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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. Future benefits:
    1. 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.

    2. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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:
    1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
    2. 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.