Office of the Commissioner for Federal Judicial Affairs Canada
Quarterly financial report
for the quarter ended September 30^th, 2013

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 Accounting Standard 1.3. This QFR should be read in conjunction with the Main Estimates,Supplementary Estimates, as well as Canada’s Economic Action Plan 2012 (Budget 2012). 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 to put federally appointed judges at arm’s length from the administration of the Department of Justice. It exists to promote better administration of justice and focuses its efforts on providing a sound support role to the federal judiciary.

It administers three distinct and separate components that are funded from three very distinct 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).

The administration of FJA is structured to reflect the distinctiveness of its role in supporting federal judicial activities. Under the Program Alignment Architecture, the organization is broken down into three program activities: payments pursuant to the Judges Act, CJC, and FJA. These activities strive to meet the priorities of: developing organizational capacity, building a strong, integrated team, improving service delivery, enhancing communications and managing information.

Further details about FJA’s authority, mandate, and program activities can be found below and in FJA’s Report on Plans and Priorities (RPP) and Main Estimates located on the Treasury Board website at www.tbs-sct.gc.ca.

1.2 Basis of Presentation

This QFR 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 and Supplementary Estimates A for both the 2012-13 and the 2013-14 fiscal years. This QFR 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.

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 modified 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 (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.

The department’s quarterly and year-to-date spending are in line with that of the previous fiscal year. For 2013-14, there is a net increase in budgetary authorities of $12.3 million compared to the authorities granted in 2012-13 Main Estimates. This is primarily due to an increase in statutory costs of $12.8 million related to the payments issued pursuant to the Judges Act.

3. Risks and Uncertainties

FJA’s environment is complex due in part to the small size of its organization, 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 2013-14 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 2013-14 RPP.

This QFR reflects the results of the current fiscal period in relation to the Main Estimates and Supplementary Estimates A for which full supply was released on June 20, 2013.

Senior staff at FJA has been working diligently at refining and improving services to judges. The implementation of an information management system has been identified as a priority for the organization. This initiative will impact on all sections of the department. The skills needed to implement this major change are currently not available internally so FJA can address this initiative only as funding becomes available.

This office is responsible for the administration of the Judges’ pay and pension systems currently maintained by Public Works and Government Services Canada (PWGSC). We have received notification that PWGSC will no longer be supporting these systems. We have entered into negotiations with PWGSC for a new solution and, at the current time, have not determined what the impact of this change will be.

At the request of the Minister of Justice pursuant to section 74(1) (d) of the Judges Act during 2013-14 this office is again responsible for administering the process for the appointment of a Supreme Court of Canada judge. We have administered the last four processes and have incurred substantial expenditures for which Supplementary funding was requested and, on one occasion, was provided. As a small department with limited funding capacity reallocation of resources to fund this important initiative impacts our ability to fund other priorities of the Department. The estimated budget for this initiative has been set at $325K for the current fiscal year.

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

There are no significant changes expected in relation to operations, personnel and programs during the coming year.

5. Budget 2012 Implementation

FJA was not affected by the strategic and operating reviews.  Therefore, there were no new or renewed initiatives and savings measures announced in Budget 2012 that implicated FJA.  However, as mentioned above FJA has a limited funding capacity. Workload demand for FJA services is increasing in line with demographic changes in the client base, which brings additional operational requirements. For example, the funding necessary to support the additional 2013-14 Supreme Court of Canada appointment process requires reallocation of existing resources.

6. Approval by Senior Officers

Approved by:

Statement of Authorities (unaudited)

Fiscal year 2013-14 (in thousands of dollars)

	Total available for use for the year ending March 31, 2014*	Used during the quarter ended Sept. 30, 2013	Year to date used at quarter-end
Operating expenditures – FJA	8,112	2,047	3,905
Operating expenditures - CJC	1,517	416	737
Less: Revenues netted against expenditures	(275)	(0)	(0)
Net Operating expenditures	9,354	2,463	4,642
Statutory authorities – EBP	786	197	393
Statutory authorities – Judge’s Act	487,535	121,260	241,839
Total Budgetary Authorities	497,675	123,920	246,874

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

Fiscal year 2012-13 (in thousands of dollars)

	Total available for use for the year ending March 31, 2013*	Used during the quarter ended Sept. 30, 2012	Year to date used at quarter-end
Vote 20 – Operating expenditures – FJA	8,458	2,274	3,802
Vote 25 – Operating expenditures - CJC	1,546	412	677
Less: Revenues netted against expenditures	(275)	(0)	(0)
Net Operating expenditures	9,729	2,686	4,479
Statutory authorities – EBP	982	246	491
Statutory authorities – Judge’s Act	474,686	115,811	234,039
Total Budgetary Authorities	485,397	118,743	239,009

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2013-14(in thousands of dollars)

	Planned expenditures for the year ending March 31, 2014	Used during the quarter ended Sept. 30, 2013	Year to date used at quarter-end
Expenditures:
Personnel (including EBP)	458,130	115,083	228,959
Transportation and communications	30,513	6,814	12,550
Information	55	29	37
Professional and special services	3,539	1,216	1,754
Rentals	70	58	93
Repair and maintenance	200	24	90
Utilities, materials and supplies	100	15	36
Acquisition of machinery and equipment	80	9	19
Other subsidies and payments*	5,263	672	3,336
Total gross budgetary expenditures	497,950	123,920	246,874
Less: revenues netted against expenditures
Revenues	(275)	(0)	(0)
Total revenues netted against expenditures	(275)	(0)	(0)
TOTAL NET BUDGETARY EXPENDITURES	497,675	123,920	246,874

*Timing difference – actual expenditures used during the quarter include interdepartmental settlements that were coded to the appropriate standard object in subsequent accounting periods.

Fiscal year 2012-13 ( (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2013	Used during the quarter ended Sept. 30, 2012	Year to date used at quarter-end
Expenditures:
Personnel (including EBP)	445,863	110,609	221,200
Transportation and communications	30,083	5,754	12,106
Information	55	19	31
Professional and special services	3,958	1,596	2,179
Rentals	70	43	77
Repair and maintenance	200	21	63
Utilities, materials and supplies	100	17	36
Acquisition of machinery and equipment	80	15	20
Other subsidies and payments*	5,263	672	3,297
Total gross budgetary expenditures	485,672	118,743	239,009
Less: revenues netted against expenditures
Revenues	(275)	(0)	(0)
Total revenues netted against expenditures	(275)	(0)	(0)
TOTAL NET BUDGETARY EXPENDITURES	485,397	118,743	239,009

*Timing difference – actual expenditures used during the quarter include interdepartmental settlements that were coded to the appropriate standard object in subsequent accounting periods.