Financial Statements Highlights

The highlights presented in this section are drawn from CAS’ financial statements and are prepared on an accrual basis. These financial statements have been prepared using Government of Canada accounting policies, which are based on Canadian public sector accounting standards.

Expenses: CAS’s total expenses were $101,941,788 in 2015-16 ($98,149,017 in 2014–15). The largest components of the increase of $3,792,771 (4%) were increases in professional and special services, as well as accommodations.

• Salaries and employee benefits: Salaries and employee benefits expense was $53,678,562 in 2015–16 ($53,908,615 in 2014–15). The $230,053 (-0.4%) variance is due to decreases of $313,395 in the provision for severance benefits and $218,397 in employer contributions to employee benefit plans. These decreases were partly offset by increases of $244,121 in salaries and wages and $57,618 in employer contribution to the health and dental insurance plans (related party transaction). More than half (51%) of CAS’s total expenses in 2015–16 consisted of salaries and employee benefits.
• Operating: Operating expenses totalled $48,263,226 ($44,240,402 in 2014–15). The $4,022,824 (9%) variance is mainly attributable to increases of $1,908,892 in professional and special services, $1,428,256 in accommodations, $325,509 in machinery and equipment, $235,807 in materials and supplies, and $151,698 in information. These increases were partly offset by a decrease of $381,656 in the amortization of tangible capital assets. Other smaller variances resulted in a net increase of $354,318.

Revenues: The majority of CAS’s revenues are earned on behalf of Government. Such revenues are non-respendable, meaning that they cannot be used by CAS, and are deposited directly into the Consolidated Revenue Fund. CAS earns a small amount of respendable revenue from the sale of Crown assets. CAS’s gross revenues were $2,979,168 in 2015–16 ($2,597,088 in 2014–15) and net revenues were $2,875 in 2015–16 (nil in 2014–15).

Liabilities:

CAS’s net liabilities as at March 31, 2016 were $17,487,777 ($17,571,084 as at March 31, 2015). The decrease of $83,307 (-0.5%) is the result of the following:

• Accounts payable and accrued liabilities (33% of total liabilities): Increase of $624,451 mainly due to a $619,065 increase in accrued liabilities related to salaries and wages.
• Vacation pay and compensatory leave (11% of total liabilities): Increase of $103,569 mainly due to a $97,276 increase in vacation pay.
• Deposit accounts (40% of total liabilities): Decrease of $857,610. Because they reflect many separate decisions of the courts, deposits cannot be projected and the balance in the deposit accounts can vary significantly from year to year.
• Employee future benefits (16% of total liabilities): Increase of $46,283 due to an increase in the number of employees included in the severance pay calculation.

Assets: The composition of CAS’s financial and non-financial assets is the following:

Financial assets:

• Due from the Consolidated Revenue Fund (48% of gross assets)
• Accounts receivable and employee advances (7% of gross assets)

Non-financial assets:

• Tangible capital assets (44% of gross assets)
• Prepaid expenses (1% of gross assets)

Net financial assets: This is comprised of financial assets net of accounts receivable held on behalf of Government. Accounts receivable held on behalf of Government consist primarily of accounts receivable from other governmental organizations. The decrease of $550,292 is mainly due to a decrease in the amount due from the Consolidated Revenue Fund, which represents the net amount of cash that CAS is entitled to withdraw from the Consolidated Revenue Fund without generating additional charges against its authorities.

Non-financial assets: The increase of $2,770,801 is mainly due to tangible capital assets, as well as a smaller increase in prepaid expenses.

Departmental net debt: This provides a measure of the future authorities required to pay for past transactions and events.

Departmental net financial position: This represents the net resources (financial and non-financial) that will be used to provide future services to the courts and thereby to benefit Canadians.