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 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 2022-2023 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 December 31, 2022, the total authorities available to FJA are $25 million higher compared with the same quarter last fiscal year. This net increase is comprised of:

• An increase of $24.6 million in statutory authorities for judges’ salaries, allowances and annuities, as well as for contributions to employee benefit plans.
• An increase of $0.4 million in voted authorities for the department`s operating budget.

Changes to Budgetary Expenditures

As at December 31, 2022 the department’s total net budgetary expenditures increased by $28.9 million compared with the same quarter last fiscal year. This variance is comprised of:

• A year-to date net increase of $14.5 million in personnel expenditures (including EBP and judges’ salaries, allowances, annuities, and surviving beneficiaries’ benefits issued pursuant to the Judges Act).
• A year-to date net increase of $8.3 million in transportation and telecommunications expenditures.
• A year-to date net increase of $4.8 million in professional services expenditures.
• A year-to date net increase of $1.2 million in other subsidies and payments 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 December 31, 2021 and 2022.

As at December 31, 2021 and 2022, FJA planned to spend $682,926,066 in 2021-22 and $707,899,488 in 2022-23. Authorities used as at the third quarter totalled $494,897,684 in 2021-22 and $523,845,746 in 2022-23.

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 2022-23 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 2022-23 DP.

This QFR reflects the results of the current fiscal period in relation to the authorities available as at December 31, 2022.

FJA continues agile management of its resources to shift and reallocate resources to adapt to emerging needs as required.

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

As at December 31, 2022, significant increase in expenses related to transportation is primarily attributable to increases in airfare, hotel rates and other such travel-related costs. This has also resulted in an increase to the number of conferences attended by judges, which contributes to the significant increase in professional services expenses.

5. Approval by Senior Officials

Statement of Authorities (unaudited)

Fiscal year 2022-2023 (in thousands of dollars)

	Total available for use for the year ending March 31, 2023*	Used during the quarter ended December 31, 2022	Year- to-date used at quarter-end
Vote 1 – FJA – Operating expenditures	10,807	2,673	7,902
Vote 5 – CJC – Operating expenditures	2,314	595	1,373
Less: Vote 1 – FJA – Revenues	(275)	(10)	(10)
Net Operating expenditures	12,846	3,258	9,265
Statutory authorities - EBP	1,037	259	778
Statutory authorities – Judges salaries, allowances and annuities	694,016	174,932	513,803
Total Budgetary Authorities	$ 707,899	$ 178,449	$ 523,846

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

Fiscal year 2021-2022 (in thousands of dollars)

	Total available for use for the year ending March 31, 2022*	Used during the quarter ended December 31, 2021	Year- to-date used at quarter-end
Vote 1 – FJA – Operating expenditures	10,523	2,539	7,384
Vote 5 – CJC – Operating expenditures	2,221	540	1,863
Less: Vote 1 – FJA – Revenues	(275)	(10)	(20)
Net Operating expenditures	12,469	3,069	9,227
Statutory authorities - EBP	1,015	254	761
Statutory authorities – Judges salaries, allowances and annuities	669,442	164,117	484,910
Total Budgetary Authorities	$ 682,926	$ 167,440	$ 494,898

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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2022-2023 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2023	Expended during the quarter ended December 31, 2022	Year-to-date used at quarter-end
Expenditures
Personnel -including EBP	659,641	165,895	489,621
Transportation and Telecommunications	20,762	5,719	13,671
Information	183	31	83
Professional Services	19,284	4,809	14,134
Rentals	1,534	189	808
Purchased Repair and Maintenance	110	24	29
Utilities, materials and supplies	42	1	12
Acquisition of Machinery & Equipment	72	11	11
Other subsidies and payments*	6,546	1,771	5,487
Total Gross Budgetary Expenditures	708,174	178,459	523,856
Less Revenues netted against Expenditures
Revenues	(275)	(10)	(10)
Total net budgetary expenditures	$ 707,899	$ 178,449	$ 523,846

Fiscal year 2021-2022 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2022	Expended during the quarter ended December 31, 2022	Year-to-date used at quarter-end
Expenditures
Personnel -including EBP	635,890	160,480	475,143
Transportation and Telecommunications	15,543	2,478	5,366
Information	152	25	66
Professional Services	23,895	3,020	9,398
Rentals	784	238	530
Purchased Repair and Maintenance	40	14	16
Utilities, materials and supplies	31	4	7
Acquisition of Machinery & Equipment	259	67	122
Other subsidies and payments*	6,607	1,124	4,270
Total Gross Budgetary Expenditures	683,201	167,450	494,918
Less Revenues netted against Expenditures
Revenues	(275)	(10)	(20)
Total net budgetary expenditures	$ 682,926	$ 167,440	$ 494,898