 5 to 10 years |
Motor vehicles | 3 years |
Leasehold improvements | over the lesser of useful life of improvement or lease term (max. 5 years) |
Assets under construction | once in service, in accordance with asset type |
(in dollars)
Cost
Capital Asset Class |
Opening Balance | Acquisitions | Adjustments | Disposals and Write-offs | Closing Balance |
---|---|---|---|---|---|
Machinery and equipment | 1,261,600 | 41,829 | - | (232,109) | 1,071,320 |
Computer equipment | 1,350,511 | 38,323 | - | (283,075) | 1,105,759 |
Computer software | 829,930 | - | - | (46,688) | 783,242 |
Office furniture and equipment | 2,083,816 | 15,880 | - | (976,201) | 1,123,495 |
Motor vehicles | 224,351 | - | - | (53,451) | 170,900 |
Leasehold improvements | 9,786,237 | - | - | (200,643) | 9,585,594 |
Assets under construction | - | 88,877 | - | - | 88,877 |
Total | 15,536,445 | 184,909 | - | (1,792,167) | 13,929,187 |
Accumulated Amortization
Capital Asset Class | Opening Balance | Amortization | Adjustments | Disposals and Write-offs | Closing Balance |
---|---|---|---|---|---|
Machinery and equipment | 734,146 | 86,792 | - | (217,876) | 603,062 |
Computer equipment | 757,468 | 165,085 | - | (257,763) | 664,790 |
Computer software | 687,835 | 35,138 | - | (46,688) | 676,285 |
Office furniture and equipment | 1,690,067 | 26,588 | - | (710,150) | 1,006,505 |
Motor vehicles | 155,742 | 23,402 | - | (53,451) | 125,693 |
Leasehold improvements | 9,747,447 | 4,883 | - | (181,134) | 9,571,196 |
Assets under construction | - | - | - | - | - |
Total | 13,772,705 | 341,888 | - | (1,467,062) | 12,647,531 |
Net Book Value
Capital Asset Class | 2019 | 2018 restated (note 14) |
---|---|---|
Machinery and equipment | 468,258 | 513,223 |
Computer equipment | 440,969 | 567,732 |
Computer software | 106,957 | 142,094 |
Office furniture and equipment | 116,990 | 127,698 |
Motor vehicles | 45,207 | 68,609 |
Leasehold improvements | 14,398 | 19,280 |
Assets under construction | 88,877 | - |
Total | 1,281,656 | 1,438,636 |
11. Contractual obligations
The nature of the ORSCC's activities may result in some large multi-year contracts and obligations whereby the ORSCC will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
(in dollars)
2020 | 2021 | 2022 | 2023 | 2024 | 2025 and subsequent | Total | |
---|---|---|---|---|---|---|---|
Goods and services | 583,801 | 263,782 | 102,225 | 99,061 | 58,925 | 75,175 | 1,182,969 |
Operating leases | 58,750 | 55,473 | 55,473 | 38,122 | 7,560 | - | 215,378 |
Total | 642,551 | 319,255 | 157,698 | 137,183 | 66,485 | 75,175 | 1,398,347 |
12. Related party transactions
The ORSCC is related as a result of common ownership to all government departments, agencies, and Crown corporations.
The ORSCC enters into transactions with these entities in the normal course of business and on normal trade terms.
a. Common services provided without charge by other government departments
During the year, the ORSCC received services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans, workers' compensation coverage, interpretation services and security services. These services provided without charge have been recorded in the ORSCC's Statement of Operations and Departmental Net Financial Position as follows:
(in dollars)
2019 | 2018 | |
---|---|---|
Accommodation | 4,772,156 | 4,715,842 |
Employer's contribution to the health and dental insurance plans | 1,675,181 | 1,769,110 |
Security services | 968,383 | 1,134,636 |
Interpretation services | 192,060 | 214,176 |
Workers' compensation | - | 25,064 |
Total | 7,607,780 | 7,858,828 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and audit services provided by the Office of the Auditor General are not included in the ORSCC's Statement of Operations and Departmental Net Financial Position.
b. Other transactions with other government departments and agencies
(in dollars)
2019 | 2018 | |
---|---|---|
Accounts receivable | 84,893 | 123,414 |
Accounts payable | 626,700 | 615,471 |
Expenses | 7,684,665 | 7,000,582 |
Revenues | 149,416 | 124,884 |
Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).
13. Segmented information
Presentation by segment is based on the ORSCC's core responsibility. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:
(in dollars)
The administration of Canada's final court of appeal | Internal Services |
2019 Total |
2018 Total Restated (note 14 and note 15) |
|
---|---|---|---|---|
Operating expenses | ||||
Salaries and employee benefits | 24,222,005 | 7,566,558 | 31,788,563 | 31,493,409 |
Accommodation | 3,265,159 | 1,506,997 | 4,772,156 | 4,715,842 |
Professional and special services | 1,138,515 | 2,693,951 | 3,832,466 | 3,776,312 |
Transportation and communications | 1,126,744 | 330,857 | 1,457,601 | 1,488,092 |
Materials and supplies |
987,759 | 162,526 | 1,150,285 | 1,302,970 |
Rental | 133,427 | 703,014 | 836,441 | 712,159 |
Machinery and equipment | 65,066 | 649,749 | 714,815 | 1,165,232 |
Amortization of tangible capital assets | - | 341,888 | 341,888 | 278,452 |
Information services | 237,846 | 24,507 | 262,353 | 88,699 |
Repairs and maintenance | 1,213 | 171,082 | 172,295 | 180,774 |
Other | 5,661 | (6,589) | (928) | 142 |
Total operating expenses | 31,183,395 | 14,144,540 | 45,327,935 | 45,202,083 |
Revenues | ||||
Sale of information documents and other fees | - | 172,650 | 172,650 | 171,859 |
Pension contribution revenues | 139,650 | - | 139,650 | 118,874 |
Revenues earned on behalf of Government | (139,650) | (160,875) | (300,525) | (290,403) |
Total revenues | - | 11,775 | 11,775 | 330 |
Net cost from continuing operations | 31,183,395 | 14,132,765 | 45,316,160 | 45,201,753 |
14. Adjustments to prior year's results
In 2018-19, the ORSCC conducted a review of the capitalization threshold of its tangible capital assets. The ORSCC's capitalization threshold was increased from $5,000 to $10,000. As a result of this review, the ORSCC identified assets that no longer met the revised threshold. This change resulted in a decrease of $325,104 to its asset base. This new accounting method has been applied retroactively and comparative information for 2017-18 has been restated. The effect of the adjustment is presented in the table below.
(in dollars)
2018 As previously stated |
Effect on the adjustment | 2018 Restated |
|
---|---|---|---|
Statement of Financial Position | |||
Tangible capital assets | 1,763,740 | (325,104) | 1,438,636 |
Total non-financial assets | 1,883,176 | (325,104) | 1,558,072 |
Departmental net financial position | (180,490) | (325,104) | (505,594) |
Statement of Operations and Departmental Net Financial Position | |||
Expenses | |||
Internal Services | 15,029,255 | 148,138 | 15,177,393 |
Total expenses | 45,053,945 | 148,138 | 45,202,083 |
Net cost of operations before government funding and transfers | 45,053,615 | 148,138 | 45,201,753 |
Net cost of operations after government funding and transfers | (17,765) | 148,138 | 130,373 |
Departmental net financial position - Beginning of year | (198,255) | (176,966) | (375,221) |
Departmental net financial position - End of year | (180,490) | (325,104) | (505,594) |
Statement of Change in Departmental Net Debt | |||
Net cost of operations after government funding and transfers | (17,765) | 148,138 | 130,373 |
Change due to capital assets: | |||
Acquisition of tangible capital assets | 845,816 | (205,552) | 640,264 |
Amortization of tangible capital assets | (335,866) | 57,414 | (278,452) |
Total change due to tangible capital assets | 509,950 | (148,138) | 361,812 |
Net increase (decrease) in departmental net debt | 511,355 | - | 511,355 |
Departmental net debt - Beginning of year | 1,552,311 | - | 1,552,311 |
Departmental net debt - End of year | 2,063,666 | - | 2,063,666 |
Statement of Cash Flows | |||
Net cost of operations before government funding and transfers | 45,053,615 | 148,138 | 45,201,753 |
Non-cash items: | |||
Amortization of tangible capital assets | (335,866) | 57,414 | (278,452) |
Acquisitions of tangible capital assets | 845,816 | (205,552) | 640,264 |
Net cash provided by Government of Canada | 36,698,946 | - | 36,698,946 |
Note 3: Parliamentary Authorities | |||
Net cost of operations before government funding and transfers | 45,053,615 | 148,138 | 45,201,753 |
Adjustement for items affecting net cost of operations but not affecting authorities: | |||
Amortization of tangible capital assets | (335,866) | 57,414 | (278,452) |
Acquisitions of tangible capital assets | 845,816 | (205,552) | 640,264 |
Current year authorities used | 37,417,169 | - | 37,417,169 |
15. Comparative information
Certain comparative figures have been reclassified to conform to the current year's presentation.
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