Law Commission of Canada Quarterly Financial Report For the quarter ended June 30, 2026

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 2026-2027 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

This fiscal year marks the first year since the reduction of authorities as a result of the Comprehensive Expenditure Review (CER). Naturally, expenditures are anticipated to be lower as a result of reduced authorities received this fiscal year.

Statement of Authorities

Total available authorities for the first quarter were $3.4 million in fiscal year 2026-27 compared to $3.9 million in fiscal year 2025-26. This decrease of $0.5 million is primarily attributed to the reduction of authorities due to the CER.

Statement of Departmental Budgetary Expenditures by Standard Object

As of the first quarter of 2026–27, expenditures were slightly lower than those reported in the same period of 2025–26. This decrease is primarily attributed to the Information standard object, which includes the LCC’s conference support – which is a direct result of the CER.

3. Risks and Uncertainties

As a result of the CER, the 2026-27 functions as the first year of reduced authorities compared to prior years. With this context and given that the LCC is a relatively new permanent micro-organization, the LCC’s ability to spend authorities will depend on managing its capacity to shape, and provide a policy-based plan for, its goals, measures and results for this year and beyond.

As a relatively 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.

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) *

• * Numbers have been rounded to reconcile tables.
• ** Includes only Authorities available for use and granted by Parliament at quarter-end.

• * Numbers have been rounded to reconcile tables.
• ** Includes Employee Benefit Plan (EBP) expenses.