Reports
Parks Canada Agency Departmental Performance Report 2013-14
Statement of Management Responsibility Including Internal Control Over Financial Reporting
Responsibility for the integrity and objectivity of the accompanying financial statements for the fiscal year ended March 31, 2014, and all information contained in these statements rests with the management of the Parks Canada Agency. These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian Public Sector Accounting Standards. They have been approved by the Executive Management Committee of the Agency and presented to the Audit Committee of the Agency.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Agency's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in this Performance Report, is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.
Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Agency; and through conducting an annual risk-based assessment of the effectiveness of the system of internal control over financial reporting.
The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
A risk-based assessment of the system of internal control over financial reporting for the year ended March 31, 2014 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.
The effectiveness and adequacy of the Agency's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Agency's operations, and by the Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Chief Executive Officer.
The financial statements of the Agency have not been audited.
Alan Latourelle,
Chief Executive Officer
Gatineau, Canada
August 27, 2014
Maria Stevens,
Chief Financial Officer
2014 | 2013 | |
---|---|---|
Liabilities | ||
Accounts payable and accrued liabilities (Note 3) | 81,975 | 67,790 |
Deferred revenue (Note 4) | 16,253 | 15,216 |
Lease obligation for tangible capital assets (Note 5) | 3,831 | 4,140 |
Employee future benefits (Note 6) | 13,561 | 54,342 |
Environmental liability (Note 7) | 20,761 | 20,704 |
Total net liabilities | 136,381 | 162,192 |
Financial Assets | ||
Due from Consolidated Revenue Fund (Note 8) | 89,789 | 74,335 |
Accounts receivable and advances (Note 9) | 8,785 | 6,998 |
Total net financial assets | 98,574 | 81,333 |
Net Debt | 37,807 | 80,859 |
Non-financial Assets | ||
Prepaid expenses | 2,553 | 3,089 |
Inventory of consumable supplies (Note 10) | 8,286 | 7,272 |
Tangible capital assets (Note 11) | 1,856,228 | 1,831,048 |
Collections and archaeological sites (Note 12) | 1 | 1 |
Total non-financial assets | 1,867,068 | 1,841,410 |
Net financial position (Note 13) | 1,829,261 | 1,760,551 |
The accompanying notes form an integral part of these financial statements.
Alan Latourelle,
Chief Executive Officer
Gatineau, Canada
August 27, 2014
Maria Stevens,
Chief Financial Officer
2014 Planned results |
2014 | 2013 | |
---|---|---|---|
Expenses | |||
Parks Canada Programs | |||
Heritage places establishment | 35,354 | 26,124 | 12,845 |
Heritage resources conservation | 164,189 | 131,184 | 147,135 |
Public appreciation and understanding | 43,058 | 44,450 | 54,254 |
Visitor experience | 221,632 | 217,439 | 218,158 |
Townsite and throughway infrastructure | 77,910 | 75,003 | 51,307 |
Internal services | 66,749 | 89,618 | 93,950 |
608,892 | 583,818 | 577,649 | |
Amortization of tangible capital assets | 80,389 | 81,221 | 78,173 |
Total expenses | 689,281 | 665,039 | 655,822 |
Revenues | |||
Entrance fees | 59,409 | 59,038 | 58,468 |
Recreational fees | 24,527 | 24,504 | 23,974 |
Rentals and concessions | 22,552 | 22,281 | 21,816 |
Other operating revenues | 7,254 | 5,942 | 4,924 |
Townsites revenues | 3,374 | 3,085 | 3,272 |
Staff housing | 3,427 | 3,022 | 3,029 |
Revenues earned on behalf of Government | - | (50) | (168) |
Total revenues | 120,543 | 117,822 | 115,315 |
Net cost from continuing operations | 568,738 | 547,217 | 540,507 |
Transferred operations | |||
Expenses (Note 20a) | - | 536 | - |
Net cost of operations before government funding and transfers | 568,738 | 547,753 | 540,507 |
Government funding and transfers | |||
Net cash provided by Government | 601,429 | 556,480 | 507,816 |
Change in Due from Consolidated Revenue Fund | (10,504) | 15,454 | 5,773 |
Services provided without charge by other government departments (Note 16a) | 50,080 | 44,513 | 48,267 |
Transfer of assets and liabilities from other governments departments (Note 20b) | - | 16 | 12 |
Net cost of operations after government funding and transfers | (72,267) | (68,710) | (21,361) |
Net financial position - Beginning of Year | 1,781,360 | 1,760,551 | 1,739,190 |
Net financial position - End of Year | 1,853,627 | 1,829,261 | 1,760,551 |
The accompanying notes form an integral part of these financial statements.
2014 Planned results |
2014 | 2013 | |
---|---|---|---|
Net cost of operations after government funding and transfers | (72,267) | (68,710) | (21,361) |
Change due to tangible capital assets | |||
Acquisition and improvements of tangible capital assets | 114,916 | 110,399 | 78,315 |
Amortization of tangible capital assets | (80,389) | (81,221) | (78,173) |
Proceeds from disposal of tangible capital assets | (213) | (2,988) | (274) |
Net loss on disposal of tangible capital assets including adjustments | (480) | (1,026) | (5,658) |
Transfer of assets from other government departments | - | 16 | 12 |
Total change due to tangible capital assets | 33,834 | 25,180 | (5,778) |
Change due to inventory of consumable supplies | 115 | 1,014 | 1,458 |
Change due to prepaid expenses | 625 | (536) | 476 |
Net decrease in net debt | (37,693) | (43,052) | (25,205) |
Net debt at beginning of year | 78,538 | 80,859 | 106,064 |
Net debt at end of year | 40,845 | 37,807 | 80,859 |
2014 | 2013 | |
---|---|---|
Operating activities | ||
Net cost of operations before government funding and transfers | 547,753 | 540,507 |
Non-cash items: | ||
Amortization of tangible capital assets | (81,221) | (78,173) |
Net loss on disposal of tangible capital assets including adjustments | (1,026) | (5,658) |
Services provided without charge by other government departments | (44,513) | (48,267) |
Variations in Statement of Financial Position: | ||
Increase (decrease) in accounts receivable and advances | 1,787 | (1,238) |
Increase (decrease) in prepaid expenses | (536) | 476 |
Increase in inventory of consumable supplies | 1,014 | 1,458 |
(Increase) decrease in accounts payable and accrued liabilities | (14,185) | 14,671 |
Increase in deferred revenue | (1,037) | (1,411) |
Decrease in employee future benefits | 40,781 | 10,412 |
Increase in environmental liability | (57) | (3,361) |
Cash used in operating activities | 448,760 | 429,416 |
Capital investing activities | ||
Acquisitions and improvements to tangible capital assets | 110,399 | 78,315 |
Proceeds from disposal of tangible capital assets | (2,988) | (274) |
Cash used in capital investing activities | 107,411 | 78,041 |
Financing activities | ||
Decrease in lease obligations for tangible capital assets | 309 | 359 |
Cash used in financing activities | 309 | 359 |
Net cash provided by Government of Canada | 556,480 | 507,816 |
Notes to Financial Statements for the Year Ended March 31, 2014 (Unaudited)
1. Authority and Objectives
In December 1998, Parks Canada Agency (the Agency) was established under the Parks Canada Agency Act as a departmental corporation and acts as an agent of Her Majesty in Right of Canada. The Parks Canada Agency is a separate entity listed under Schedule II of the Financial Administration Act and reports to the Minister of the Environment. The Agency is not subject to the provisions of the Income Tax Act.
The Agency's mandate is to protect and present nationally significant examples of Canada's natural and cultural heritage, and foster public understanding, appreciation and enjoyment in ways that ensure the ecological and commemorative integrity of these places for present and future generations. In carrying out its mandate, the Agency delivers the programs set out in the Agency's legislation and authorities.
The authorities for the programs for which Parks Canada is responsible are mainly derived from the Parks Canada Agency Act, the Canada National Parks Act, the Historic Sites and Monuments Act, the Canada National Marine Conservation Areas Act, the Department of Transport Act, the Heritage Railway Stations Protection Act, the Heritage Lighthouse Protection Act, and the Species at Risk Act.
2. Summary of Significant Accounting Policies
These financial statements have been prepared in accordance with the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
a) Parliamentary authorities
The Agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Agency do not parallel financial reporting according to Canadian generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 17 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2013-2014 Corporate Plan.
b) Amounts due from Consolidated Revenue Fund
The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.
Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Agency is entitled to draw from the CRF without further authorities to discharge its liabilities.
c) Deferred revenue
Deferred revenue represents the balance at year-end of unearned revenues stemming from accounts received from external parties that are restricted in order to fund the expenditures related to specific research projects and stemming from amounts received for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed.
d) Inventory of consumable supplies
Inventories consist of consumable supplies not intended for re-sale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.
e) Tangible capital assets:
(i) Tangible capital assets (excluding land):
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost.
Tangible capital assets transferred to the Agency as at April 1, 1999 are recorded at their estimated historical cost, less accumulated amortization. The estimated historical cost of the assets was established by deflating the current replacement cost to the year of acquisition or construction using factors based on changes in price indices over time. This approach also took into consideration the overall asset condition and the cost of any improvements and major repairs since the original acquisition or construction of the tangible capital assets.
Tangible capital assets acquired after April 1, 1999 are recorded at their acquisition cost. Tangible capital assets acquired at nominal cost or by donation are recorded at market value at the time of acquisition and tangible capital assets transferred from/to other federal government entities are recorded at their net book value (historical cost and corresponding accumulated amortization) at the time of transfer. A corresponding amount is credited directly to the Net financial position. The tangible capital assets acquired with financial assistance from another government are recorded at their net cost. Improvements that extend the useful life or service potential are recorded at cost.
Leases are recorded as leased tangible capital assets when, under the terms of the lease, substantially all of the benefits and risks incident to ownership are, in substance, transferred to the Agency. Benefits and risks are substantially transferred when one or more of the following conditions are met: there is reasonable assurance that the Agency will obtain ownership of the leased property by the end of the lease term, the lease term is of such a duration that the Agency will receive substantially all of the economic benefits expected to be derived from the use of the leased property over its life span or, the lessor would be assured of recovering the investment in the leased property and of earning a return on investment as a result of the lease agreement.
Intangible assets are not capitalized.
Assets under construction are not amortized. The costs of assets under construction are transferred to the appropriate asset category upon completion and are amortized once in service.
Asset class | Amortization period |
---|---|
Buildings | 25-50 years |
Fortifications | 50-100 years |
Leasehold improvements | Lesser of the remaining term of lease or estimated useful life of the improvement |
Leased tangible capital assets | Term of lease or economic life of the property if the lease contains a bargain purchase option |
Improved grounds | 10-40 years |
Roads | 40 years |
Bridges | 25-50 years |
Canals and marine facilities | 25-80 years |
Utilities | 20-40 years |
Vehicles and equipment | 3-15 years |
Exhibits | 5-10 years |
(ii) Land
Acquired lands are recorded at historical cost. Crown lands acquired as a result of Confederation or the subsequent joining of a province or territory are recorded at a nominal value. Donated lands are recorded at their estimated market value at time of acquisition with a corresponding amount credited directly to the Net financial position.
f) Collections and archaeological sites
Collections and archaeological sites are recorded at nominal value.
g) Employee future benefits:
(i) Pension benefits
Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Agency to make contributions for any actuarial deficiencies of the Plan.
(ii) Severance benefits
Until April 23, 2013, certain employees entitled to severance benefits under labour contracts or conditions of employment earned these benefits as services necessary to earn them were rendered. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
h) Expenses:
Expenses are recorded on the accrual basis.
(i) Transfer payments
Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.
(ii) Services received without charge
Services received without charge from other Government departments are recorded as operating expenses at their estimated cost. A corresponding amount is credited directly to the Net financial position.
(iii) Vacation pay and compensatory leave
Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
i) Accounts receivable
Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.
j) Contingent liabilities
Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or if an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
k) Environmental liability
Environmental liabilities consist of estimated costs related to the remediation of environmentally contaminated sites. Remediation liabilities are recorded as accrued liabilities to recognize the estimated costs related to the management and remediation of contaminated sites where the Agency is obligated, or likely to be obligated, to remediate the sites. If the responsibility to remediate is undeterminable, the amount is disclosed as a contingent liability. If the responsibility to remediate is undeterminable and a reasonable estimate cannot be made, the nature, source and extent of contamination is disclosed as a contingent liability.
l) Revenue
Entrance fees, recreational fees, rentals and concessions, other operating, townsites and staff housing revenues are recognized in the year in which the goods or services are provided by the Agency. Funds received for future services are recorded as deferred revenue.
Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the Agency is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the Agency's gross revenues.
m) Measurement uncertainty
The preparation of the financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the year. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are employee-related liabilities, estimated useful lives of tangible capital assets, lease obligation for tangible capital assets and environment-related liabilities. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
3. Accounts payable and accrued liabilities
2014 | 2013 | |
---|---|---|
Accounts payable - Other government departments and agencies | 12,151 | 9,456 |
Accounts payable - External parties | 61,460 | 39,483 |
Total accounts payable | 73,611 | 48,939 |
Accrued liabilities | 8,364 | 18,851 |
81,975 | 67,790 |
In Canada's Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012-2013. As a result, the Agency recorded an obligation for termination benefits to reflect the estimated workforce adjustment costs for which an amount of $0.3 million ($2.4 million in 2013) is included in the accrued liabilities at March 31, 2014.
4. Deferred Revenue
Included in the deferred revenue total of $16.3 million ($15.2 million in 2013) is an amount of $12 million ($11.7 million in 2013) representing the balance, at year end, for entrance fees, recreational fees, and rentals/concessions fees collected in advance. The remaining $4.3 million ($3.5 million in 2013) of deferred revenue, represents monies received from external organizations which must be used for specified purposes.
2014 | 2013 | |
---|---|---|
Deferred revenue, beginning of year | 15,216 | 13,805 |
Amounts received | 13,038 | 12,922 |
Revenue recognized | (12,001) | (11,511) |
16,253 | 15,216 |
5. Lease obligation for tangible capital assets
The Agency has entered into agreements to lease commercial and office spaces under capital leases with a cost of $21.2 million ($21.2 million in 2013) and accumulated amortization of $5.6 million ($4.9 million in 2013), as at March 31, 2014. The obligations related to the upcoming years, in the total amount of $3.8 million ($4.1 million in 2013), include the following:
2014 | 2013 | |
---|---|---|
2013-14 | - | 559 |
2014-15 | 544 | 544 |
2015-16 | 544 | 544 |
2016-17 | 544 | 544 |
2017-18 | 544 | 544 |
2018-19 and beyond | 2,980 | 2,980 |
Total future minimum lease payment | 5,156 | 5,715 |
Less: imputed interest (6,3%) | 1,325 | 1,575 |
Balance of obligations under leased tangible capital assets | 3,831 | 4,140 |
6. Employee Future Benefits
a) Severance benefits:
Until April 23, 2013, the Agency provided severance benefits to certain employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities.
As part of changes to conditions of employment, the accumulation of severance benefits under the employee severance pay program ceased. Employees subject to these changes have been given the option to be immediately paid the full or partial value of the benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.
2014 | 2013 | |
---|---|---|
Accrued benefit obligation, beginning of year | 54,342 | 64,754 |
Expense for the year | 2,182 | 5,365 |
Benefits paid during the year | (42,963) | (15,777) |
Accrued benefit obligation, end of year | 13,561 | 54,342 |
b) Pension benefits:
The Agency's employees participate in the public service pension plan (the "Plan"), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.
Both the employees and the Agency contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups - Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
The 2013-2014 expense amounts to $33.8 million ($39.5 million in 2012-2013). For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012-2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012-2013) the employee contributions.
The Agency's responsibility with regards to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
7. Environmental liability:
The Agency has identified approximately 476 sites (473 sites in 2013) that are known or suspected of contamination. A remediation liability of $20.8 million ($20.7 million in 2012-2013) has been recorded for the sites where the Agency is obligated, or likely to be obligated, to remediate. The amount recorded as environmental liability is based on estimates and could change by a material amount in the near term. The net present value technique is used to calculate the liability, the estimated total undiscounted expenditures represents $21.7 million at a discount rate of 1.5%. There is no environmental contingent liability. A contingent liability is disclosed when the Agency determines that it is not directly responsible, nor does it accept responsibility, however, there is uncertainty as to whether the department may be responsible. The Agency's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments of existing sites. These liabilities are accrued by the Agency in the year in which they become likely and are reasonably estimable.
8. Due from Consolidated Revenue Fund
The Agency operates within the Consolidated Revenue Fund (CRF) which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency are paid from the CRF.
2014 | 2013 | |
---|---|---|
General operations account | 75,179 | 62,572 |
Specified purpose accounts | 4,274 | 3,831 |
New parks and historic sites account | 10,336 | 7,932 |
89,789 | 74,335 |
Specified purpose accounts represent money received from external organizations which must be used for the purposes for which they are received. As at March 31, 2014, the Agency has a balance of $4.3 million ($3.8 million in 2013) for specified purpose accounts. Details on the New parks and historic sites account are disclosed in Note 13.
9. Accounts receivable and advances
2014 | 2013 | |
---|---|---|
Receivables - Other government departments and agencies | 1,167 | 899 |
Receivables - External parties | 8,034 | 6,555 |
Employee advances | 197 | 199 |
Subtotal | 9,398 | 7,653 |
Allowance for doubtful accounts on receivables from external parties | (613) | (655) |
8,785 | 6,998 |
10. Inventory of Consumable Supplies
2014 | 2013 | |
---|---|---|
Stationery, office and miscellaneous supplies | 1,597 | 1,424 |
Equipment, materials and supplies | 1,458 | 1,294 |
Fabricated wood and metal products | 1,065 | 559 |
Fuel and other petroleum products | 995 | 1,050 |
Top soil, sand, gravel and other crude material | 962 | 1,142 |
Printed books, publications and maps | 829 | 592 |
Safety equipment | 751 | 645 |
Construction material and supplies | 375 | 377 |
Uniforms and protective clothing | 254 | 189 |
8,286 | 7,272 |
The cost of consumed inventory recognized as an expense in the Statement of Operations and Net Financial Position is $35.6 million in 2013-2014 ($27.7 million in 2012-2013).
11. Tangible Capital Assets
Cost | |||||
---|---|---|---|---|---|
Opening balance | Acquisitions | Adjustments | Disposals and write-offs | Closing balance | |
Buildings, fortifications and leasehold improvements | 937,581 | 21,239 | (1,111) | 3,031 | 954,678 |
Improved grounds | 666,102 | 4,124 | (94) | 1,540 | 668,592 |
Roads | 1,222,644 | 24,990 | 740 | 547 | 1,247,827 |
Bridges | 346,215 | 22,064 | (48) | 2,552 | 365,679 |
Canal and marine facilities | 596,748 | 12,628 | (102) | 3,192 | 606,082 |
Utilities | 254,800 | 11,231 | (54) | 83 | 265,894 |
Vehicles and equipment | 132,156 | 12,271 | 2,968 | 5,453 | 141,942 |
Exhibits | 106,242 | 1,582 | 1,390 | 14 | 109,200 |
Leased tangible capital assets | 21,172 | - | - | - | 21,172 |
4,283,660 | 110,129 | 3,689 | 16,412 | 4,381,066 | |
Land | |||||
-Acquired land | 155,893 | 270 | - | 7 | 156,156 |
-Crown land | 1 | - | - | - | 1 |
-Donated land | 20,210 | - | - | - | 20,210 |
176,104 | 270 | - | 7 | 176,367 | |
4,459,764 | 110,399 | 3,689 | 16,419 | 4,557,433 |
Accumulated Amortization | Net Book Value | ||||||
---|---|---|---|---|---|---|---|
Opening balance | Amortization | Adjustments | Disposals and write-offs | Closing balance | 2014 | 2013 | |
Buildings, fortifications and leasehold improvements | 601,896 | 17,564 | 362 | 2,201 | 617,621 | 337,057 | 335,685 |
Improved grounds | 560,939 | 7,818 | (443) | 1,303 | 567,011 | 101,581 | 105,163 |
Roads | 727,981 | 24,254 | 445 | 481 | 752,199 | 495,628 | 494,663 |
Bridges | 113,073 | 6,463 | (5) | 1,468 | 118,063 | 247,616 | 233,142 |
Canal and marine facilities | 319,260 | 8,540 | (98) | 1,725 | 325,977 | 280,105 | 277,488 |
Utilities | 122,813 | 5,635 | 97 | 1 | 128,544 | 137,350 | 131,987 |
Vehicles and equipment | 89,870 | 7,028 | 3,238 | 5,191 | 94,945 | 46,997 | 42,286 |
Exhibits | 87,953 | 3,225 | 41 | 14 | 91,205 | 17,995 | 18,289 |
Leased tangible capital assets | 4,931 | 694 | 15 | - | 5,640 | 15,532 | 16,241 |
2,628,716 | 81,221 | 3,652 | 12,384 | 2,701,205 | 1,679,861 | 1,654,944 | |
Land | |||||||
-Acquired land | - | - | - | - | - | 156,156 | 155,893 |
-Crown land | - | - | - | - | - | 1 | 1 |
-Donated land | - | - | - | - | - | 20,210 | 20,210 |
- | - | - | - | - | 176,367 | 176,104 | |
2,628,716 | 81,221 | 3,652 | 12,384 | 2,701,205 | 1,856,228 | 1,831,048 |
The Agency owns land, which comprises national parks and national park reserves, national marine conservation areas, and national historic sites. The total cost of tangible capital assets includes $82.7 million ($58.1 million in 2013) of assets under construction disclosed within their respective asset category.
During 2013-2014 fiscal year, the Agency was transferred assets from Fisheries and Oceans Canada. The transfers are included in the adjustment columns. Details on the tranfers are disclosed in Note 20 b).
12. Collections and Archaeological Sites
Core to the Agency's mandate to protect and present nationally significant examples of our cultural heritage is the management of collections and archaeological sites. Although not capitalized like other cultural assets such as buildings or fortifications, these treasures have inestimable cultural value.
a) Collections:
The Agency manages collections that are made up of archaeological and historical objects.
The collection of archaeological objects includes specimens and records that represent a cross-section of human habitation and activities. These holdings consist of a range of functional groups of artifacts that represent domestic activities to industrial processes and includes tools, ships' fittings, as well as soil and botanical samples.
The collection of historic objects dates from the 10th century to the present day. They encompass ethnographic material, civilian, military and fur trade items, furniture and furnishings, tools and documents.
In addition, the Agency manages a collection of reproductions including period costumes, tools and furniture that have been copied from original objects or made based on historical data.
b) Archaeological sites:
An archaeological site encompasses surface, subsurface, or submerged remains of human activity. Archaeologists define a site by identifying the different activities that were conducted within an area. There are many archaeological sites identified within Parks Canada's 167 national historic sites, 44 national parks, and 4 marine conservation areas. The types of sites vary greatly, from Aboriginal villages, hunting camps, observation areas, and animal processing areas, to European fur trade and military posts, battlefields, shipwrecks, homesteads, and transportation and industrial sites.
13. Net financial position
A portion of the Net financial postion is used for a specific purpose. Related revenues and expenses are included in the Statement of Operations and Net Financial Position.
The Government of Canada includes in its receipts and expenditures the transactions of certain consolidated accounts established for specified purposes. Parks Canada Agency Act requires that the receipts of the specified purpose account be earmarked and that the related payments and expenses be charged against such receipts. The transactions do not represent liabilities to third parties but are internally restricted for specified purposes.
Funds are provided to the New parks and historic sites account by voted authorities, proceeds from the sale of lands and buildings that are surplus to operational requirements and all general donations. Furthermore, the Minister of Finance may, on the request of the Minister of the Environment, authorize the making of advances of up to $10.0 million to the New parks and historic sites account. All amounts received remain in this account until eligible capital expenditures are made for the purpose of establishing or developing new parks or historic sites and heritage areas, in compliance with the terms and conditions set out in the Parks Canada Agency Act and related Treasury Board directives.
Details of activities in the restricted funds of the New parks and historic sites account for the year ended March 31 are highlighted in the following analysis:
2014 | 2013 | |
---|---|---|
New parks and historic sites account | ||
Available at beginning of year - Restricted | 7,932 | 9,754 |
Receipts: | ||
Parliamentary authorities | 500 | 500 |
Proceeds on disposal of tangible capital assets | 2,950 | 251 |
Donations | 7 | 7 |
3,457 | 758 | |
Expenditures: | ||
Capital expenditures | 1,053 | 2,580 |
1,053 | 2,580 | |
Available at end of year - Restricted | 10,336 | 7,932 |
Unrestricted | 1,818,925 | 1,752,619 |
Net financial position at year end | 1,829,261 | 1,760,551 |
14. Contingent Liabilities
Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.
Claims have been made against the Agency in the normal course of operations. These claims include items with pleading amounts and other for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. The Agency has recorded an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $16 million ($14.2 million in 2013) at March 31, 2014.
15. Contractual obligations
a) The nature of the Agency's activities can result in some large multi-year contracts and obligations whereby the Agency will be obligated to make future payments when the services/goods are received. The Agency has entered into agreements for operating leases for a total of $3.6 million ($3.6 million in 2013). Minimum annual payments under these agreements for the next five years and beyond are as follows:
2014-15 | 1,907 |
---|---|
2015-16 | 414 |
2016-17 | 221 |
2017-18 | 165 |
2018-19 and beyond | 861 |
3,568 |
b) The Agency has entered into contracts for operating and capital expenditures for approximately $67.9 million ($84.4 million in 2013). The majority of payments under these contracts are expected to be made over the next three years.
16. Related Party Transactions
The Agency is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms.
a) Services provided without charge by other government departments:
During the year, the Agency received services without charge from certain common service organizations, related to accommodation, legal services, the employer's contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded in the Agency's Statement of Operations and Net Financial Position as follows:
2014 | 2013 | |
---|---|---|
Employer's contribution to the health and dental insurance plans paid by Treasury Board of Canada Secretariat | 25,879 | 29,695 |
Accommodation provided by Public Works and Government Services Canada | 17,684 | 17,432 |
Legal services provided by the Department of Justice | 832 | 1,004 |
Other services received without charge | 118 | 136 |
44,513 | 48,267 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada are not included in the Statement of Operations and Net Financial Position.
b) Other transactions with related parties:
The Agency incurred capital and operating expenses with related parties for a total of $79.6 million ($52.7 million in 2013) for services provided by Government departments, including an amount of $70.7 million ($46.1 million in 2013) with Public Works and Government Services Canada mostly related to architectural, engineering and environmental services of $46.5 million ($22.8 million in 2013), construction services of $5.9 millions ($0.5 million in 2013), repairs and maintenance $1.3 million ($4.1 million in 2013) and payments in lieu of taxes of $13 million ($13.5 million in 2013). Revenues generated from related parties amounted to $2 million ($1.1 million in 2013).
17. Parliamentary Authorities
The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Agency has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
2014 | 2013 | |
---|---|---|
Net cost of operations before government funding and transfers | 547,753 | 540,507 |
Revenue received pursuant to section 20 of the Parks Canada Agency Act | 119,060 | 118,011 |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Amortization of tangible capital assets | (81,221) | (78,173) |
Net loss on disposal of tangible capital assets including adjustments | (1,026) | (5,658) |
Services provided without charge by other government departments | (44,513) | (48,267) |
Variation in vacation pay and compensatory leave | (678) | 1,434 |
Variation in employee future benefits | 40,781 | 10,412 |
Variation in environmental liability | (57) | (3,361) |
Variation in accrued liabilities not charged to authorities | 1,112 | 18,371 |
Bad debt expense | (104) | (76) |
Refund of prior years' expenditures | (768) | (1,165) |
(86,474) | (106,483) | |
Adjustments for items not affecting net cost of operations but affecting authorities: | ||
Acquisitions and improvements to tangible capital assets | 110,399 | 78,315 |
Proceeds on disposal of tangible capital assets | (2,988) | (274) |
Variation in lease obligation for tangible capital assets | 309 | 359 |
Variation in inventory of consumable supplies | 1,014 | 1,458 |
Variation in prepaid expenses | (536) | 476 |
Variation in New parks and historic sites account | 2,404 | (1,822) |
110,602 | 78,512 | |
Current year authorities used | 690,941 | 630,547 |
2014 | 2013 | |
---|---|---|
Authorities voted: | ||
Vote 25 - Program expenditures | 667,236 | 607,936 |
Vote 30 - New parks and historic sites account | 500 | 500 |
Statutory amounts: | ||
Revenue received pursuant to section 20 of the Parks Canada Agency Act | 119,060 | 118,011 |
Contributions to employee benefits plan | 48,030 | 55,254 |
Total authorities | 834,826 | 781,701 |
Less: | ||
Lapse | 18,836 | 4,497 |
Authorities available for future years | 125,049 | 146,657 |
143,885 | 151,154 | |
Current year authorities used | 690,941 | 630,547 |
18. Segmented information
Presentation by segment is based on the Agency's program alignment architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in Note 2. The following table presents the expenses incurred and revenues generated for the main programs, by major object of expenses and by major type of revenues. The segment results for the period are as follows:
Heritage places establishment | Heritage resources conservation | Public appreciation and understanding | Visitor experience | Townsite and throughway infrastructure | Internal services | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|
Salaries and employee benefits | 5,061 | 83,795 | 32,299 | 140,419 | 19,606 | 64,686 | 345,866 | 385,850 |
Operating expenses | ||||||||
Professional and special services | 1,621 | 15,523 | 3,246 | 17,383 | 16,549 | 7,993 | 62,315 | 50,435 |
Utilities, materials and supplies | 98 | 9,790 | 1,224 | 27,805 | 12,125 | 5,278 | 56,320 | 42,642 |
Repairs and maintenance | - | 1,772 | 41 | 6,642 | 20,293 | - | 28,748 | 14,473 |
Accommodation received without charge | 791 | 3,973 | 1,347 | 6,586 | 2,272 | 2,714 | 17,683 | 17,432 |
Transportation and communication | 449 | 3,975 | 1,696 | 3,894 | 318 | 3,981 | 14,313 | 12,821 |
Rentals | 138 | 5,832 | 505 | 3,868 | 478 | 2,551 | 13,372 | 13,992 |
Payments in lieu of taxes | 983 | 2,401 | 580 | 4,377 | 3,310 | 1,364 | 13,015 | 13,493 |
Miscellaneous expenses | 9,154 | - | 15 | 1,099 | - | 1,046 | 11,314 | 6,315 |
Information | 40 | 224 | 2,039 | 4,951 | 40 | 5 | 7,299 | 6,461 |
Total operating expenses | 13,274 | 43,490 | 10,693 | 76,605 | 55,385 | 24,932 | 224,379 | 178,064 |
Grants and contributions | 7,789 | 3,899 | 1,458 | 415 | 12 | - | 13,573 | 13,735 |
Total expenses (excluding amortization) | 26,124 | 131,184 | 44,450 | 217,439 | 75,003 | 89,618 | 583,818 | 577,649 |
Amortization | 81,221 | 78,173 | ||||||
Total expenses | 665,039 | 655,822 | ||||||
Entrance fees | - | 9 | - | 59,027 | 2 | - | 59,038 | 58,468 |
Recreational fees | - | - | - | 24,499 | - | 5 | 24,504 | 23,974 |
Rentals and concessions | - | 35 | - | 866 | 1,152 | 20,228 | 22,281 | 21,816 |
Other operating revenues | - | 663 | 118 | 1,861 | 760 | 2,540 | 5,942 | 4,924 |
Townsites revenues | - | - | - | - | 3,085 | - | 3,085 | 3,272 |
Staff housing | - | 22 | - | 10 | - | 2,990 | 3,022 | 3,029 |
Revenues earned on behalf of Government | - | - | - | - | - | (50) | (50) | (168) |
Total revenues | - | 729 | 118 | 86,263 | 4,999 | 25,713 | 117,822 | 115,315 |
Net cost from continuing operations | 547,217 | 540,507 | ||||||
Transferred Operations | 536 | - | ||||||
Net cost of operations before goverment funding and transfers | 547,753 | 540,507 |
19. Accounting Changes
During the fiscal year, the Agency revised its accounting method for the disclosure of the environmental contingent liability in compliance with Treasury Board Accounting Standards and the adjustment was applied retroactively. This change has no impact on the environmental liability in the Statement of Financial Position.
20. Transfers from/to other government departments
a) Shared Services Canada
At March 31, 2014, the Agency transferred all its workplace technology software expenditures to Shared Services Canada in accordance with Order-in-Council 2013-0368. The expenses transferred amounted to $0.5 million and is presented separately as Transferred operations expenses in the Statement of Operations and Net Financial Position
b) Other
Effective April 1, 2013, the Agency was transferred the responsibility for a land, infrastructure, and buildings from Fisheries and Oceans Canada in accordance with an administrative arrangement, including the stewardship responsibility for these assets. Accordingly, the Agency recorded the assets at a net book value of $0.016 million.
Effective June 27, 2013, the Agency was transferred the responsibility for a boat from Fisheries and Oceans Canada in accordance with an administrative arrangement, including the stewardship responsibility for these assets. Accordingly, the Agency recorded the assets at a net book value of $1.
21. Comparative information
Comparative figures have been reclassified to conform to the current year's presentation.
Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting - Fiscal Year 2013-14
- 1 Introduction
- 2 Park Canada's system of internal control over financial reporting (ICFR)
- 3 Parks Canada's assessment results during fiscal year 2013-14
- 4 Parks Canada's Action Plan
1 Introduction
This unaudited document is attached to Parks Canada's Statement of Management Responsibility Including Internal Control Over Financial Reporting for the fiscal year 2013-14. This document provides summary information on the measures taken byParks Canada to maintain an effective system of internal control over financial reporting (ICFR) including information on internal control management, assessment results and related action plans.
Detailed information on Parks Canada's authority, mandate and programs can be found in the attached Departmental Performance Report and Report on Plans and Priorities.
2 Parks Canadas's System of internal control over financial reporting (ICFR)
Parks Canada recognizes the importance of setting the tone from the top to help ensure that staff at all levels understand their roles in maintaining effective systems of ICFR and is well equipped to exercise these responsibilities effectively. Parks Canada's focus is to ensure that risks are well managed through a responsive and risk-based control environment that enables continuous improvement and innovation.
2.1 Internal control management
Parks Canada has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. An internal control framework, approved by the Chief Executive Officer and Chief Financial Officer, is in place and includes:
- Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers in their areas of responsibility for control management;
- Internal control structure and management approach, which depicts the overall approach for internal control identification, documentation and evaluation;
- Values and ethics; Parks Canada has recently updated the Values and Ethics Code. Parks Canada also has an Ombudsman whose mission is to promote and intervene in favour of an organizational culture based on the fundamental values of the Agency. The Ombudsman is also the Senior Integrity Officer for internal disclosure and wrongdoing;
- Ongoing communication and training on statutory requirements, and policies and procedures for sound financial management and control; and
- Monitoring and regular updates on internal control management, as well as the provision of related assessment results and action plans to the Chief Executive Officer and senior management and the Departmental Audit Committee (DAC).
- The DAC provides advice to the Chief Executive Officer on the adequacy and functioning of Parks Canada's risk management, control and governance frameworks and processes.
2.2 Service arrangements relevant to the financial statements
Parks Canada relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows:
Common Arrangements:
- Public Works and Government Services Canada centrally administers the payments of salaries through its payroll system, the procurement of goods and services and the provision of accommodation.
- The Treasury Board Secretariat provides the Agency with contributions covering the employer's share of employees' medical and dental insurance premiums.
- The Treasury Board Secretariat provides the Agency with information used to calculate various accruals and allowances, such as the accrued severance liability.
- The Department of Justice provides legal services.
- Shared Services Canada (SSC) provides IT infrastructure services to the Agency in the areas of data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between SSC and the Agency.
Specific Arrangement:
- Parks Canada's financial system related functional services are shared with Canadian Heritage. The services are administered through an MOU whereby Parks Canada shares equally the expenses (incl. maintenance, training, user support, etc.) as well as the responsibilities and risks in relation to the financial system. The financial system's Information Technology (IT) related services are provided by Agriculture Canada to both Parks Canada and Canadian Heritage through a separate MOU.
3 Parks Canada's assessment results during fiscal year 2013-14
The following summarizes the key assessment results from the documentation, design effectiveness, operating effectiveness testing and on-going monitoring completed as of March 31, 2014.
3.1 Documentation of control activities
Parks Canada focussed its efforts on the entity level controls by completing the documentation of Parks Canada's Financial Management and Internal Control Frameworks.
3.2 Design effectiveness testing of key controls
In the current year, the Agency completed design effectiveness testing of the environmental liabilities business process.
As a result of design effectiveness testing, the Agency identified the following remediation required:
- Environmental liabilities: Clarify roles and responsibilities within stakeholders.
Remediation of key control deficiencies were communicated and are currently being addressed.
3.3 Operating effectiveness testing of key controls
Parks Canada has completed the operating effectiveness testing of the following key business processes - revenue management and financial reporting.
As a result, the Agency identified the following remediation required:
- Revenue management: Increase consistencies in applying the documented procedures.
Remediation of key control deficiencies were communicated and are currently being addressed.
No remediations were identified and need to be addressed for the processes covered in financial reporting.
3.4 On-going monitoring of key controls
- Parks Canada has not yet begun the on-going monitoring assessment of key controls. The Agency has established its on-going monitoring plan for entity level controls, IT general controls and business processes controls and has included its commitments in the action plan (see section 4.2 for more details).
4 Parks Canada's Action Plan
4.1 Progress during fiscal year 2013-14
During 2013-14, the Agency has continued to make significant progress in assessing and improving its key commitments in last year's action plan. Below is a summary of the main progress made by the Agency based on the plans identified in the previous fiscal year's annex:
Element in previous year's action plan | Status |
---|---|
Governance & Accountability - documentation | Documentation of governance was completed with the Agency's Financial Management and Internal Control Frameworks. |
Revenue Management - operating effectiveness | Operating effectiveness testing completed, corrective measures identified and currently addressed. |
Environmental Liabilities - design effectiveness | Design effectiveness testing completed, corrective measures identified and currently addressed. |
Financial Reporting - operating effectiveness | Operating effectiveness testing completed for Financial Statements and Public Accounts processes. No remediation required. |
4.2 Status and action plan for the next fiscal year and subsequent years
The status and action plan for the completion of the key control areas were identified using a risk-based approach and the Agency commits to the following key risk areas for the next fiscal year and subsequent years. The action plan has also taken into account that certain corrective measures and anticipated business process transformations may require a full cycle of implementation before operational effectiveness testing may take place.
Key Control Areas | Documentation | Design effectiveness testing | Operational effectiveness testing | On-going monitoring rotation 1 |
---|---|---|---|---|
Entity Level Controls | ||||
Governance & Accountability |
Completed | 2014-15 | 2014-15 | 2015-16 |
IT General Controls under Departmental Management | ||||
IT General Controls | Completed | Completed | Completed | 2014-15 |
Business Processes Controls | ||||
Chart of Accounts | Completed | Completed | 2014-15 | 2015-16 |
Accounts Payable | Completed | 2014-15 | 2015-16 | 2016-17 |
Revenue Management | Completed | Completed | Completed | 2014-15 |
Capital Assets | Completed | Completed | 2014-15 | 2015-16 |
Environmental Liabilities | Completed | Completed | 2014-15 | 2015-16 |
Financial Reporting | Completed | Completed | Completed | 2014-15 |
1 The frequency of the on-going monitoring of key control areas is risk-based and may occur over a multi-year cycle.
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