Financial Statement Discussion and Analysis Fiscal year 2013-14

INTRODUCTION

This Financial Statement Discussion and Analysis (FSD&A) should be read in conjunction with the Financial Statements of the Courts Administration Service (CAS) for the fiscal year ended March 31, 2014. These Financial Statements have been prepared using the Government's accounting policies, which are based on Canadian public sector accounting standards. The FSD&A has been prepared following the Public Sector Statement of Recommended Practice (SORP-1).

Responsibility for the preparation of the FSD&A rests with the management of CAS. The purpose of the FSD&A is to enhance the user’s understanding of the organization’s financial position and results of operations while demonstrating its accountability for its resources. Additional information on the organization’s performance is available in the Departmental Performance Report.

Following this introduction, the FSD&A consists of three sections:

  • Overview
  • Highlights
  • Discussion and Analysis

Please note that all financial information presented herein is denominated in Canadian dollars, unless otherwise indicated.

Special note regarding forward-looking statements

The words “estimate”, “will”, “intend”, “should”, “anticipate”, and similar expressions are intended to identify forward-looking statements that reflect assumptions and expectations of the organization, based on its experience and perceptions of trends and current conditions. Although CAS believes the expectations reflected in such forward-looking statements are reasonable, they may prove to be inaccurate; consequently actual results could differ materially from expectations set out in this FSD&A. In particular, the risk factors described in this report could cause actual results or events to differ materially from those contemplated in forward-looking statements.

OVERVIEW

CAS was established in 2003 by the Courts Administration Service Act, S.C. 2002, c. 8. CAS’ role is to provide effective and efficient registry, judicial and internal services to the Federal Court of Appeal, the Federal Court, the Court Martial Appeal Court of Canada and the Tax Court of Canada (“the Courts”). The Chief Administrator of CAS serves as Deputy Head.

CAS was created to ensure the effective and efficient provision of administrative support to the four federal courts; to enhance judicial independence by placing administrative services at arm’s length from the Government and affirming the roles of the chief justices and judges in the management of the Courts; and to enhance accountability for the use of public money in support of court administration. This in turn ensures timely and fair access to the judicial system, which is essential to constitutional governance.

CAS’ budget is allocated through authorities approved by Parliament. CAS has one voted authority for program expenditures and statutory authorities for contributions to employee benefit plans, spending of proceeds from the disposal of surplus Crown assets, and refunds of amounts credited to revenues in previous years.

Authorities provided to CAS do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on CASh flow requirements. Consequently, items recognized in the Statement of Financial Position and in the Statement of Operations and Departmental Net Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 of the Financial Statements provides a reconciliation between the bases of reporting.

The Financial Statements of CAS are not audited.

HIGHLIGHTS

Parliamentary Authorities

The parliamentary authorities available for use by CAS include funding received through the Main Estimates, Supplementary Estimates, Transfers, Adjustments and Warrants. These authorities increased by $886 thousand, from $71,261 thousand in 2012-13 to $72,147 thousand in 2013-14. This is variance the result of several factors.

Parliamentary Authorities chart

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Parliamentary authorities

In 2013-14, Salaries and Employee Benefit Plan authorities were $49,634 thousand. Operating authorities were $22,513 thousand. Total authorities were $72,147 thousand.

In 2012-13, Salaries and Employee Benefit Plan authorities were $48,499 thousand. Operating authorities were $22,762 thousand. Total authorities were $71,261 thousand.

In 2011-12, Salaries and Employee Benefit Plan authorities were $54,473 thousand. Operating authorities were $24,204 thousand. Total authorities were $78,677 thousand.

The increase in authorities is primarily the result of additional funding received for salary increases included in newly signed collective agreements. Funding related to collective agreements was $697 thousand.

Furthermore, there was an increase of $375 thousand in the transfer from Treasury Board for paylist requirements. This transfer includes severance pay and termination benefits, vacation credits payable upon termination of employment, and parental benefits. A significant portion of the total paylist requirements request (44% or $557 thousand) was for payments to employees who exercised the option to receive immediate payment for previously earned and accumulated severance pay. In contrast, such payments represented only a relatively small portion of the 2012-13 paylist requirements request (12% or $107 thousand).

The above increases were partly offset by a $200 thousand decrease in program integrity funding for existing judicial appointments and for certain essential security measures for the Courts. In addition, the operating budget carry-forward transfer received in 2013-14 was $113 thousand less than that in 2012-13. There were also various other minor increases in authorities totalling $127 thousand.

Financial Highlights

During the preparation of the Courts Administration Service's financial statements for the fiscal year ended March 31, 2014, errors were identified in the financial statements of prior periods. These errors are material therefore the correction of the errors has been reported retroactively and comparative information has been restated.

Statement of Financial Position

The Departmental Net Financial Position is the amount remaining when total liabilities are deducted from total assets. CAS’ Departmental Net Financial Position was $2,410 thousand as at March 31, 2014 ($(457) thousand as at March 31, 2013 - restated).

Liabilities: CAS’ total liabilities were $15,459 thousand as at March 31, 2014 ($15,115 thousand as at March 31, 2013). The $344 thousand variance is primarily due to an increase in accounts payable and accrued liabilities and deposit accounts, offset by a decrease in employee future benefits.

Assets: CAS’ assets are presented as financial assets (amount due from the Consolidated Revenue Fund (CRF) account, and accounts receivable and advances) and non-financial assets (tangible assets).

Financial assets: The total net financial assets amounted to $10,347 thousand ($7,804 thousand as at March 31, 2013). The variance of $2,543 thousand is explained below.

The year-end balance of the gross financial asset was $11,326 thousand ($9,882 thousand as at March 31, 2013). The variance of $1,444 thousand is primarily due to an increase in the amount due from the CRF offset by a decrease in accounts receivable and advances.

Accounts receivable from non-respendable revenues are not available to discharge liabilities. They are therefore presented under financial assets held on behalf of Government in reduction of the gross financial assets. Related decrease of $1,099 thousand from the previous year mostly relates to the amount allocated to the Department of Employment and Social Development for the costs of administering Employment Insurance (EI) CASes in the Courts.

Non-financial assets: The year-end balance was $7,522 thousand ($6,854 thousand as at March 31, 2013 - restated). The variance of $668 thousand represents acquisitions of $1,750 thousand offset by amortization of $1,052 thousand and other adjustments of $30 thousand. Leasehold improvements accounted for 52% while computer hardware and software totalled 33% of non-financial assets. Combined, these categories currently account for 85% of CAS’ tangible capital assets.

Statement of Operations and Departmental Net Financial Position

CAS’ net cost of operations before government funding and transfers amounted to $95,226 thousand in 2013-14, an increase of $1,263 thousand (1%) compared to $93,963 thousand in 2012-13 - restated. These figures are net of expenses incurred and revenues earned on behalf of government. The increase in total expenses is primarily due to an increase in salaries and employee benefits.

Expenses: CAS’ total expenses were $95,230 thousand in 2013-14 ($93,967 thousand in 2012‑13 - restated).

Salary and employee benefits: Salary and employee benefit expenses amounted to $53,184 thousand ($52,999 thousand in 2012-13 - restated). The $185 thousand (1%) increase is primarily due to salary increases pursuant to collective agreements. More than half of CAS’ total expenses consist of salaries and employee benefits.

Operating: Operating expenses totalled $42,046 thousand ($40,968 thousand in 2012-13 - restated). The $1,078 thousand (3%) increase is attributable to increases of $406 thousand in amortization of tangible capital assets, $286 thousand in professional and special services, $217 thousand in materials and supplies, and other minor variances totalling $169 thousand.

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Expenses

In 2013-14, Salaries and Employee Benefit Plan expenses were $53,184 thousand. Operating expenses were $42,046 thousand. Total expenses were $95,230 thousand.

In 2012-13 (restated), Salaries and Employee Benefit Plan expenses were $52,999 thousand. Operating expenses were $40,968 thousand. Total expenses were $93,967 thousand.

Revenues:The majority of CAS’ 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 CRF. CAS earns a small amount of respendable revenue from the sale of Crown assets. CAS’ gross revenues were $3,018 thousand ($5,612 thousand in 2012-13) and net revenues were $4 thousand ($4 thousand in 2012-13).

Gross Revenues chart

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Gross Revenues

In 2013-14, Employment Insurance (EI) Operating Account cost recoveries were $940 thousand. Filing fees revenues were $1,886 thousand. Fines revenues were $85 thousand. Other revenues were $107 thousand. Total gross revenues were $3,018 thousand.

In 2012-13, Employment Insurance (EI) Operating Account cost recoveries were $2,041 thousand. Filing fees revenues were $1,901 thousand. Fines revenues were $1,574 thousand. Other revenues were $95 thousand. Total gross revenues were $5,611 thousand.

In 2011-12, Employment Insurance (EI) Operating Account cost recoveries were $1,576 thousand. Filing fees revenues were $1,644 thousand. Fines revenues were $1,066 thousand. Other revenues were $109 thousand. Total gross revenues were $4,395 thousand.

DISCUSSION AND ANALYSIS

Risks and Uncertainties

Funding

During 2013-14, the financial situation of CAS remained difficult and continued to be an important source of risk to the organization’s ability to fulfill its mandate.

For some years, CAS has lacked the permanent funding necessary to enable the organization to fully meet its commitments and address major program integrity issues. Budget 2011 partially addressed this need, providing CAS with approximately $3 million per year for program integrity measures. However, Budget 2014 announced that the operating budgets of departments would be frozen at their 2013-14 level for the years 2014-15 and 2015-16. This represents a significant risk and uncertainty for CAS because additional funding will not be received for future salary increases resulting from newly signed collective bargaining agreements. This is an important consideration given the large proportion of the CAS budget devoted to salaries. Management is reviewing various options to adjust to this constraint in funding.

A loan in the amount of $2,750 thousand was provided by Treasury Board in 2011-12 that enabled CAS to address some information technology rust-out, to construct a data centre and to relocate CAS corporate functions to the designated Federal Judicial Building in the National Capital Region. However, CAS must repay this loan over a five-year period which started in 2012‑13. This represents an important annual funding pressure through 2016-17.

Funding restraints have severely limited the resources available for strategic projects needed to address critical risk areas and allow the organization to become more effective and efficient in its delivery of services to the judiciary and Canadians. CAS will continue to work with the central agencies to identify solutions to this longstanding problem.

Risk Management

Given the challenges of managing financial and other pressures, CAS continued to review its risk assessment and risk management capacity.

Court management is a responsibility of the judiciary and imposes requirements that are beyond CAS control. A majority of the non-salary operating expenses incurred by CAS are contracted costs for services supporting the judicial process and court hearings. These include translation, court reporters, transcripts and security services, and are mostly driven by the number, type and duration of hearings conducted in any given year. A risk management strategy to monitor these costs and manage their fluctuation and related impacts on other key areas is in place.

CAS made progress in developing new approaches to risk in the provision of security services for the Courts and their users. This area remains a key priority, and consequently the limited resources available must be applied efficiently and effectively to anticipate and avoid security risks, as well as to deal with those that do materialize.

Likewise, maintaining an efficient and secure IM/IT infrastructure to support the operations of the Courts and CAS and to protect the integrity of court information was another area where tangible progress was made in overcoming rust-out and addressing risks and problems. Much further work in this area remains to be completed to address related issues, and will be needed in coming years to support the growing needs of the Courts and registries.

Financial Analysis

The following analysis explains the main items appearing on the financial statements, as well as significant variances and financial trends.

Liabilities

Accounts payable and accrued liabilities: CAS’ accounts payable and accrued liabilities totalled $3,975 thousand as at March 31, 2014 ($3,160 thousand as at March 31, 2013). The increase of $815 thousand results in part from an increase of $374 thousand in accounts payable to external parties due to the timing of purchases for various information technology, security and facilities projects that were ongoing at year-end. In addition, there was an increase of $303 thousand in accrued liabilities due to the timing of the final pay period. Finally, there was an increase of $138 thousand in accounts payable to other government departments and agencies primarily due to an increase in the year-end billing for translation services.

Accounts payable and accrued liabilities chart

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Accounts payable and accrued liabilities

In 2013-14, accounts payable to external parties were $2,221 thousand. Accrued liabilities were $1,261 thousand. Accounts payable to other government departments and agencies were $493 thousand.

In 2012-13, accounts payable to external parties were $1,847 thousand. Accrued liabilities were $958 thousand. Accounts payable to other government departments and agencies were $355 thousand.

Vacation pay and compensatory leave: CAS’ vacation pay and compensatory leave year-end balance was $1,984 thousand ($2,047 thousand as at March 31, 2013). The slight decrease of $63 thousand is due to the department-wide effort to increase the utilization of vacation leave.

Employee future benefits: CAS’ employee future benefits balance was $2,306 thousand as at March 31, 2014 ($3,132 thousand as at March 31, 2013). This amount represents an allowance for severance benefits payable to employees. In 2011-12, significant changes were made to the employee severance pay program which resulted in a decrease in employee future benefits over the past three years. The decrease of $826 thousand is a result of the continued impact of these changes.

Deposit accounts: CAS’ deposit accounts amounted to $7,194 thousand as at March 31, 2014 ($6,776 thousand as at March 31, 2013). CAS maintains two Specified Purpose Accounts (SPAs), one for deposits by litigants appearing before the Federal Court of Appeal or the Federal Court, and the other for those appearing before the Tax Court of Canada. These two accounts were established pursuant to Section 21.1 of the Financial Administration Act under Order in Council P.C. 1970 4/2 and Order in Council P.C. 1970-300, respectively. Pursuant to an order of the Court, amounts are held in trust and eventually released with accrued interest. Because payments into or out of the accounts are determined by the Courts, depending on the particular CASe, the balance is unpredictable and may vary significantly from year to year.

Vacation pay and compensatory leave, Employee future benefits and Deposit accounts chart

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Vacation pay and compensatory leave, Employee future benefits, and Deposit accounts

In 2013-14, vacation pay and compensatory leave was $1,984 thousand. Employee future benefits were $2,306 thousand. Deposit accounts were $7,194 thousand.

In 2012-13, vacation pay and compensatory leave was $2,047 thousand. Employee future benefits were $3,132 thousand. Deposit accounts were $6,776 thousand.

Assets

Financial Assets

Due from the Consolidated Revenue Fund: CAS’ due from the CRF year-end balance was $9,765 thousand ($7,459 thousand as at March 31, 2013). The increase of $2,306 thousand reflects a $1,103 thousand decrease in accounts receivable from other government departments and agencies (net of recoverable taxes), a $785 thousand increase in accounts payable (net of taxes) and accrued liabilities, and a $418 thousand increase in the deposit accounts. This account represents the net amount of CASh that CAS is entitled to withdraw from the CRF in order to discharge its liabilities without generating any additional charges against its authorities in the year of the withdrawal. This includes expenses incurred but not yet paid and amounts received by CAS that can be paid out in future years, offset by accounts receivable from other government departments and agencies.

Accounts receivable and advances: CAS’ accounts receivable and advances balance was $1,561 thousand as at March 31, 2014 ($2,423 thousand as at March 31, 2013). The key components of this balance are accounts receivable from other government departments and agencies, and accounts receivable from external parties, offset by the allowance for doubtful accounts

  • Accounts receivable from other government departments and agencies: The year-end balance was $1,434 thousand ($2,391 thousand as at March 31, 2013). The decrease of $957 thousand represents a $1,102 thousand decrease in the amount allocated to the Employment Insurance Operating Account, offset by a $147 thousand increase in recoverable amounts related to taxes (GST/HST/QST) and other minor variances totalling $2 thousand.
  • Accounts receivable from external parties: The year-end balance was $129 thousand ($29 thousand as at March 31, 2013). It includes photocopy fees charged to litigants and members of the general public, as well as employees’ overpayments and other adjustments.
  • Allowance for doubtful accounts: The year-end balance was $9 thousand ($5 thousand as at March 31, 2013). Over the past several years, CAS has been diligently reviewing and pursing outstanding accounts receivable.

Financial assets held on behalf of Government: Accounts receivable from non-respendable revenues are presented under financial assets held on behalf of Government in reduction of the gross financial assets. The year-end balance was $979 thousand ($2,078 thousand as at March 31, 2013). The $1,099 thousand decrease reflects a $1,102 thousand decrease in the amount allocated to Employment Insurance Operating Account, offset by various minor amounts totalling $3 thousand.

Departmental Net Debt

The Departmental Net Debt (total liabilities less total net financial assets) is an indicator that provides a measure of the future authorities required to pay for past transactions and events. The year-end balance was $5,112 thousand ($7,311 thousand as at March 31, 2013).

Non-financial Assets

Tangible capital assets: CAS’ net book value of tangible capital assets was $7,522 thousand ($6,854 thousand as at March 31, 2013 - restated). The variance of $668 thousand represents acquisitions of $1,750 thousand offset by amortization of $1,052 thousand and other adjustments of $30 thousand.

CAS’ capital asset acquisitions of $1,750 thousand ($1,640 thousand in 2012-13 - restated) resulted primarily from capital projects completed in 2013-14. Tangible capital assets acquisitions were as follows:

  • Security systems and equipment projects totalling $613 thousand;
  • Construction of court-related facilities in the National Capital Region and in the Toronto Local Office amounting to $277 thousand;
  • Software upgrades and improvements totalling $313 thousand;
  • IT performance and rust-out projects, and upgrades to audio and video conferencing equipment totalling $262 thousand;
  • Judicial and Registry business solutions and support systems amounting to $224 thousand;
  • Purchases of new vehicles costing $55 thousand; and
  • Other minor capital asset acquisitions amounting to $6 thousand.

Tangible capital assets acquisitions chart

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Tangible capital asset acquisitions

In 2013-14, furniture and fixture acquisitions were $6 thousand. Vehicle acquisitions were $55 thousand. Machinery & equipment acquisitions were $69 thousand. Computer hardware acquisitions were $365 thousand. Computer software acquisitions were $114 thousand. Leasehold improvements acquisitions were $277 thousand. Assets under construction-computer software acquisitions were $280 thousand. Assets under construction-other acquisitions were $584 thousand.

In 2012-13 (restated), furniture and fixture acquisitions were $17 thousand. Vehicle acquisitions were $nil thousand. Machinery & equipment acquisitions were $66 thousand. Computer hardware acquisitions were $199 thousand. Computer software acquisitions were $214 thousand. Leasehold improvements acquisitions were $1,144 thousand. Assets under construction-computer software acquisitions were $nil thousand. Assets under construction-other acquisitions were $nil thousand.

Expenses

CAS’ total expenses were $95,230 thousand in 2013-14 ($93,967 thousand in 2012-13 - restated). The increase of $1,263 thousand (1%) is comprised of increases of $406 thousand in amortization of tangible capital assets, $286 thousand in professional and special services, $217 thousand in materials and supplies, $185 thousand in salaries and employee benefits, and other minor variances totalling $169 thousand. The two largest categories of expense are: salaries and employee benefits (56% of total expenses in 2013-14, 56% in 2012-13); and accommodations (27% of total expenses in 2013-14, 27% in 2012-13).

Expenses chart

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Expenses

In 2013-14, salaries and employee benefits expenses were $53,184 thousand. Accommodation expenses were $26,014 thousand. Professional and special services expenses were $8,130 thousand. Transportation and telecommunications expenses were $2,309 thousand. Materials and supplies expenses were $1,953 thousand. Rentals expenses were $1,606 thousand. Amortization of tangible capital assets was $1,052 thousand. Machinery and equipment expenses were $286 thousand. Repair and maintenance expenses were $411 thousand. Information expenses were $319 thousand. Miscellaneous expenses were -$34 thousand.

In 2012-13 (restated), salaries and employee benefits expenses were $52,999 thousand. Accommodation expenses were $25,835 thousand. Professional and special services expenses were $7,844 thousand. Transportation and telecommunications expenses were $2,434 thousand. Materials and supplies expenses were $1,736 thousand. Rentals expenses were $1,405 thousand. Amortization of tangible capital assets was $646 thousand. Machinery and equipment expenses were $252 thousand. Repair and maintenance expenses were $245 thousand. Information expenses were $417 thousand. Miscellaneous expenses were $154 thousand.

Salaries and employee benefits: Salaries and employee benefits expense was $53,184 thousand in 2013-14 ($52,999 thousand in 2012-13 - restated). Salaries and employee benefits expense includes such costs as gross salaries and wages, overtime pay, retroactive salary adjustments, employee entitlements and allowances, severance pay, and pension and medical benefits. The $185 thousand variance (1%) mostly represents salary increases pursuant to collective agreements and corresponding employee benefits.

Accommodations: Accommodations expense was $26,014 thousand in 2013-14 ($25,835 thousand in 2012-13). This amount represents the value of accommodation services, including rent, provided without charge by PWGSC, a common service organization providing accommodation services to the government. The increase of $179 thousand (1%) is principally due to price increases in new lease agreements.

Professional and special services: Professional and special services expense was 8,130 thousand in 2013-14 ($7,844 thousand in 2012-13 - restated). The increase of $286 thousand (4%) is composed of a $258 thousand increase in translation services, a $181 thousand increase in protection services, offset by a $101 thousand decrease in management consulting costs and a $52 thousand decrease resulting from other minor variances.

Transportation and telecommunications: Transportation and telecommunications expense was $2,309 thousand in 2013-14 ($2,434 thousand in 2012-13). The decrease of $125 thousand (-5%) resulted primarily from a reduction in travel costs by $69 thousand, a reduction in postage and freight costs by $33 thousand and a decrease in telecommunications costs by $23 thousand.

Materials and supplies: Material and supplies expense was $1,953 thousand in 2013-14 ($1,736 thousand in 2012-13). Material and supplies expense includes legal books, publications and subscriptions (except electronic subscriptions), as well as stationery and supplies. The increase of $217 thousand (13%) is primarily due to an increase in the purchase of books, publications and subscriptions by $149 thousand, and other minor increases of $68 thousand.

Rentals: Rentals expense was $1,606 thousand in 2013-14 ($1,405 thousand in 2012-13). The increase of $201 thousand (14%) is primarily due to an increase of $214 thousand in the rental of informatics equipment, which includes annual license and maintenance renewal fees. In addition, there were other minor decreases totalling $13 thousand.

Amortization of tangible capital assets: Amortization expense was $1,052 thousand in 2013-14 ($646 thousand in 2012-13 - restated). Tangible capital assets are expected to yield benefits over several years. Consequently, their cost is amortized on a straight-line basis over the estimated useful life of each asset class. The increase of $406 thousand (63%) reflects the commencement of amortization of computer hardware related to the data centre that was put in use late in the 2012-13 fiscal year.

Machinery and equipment: Machinery and equipment expense was $286 thousand in 2013-14 ($252 thousand in 2012-13 - restated). The increase of $34 thousand (13%) is due to purchases of assets costing less than $5 thousand such as small computer parts, office equipment, furniture, and motor vehicle parts.

Repairs and Maintenance: Repair and maintenance expense was $411 thousand in 2013-14 ($245 thousand in 2012-13). This increase of $166 thousand (68%) is due to non-capital costs related to leasehold improvement projects and repairs and maintenance to facilities and IT equipment.

Information: Information expense was $319 thousand in 2013-14 ($417 thousand in 2012-13). The $98 thousand decrease (24%) is primarily due to a decrease in printing services of $120 thousand, offset by other minor increases of $22 thousand.

Miscellaneous and Expenses incurred on behalf of Government: Miscellaneous expense was -$34 thousand in 2013-14 ($153 thousand in 2012-13). This item includes losses on the disposal and write-down of tangible capital assets, interest on overdue supplier accounts, losses on foreign currency transactions, adjustments to the prior year’s payables at year-end (PAYE), and expenses incurred on behalf of Government. The latter relates to bad debts on Accounts Receivable held on behalf of Government. The write-down of tangible capital assets is the largest contributor to this decrease.

Revenues

CAS’ gross revenues were $3,018 thousand in 2013-14 ($5,611 thousand in 2012-13). CAS’ revenues fluctuate widely from year-to-year and consist almost entirely of revenues earned on behalf of Government. Such revenues are non-respendable by CAS and are deposited directly into the CRF. In 2013-14, these non-respendable revenues totalled $3,014 thousand ($5,608 thousand in 2012-13).

CAS’ net revenues were $4 thousand in 2013-14 ($4 thousand for 2012-13). This small item consists of revenues from Crown assets disposal, which are respendable.

Filing fees: Filing fees revenue was $1,886 thousand in 2013-14 ($1,901 thousand in 2012-13). Filing fees are charged to register court documents pursuant to the legislation and Rules governing the Courts.

EI Operating Account cost recoveries: EI Operating Account cost recoveries were $940 thousand in 2013-14 ($2,042 thousand in 2012-13). At the end of each fiscal year, CAS determines the cost associated with the administration of EI CASes for presentation by HRSDC, the department responsible for the EI account. Accordingly, HRSDC reports an expense in its financial statements and CAS reports an equivalent revenue item. This accounting exercise is intended to reflect the total cost of running the federal government's EI program and does not involve any transfer of authorities or funds.

Fines: Fines revenue was $85 thousand in 2013-14 ($1,574 thousand in 2012-13). As noted previously, these fines are imposed by the Courts. Consequently, the total amount of fines revenue may vary significantly from year to year and cannot be predicted.

Miscellaneous: Miscellaneous revenue was $107 thousand in 2013-14 ($95 thousand in 2012-13). Miscellaneous revenue is composed of photocopy revenue, gains on disposals of crown assets, and other miscellaneous revenues.

Gross revenues chart

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Gross Revenues

In 2013-14, Filing fees revenues were $1,886 thousand. Employment Insurance (EI) Operating Account cost recoveries were $940 thousand. Fines revenues were $85 thousand. Other revenues were $107 thousand.

In 2012-13, Filing fees revenues were $1,901 thousand. Employment Insurance (EI) Operating Account cost recoveries were $2,041 thousand. Fines revenues were $1,574 thousand. Other revenues were $95 thousand.

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