Quarterly Financial Report for the Quarter Ended June 30, 2016

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, Supplementary Estimates and approved allotment transfers from TB 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 Report on Plans and Priorities 2016-2017.

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, Supplementary Estimates, and approved allotment transfers from TB Central Votes for the 2016-17 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 moneys 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 performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of Fiscal Quarter and Fiscal Year to Date Results^{Footnote 1}

This section highlights the changes in authorities provided and expenditures incurred as at June 30, 2016 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 8% while quarterly spending decreased by 8% over the same quarter ending June 30, 2015. The overall proportion of authorities used (19%) slightly decreased in comparison to the previous year (22%).

2.1 Changes to Granted Authorities

As at June 30, 2016, the total authorities provided to the ORSCC have increased by $2,466,539 compared to the same quarter of the prior year.  This net increase consists of:

• An increase in Vote 50 – Net Operating Expenditures ($2,034,899); and
• An increase in Budgetary Statutory authorities ($431,640).

The increase in Vote 50 – Net Operating Expenditures ($2,034,899) consists mainly of:

• Funding received to enhance security at the Supreme Court of Canada ($2,049,737);
• A permanent allocation from TB Vote 15 (Collective Agreements) in 2016-17 for LC agreement ($8,682); and
• An increase to the permanent transfer to the Canada School of Public Service ($23,520).

The increase in Budgetary Statutory authorities ($431,640) consists of:

• An increase in personnel and operating funding of $337,452 for Judges’ salaries, allowances and annuities for retired Judges;
• An increase in the contributions to employee benefit plans (EBP) of $56,213 due to an increase in EBP rates from 16.8% in 2015-16 to 17.2% in 2016-17;
• An increase in the contributions to EBP of $36,239 in relation to funding received to enhance security at the Supreme Court of Canada; and
• An increase in the contributions to EBP of $1,736 related to the allocation for Collective Agreements.

2.2 Changes to Planned Expenditures

The allocation of planned expenditures between both fiscal years has increased due to funding received to enhance security at the Supreme Court of Canada. The authority increase of $2,466,539 noted above will be allocated to increased planned expenditures in Security services and assets, salaries and employee benefits.

2.3 Significant Changes to Budgetary Expenditures

As at June 30, 2016, total net budgetary expenditures decreased by 8% ($540,472) compared to the same quarter of the previous year. This variance comprises:

• A decrease of 9% in Vote 50 – Net Operating Expenditures; and
• A decrease of 4% in Budgetary Statutory spending.

The above decrease of 9% ($476,907) was noted in total operating expenditures (Vote 50) in comparison to the same quarter of the previous year. The variance between the two quarters is attributed to:

• A net salary decrease of $591,891 due mainly to timing differences in the pay processing schedules between both fiscal years; and
• A non-salary increase of $114,984 resulting from:
  • Timing differences;
  • Price variances;
  • Special projects; and
  • Fluctuating replacement or maintenance schedules.

The decrease of 4% ($63,565) was noted in total Budgetary Statutory expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is essentially attributed to a decrease in relocation expenditures.

Figure 1: Comparison of Authorities Granted and Used

Description of image

Comparison of First 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 50 – Net Operating Expenditures and the authorities used – Budgetary Statutory Authorities as at June 30, 2015 and 2016.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the ORSCC planned to spend as at June 30, 2015 and 2016: $31,763,943 in 2015-16 and $34,230,482 in 2016-17.

Authorities used – Vote 50 – Net Operating Expenditures – Figures showing the amounts the ORSCC spent: $5,382,350 for the first quarter of 2015-16 and $4,905,443 for the first quarter of 2016-17.

Authorities used – Budgetary Statutory Authorities – Figures showing the amounts the ORSCC spent: $1,600,619 for the first quarter of 2015-16 and $1,537,054 for the first quarter of 2016-17.

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 23, 2016.

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

With the exception of funding received for enhancing security 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 results in limited funding available for investments in its current asset base and strategic priorities. Mandatory contributions to Central Agency initiatives also create further financial pressures.

Following the 2013 Speech from the Throne, the ORSCC, like other government departments, must also contend with an operating budget freeze.  Funding for wage and salary increases taking effect during fiscal years 2014-15 and 2015-16 will not be received; nor will the ongoing impact of these adjustments be funded.

The ORSCC continues to reduce 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. Strategies aimed at prioritizing new investments while postponing others that are less critical to the operations are utilized. Greater financial controls and improved resource planning and forecasting are also helping to mitigate these risks. Despite these strategies, gaps still exist and the ORSCC must be strategic in its approach to prioritization and resource allocation.

4. Significant Changes to Operations, Personnel and Programs

On March 22, 2016, it was announced that the Honourable Justice Thomas A. Cromwell will retire September 1, 2016. There is no financial impact in relation to this announcement for the first quarter of 2016-17.

There were no other 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

August 24, 2016

 

Original signed by 

Catherine Laforce, Chief Financial Officer

 

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2016-2017

	Total available for use for the year ending March 31, 2017*	Used during the quarter ended June 30, 2016	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	24,339,745	4,905,443	4,905,443
Budgetary statutory authorities	9,890,737	1,537,054	1,537,054
Total authorities	34,230,482	6,442,497	6,442,497

Fiscal year 2015-2016

	Total available for use for the year ending March 31, 2016*	Used during the quarter ended June 30, 2015	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	22,304,846	5,382,350	5,382,350
Budgetary statutory authorities	9,459,097	1,600,619	1,600,619
Total authorities	31,763,943	6,982,969	6,982,969

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

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

Fiscal year 2016-2017

Expenditures	Planned expenditures for the year ending March 31, 2017	Expended during the quarter ended June 30, 2016	Year to date used at quarter-end
Personnel	23,675,602	5,494,563	5,494,563
Transportation and communications	1,558,578	142,865	142,865
Information	154,316	524	524
Professional and special services	3,724,804	377,996	377,996
Rentals	976,142	146,148	146,148
Repair and maintenance	301,309	9,033	9,033
Utilities, materials and supplies	1,999,921	209,625	209,625
Acquisition of machinery and equipment	1,736,409	33,931	33,931
Other subsidies and payments	103,401	27,812	27,812
Total net budgetary expenditures	34,230,482	6,442,497	6,442,497

Fiscal year 2015-2016

Expenditures	Planned expenditures for the year ending March 31, 2016	Expended during the quarter ended June 30, 2015	Year to date used at quarter-end
Personnel	23,071,582	6,062,781	6,062,781
Transportation and communications	1,769,654	246,464	246,464
Information	207,519	643	643
Professional and special services	2,201,490	258,662	258,662
Rentals	987,768	47,021	47,021
Repair and maintenance	320,356	10,051	10,051
Utilities, materials and supplies	2,169,123	242,204	242,204
Acquisition of machinery and equipment	1,000,763	100,041	100,041
Other subsidies and payments	35,688	15,102	15,102
Total net budgetary expenditures	31,763,943	6,982,969	6,982,969