Quarterly Financial Report - For the quarter ended June 30, 2025

STATEMENT OUTLINING RESULTS, RISKS AND SIGNIFICANT CHANGES IN OPERATIONS, PERSONNEL AND PROGRAMS

Introduction

This quarterly report should be read in conjunction with the Main Estimates. It has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. This quarterly report has not been subject to an external audit or review.

The role of the Courts Administration Service (CAS) is to provide administrative services to four superior courts of law: the Federal Court of Appeal, the Federal Court, the Court Martial Appeal Court of Canada and the Tax Court of Canada. Further details on CAS’ programs can be found in the 2025-26 Main Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes CAS’ spending authorities granted by Parliament and those used by the organization consistent with the 2025-26 Main Estimates. This quarterly report has been prepared using a prescribed financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or legislation in the form of statutory spending authority for specific purposes.

CAS 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.

Highlights of fiscal quarter and fiscal year-to-date (YTD) Results

Significant Changes to Authorities available for use for the fiscal year

As illustrated in the Statement of Authorities and the Departmental Budgetary Expenditures by Standard Object tables at the end of this report, yearly authorities available for use as of June 30, 2025, increased by $16,327 thousand (8%) compared to the same quarter in 2024-25, from $192,414 thousand to $208,741 thousand.

The increase in authorities is mainly due to $16,646 thousand in funding received for the National Courts Facilities Modernization Program (phases I and II), and $2,658 thousand for Access to Justice in Both Official Languages. It also includes an increase of $1,005 thousand in contributions to employee benefit plans, $1,224 thousand related to the signature of collective agreements for various groups (e.g. AS, LP, etc.). The above increases are partly offset by the decrease of $5,207 thousand in sun-setting funding received for Strengthen Service and Digital Capabilities to Modernize Canada’s Federal Courts (SSDC).

Starting in 2023-24, CAS annual authorities include a significant portion of Special Purpose Allotments funding (SPA)^{Footnote 1}, 49% in 2025-26 ($102,096 thousand out of a total of $208,741 thousand) due to the multi-year funding for projects under the National Courts Facilities Modernization Program.

As a result of the Government expenditure management cycle and certain conditions imposed by Central Agencies, there are often significant fluctuations by quarter between authorities received and the timing of expenditures realized.

Significant Changes to Expenditures

Figure 1 presents current and prior fiscal year expenditures compared to annual authorities at the end of the first quarter. These results are discussed in the section below.

First-quarter Expenditures

As illustrated in Figure 1, first-quarter expenditures decreased by $806 thousand (-3%) compared to the same period of the previous fiscal year, from $27,626 thousand to $26,820 thousand. As a result, 13% of the yearly authorities available for use were expended during the first quarter of 2025-26, which represent a decrease of 1% compared to the same quarter of 2024-25.

Significant variances^{Footnote 2} in expenditures are explained as follows:

Personnel

The year-to-date expenditures related to personnel increased by $845 thousand (4%) compared to the same period of the previous fiscal year, from $21,015 thousand to $21,860 thousand. This increase is mainly due to an increase in the number of employees to deliver on Access to Justice in Both Official Languages, as well as higher salaries rates relating to signature of collective agreements in 2023-24.

Transportation and telecommunication

The year-to-date expenditures related to transportation and telecommunication services decreased by $244 thousand (-34%) compared to the same period of the previous fiscal year, from $718 thousand to $474 thousand. This decrease is mainly due to a decrease in telecommunication services, relocation and travel. CAS continues to reduce its landlines in an effort to reduce telecommunication expenses.

Information

The year-to-date expenditures related to information decreased by $99 thousand (-36%) compared to the same period of the previous fiscal year, from $273 thousand to $174 thousand. This decrease, considered immaterial in value, is mainly due to a decrease in printing services and in electronic subscriptions for the judicial library.

Professional and special services

The year-to-date expenditures related to professional and special services decreased by $1,072 thousand (-33%) compared to the same period of the previous fiscal year, from $3,205 thousand to $2,133 thousand. This is mainly due to a decrease in interpretation and translation services, and other business services. The decrease is partially offset by an increase in engineering and architectural services to support the new Montreal Judicial Complex and Toronto construction projects under the National Courts Facilities Modernization Program.

Purchased repair and maintenance

The year-to-date expenditures related to purchased repair and maintenance increased by $46 thousand (39%) compared to the same period of the previous fiscal year, from $119 thousand to $165 thousand. This increase, considered immaterial in value, is mainly due to the repair and maintenance of court facilities and offices in Ottawa, and scanning equipment.

Utilities, materials and supplies

The year-to-date expenditures related to utilities, materials and supplies decreased by $386 thousand (-53%) compared to the same period of the previous fiscal year, from $723 thousand to $337 thousand. The decrease is mainly due to the decrease in the expenditures for stationery and office supplies, and printed products.

Remaining expenditures compared to the same period of the previous fiscal year are considered as immaterial variations (rentals, acquisition of land, building and works, acquisition of machinery and equipment, and other subsidies and payments).

Risks and Uncertainties

CAS continues to experience financial risks and vulnerabilities. In addition, CAS had to absorb sunsetted funding to support the asylum caseload. These pressures were partially mitigated through a temporary internal reallocation of SPA funding in 2024–25 and realigning resources with priorities. This reallocation enabled CAS to address the most immediate and critical risks and pressures without requiring new funding or additional authorities. However, while some deficiencies have been addressed, residual risks and vulnerabilities remain and will affect CAS’s future ability to provide necessary administrative services to the judiciary. For example:

• Most non-personnel expenses incurred by CAS are non-discretionary and directly support the judicial process, including court hearings and security. These expenses cover services such as translation, protection, informatic equipment such as video conference hardware and software, court reporting, transcription services, and similar operational costs. They are largely driven by the volume, type, and duration of hearings conducted each year—factors that are beyond CAS’s control and significantly limit the organization's financial flexibility.
• Amendments to the Official Languages Act came into force in June 2024, requiring CAS to release in both official languages simultaneously decisions of precedential value, in addition to cases that raise questions of law of general public interest or national importance. The impact on CAS’ operations is very significant and resource intensive. CAS does not have the appropriate level of resources to meet these new legislative requirements.
• Cybersecurity is an on-going threat for any organization. As such CAS continues to modernize IT systems to adapt to evolving needs and sustain operational resilience.
• CAS is also experiencing increased costs, case complexity and volume, reducing CAS's ability to meet its obligations and capacity to optimize its processes and operations.

CAS continues to address financial pressures by implementing a range of mitigation strategies. These include establishing baseline and multi-year budgets, optimizing and strengthening organizational structures, enhancing integrated planning, regularly reassessing and realigning resources with priorities and identifying efficiencies.

Significant changes in relation to operations, personnel and programs

On May 13, 2025, Prime Minister Mark Carney announced the appointment of the Honourable Sean Fraser as the Minister of Justice and Attorney General of Canada.

Approval by Senior Officials

Approved by:

(Ottawa, Canada)
(August 29, 2025)

Groupings can change between quarters due to materiality of initiatives.

Amounts may not balance with other public documents due to rounding.