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 report should be read in conjunction with the Main Estimates, the Supplementary Estimates and the previous Quarterly Financial Reports.

A summary description of the Parks Canada Agency’s programs can be found in Part II of the Main Estimates, and a detailed description in Part III – Report on Plans and Priorities.

This quarterly report has not been subject to an external audit. However, it has been reviewed by the Agency’s Audit Committee.

1.1 Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting (modified cash accounting). The accompanying Statement of Authorities includes the Parks Canada Agency’s spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates and Supplementary Estimates for the 2016-17 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 moneys can be spent by the Government. 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 Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the department performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year to date results

Budgetary Auhorities and Expenditures for the third quater of 2016-2017 and 2015-2016 ending December 31

The above chart outlines the total authorities available within the Agency as of December 31 of each year, the expenditures during the third quarter as well as the year to date expenditures. Significant changes to authorities and to expenditure patterns are outlined in the following sections.

2.1 Statement of Authorities (Table 1)

Authorities available for use
This quarterly report reflects the funding available for use from the 2016-17 Main Estimates, the 2015-16 unused spending authorityFootnote 1, the 2016-17 Supplementary Estimates A and the 2016-17 Supplementary Estimates B. The authorities at the same time last year consisted of 2015-16 Main Estimates, the 2014-15 unused spending authority and the 2015-16 Supplementary Estimates A.

As per Table 1 (Statement of Authorities), at December 31, 2016, Parks Canada’s total authorities available for use for the year ending March 31, 2017 are $277.8 million or 24 percent higher when compared to the same quarter of the previous year (from $1,157.7M to $1,435.5M). The increase in authorities is due to the following factors:

  • Unused spending authority in 2015-16 - $89.8 million;
  • Investments in important federal infrastructure assets across the country, announced in Budget 2015 - $84.8 million;
  • Investments to revitalize federal infrastructure assets as well as protect nationally significant cultural infrastructure, announced in Budget 2016 - $78.2 million;
  • Developping programs and connecting Canadians to Canada’s heritage places in celebration of Canada 150 - $16.9 million;
  • An increase in Budgetary statutory authorities related to expenditures equivalent to revenues - $9.9 million;
  • A change in funding profile for Rouge National Urban Park due to delays in land transfer agreements - $7.7 million;
  • Expansion of Parks Canada’s Young Canada Works program as part of the Youth Employment Strategy (Budget 2016) - $4.0 million; and
  • Investments to develop and operate the Wrecks of HMS Erebus and HMS Terror National Historic Site - $3.1 million;

These increases are offset by the following decreases in the agency’s spending authorities:

  • A reduction in authorities related to improvements to highways, bridges and dams located in national parks and along historic canals - $14.4 million; and
  • A reduction in funding for Professional Services, Advertising and Travel, announced in Budget 2016 - $2.3 million.

Authorities used during the quarter
In the third quarter of 2016-17, total net budgetary expenditures were $285.6 million compared to $284.1 million reported for the same period in 2015-16, resulting in an increase of $1.5 million or 0.5 percent.

Year to date used
The year to date total budgetary expenditures were $781.9 million compared to $686.5 million reported at the same time last year, indicating an increase of $95.4 million or 13.9 percent. This increase is consistent with the ramp up of authorities in the Agency’s investment programs.

2.2 Budgetary Expenditures by Standard Object (Table 2)

Planned by Standard Object
Total planned expenditures in the third quarter of 2016-17 are $277.8 million or 24 percent higher compared to the previous year. This variance is mainly due to increases in Acquisition of land, buildings and works ($158.3M) and in Professional and special services ($108.7M). These increases are consistent with the ramp up of authorities mentioned in the Agency’s investments programs, as well as its unused spending authority from the previous fiscal year.

Expended by Standard Object
As per Table 2 (Budgetary Expenditures by Standard Object), the total expended in the third quarter ending December 31, 2016, is $1.5 million or 0.5-percent higher compared to the previous year, and the year to date expenditures have increased by $95.4 million or 13.9 percent. The overall increase can be explained by the following:

Acquisition of land, buildings and works year to date expenditures have increased by $43.5 million, Professional and special services have increased by $25.9 million and Personnel expenditures have increased by $15.6 million. These increases are consistent with the ramp up of authorities in the Agency investment programs identified above.

All other expenditures are consistent with prior year spending trends.

3. Risks and Uncertainties

Parks Canada’s objectives and Strategic Outcome are influenced by various internal and external factors. The Agency undertakes a risk assessment every year to support decision making related to priority setting and resource allocation. The risk assessment identifies key risks that have the greatest impact on the Agency’s ability to achieve its Strategic Outcome and expected results. The Agency has identified Environmental Forces Adaptation and Response, Infrastructure Project Delivery, Connecting with Canadians, External Development Pressures and Indigenous Relationships as its key corporate risks for 2016-17Footnote 2 . The following are examples of some of the mitigation strategies that Parks Canada is undertaking in order to address these risks:

  • undertaking applicable planning and monitoring to identify potential threats to or at heritage places; continuing to identify best practices to reduce impacts of natural threats to cultural resources, such as shoreline erosion;
  • implementing an Agency project management office to strengthening national project management practices, processes and controls that enable the Agency to achieve effective and prudent project delivery;
  • developing and beginning the implementation of a plan for Parks Canada's participation in federal activities to celebrate the 150th anniversary of Canadian Confederation;
  • continuing to undertake ecological restoration projects as part of the Conservation and Restoration Program to build ecosystem resilience; and
  • Implementing Promising Pathways: A resource guide for strengthening engagement with Indigenous peoples.

4. Significant Changes in Relation to Operations, Personnel and Programs

Mitch Bloom joined the Parks Canada team on November 1st, 2016, as Vice-President, Strategic Policy and Investment.

5. Approval by Senior Officials

Approved by:

Daniel Watson
Chief Executive Officer, Parks Canada
Gatineau, Canada
February 28, 2016

Sylvain Michaud
Chief Financial Officer, Parks Canada
Gatineau, Canada
February 28, 2016

 

Parks Canada Agency
For the quarter ended December 31, 2016
Statement of Authorities - Table 1
(Unaudited)

Fiscal Year 2016-17
(in thousands of dollars) Total available for use for the year ending March 31, 2017Footnote * Used during the quarter ended December 31, 2016 Year to date used at quarter end
Vote 1 - Program expenditures 1,242,720 241,609 617,708
Vote 5 - Payments to the New Parks and Historic Sites Account 500 0 0
Statutory - Contributions to employee benefit plans 53,645 13,209 39,627
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 138,591 30,770 124,532
Total budgetary expenditures 1,435,456 285,588 781,867
 
Fiscal Year 2016-17
(in thousands of dollars) Total available for use for the year ending March 31, 2016Footnote * Used during the quarter ended December 31, 2015 Year to date used at quarter end
Vote 1 - Program expenditures 976,161 240,731 532,129
Vote 5 - Payments to the New Parks and Historic Sites Account 500 0 0
Statutory - Contributions to employee benefit plans 52,318 11,909 35,728
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 128,678 31,431 118,635
Total budgetary expenditures 1,157,657 284,071 686,492
 

Parks Canada Agency
For the quarter ended December 31, 2016
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)

Fiscal Year 2016-17
(in thousands of dollars) Planned expenditures for the year ending March 31, 2017Footnote * Expended during the quarter ended December 31, 2016 Year to date used at quarter end
Expenditures:
Personnel 376,491 87,301 299,377
Transportation and communications 26,179 4,462 12,765
Information 13,476 1,081 3,969
Professional and special services 264,452 51,299 120,975
Rentals 39,724 4,670 14,466
Repair and maintenance 29,131 13,802 23,478
Utilities, materials and supplies 83,964 12,886 32,578
Acquisition of land, buildings and works 496,201 102,300 235,464
Acquisition of machinery and equipment 61,941 5,182 16,914
Transfer payments 24,037 2,016 4,642
Other subsidies and payments 19,860 589 17,239
Total budgetary expenditures 1,435,456 285,588 781,867
 
Fiscal Year 2015-16
(in thousands of dollars) Planned expenditures for the year ending March 31, 2016Footnote * Expended during the quarter ended December 31, 2015 Year to date used at quarter end
Expenditures:
Personnel 374,973 86,262 283,740
Transportation and communications 18,655 4,665 11,516
Information 10,341 1,267 4,217
Professional and special services 155,764 49,877 95,117
Rentals 23,134 6,093 18,492
Repair and maintenance 102,420 7,156 18,943
Utilities, materials and supplies 57,393 11,545 30,001
Acquisition of land, buildings and works 337,931 108,328 192,002
Acquisition of machinery and equipment 41,178 6,330 14,692
Transfer payments 19,058 881 5,087
Other subsidies and payments 16,810 1,667 12,685
Total budgetary expenditures 1,157,657 284,071 686,492