Quarterly Financial Report For the quarter ended September 30, 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 complete 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 and second quarter of 2023-24. When compared to the second quarter of 2024-25, expenditures were lower last fiscal year as a reflection in the delay in operations as the LCC began to deliver on its mandate. It is anticipated that as this year progresses, expenditures will continue to increase in order to match the total authorities available for the LCC.

Statement of Authorities

Total available authorities for fiscal year 2024-25 are $4.1 million, a decrease from $4.5 million in 2023-24. This $0.4 million reduction is primarily due to prior-year 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 is now seeking to reprofile funds from prior years to support this relocation, which is scheduled for completion within the current fiscal year.

Statement of Departmental Budgetary Expenditures by Standard Object

As of the second quarter of 2024–25, expenditures were $247,697 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 retrofitting the LCC’s permanent office location.

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’s 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 September 30, 2024	Year to date used at quarter-end	Total available for use for the year ending March 31, 2024*	Used during the quarter ended September 30, 2023	Year to date used at quarter-end
Vote 1 - Operating Expenditures**	3,911,128	509,835	921,102	4,325,486	226,658	276,393
Budgetary Statutory Authority - Contributions to employee benefit plans	169,815	42,454	84,908	187,042	77,934	93,521
Total Authorities	4,080,943	552,289	1,006,010	4,512,528	304,592	369,914

• *Includes only Authorities available for use and granted by Parliament at quarter-end.
• **Total authorities increased as a result of Operating Budget-Carry Forward amount received in the second quarter.

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 September 30, 2024	Year to date used at quarter-end	Planned expenditures for the year ending March 31, 2024	Expended during the quarter ended September 30, 2023	Year to date used at quarter-end
Personnel *	1,474,554	456,588	883,591	1,489,730	273,515	338,837
Transportation and communications	146,791	11,360	25,626	170,244	28,532	28,532
Information	14,936	21,501	22,334	17,322	0	0
Professional and special services	1,056,145	4,377	15,836	1,409,279	0	0
Rentals	346,364	0	0	401,700	0	0
Repair and maintenance	441,926	0	0	512,531	0	0
Utilities, materials and supplies	158,999	521	681	0	2,545	2,545
Acquisition of land, buildings and works	0	57,410	57,410	0	0	0
Acquisition of machinery and equipment	441,229	55	55	511,723	0	0
Other subsidies and payments	0	477	477	0	0	0
Total Net Budgetary Expenditures	4,080,943	552,289	1,006,010	4,512,528	304,592	369,914

• *Includes Employee Benefit Plan (EBP) expenses.