The Law Society of Upper Canada’s (“the Society”) audited financial statements present the operational results and financial position of the General Fund, the Compensation Fund, the Errors & Omissions Insurance Fund (“E&O Fund”) and other restricted funds.
The annual financial statements were approved by Convocation on April 27, 2017, and show the Society continues to maintain a strong financial position.
Summary of Financial Performance
The lawyer and paralegal General Funds, which account for the Society’s program delivery and administrative activities, are reporting a combined operating surplus of $3.8 million, compared to $2.3 million in 2015 and better than the budgeted deficit. With the exception of a nominal negative variance in Annual Fees, all the major revenue categories exceeded budget. All the major expense categories were either very close to, or were less than budget.
Total regulatory expenses have increased slightly to $28.6 million (2015 - $28.2 million) and are under budget. The processing of files through the Intake, Complaints, Investigations and Discipline departments comprised a significant part of regulatory resources. Complaint trends have fluctuated in a fairly narrow band in recent years although typical investigations are requiring increased resources.
Total PD&C expenses have increased to $27.1 million (2015 - $25.5 million) and were under budget. Staff were added for initiatives such as the expansion of paralegal licensing exams and servicing the large increase in requests for special accommodations during licensing exams. The new Coach and Advisor Network has been a significant focus of attention in the Practice Supports and Resources department.
The Society’s restricted funds are reporting a combined deficit of $2.7 million in 2016 primarily because:
The Lawyer Compensation Fund experienced an adverse claims experience, resulting in a deficit of $2.1 million;
The Capital Allocation Fund reported a surplus of $1.4 million;
The Errors & Omissions Insurance Fund reported a surplus of $1.2 million; and
Amortization in the Invested in Capital and Intangible Assets Fund was $3.1 million