Parks Canada Financial Statements

Future-oriented Statement of Operations for the Year Ending March 31 (Unaudited)

(in thousands of dollars)
Planned
Results
2015-16
Estimated
Results
2014-15
Expenses
Parks Canada Programs
Heritage places establishment 27,787 26,631
Heritage places conservation 168,820 158,696
Heritage places promotion and pubilc support 40,351 45,525
Visitor experience 238,900 245,236
Heritage canals, highways and townsites management 56,139 80,344
Internal services 116,734 90,663
648,731 647,095
Amortization of tangible capital assets 87,496 81,549
Total expenses 736,227 728,644
Revenues
Entrance fees 61,195 60,403
Recreational fees 25,399 25,071
Rentals and concessions 23,095 22,796
Other operating revenues 6,159 6,080
Townsites revenues 3,132 3,092
Staff housing 3,198 3,156
Revenues earned on behalf of Government (52) (51)
122,126 120,547
Net cost of operations 614,101 608,097

The accompanying notes form an integral part of the future-oriented statement of operations.

Notes to Future-Oriented Statements of Operations for the Year Ending March 31, 2016 (Unaudited)

1. Methodology and Significant assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of the Agency as described in the Report on Plans and Priorities.

The information in the estimated results for fiscal year 2014-2015 is based on actual results as at October 31, 2014 and on forecasts for the remainder of the fiscal year. Estimated year-end information for 2014-2015 is used as the opening position for the 2015-2016 planned results and forecasts have been made for the planned results for 2015-2016.

The main assumptions underlying the forecasts are as follows:

  • The Agency's core activities will remain substantially the same as for the previous year.
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
  • Amortization expenses of tangible capital assets are estimated based on the expected capital asset closing balances.

These assumptions are adopted as at October 31, 2014.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2014-2015 and for 2015-2016, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing the future-oriented statement of operations, the Agency has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include the following:

  • The timing and amounts of acquisitions and disposals of tangible capital assets may affect gains/losses and amortization expense.
  • Implementation of new collective agreements.
  • Economic conditions may affect the amount of revenue earned.
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.
  • Changes within Government of Canada policies and direction or accounting standards.
  • Weather or other natural adversities or disasters.

Once the Report on Plans and Priorities is presented, the Agency will not be updating the forecasts for any changes in financial resources made in ensuing Supplementary Estimates. Variances will be explained in the Departmental Performance Report.

3. Summary of Significant Accounting Policies

This future-oriented statement of operations has 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. The future-oriented statement of operations was prepared using the accounting standards in effect at the time of preparation. The estimated results for the current fiscal year and the planned results for the future year may have to be restated when presented as planned information in the historical financial statement for that year.

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 future-oriented statement of operations are not necessarily the same as those provided through authorities from Parliament. Note 4 provides a reconciliation between the bases of reporting.

b) Expenses:

Expenses are recorded on the accrual basis.

  • 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.
  • Services received without charge:
    Services received without charge from other Government departments are recorded as operating expenses at their estimated cost.
  • 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.
c) Revenue recognition:

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.

d) Measurement uncertainty:

The preparation of the future-oriented statement of operations in accordance with Canadian Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the future-oriented statement of operations and the reported amounts of revenues and expenses for the year. 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 future-oriented statement of operations in the year they become known.

4. Parliamentary Authorities

The Department is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Department do not parallel financial reporting according to generally accepted accounting principles because authorities are primarily based on cash flow requirements. Items recognized in the future-oriented statement of operations in one year may be funded through parliamentary authorities in prior, current, or future years. The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the future-oriented statement of operations in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Agency has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to requested authorities:
(In thousands of dollars)
Planned
2015-16
Estimated
2014-15
Net cost of operations 614,101 608,097
Revenue received pursuant to section 20 of the
Parks Canada Agency Act
122,126 120,547
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (87,496) (81,549)
Net loss on disposal of tangible capital assets including adjustments (617) (617)
Services provided without charge by other government departments (44,994) (44,723)
Variation in vacation pay and compensatory leave (179) 714
Variation in employee future benefits 983 3,730
Variation in environmental liability - 668
Variation in accrued liabilities not charged to authorities (4,184) 5,588
Bad debt expense 16 16
Refund of prior years' expenditures 922 922
(135,549) (115,251)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 517,898 130,543
Proceeds from disposal of tangible capital assets (539) (539)
Variation in lease obligation for tangible capital assets 333 312
Variation in inventory of consumable supplies 435 435
Variation in prepaid expenses 438 438
Variation in New parks and historic sites account (1,620) 2,626
  516,945 133,815
Requested authorities 1,117,623 747,208


b) Authorities requested:
(In thousands of dollars)
Planned
2015-16
Estimated
2014-15
Authorities requested:
Vote 1 - Program expenditures 946,862 608,954
Vote 5 - New parks and historic sites account 500 3,500
Statutory amounts:
Revenue received pursuant to section 20 of the Parks Canada Agency Act 118,000 118,000
Contributions to employee benefits plan 52,261 46,754
Less:
Forecasted lapse - -
Authorities available for future years - 30,000
Requested authorities 1,117,623 747,208