Office of the Commissioner for Federal Judicial Affairs Canada

Quarterly Financial Report for the quarter ended June 30, 2021

Statement outlining results, risks, and significant changes in operations, personnel, and program

1. Introduction

This Quarterly Financial Report (QFR) 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 of Canada Secretariat.  This QFR should be read in conjunction with the Main Estimates and Supplementary Estimates.  It has not been subject to an external audit or review.

1.1 Mandate

The Office of the Commissioner for Federal Judicial Affairs (FJA) Canada was created in 1978 under the authority of the Judges Act to safeguard the independence of the judiciary and in order to put federally appointed judges at arm’s length from the administration of the Department of Justice.  FJA’s mandate extends to promoting better administration of justice and providing support for the federal judiciary.

FJA administers three distinct and separate components that are funded from different sources.  Statutory funding is allocated for the judges’ salaries, allowances and annuities, and surviving beneficiaries’ benefits.  Voted appropriations are provided in two separate votes to support the administrative activities of FJA and the Canadian Judicial Council (CJC).

Under the Departmental Results Framework, the organization’s one core responsibility is to provide support to federally appointed judges.  In addition to Internal Services, the organization is broken down into three program activities: payments pursuant to the Judges Act, FJA, and CJC. 

Further details about FJA’s authority, mandate, and programs can be found below and in FJA’s Departmental Plan (DP), Main Estimates and Supplementary Estimates located on FJA’s and the Treasury Board’s websites at www.fja-cmf.gc.ca and www.tbs-sct.gc.ca.

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 FJA’s spending authorities granted by Parliament and those used by the department consistent with the Main Estimates for the 2021-2022 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.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund.  A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

FJA 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 fiscal quarter and fiscal year to date (YTD) results

FJA is financed by the Government through Parliamentary Appropriations (e.g. Statutory Votes for payments pursuant to the Judges Act and Employee Benefits Plans (EBP) and Budgetary Votes to support the administration of FJA and CJC).

Vote-netting is a means of funding selected programs or activities wherein Parliament authorizes FJA to apply revenues collected towards costs directly incurred for specific activities.  FJA has the authority to spend revenues received during the year arising from the provision of administrative services.

Changes to Departmental Authorities

As at June 30, 2021, the total authorities available to FJA are $674.2 million higher compared with the same quarter last fiscal year.  This variance is due to delays in approvals for the full supply of the 2020-21 Main Estimates.  The amount shown reflects only the amounts which had been approved through the first and second interim supply bills.

Changes to Budgetary Expenditures

As at June 30, 2021 the department’s total net budgetary expenditures increased by $12.7 million compared with the same quarter last fiscal year.  This variance is comprised of:

• A year-to date net increase of $11.5 million in personnel expenditures (including EBP and judges’ salaries, annuities, and surviving beneficiaries’ benefits issued pursuant to the Judges Act).
• A year-to date net increase of $0.7 million in other subsidies and payments expenditures.
• A year-to date net increase of $0.4 million in transportation and telecommunications expenditures.
• An overall net increase of $0.1 million for all other non-salary expenditures.

Figure 1:  Comparison of Authorities Granted and Used

     

 

The chart illustrates the variation in thousands of dollars of the annual budgetary authorities granted and used as at June 30, 2020 and 2021.

As at June 30, 2020 and 2021, FJA planned to spend $655,616,954 in 2020-21 and $682,870,730 in 2021-22.  Authorities used as at the first quarter totalled $149,519,793 in 2020-21 and $162,200,125 in 2021-22.

 

 

3. Risks and Uncertainties

FJA’s environment is complex due to the range of services it provides and the large number of clients served.  Recognizing this context, FJA has developed a risk profile and actively monitors internal and external risks through its management team.  Concise information about significant financial risks and uncertainties, the potential impact to FJA’s 2021-22 financial plan and the strategies adopted to manage these financial risks and uncertainties are briefly outlined below.  Further detail about FJA’s internal and external risks can be found in FJA’s 2021-22 DP.

This QFR reflects the results of the current fiscal period in relation to the authorities available as at June 30, 2021.

FJA continues to operate within its existing reference levels, which have remained relatively constant for several years.  New funding received in the current and previous fiscal years has been provided to support growth in existing programs and cannot be readily allocated towards addressing gaps and deficiencies at the operating level. This has limited FJA’s ability to make investments in new strategic priorities.  FJA has responded to these challenges by identifying efficiencies and reallocating internal resources as required.

4. Significant changes in relation to operations, personnel and programs

As at June 30, 2021, a significant increase in personnel expenditures is attributable to the annual adjustment to judges’ salaries based on the Industrial Aggregate for fiscal year 2021-22, as well as to an increase in the total number of judges in office and the number of pensioners receiving benefits under the Judges Act.

5. Approval by Senior Officials

Approved by:

 

 

 

Statement of Authorities (unaudited)

 

 

Fiscal year 2021-2022 (in thousands of dollars)

	Total available for use for the year ending March 31, 2022	Used during the quarter ended June 30, 2021	Year- to-date used at quarter-end
Vote 1 – FJA – Operating expenditures	10,577	2,436	2,436
Vote 5 – CJC – Operating expenditures	2,112	368	368
Less: Vote 1 – FJA – Revenues	(275)	-	-
Net Operating expenditures	12,414	2,804	2,804
Statutory authorities - EBP	1,015	254	254
Statutory authorities – Judges salaries, allowances and annuities	669,442	159,142	159,142
Total Budgetary Authorities	$ 682,871	$ 162,200	$ 162,200

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

 

 

 

 

 

 

 

Fiscal year 2020-2021 (in thousands of dollars)

 

	Total available for use for the year ending March 31, 2021*	Used during the quarter ended June 30, 2020	Year to date used at quarter-end
Vote 1 – FJA – Operating expenditures	7,089	2,022	2,022
Vote 5 – CJC – Operating expenditures	1,560	405	405
Less: Vote 1 – FJA – Revenues	-	-	-
Net Operating expenditures	8,649	2,427	2,427
Statutory authorities - EBP	-	234	234
Statutory authorities – Judges salaries, allowances and annuities	-	146,859	146,859
Total Budgetary Authorities	$ 8,649	$ 149,520	$ 149,520

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

 

 

Departmental budgetary expenditures by Standard Object (unaudited)

 

Fiscal year 2021-2022 (in thousands of dollars)

 

	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended June 30, 2021	Year-to-date used at quarter-end
Expenditures
Personnel -including EBP	635,590	155,769	155,769
Transportation and Telecommunications	13,536	1,292	1,292
Information	110	19	19
Professional Services	23,463	2,599	2,599
Rentals	358	73	73
Purchased Repair and Maintenance	22	-	-
Utilities, materials and supplies	117	2	2
Acquisition of Machinery & Equipment	252	17	17
Other subsidies and payments*	9,698	2,429	2,429
Total Gross Budgetary Expenditures	683,146	162,200	162,200
Less Revenues netted against Expenditures
Revenues	(275)	-	-
Total net budgetary expenditures	$ 682,871	$ 162,200	$ 162,200

 

 

 

 

Fiscal year 2020-2021 (in thousands of dollars)

 

	Planned expenditures for the year ending March 31, 2021	Expended during the quarter ended June 30, 2020	Year-to-date used at quarter-end
Expenditures
Personnel - including EBP	611,931	144,277	144,277
Transportation and Telecommunications	21,806	903	903
Information	145	5	5
Professional Services	15,751	2,527	2,527
Rentals	309	72	72
Purchased Repair and Maintenance	69	-	-
Utilities, materials and supplies	61	4	4
Acquisition of Machinery & Equipment	58	2	2
Other subsidies and payments	5,762	1,730	1,730
Total Gross Budgetary Expenditures	655,892	149,520	149,520
Less Revenues netted against Expenditures
Revenues	(275)	-	-
Total net budgetary expenditures	$ 655,617	$ 149,520	$ 149,520