Quarterly Financial Report For the quarter ended Decemebr 31, 2024

1. Introduction

This quarterly report 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. This quarterly report should be read in conjunction with the Main Estimates. This report has not been subject to an external audit or review.

The purpose of the Law Commission of Canada (LCC) is "to study and keep under systematic review, in a manner that reflects the concepts and institutions of the common law and civil law systems, the law of Canada and its effects with a view to providing independent advice on improvements, modernization and reform that will ensure a just legal system that meets the changing needs of Canadian society and of individuals in that society". (s.3 Law Commission of Canada Act S.C. 1996, c.9)

1.1 Basis of Presentation

Management prepared this quarterly report using an expenditure basis of accounting. The accompanying Statement of Authorities includes the LCC's spending authorities granted by Parliament, and those used by the LCC, consistent with the Main and Supplementary Estimates (as applicable) for the 2024-2025 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 the Government can spend money. 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.

The LCC 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.

1.2 Law Commission of Canada Financial Structure

The LCC financial structure is comprised of the following budgetary authorities:

• Vote 1 - Operating Expenditures and;
• Statutory authorities related to contributions to the Employee Benefit Plan (EBP).

2. Highlights of the Fiscal Quarter and the Fiscal Year-To-Date (YTD) Results

Fiscal year 2024-25 marks the first full year for the LCC. The LCC officially commenced operations in June 2023, and this resulted in a substantial deferral of operational activities especially in the first three quarters of 2023-24. Accordingly, expenditures in the first three quarters of 2023-24 were lower compared to 2024-25. It is anticipated that as this year progresses, expenditures will continue to increase to match the total authorities available for the LCC.

Statement of Authorities

Total available authorities for fiscal year 2024-25 are $4.8 million, an increase from $4.5 million in 2023-24. This $0.3 million increase is primarily due to funding designated for LCC startup activities, including the planned relocation to a permanent office. While the LCC began operations in June 2023, securing a permanent location has been delayed. The LCC has successfully reprofiled funds from prior years to support this relocation, which is scheduled for completion within the current fiscal year. This $0.7 million in authorities has been received in December as part of the Supplementary Estimates (B).

Statement of Departmental Budgetary Expenditures by Standard Object

As of the third quarter of 2024–25, expenditures were $0.2 million higher than those reported in the same period of 2023–24. This increase is primarily due to higher personnel costs, driven by efforts to recruit and retain staff for the LCC Secretariat, which has been operational since its official launch in June 2023. Additionally, the variance reflects expenditures associated with an increase of activities of the LCC.

3. Risks and Uncertainties

Given that this is the first complete year for the LCC and given the delay in launching operational activities, the LCC ability to spend authorities will depend on building its capacity and team necessary to design, shape, and provide a policy-based plan for, its goals, measures and results for this year and beyond. As a result, there could be delays in spending its full authorities.

As a new micro-organization, LCC employees often occupy unique positions. It is important to retain skilled employees and reduce hiring delays when vacancies arise. This is a constant challenge, especially for a micro-organization. To mitigate this risk, the LCC will continue to be proactive in hiring staff and offering flexible work arrangements to employees when feasible.

Other risks include determining viable mechanisms for fulfilling its mandate through support of other organizations in the legal field, whether academic or not-for-profit in order to serve its purpose as stated in the Law Commission of Canada Act.

4. Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during this quarter.

5. Approval by Senior Officials

This section provides the approval of Senior Officials, as required by the Policy on Financial Management.

Approved by:

Statement of Authorities (unaudited) (in dollars)

Statement of Authorities (unaudited) (in dollars)

	Fiscal year 2024–2025			Fiscal year 2023–2024
	Total available for use for the year ending March 31, 2025*	Used during the quarter ended December 31, 2024	Year to date used at quarter-end	Total available for use for the year ending March 31, 2024*	Used during the quarter ended December 31, 2023	Year to date used at quarter-end
Vote 1 - Operating Expenditures**	4,646,128	742,362	1,663,465	4,325,486	515,419	791,812
Budgetary Statutory Authority - Contributions to employee benefit plans	169,815	42,454	127,361	187,042	46,760	140,281
Total Authorities	4,815,943	784,815	1,790,826	4,512,528	562,179	932,093

• *Includes only Authorities available for use and granted by Parliament at quarter-end.
• **Total authorities increased as a result of funding received through Supplementary Estimates (B).

Departmental budgetary expenditures by Standard Object (unaudited) (in dollars)

	Fiscal year 2024–2025			Fiscal year 2023–2024
Expenditures	Planned expenditures for the year ending March 31, 2025	Expended during the quarter ended December 31, 2024	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended December 31, 2023	Year to date used at quarter-end
Personnel *	1,474,554	441,331	1,324,922	1,489,730	344,700	683,537
Transportation and communications	146,791	14,830	40,457	170,244	15,612	44,144
Information	14,936	36,451	58,785	17,322	0	0
Professional and special services	1,791,145	265,174	281,010	1,409,279	202,863	202,863
Rentals	346,364	82,175	82,175	401,700	0	0
Repair and maintenance	441,926	0	0	512,531	0	0
Utilities, materials and supplies	158,999	449	1,131	0	-1,673	872
Acquisition of land, buildings and works	0	-57,410 **	0	0	0	0
Acquisition of machinery and equipment	441,229	348	402	511,723	677	677
Other subsidies and payments	0	1,467	1,944	0	0	0
Total Net Budgetary Expenditures	4,815,943	784,815	1,790,826	4,512,528	562,179	932,093

• *Includes Employee Benefit Plan (EBP) expenses.
• ** The negative value is a result of an accounting entry for capitalizing costs incurred related to the relocation of the LCC’s permanent office.