Quarterly Financial Report for the Quarter Ended September 30, 2018
The Office of the Registrar of the Supreme Court of Canada
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:
- A decrease in Vote 1 – Net Operating Expenditures ($395,908); offset by
- An increase in Budgetary Statutory authorities ($548,835).
- 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:
- 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.
- 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
Description of image
Comparison of Second 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 Second Quarter – Vote 1 – Net Operating Expenditures and the authorities used during the Second Quarter – Budgetary Statutory Authorities as at September 30, 2017 and 2018.
Annual Net Budgetary Authorities Granted:
Figures showing the amounts the ORSCC planned to spend as at September 30, 2017 and 2018: $36,011,057 in 2017-18 and $35,978,487 in 2018-19.
Year to Date Used:
Figures present the cumulative amounts the ORSCC spent as at September 30, 2017 and 2018 respectively: $16,046,269 and $16,601,794.
Authorities Used During the Second Quarter – Vote 1 – Net Operating Expenditures:
Figures showing the amounts the ORSCC spent: $6,586,483 for the second quarter of 2017-18 and $6,399,463 for the second quarter of 2018-19.
Authorities Used During the Second Quarter – Budgetary Statutory Authorities:
Figures showing the amounts the ORSCC spent: $2,627,156 for the second quarter of 2017-18 and $2,849,071 for the second quarter of 2018-19.
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
Original signed by
Roger Bilodeau, Q.C., Registrar
November 27, 2018
Original signed by
Catherine Laforce, Chief Financial Officer
Statement of Authorities (unaudited)
Fiscal year 2018-2019
|Total available for use for the year ending March 31, 2019*||Used during the quarter ended September 30, 2018||Year to date used at quarter-end|
|Vote 1 - Net Operating expenditures||25,463,163||6,399,463||12,190,272|
|Budgetary statutory authorities||10,515,324||2,849,071||4,411,522|
Fiscal year 2017-2018
|Total available for use for the year ending March 31, 2018*||Used during the quarter ended September 30, 2017||Year to date used at quarter-end|
|Vote 1 - Net Operating expenditures||26,044,568||6,586,483||11,862,410|
|Budgetary statutory authorities||9,966,489||2,627,156||4,183,859|
* Includes only Authorities available for use and granted by Parliament at quarter-end.
Departmental Budgetary Expenditures by Standard Object (unaudited)
Fiscal year 2018-2019
|Expenditures||Planned expenditures for the year ending March 31, 2019||Expended during the quarter ended September 30, 2018||Year to date used at quarter-end|
|Transportation and communications||1,765,517||634,858||817,598|
|Professional and special services||3,503,004||623,780||1,006,512|
|Repair and maintenance||579,340||25,226||35,490|
|Utilities, materials and supplies||2,012,604||253,578||469,960|
|Acquisition of machinery and equipment||1,962,872||68,195||191,380|
|Other subsidies and payments||98,776||34,254||66,061|
|Total net budgetary expenditures||35,978,487||9,248,534||16,601,794|
Fiscal year 2017-2018
|Expenditures||Planned expenditures for the year ending March 31, 2018||Expended during the quarter ended September 30, 2017||Year to date used at quarter-end|
|Transportation and communications||1,853,344||539,767||789,312|
|Professional and special services||3,765,984||482,810||897,907|
|Repair and maintenance||309,937||119,619||141,877|
|Utilities, materials and supplies||2,421,834||241,853||467,057|
|Acquisition of machinery and equipment||2,210,128||188,920||246,991|
|Other subsidies and payments||223,276||134,999||137,273|
|Total net budgetary expenditures||36,011,057||9,213,639||16,046,269|
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