2020–21 Departmental Results Report
Analysis of Trends in Spending and Human Resources
Actual Expenditures
Departmental Spending Trend Graph
The following graph presents planned (voted and statutory) spending over time.
Departmental Spending Trend Graph
Departmental Spending Trend Graph – Text version
This stacked column graph represents departmental spending trends for six fiscal years for the Department of Justice Canada. The graph presents a timeline (in fiscal years) on the horizontal axis and the amount of dollars (in millions of dollars) on the vertical axis. The timeline on the horizontal axis shows six columns; one for each fiscal year from 2018-19 on the left through to 2023-24. The columns for fiscal years 2018-19 to 2020-21 show actual spending, while the columns for fiscal years 2021-22 to 2023-24 show planned spending.
The amount of millions of dollars on the vertical axis ranges from 0 on the bottom to 900 on the top. Each column displays an accumulated total of departmental spending for two categories of funding: statutory and voted. These two categories of funding are also displayed numerically below each column to indicate the precise amount of spending (in millions of dollars) for each of the six fiscal years presented.
The first column of the timeline, representing fiscal year 2018-19, displays $77.6 million in statutory spending and $711.2 million in voted spending, for a total actual spending of $788.8 million.
The second column of the timeline, representing fiscal year 2019-20, displays $77.2 million in statutory spending and $735.5 million in voted spending, for a total actual spending of $812.7 million.
The third column of the timeline, representing fiscal year 2020-21, displays $85.6 million in statutory spending and $747.3 million in voted spending, for a total actual spending of $832.9 million.
The fourth column of the timeline, representing fiscal year 2021-22, displays $83.3 million in statutory spending and $711.1 million in voted spending, for a total planned spending of $794.5 million.
The fifth column of the timeline, representing fiscal year 2022-23, displays $83.3 million in statutory spending and $694.3 million in voted spending, for a total planned spending of $777.6 million.
The sixth and final column of the timeline, representing fiscal year 2023-24, displays $83.2 million in statutory spending and $683.9 million in voted spending, for a total planned spending of $767.2 million.
As illustrated in the graph above, the Department’s actual spending shows a marginally increasing trend. The actual spending in 2020-21 ($832.9 million) represents a 2.5% increase compared to 2019-20 ($812.7 million).
The increase in spending from 2019-20 to 2020-21 was mainly due to:
- an increase in salary and related employee benefit plan expenditures, as a result of the increase in full-time equivalents (FTEs) early in 2020-21 and the ratification of various collective agreements and
- an increase in Grants and Contributions spendingFootnote 46, with the most significant increases being under the following programs:
- Criminal Legal Aid (Budget 2016)
- Justice Partnership and Innovation Program, which incurred additional expenditures related to initiatives to address sexual harassment in the workplace (Budget 2018)
- Legal Advice for Complainants of Workplace Sexual Harassment (Budget 2018)
Expenditures were partially offset by decreases in operating and maintenance expenditures, such as travel and office equipment, due to the Department’s modified working environment in 2020-21 (i.e. remote work) as a result of the COVID-19 pandemic.
The Department’s planned spending projects a decrease from 2021-22 ($794.5 million) to 2023-24 ($767.2 million). This $27.3 million (or 3.4%) reduction is mainly attributable to the sunsetting of funding for the following initiatives and programs:
- Immigration and Refugee Legal Aid, under the Enhancing the Integrity of Canada’s Borders and Asylum System initiative
- National Inquiry into Missing and Murdered Indigenous Women and Girls’ Final Report: Reclaiming Power and PlaceEndnote cxc, to extend the Family Information Liaison Units and community-based services under the Victims Fund (2022-23)
| Core Responsibilities and Internal Services | 2020-21 Main Estimates |
2020-21 Planned Spending |
2021-22 Planned Spending |
2022-23 Planned Spending |
2020-21 Total Authorities Available for Use |
2018-19 Actual Spending (authorities used) | 2019-20 Actual Spending (authorities used) | 2020-21 Actual Spending (authorities used) |
|---|---|---|---|---|---|---|---|---|
| Legal Services | 210,473,297 | 210,473,297 | 218,606,709 | 219,082,931 | 271,847,121 | 243,874,771 | 223,737,181 | 228,106,265 |
| Justice System Support | 478,120,142 | 478,120,142 | 491,424,229 | 474,142,197 | 510,580,471 | 448,180,851 | 485,250,753 | 497,598,856 |
| Subtotal | 688,593,439 | 688,593,439 | 710,030,938 | 693,225,128 | 782,427,592 | 692,055,622 | 708,987,934 | 725,705,121 |
| Internal Services | 80,423,780 | 80,423,780 | 84,439,375 | 84,395,769 | 110,122,055 | 96,751,723 | 103,733,100 | 107,148,024 |
| Total | 769,017,219 | 769,017,219 | 794,470,313 | 777,620,897 | 892,549,647 | 788,807,345 | 812,721,034 | 832,853,145 |
In 2020-21, the Main Estimates totaled $769 million and the total authorities available for use amounted to $892.5 million. The total authorities available for use included $78.5 million of funding received through the Supplementary EstimatesEndnote cxci process and $45 million of funding received in relation to compensation adjustments, the operating budget carrying forward of prior-year authorities, paylist expenditures (such as parental benefits), and other expenditures.
Of the $78.5 million received through the Supplementary Estimates process, $32.5 million was to fund programs, mainly the Immigration and Refugee Legal Aid Program and the Victims Fund to extend the Family Information Liaison Units and community-based services. The Department also received $46 million to protect it from an unanticipated reduction in revenues directly linked to the decreased operations of the courts and associated reduction in litigation services due to the COVID-19 pandemic.
| Core Responsibilities and Internal Services | 2020-21 Actual Gross Spending |
2020-21 Actual Revenues netted against Expenditures |
2020-21 Actual Net Spending (authorities used) |
|---|---|---|---|
| Legal Services | 536,805,937 | 308,699,672 | 228,106,265 |
| Justice System Support | 497,598,856 | 0 | 497,598,856 |
| Subtotal | 1,034,404,793 | 308,699,672 | 725,705,121 |
| Internal Services | 158,545,394 | 51,397,370 | 107,148,024 |
| Total | 1,192,950,187 | 360,097,042 | 832,853,145 |
Vote-Netted Revenue (dollars)
As the primary provider of legal services to federal government departments and agencies, the Department of Justice Canada has Vote-Netted Revenue (VNR) authority to collect respendable revenue. For the purpose of departmental reporting, VNR is the total amount of expenditures reduced by the revenues received by the Department.
| Vote-Netted Revenue | 2018-19 Actual |
2019-20 Actual |
2020-21 PlannedFootnote * of Table |
2020-21 Actual |
2021-22 PlannedFootnote ** of Table |
2022-23 PlannedFootnote ** of Table |
|---|---|---|---|---|---|---|
| Total | 330,115,613 | 345,233,102 | 327,000,000 | 360,097,042 | 366,800,000 | 366,800,000 |
In 2020-21, $360.1 million of VNR was collected, an increase of $14.9 million compared to 2019-20 ($345.2 million). This increase was primarily due to the following:
- an increase in the legal services rates to account for the increase in salary costs from recent collective agreement settlements and
- growth in the FTEs associated with the increased demand from various departments and agencies, such as Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada.
The increase to VNR was lower than anticipated due to the temporarily reduced operations of courts and the associated reduction in litigation services in some areas resulting from the COVID-19 pandemic.
Actual Human Resources
| Core Responsibilities and Internal Services | 2018-19 Actual Full-Time Equivalents | 2019-20 Actual Full-Time Equivalents | 2020-21 Planned Full-Time Equivalents |
2020-21 Actual Full-Time Equivalents | 2021-22 Planned Full-Time Equivalents | 2022-23 Planned Full-Time Equivalents |
|---|---|---|---|---|---|---|
| Legal Services | 3,122 | 3,243 | 3,275 | 3,361 | 3,370 | 3,370 |
| Justice System Support | 291 | 284 | 293 | 308 | 308 | 308 |
| Subtotal | 3,413 | 3,527 | 3,568 | 3,669 | 3,678 | 3,678 |
| Internal Services | 973 | 1,043 | 1,070 | 1,053 | 1,042 | 1,042 |
| Total | 4,386 | 4,570 | 4,638 | 4,722 | 4,720 | 4,720 |
The actual FTEs increased by 152 from 2019-20 (4,570) to 2020-21 (4,722). The most significant increases were in the Justice System Support and Legal Services core responsibilities, where demand for legal services has increased over the years, and is projected to increase in the future.
Expenditures by Vote
For information on the Department of Justice Canada’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2020-2021Endnote cxciii.
Government of Canada Spending and Activities
Information on the alignment of the Department of Justice Canada’s spending with the Government of Canada’s spending and activities is available in GC InfoBaseEndnote cxciv.
Financial Statements and Financial Statement Highlights
Financial Statements
The Department of Justice Canada’s Financial Statements (unaudited) for the year ended March 31, 2021, are available on the departmental websiteEndnote cxcv. The financial highlights presented within this document are intended to serve as a general overview of the Department’s Statement of Operations and Statement of Financial Position as presented in the 2020-21 Departmental Financial Statements (unaudited). These statements are prepared in accordance with accrual accounting principles and are therefore different from reporting on the use of authorities as reflected in previous sections of this report. Reconciliation between authorities used and the net cost of operations is set out in note 3 of the 2020-21 Departmental Financial Statements (unaudited).
Financial Statement Highlights
The financial results are driven by delivering on the Department’s core responsibilities and associated internal services. The two core responsibilities aim to ensure a fair, relevant, accessible, and effective Canadian justice system and a federal government that is supported by high-quality legal services.
| Financial Information | 2020-21 Planned Results |
2020-21 Actual Results |
2019-20 Actual Results |
Difference (2020-21 Actual Results minus 2020-21 Planned Results) | Difference (2020-21 Actual Results minus 2019-2 Actual Results) |
|---|---|---|---|---|---|
| Total Expenses | 1,178,091,000 | 1,307,152,915 | 1,257,033,133 | 129,061,915 | 50,119,782 |
| Total Revenues | 327,000,000 | 360,079,897 | 344,973,410 | 33,079,897 | 15,106,487 |
| Net Cost of Operations before Government Funding and Transfers | 851,091,000 | 947,073,018 | 912,059,723 | 95,982,018 | 35,013,295 |
Planned Results
Planned results are based on the Future-Oriented Statement of OperationsEndnote cxcvi presented alongside the 2020-21 Departmental PlanEndnote cxcvii. The actual expenses for 2020-21 were $129.1 million higher than planned expenses, mainly due to the following:
- increased expenses related to new funding received during the year, mainly for the Immigration and Refugee Legal Aid Program, responses to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Final Report: Reclaiming Power and PlaceEndnote cxcviii, and engagement on legislation for the implementation of the United Nations Declaration on the Rights of Indigenous Peoples;
- increased workforce and retroactive compensation payments and in-year increments related to the ratification of various collective agreements; and
- increased expenses for accrued vacation pay due to the postponement of the automatic cash-out of vacation and compensatory leave and for employer contributions to employee benefit plans.
The actual revenues for 2020-21 were $33.1 million higher than planned revenues. This is mainly attributable to an increase in the provision of legal services to a broad range of clients and the increase in legal services rates during the year.
Expenses
Total departmental expenses were $1.3 billion in 2020-21, which represents an increase of $50.1 million from 2019-20. The variance is explained by increases in the following accounts:
- expenses for cost-shared programs with provinces and territories, namely Criminal Legal Aid;
- salary expenses and employee benefits related to an increase in the workforce and yearly compensation adjustments due to the ratification of various collective agreements;
- accrued vacation and compensatory leave; and
- employer contributions to employee benefit plans.
Expenses by Core Responsibility 2020-21
Expenses by Core Responsibility 2020-21 – Text version
The pie chart shows the largest portion of expenses, representing 46.5% of the pie, falling under the Legal Services core responsibility. The Justice System Support core responsibility expenses represent 38.5% of the pie, and the Internal Services expenses comprise 15.0% of the pie.
Revenues
Total departmental revenues were $360.1 million in 2020-21, a net increase of $15.1 million from 2019-20. This variance is mainly explained by an increase in legal services revenues resulting from increased demand, supported by an increase in the workforce, especially for new programs that supported the government’s response to the COVID-19 pandemic.
Revenues by Type
Revenues by Type – Text version
This pie chart displays revenues by type. The largest section, Legal Services, represents 97.5% of the pie. Family Law Fees account for 1.8% of the pie. Also shown is 0.5% in Common Services provided to the Public Prosecution Service of Canada and 0.2% in Other Revenues.
| Financial Information | 2020-21 | 2019-20 | Difference (2020-21 minus 2019-20) |
|---|---|---|---|
| Total Net Liabilities | 437,373,880 | 473,183,101 | (35,809,221) |
| Total Net Financial Assets | 377,154,865 | 428,602,451 | (51,447,586) |
| Departmental Net Debt | 60,219,015 | 44,580,650 | 15,638,365 |
| Total Non-Financial Assets | 32,741,192 | 38,502,452 | (5,761,260) |
| Departmental Net Financial Position | (27,477,823) | (6,078,198) | (21,399,625) |
From 2019-20 to 2020-21, the departmental net financial position decreased by $21.4 million due to a number of factors, which are reflected in the information presented below.
Liabilities
The Department’s total net liabilities were $437.4 million in 2020-21, which represented a decrease of $35.8 million from 2019-20. The variance is mainly explained by decreases in:
- transfer payments payable due to timing of payments, particularly for contributions to provinces and territories in support of youth justice services;
- the family law account, in relation to the absence of the one-time supplemental COVID-19 GST/HST credit that was garnished and payable in the previous year; and
- regular salaries and wages accrued for pay earned in the final pay period but not paid by March 31, 2021.
Liabilities by Type
Liabilities by Type – Text version
This pie chart displays liabilities by type. The largest section, Transfer Payments Payable, represents 63.7% of the pie. Accounts Payable and Accrued Liabilities account for 17.8%. Vacation Pay and Compensatory Leave account for 13.1%, while Employee Future Benefits account for 4.5%. Lastly, the Family Law Account represents 0.9% of the liabilities.
Financial and Non-Financial Assets
Total net financial assets and non-financial assets were $409.9 million at the end of 2020-21, which represents a decrease of $57.2 million from 2019-20. The variance is mainly explained by decreases in:
- amounts due from the Consolidated Revenue Fund (CRF) for expenses incurred but not paid from the CRF and revenue recognized but not yet collected and/or deposited to the CRF at March 31, 2021;
- accounts receivable at March 31, 2021, with the Canada Revenue Agency in relation to the absence of the one-time supplemental COVID-19 GST/HST credit that was garnished and payable in the previous year; and
- tangible capital assets following the removal of items that no longer provided any future benefits.
Assets by Type
Assets by Type – Text version
This pie chart displays assets by type. The largest section, Due from the Consolidated Revenue Fund, represents 83.4% of the pie. Receivables and Advances account for 8.6%, whereas Tangible Capital Assets account for 8.0%. Lastly, Prepaid Expenses represent less than 0.5% of assets.
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