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.

Notes:
The 2018–19 planned results are those reported in the Future-Oriented Statement of Operations included in the 2018–19 Departmental Plan.

The variance of $11,322,985 between the Planned Results for expenses for 2018–19 ($105,017,204), and Actual Results of $116,340,189 is mainly explained by additional sources of funding and other adjustments that were not included in the planned results because they were not yet approved. The additional funding was received to address program integrity, to implement elements of a new comprehensive Intellectual Property Strategy, to enhance procedural fairness in the citizenship revocation process under the Citizenship Act, and to support the Mexico Visa Lift initiative. This variance is also attributable to operating budget carry forward, as well as expenses for collective bargaining payments and contributions to employee benefit plans.

Expenses: CAS’s total expenses were $116,340,189 in 2018–19 ($108,735,899 in 2017–18). The largest components of the increase of $7,604,290 (6.99%) were mainly in salaries and wages, amortization of tangible capital assets, and professional and special services.

• Salaries and employee benefits: Salaries and employee benefits expense was $62,409,678 in 2018–19 ($59,335,570 in 2017–18). The $3,074,108 (5.18%) variance is due to increases of $2,921,940 in salaries and wages, and $518,417 in employer contributions to employee benefit plans. These increases were partly offset by a decrease of $ 218,560 in employer contribution to the health and dental insurance plans (related party transaction), and $147,689 in the provision for severance benefits. More than half (53.64%) of CAS's total expenses in 2018–19 consisted of salaries and employee benefits.
• Operating: Operating expenses totaled $53,930,511 in 2018–19 ($49,400,329 in 2017–18). The $4,530,182 (9.17%) variance is mainly attributable to increases of $1,460,569 in the amortization of tangible capital assets, $1,105,297 in professional and special services, $649,982 in repairs and maintenance, $380,995 in transportation and telecommunications, $334,523 in rentals, $265,396 in materials and supplies, $55,185 in machinery and equipment, $1,374 in accommodations, and $332,838 in other miscellaneous operating expenses. These increases were partly offset by a decrease of $55,977 in information technology mostly related to a reduction in printing services.

Revenues: The majority of CAS’s revenues are earned on behalf of the Government of Canada. 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 $2,691,820 in 2018–19 ($2,559,619 in 2017–18) and net revenues were $16,432 in 2018–19 ($14,122 in 2017–18).

Notes:

Liabilities: CAS’s net liabilities as at March 31, 2019 were $24,972,743 ($27,286,444 as at March 31, 2018). The decrease of $2,313,701 (8.48%) is the result of the following:

• Accounts payable and accrued liabilities (52.78% of total liabilities): Decrease of $902,072 includes decreases of $1,445,889 in accounts payable to external parties and $556,283 payable to other government departments and agencies, primarily due to timing of services delivered. Decrease offset by an increase of $1,100,100 in accrued liabilities related to salaries and wages.
• Vacation pay and compensatory leave (11.46% of total liabilities): Increase of $167,516 mainly due to $107,673 increase in vacation pay.
• Deposit accounts (27.42% of total liabilities): Decrease of $1,499,445 in deposit accounts reflects 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 (8.34% of total liabilities): Decrease of $79,700 due to decrease in the percentage factor used to calculate severance benefits.

Assets: The composition of CAS’s financial and non-financial assets is as follows:

Financial assets:

• Due from the Consolidated Revenue Fund (45.65% of gross assets)
• Accounts receivable and employee advances (6.76% of gross assets)

Non-financial assets:

• Tangible capital assets (45.89% of gross assets)
• Prepaid expenses (1.7% 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 the Government of Canada consist primarily of accounts receivable from other governmental organizations. The decrease of $2,208,353 is mainly due to a decrease in the amount due from the Consolidated Revenue Fund, as well as decrease in accounts receivable and advances.

Non-financial assets: The decrease of $10,641 is mainly due to a decrease in prepaid expenses which was partly offset by an increase in tangible capital assets related to physical security enhancement projects, facilities renovation design and warehouse shelving.

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.