Quarterly financial report – Quarter ending September 30, 2018

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 Treasury Board Central Votes. It 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 2018-19 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 Main Estimates and approved allotment adjustments from Treasury Board Central Votes for the 2018-19 fiscal year. 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, 2018 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities decreased by 0.1% while quarterly spending increased by 0.4% over the same quarter ending September 30, 2017. The overall proportion of authorities used on a year-to-date basis (46%) is comparable to the previous year (45%).

2.1 Changes to Granted Authorities

As at September 30, 2018, the total authorities provided to the ORSCC have decreased by $32,570 compared to the same quarter of the prior year. This net decrease consists of:

Previously reported:

• A decrease in Vote 1 – Net Operating Expenditures ($395,908); offset by
• An increase in Budgetary Statutory authorities ($548,835).

Current quarter:

• A decrease in Vote 1 – Net Operating Expenditures ($185,497) which consists of:
  • An allotment transfer from TB Vote 25 (Operating Budget Carry Forward) of $998,638 received in the second quarter of 2018-19; funding for this item decreased by $169,497 compared to the amount of $1,168,135 received in the same quarter last fiscal year; and
  • A contribution of $56,000 to the Comptroller General of Canada’s initiative on Enabling Functions Transformation compared to the 2017-18 contribution of $40,000 paid during the same quarter.

2.2 Changes to Planned Expenditures

The allocation of planned expenditures between both fiscal years has remained stable as there are no significant changes to the ORSCC’s programs. Additional authorities of $998,638 received for the Operating Budget Carry Forward will be distributed within non-salary categories in proportion to the standard object distribution in the 2018-19 Main estimates.

2.3 Significant Changes to Budgetary Expenditures

As at September 30, 2018, total net budgetary expenditures increased by 3.5% ($555,525) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 7.6% ($520,630) in net budgetary expenditures explained by:
  • An increase of 9.8% ($514,882) in Vote 1 – Net Operating Expenditures; and
  • An increase of 0.4% ($5,748) in Budgetary Statutory expenditures.

Current quarter:

• An increase of 0.4% ($34,895) in net budgetary expenditures explained by:
  • A decrease of 2.84% ($187,020) in Vote 1 – Net Operating Expenditures; offset by
  • An increase of 8.45% ($221,915) in Budgetary Statutory expenditures.

The above decrease of 2.84 % ($187,020) was noted in Vote 1 – Net Operating Expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is attributed to:

• A net salary increase of $76,900 mainly due to general increases in salary expenditures and retroactive salary payments arising from the settlement of certain collective agreements; offset by
• A non-salary decrease of $263,920 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The net increase of 8.45% ($221,915) in Budgetary Statutory Expenditures in comparison to the same quarter of the previous year is essentially attributed to increases in statutory pension expenditures for retired judges or their survivors, as well as an increase in operating expenditures.

Figure 1: Comparison of Authorities Granted and Used

3. Risks and Uncertainties

This departmental quarterly financial report reflects the results of the current fiscal period in relation to the Main Estimates for which full supply was released on June 22, 2018.

The ORSCC is funded through voted parliamentary spending authorities (71%) and statutory authorities (29%) for operating and personnel expenditures.

With the exception of new funding received for enhancing security beginning in 2016-17, the ORSCC’s operating budget has remained fairly stable for several years. The fiscal restraint on its operations continues to pose a serious challenge as the organization must continue to absorb rising operating costs which in turn, results in limited funding available for investments in its aging asset base and strategic priorities.

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 helping to mitigate these risks. Despite these strategies, gaps and deficiencies still exist and the ORSCC must be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

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

Approval by Senior Officials

Approved by:

Original signed by

Roger Bilodeau, Q.C., Registrar
Ottawa, Ontario

November 27, 2018

Original signed by

Catherine Laforce, Chief Financial Officer

Statement of Authorities (unaudited)

(in dollars)

Fiscal year 2018-2019

Fiscal year 2017-2018

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

Departmental Budgetary Expenditures by Standard Object (unaudited)

(in dollars)

Fiscal year 2018-2019

Fiscal year 2017-2018