Quarterly Financial Report for the Quarter Ended December 31, 2017

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 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 2017-18 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, Supplementary Estimates and approved allotment transfers from Treasury Board Central Votes for the 2017-18 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 December 31, 2017 compared to the same quarter of the prior year. Overall, the ORSCC’s authorities increased by 6% while quarterly spending increased by 13% over the same quarter ending December 31, 2016. The overall proportion of authorities used on a year-to-date basis (66%) is comparable to the previous year (65%).

2.1 Changes to Granted Authorities

As at December 31, 2017, the total authorities provided to the ORSCC have increased by $2,219,097 compared to the same quarter of the prior year. This net increase consists of:

Previously reported:

• An increase in Vote 50 – Net Operating Expenditures ($589,581); and
• An increase in Budgetary Statutory authorities ($75,752).

Current quarter:

• An increase in Vote 50 – Net Operating Expenditures ($1,553,764) in the third quarter of 2017-18 which consists of:
  • A compensation allocation from TB Vote 15 (collective agreements) of $625,945 received in the third quarter of 2017-18; whereas the allocation for that item received in the third quarter of 2016-17 amounted to $71,796.
  • An allotment adjustment for collective bargaining reprofiles from previous years’ frozen allotments amounting to $896,963 received in the third quarter of 2017-18;
  • A budget reduction of $89,000 in the third quarter of 2016-17; and
  • An allocation from Supplementary Estimates (B) of $131,691 received in the third quarter of 2017-18; whereas the allocation for that item received in the same quarter of 2016-17 was $118,039.

2.2 Changes to Planned Expenditures

The allocation of planned expenditures between both fiscal years increased by $2,219,097, mainly due to additional funding received for compensation adjustments related to collective agreements. These additional authorities have been allocated to Personnel expenditures.

2.3 Significant Changes to Budgetary Expenditures

As at December 31, 2017, total net budgetary expenditures increased by 8% ($1,900,992) compared to the same quarter of the previous year. This variance comprises:

Previously reported:

• An increase of 6% ($868,755) in net budgetary expenditures explained by:
  • An increase of 7% ($774,936) in Vote 50 – Net Operating Expenditures; and
  • An increase of 2% ($93,819) in Budgetary Statutory expenditures.

Current quarter:

• An increase of 13% ($1,032,237) in net budgetary expenditures explained by:
  • An increase of 20% ($1,054,875) in Vote 50 – Net Operating Expenditures; offset by
  • A decrease of 1% ($22,638) in Budgetary Statutory expenditures.

The above increase of 20 % ($1,054,875) was noted in Vote 50 – Net Operating Expenditures in comparison to the same quarter of the previous year. The variance between the two quarters is mainly resulting from a salary increase due to retroactive salary payments arising from the settlement of certain collective agreements and general increases in salary expenditures.

The net decrease of 1% ($22,638) in Budgetary Statutory Expenditures in comparison to the same quarter of the previous year is essentially attributed to a decrease operating expenditures.

 

Figure 1: Comparison of Authorities Granted and Used

Description of image

Comparison of Third Quarter Authorities Granted and Used – The diagram illustrates the variation in thousands of dollars for the Annual Net Budgetary Authorities Granted, the Year to Date Used, the authorities used during the Third Quarter – Vote 50 – Net Operating Expenditures and the authorities used during the Third Quarter – Budgetary Statutory Authorities as at December 31, 2016 and 2017.

Annual Net Budgetary Authorities Granted – Figures showing the amounts the ORSCC planned to spend as at December 31, 2016 and 2017: $35,446,559 in 2016-17 and $37,665,656 in 2017-18.

Year to Date Used – Figures present the cumulative amounts the ORSCC spent as at December 31, 2016 and 2017 respectively: $22,980,221 and $24,881,213.

Authorities used during the Third Quarter – Vote 50 – Net Operating Expenditures – Figures showing the amounts the ORSCC spent: $5,346,870 for the third quarter of 2016-17 and $6,401,745 for the third quarter of 2017-18.

Authorities used during the Third Quarter – Budgetary Statutory Authorities – Figures showing the amounts the ORSCC spent: $2,455,837 for the third quarter of 2016-17 and $2,433,199 for the third quarter of 2017-18.

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, 2017.

The ORSCC is funded through voted parliamentary spending authorities (74%) and statutory authorities (26%) 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

As announced on June 12, 2017, the Right Honourable Beverley McLachlin, Chief Justice of Canada, retired from the Supreme Court of Canada on December 15, 2017.

On December 12, 2017, the Right Honourable Richard Wagner was appointed as the new Chief Justice of Canada. He was sworn in as Chief Justice of Canada on December 18, 2017.

On December 18, 2017, the Honourable Sheilah L. Martin was appointed to the Supreme Court of Canada. Justice Martin’s appointment fills the seat left vacant by the retirement of Chief Justice Beverley McLachlin.

Financial impacts following these changes were minimal in the third quarter of 2017-18.

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

February 22, 2018

 

Original signed by

Catherine Laforce, Chief Financial Officer

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2017-2018

	Total available for use for the year ending March 31, 2018*	Used during the quarter ended December 31, 2017	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	27,699,167	6,401,745	18,264,155
Budgetary statutory authorities	9,966,489	2,433,199	6,617,058
Total authorities	37,665,656	8,834,944	24,881,213

 

Fiscal year 2016-2017

	Total available for use for the year ending March 31, 2017*	Used during the quarter ended December 31, 2016	Year to date used at quarter-end
Vote 50 - Net Operating expenditures	25,555,822	5,346,870	16,434,344
Budgetary statutory authorities	9,890,737	2,455,837	6,545,877
Total authorities	35,446,559	7,802,707	22,980,221

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

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

Fiscal year 2017-2018

Expenditures	Planned expenditures for the year ending March 31, 2018	Expended during the quarter ended December 31, 2017	Year to date used at quarter-end
Personnel	25,390,101	7,546,501	20,546,313
Transportation and communications	1,853,344	246,019	1,035,331
Information	150,191	20,132	22,102
Professional and special services	3,765,984	551,872	1,449,779
Rentals	1,340,861	118,585	482,655
Repair and maintenance	309,937	93,738	235,615
Utilities, materials and supplies	2,421,834	301,034	768,091
Acquisition of machinery and equipment	2,210,128	70,481	317,472
Other subsidies and payments	223,276	(113,418)	23,855
Total net budgetary expenditures	37,665,656	8,834,944	24,881,213

 

Fiscal year 2016-2017

Expenditures	Planned expenditures for the year ending March 31, 2017	Expended during the quarter ended December 31, 2016	Year to date used at quarter-end
Personnel	23,747,398	6,496,894	18,612,590
Transportation and communications	1,681,419	178,820	791,969
Information	172,941	16,323	21,997
Professional and special services	4,082,904	516,449	1,395,270
Rentals	1,211,995	43,542	383,018
Repair and maintenance	324,287	28,248	65,669
Utilities, materials and supplies	2,235,867	331,113	830,871
Acquisition of machinery and equipment	1,881,197	198,288	863,528
Other subsidies and payments	108,551	(6,970)	15,309
Total net budgetary expenditures	35,446,559	7,802,707	22,980,221