2012-2013 Parks Canada Agency Corporate Plan

Section III - Supplementary Information

Statement of Management Responsibility for Future-oriented Financial Statements

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2013, and all information contained in these statements rests with the management of the Parks Canada Agency. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimated (Report on Plans and Priorities), and will be used in the Agency's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. These statements are based on the best information available and assumptions adopted as at March 15, 2012 and reflect the plans described in the Report on Plans and Priorities. Management believes the estimates and assumptions to be reasonable. However, as with all assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material.


The original was signed by
_________________________
Alan Latourelle
Chief Executive Officer
The original was signed by
_________________________
Lianne Wright
Acting Chief Financial Officer


Gatineau, Canada
March 15, 2012


Parks Canada Agency


Future-oriented Statement of Financial Position as at March 31
(in thousands of dollars)
Planned
Results
2013
(Unaudited)
Estimated
Results
2012
(Unaudited)
Assets
Financial assets
Cash entitlements (Note 5)
General operations account 76,469 76,469
Specified purpose accounts 3,048 2,952
New parks and historic sites account 6,838 8,856
86,355 88,277
Accounts receivable 11,252 10,388
97,607 98,665
Non-financial assets
Prepaid expenses 7,890 7,265
Inventory of consumable supplies (Note 6) 6,629 6,438
Tangible capital assets (Note 7) 1,820,789 1,815,444
Collections and archaeological sites (Note 8) 1 1
1,835,309 1,829,148
1,932,916 1,927,813
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities
Federal government departments and agencies 18,795 20,396
Others 56,926 62,009
75,721 82,405
Deferred revenue (Note 9) 16,449 16,215
Employee future benefits (Note 10) 62,660 62,477
Provision for environmental clean-up (Note 11b) 19,114 19,114
98,223 97,806
Equity of Canada 1,758,972 1,747,602
1,932,916 1,927,813

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

Contingent liabilities and contractual obligations (Notes 11a) and 14)

The accompanying notes form an integral part of these future-oriented financial statements.


The original was signed by
_________________________
Alan Latourelle
Chief Executive Officer
The original was signed by
_________________________
Lianne Wright
Acting Chief Financial Officer


Gatineau, Canada
March 15, 2012


Parks Canada Agency


Future-oriented Statement of Operation for the Year Ended March 31
(in thousands of dollars)
Planned
Results
2013
(Unaudited)
Estimated
Results
2012
(Unaudited)
Expenses
Parks Canada program activities
Heritage places establishment 14,410 17,228
Heritage resources conservation 167,058 167,838
Public appreciation and understanding 50,494 54,706
Visitor experience 227,799 227,164
Townsite and throughway infrastructure 60,449 86,250
Internal services 74,072 76,172
594,282 629,358
Amortization of tangible capital assets 104,059 101,994
Total expenses 698,341 731,352
Revenues 115,606 114,600
Net cost from continuing operations 582,735 616,752
Transferred operations (Note 17)
Expenses - 7,606
Net cost of transferred operations - 7,606
Net cost of operations 582,735 624,358

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

Segmented information (Note 15)

The accompanying notes form an integral part of these future-oriented financial statements.


Parks Canada Agency


Future-oriented Statement of Equity of Canada for the Year Ended March 31
(in thousands of dollars)
Planned
Results
2013
(Unaudited)
Estimated
Results
2012
(Unaudited)
Equity of Canada, beginning of year 1,747,602 1,733,674
Net cost of operations (582,735) (624,358)
Net cash provided by Government of Canada 549,157 610,394
Change in cash entitlements (1,922) (19,352)
Services provided without charge by other government departments (Note 13a) 46,870 46,880
Transfer of liabilities to other government entities (Note 17) - 364
Equity of Canada, end of year 1,758,972 1,747,602

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

The accompanying notes form an integral part of these future-oriented financial statements.


Parks Canada Agency


Future-oriented Statement of Cash Flow for the Year Ended March 31
(in thousands of dollars)
Planned
Results
2013
(Unaudited)
Estimated
Results
2012
(Unaudited)
Operating activities
Net cost of operations 582,735 624,358
Non-cash items:
Amortization of tangible capital assets (104,059) (101,994)
Net loss on disposal of tangible capital assets (2,609) (2,324)
Services provided without charge by other government departments (46,870) (46,880)
Variations in Statement of Financial Position:
Increase in accounts receivable 864 864
Increase in prepaid expenses 625 625
Increase in inventory of consumable supplies 191 191
Decrease in accounts payable and accrued liabilities 6,684 11,738
Increase in deferred revenue (234) (234)
Increase in employee future benefits (183) (275)
Decrease in provision for environmental clean-up - 696
Cash used in operating activities 437,144 486,765
Capital investing activities
Acquisitions and improvements to tangible capital assets 112,385 124,001
Proceeds on disposal of tangible capital assets (372) (372)
Cash used in capital investing activities 112,013 123,629
Net cash provided by Government of Canada 549,157 610,394

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to January 31, 2012.

The accompanying notes form an integral part of these future-oriented financial statements.


Notes to Future-oriented Financial Statements for the Year Ended March 31, 2013

(Tables in thousands of dollars)

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. Significant Assumptions

The future-oriented financial statements have 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 main assumptions are as follows:

  1. The Agency's core activities will remain substantially the same as for the previous year.
  2. 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.
  3. Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
  4. Estimated year end information for 2011-2012 is used as the opening position for the 2012-2013 forecasts.
  5. Information on deficit reduction action plan measures is not included in the future-oriented financial statements.

These assumptions are adopted as at March 15, 2012.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2011-2012 and for 2012-2013 actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

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

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  2. Implementation of new collective agreements.
  3. Economic conditions may affect the amount of revenue earned.
  4. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, the Agency will not be updating the forecasts for any changes to appropriations of forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

These future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles, except as disclosed in Note 16 - Net Debt Indicator.

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 and the future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 12 provides a reconciliation between the bases of reporting.

b) Net cash provided by Government:

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.

c) Deferred revenue:

Deferred revenue includes revenues received in advance of the services to be provided and funds received from external parties for specified purposes. Deferred revenue is recognized as revenue when the services are provided.

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):
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 Equity of Canada. 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.

Intangible assets are not capitalized.

Construction in progress are not amortized. The costs of construction in progress are transferred to the appropriate asset category upon completion and are amortized once in service.

Amortization is calculated on a straight-line method using rates over the estimated useful life of the assets as follows:


Asset Useful life
Buildings 25-50 years
Fortifications 50-100 years
Leasehold improvements Lesser of the remaining term of lease or estimated useful life of the improvement
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 Equity of Canada.

f) Collections and archaeological sites:

Collections and archaeological sites are recorded at nominal value.

g) Employee future benefits:

(i) Severance benefits:
Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. 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.

(ii) 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.

h) Expenses:

Expenses are recorded on the accrual basis.

(i) Contributions:
Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement, provided that the transfer is authorized and a reasonable estimate can be made.

(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 Equity of Canada.

i)Provision for environmental clean-up:

The Agency records a liability for environmental clean-up in situations where the following conditions are met: (1) contamination exceeds the environmental standard; (2) the Agency is directly responsible or accepts responsibility of the contamination; (3) it is expected that future economic benefits will be given up; (4) a reasonable estimate of the amount can be made following a detailed environmental assessment.

The costs will be disclosed as a contingent liability if one of the following conditions is met: (1) the occurrence of the confirming future event is likely but the amount of the liability cannot be reasonably estimated; (2) the occurrence of the confirming future event is likely and a liability has been recorded, but there is risk this liability may increase; (3) or the occurrence of the confirming future event is not determinable.

j) 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.

k) Measurement uncertainty:

The preparation of the future-oriented financial statements 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 financial statements and the reported amounts of revenues and expenses for the year. Employee-related liabilities, estimated useful lives of tangible capital assets, environment-related liabilities and claims are the most significant items where estimates are used. 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 financial statements in the year they become known.

5. Cash Entitlements

The Agency operates within the 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.

Included in cash entitlements are the following:

a) General operations account:

Cash Entitlement for general operations represents the amount of cash that the Agency is entitled to draw from the Consolidated Revenue Fund of the Government, without further authorities. As at March 31, 2013, the balance of the general operations account is $76.5 million ($76.5 million in 2012).

b) Specified purpose accounts:

Cash Entitlement for specified purpose accounts represents money received from external organizations which must be used for the purposes for which they are received. As at March 31, 2013, the Agency has a balance of $3.0 million ($3.0 million in 2012) for specified purpose accounts.

c) New parks and historic sites account:

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 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 for the year ended March 31 are highlighted in the following analysis:


Planned
Results
2013
Estimated
Results
2012
Available at beginning of year 8,856 17,200
Receipts:
Parliamentary authorities 500 500
Proceeds on disposal of tangible capital assets 333 333
Donations 12 12
845 845
Expenditures:
Capital expenditures 2,863 9,189
2,863 9,189
Available at end of year 6,838 8,856

6. Inventory of Consumable Supplies

The inventory of consumable supplies as at March 31 consists of the following:


Planned
Results
2013
Estimated
Results
2012
Stationery, office and miscellaneous supplies 1,384 1,345
Top soil, sand, gravel and other crude material 1,090 1,058
Fuel and other petroleum products 917 890
Equipment, materials and supplies 824 801
Safety equipment 757 735
Fabricated wood and metal products 642 623
Printed books, publications and maps 490 476
Construction material and supplies 344 334
Uniforms and protective clothing 181 176
6,629 6,438

7. Tangible Capital Assets

Cost
Opening balance Acquisitions Disposals and write-offs Closing balance
Buildings, fortifications and leasehold improvements 931,557 23,140 3,515 951,182
Improved grounds 687,701 17,627 182 705,146
Roads 1,230,235 35,139 79 1,265,295
Bridges 294,524 14,716 519 308,721
Canal and marine facilities 594,790 6,769 586 600,973
Utilities 254,552 4,993 10 259,535
Vehicles and equipment 134,597 4,495 5,329 133,763
Exhibits 106,737 2,532 293 108,976
4,234,693 109,411 10,513 4,333,591
Land (Note 4e (ii))
Acquired land 151,538 2,974 14 154,498
Crown land 1 - - 1
Donated land 20,144 - - 20,144
171,683 2,974 14 174,643
Total 4,406,376 112,385 10,527 4,508,234

Accumulated Amortization Net Book Value
Opening balance Acquisitions Disposals and write-offs Closing balance Planned
Results
2013
Estimated
Results
2012
Buildings, fortifications and leasehold improvements 593,565 31,687 2,476 622,776 328,406 337,992
Improved grounds 566,510 16,137 79 582,568 122,578 121,192
Roads 709,336 25,163 10 734,489 530,806 520,899
Bridges 104,862 5,925 406 110,381 198,340 189,663
Canal and marine facilities 314,740 9,440 26 324,154 276,819 280,050
Utilities 121,184 6,697 10 127,871 131,664 133,369
Vehicles and equipment 95,829 6,858 4,268 98,419 35,344 38,768
Exhibits 84,909 2,152 274 86,787 22,189 21,828
2,590,935 104,059 7,549 2,687,445 1,646,146 1,643,761
Land
(Note 4e (ii))
Acquired land - - - - 154,498 151,538
Crown land - - - - 1 1
Donated land - - - - 20,144 20,144
- - - - 174,643 171,683
Total 2,590,935 104,059 7,549 2,687,445 1,820,789 1,815,444

The total cost of tangible capital assets includes $159.5 million ($176.0 million in 2012) of construction in progress disclosed with their respective asset category. The Agency owns land, which comprise national parks and national park reserves, national marine conservation areas, and national historic sites. During the year, the Agency spent $3.0 million ($3.3 million in 2012) on the acquisition of land.

8. 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 Canada's 167 national historic sites, 43 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.

9. Deferred Revenue

Included in the deferred revenue total of $16.4 million ($16.2 million in 2012) is an amount of $13.4 million ($13.2 million in 2012) representing the balance, at year end, for entrance fees, recreational fees, and rentals/concessions fees collected in advance.

The remaining $3.0 million ($3.0 million in 2012) of deferred revenue, represents monies received from other organizations which must be used for specified purposes.

10. Employee Future Benefits

a) Severance benefits:

The Agency provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:


Planned
Results
2013
Estimated
Results
2012
Accrued benefit obligation, beginning of year 62,477 62,488
Expense for the year (183) (562)
Benefits paid during the year 366 551
Accrued benefit obligation, end of year 62,660 62,477

b) Pension benefits:

The Agency's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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 Plans benefits and they are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan. The 2013 expense amounts to $39.8 million ($39.7 million in 2012), which represents approximately 1.9 times (1.9 times in 2012) the contributions by employees.

The Agency's responsibility with regard 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.

11. Contingent Liabilities

a) Claims and litigation:

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. Based on the Agency's assessment, legal proceedings for claims estimated at $0.7 million ($0.7 million in 2012) were pending at March 31, 2013. Some of these potential liabilities 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 in the future-oriented financial statements. The details of cases and extent of claims are not disclosed for sensitive reasons.

b) Provision for environmental clean-up:

The Agency has identified 455 sites that are known or suspected of contamination. Based on the information available and detailed environmental assessments conducted thus far on 433 of these sites, the Agency has estimated liability and contingent liability amounts. The estimated amounts are adjusted to reflect inflation and will be paid from future authorities.

The Agency has estimated and recorded a liability of $19.1 million ($19.1 million in 2012). The Agency has estimated additional clean-up costs of $127.3 million ($124.6 million in 2012) that are not recorded as a liability as the Agency is not able to determine if these costs will be incurred. 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 or intended use of existing sites. These contingent liabilities will be recorded as liabilities by the Agency in the year in which they become reasonably estimable and the occurrence of the confirming future event is determinable.

12. Parliamentary Authorities

The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the future-oriented Statement of Operations and the future-oriented 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:

a) Authorities requested:


Planned
Results
2013
Estimated
Results
2012
Authorities requested:
Vote 25 - Program expenditures 488,265 610,257
Vote 30 - New parks and historic sites account 500 500
Statutory amounts:
Revenue received pursuant to section 20 of the Parks Canada Agency Act 111,000 111,000
Contributions to employee benefits plan 51,763 47,942
Forecast authorities available 651,528 769,699

Forecast authorities requested for the year ending March 31, 2013 are the planned spending amounts presented in the 2012-2013 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2012 include amounts presented in the 2011-2012 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C), estimates of amounts to be allocated at year-end Treasury Board central votes and the amount of $7.5 million deemed appropriated to Shared Services Canada effective November 15, 2011.

b) Reconciliation of net cost of operations to requested authorities:


Planned
Results
2013
Estimated
Results
2012
Net cost of operations 582,735 624,358
Revenue received pursuant to section 20 of the Parks Canada Agency Act 111,000 111,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (104,059) (101,994)
Services provided without charge by other government departments (Note 13a) (46,870) (46,880)
Net loss on disposal of tangible capital assets (2,609) (2,324)
Bad debt expense (133) (133)
Refunds of previous years' expenditures 1,162 1,940
(152,509) (149,391)
Variation in accounts affecting net cost of operations but not affecting authorities:
Vacation pay included in the accounts payable and accrued liabilities (326) (326)
Employee future benefits (183) (275)
Provision for environmental clean-up - 696
(509) 95
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 112,385 124,001
Proceeds on disposal of tangible capital assets (372) (372)
Change in prepaid expenses 625 625
Change in inventory of consumable supplies 191 191
Change in New parks and historic sites account (2,018) (8,344)
Transfer to other government departments - 7,536
110,811 123,637
Forecast current year lapse - 60,000
Forecast authorities available 651,528 769,699

13. 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 future-oriented Statement of Operations as follows:


Planned
Results
2013
Estimated
Results
2012
Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat 27,484 27,371
Accommodation provided by Public Works and Government Services Canada 17,272 17,395
Salary and associated costs of legal services provided by Justice Canada 1,525 1,525
Other services received without charge 589 589
46,870 46,880

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 Agency's future-oriented Statement of Operations.

b) Other transactions with related parties:

The Agency incurred capital and operating expenses with related parties for a total of $118.3 million ($146.2 million in 2012) for services provided by Government departments, including an amount of $111.3 million ($137.5 million in 2012) with Public Works and Government Services Canada mostly related to architectural, engineering and environmental services of $69.1 million ($85.4 million in 2012), construction services of $11.4 million ($14.1 million in 2012), repairs and maintenance $7.8 million ($9.7 million in 2012) and payments in lieu of taxes of $13.1 million ($12.8 million in 2012). Revenues generated from related parties amounted to $1.7 million ($1.7 million in 2012).

Effective November 15, 2011, the Agency transferred its information technologies activities to the Shared Services Canada (SSC). During the transition period, the Agency continued to administer those activities on behalf of SSC. The administered expenses amounted to $0 ($7.5 million in 2012), for the year. These expenses are not recorded in these future-oriented financial statements

14. Contractual obligations

a) The Agency has entered into agreements for operating leases of equipment and accommodations for a total of $8.2 million ($8.6 million in 2012). The agreements show different termination dates, with the majority ending within the next twelve years. Minimum annual payments under these agreements for the next five years and beyond are approximately as follows:


Year Minimum Annual Payment
2012-13 1,359
2013-14 769
2014-15 641
2015-16 567
2016-17 1,501
2017-18 and beyond 3,387

b) The Agency has entered into contracts for operating and capital expenditures for approximately $131.3 million ($112.1 million in 2012). The majority of payments under these contracts are expected to be made over the next three years.

15. Segmented information

Presentation by segment is based on the Agency's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the expenses incurred and revenues generated for the main program activities, 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 Planned
Results
2013
Estimated
Results
2012
Salaries and employee benefits 9,945 111,217 34,849 157,223 41,721 49,322 404,277 398,487
Operating expenses
Professional and special services 1,167 13,052 4,090 18,451 4,896 5,788 47,444 64,057
Utilities, materials and supplies 1,022 11,435 3,583 16,165 4,290 5,071 41,566 56,120
Transportation and communication 614 6,861 2,150 9,699 2,574 3,043 24,941 28,446
Accommodation received without charge (Note 13a) 425 4,752 1,489 6,717 1,782 2,107 17,272 17,395
Payments in lieu of taxes 323 3,609 1,131 5,102 1,354 1,600 13,119 12,816
Rentals 287 3,210 1,006 4,538 1,204 1,424 11,669 15,755
Repairs and maintenance 217 2,422 759 3,423 908 1,074 8,803 11,886
Information 162 1,813 568 2,562 680 804 6,589 8,896
Environmental clean-up - 5,914 - - - - 5,914 2,220
Net loss on disposal of tangible capital assets - - - - - 2,609 2,609 2,324
Miscellaneous expenses 27 297 93 419 111 132 1,079 1,456
Total operating expenses 14,189 164,582 49,718 224,299 59,520 72,974 585,282 619,858
Grants and contributions 221 2,476 776 3,500 929 1,098 9,000 9,500
Total expenses (excluding amortization) 14,410 167,058 50,494 227,799 60,449 74,072 594,282 629,358
Amortization 104,059 101,994
Total expenses 698,341 731,352
Entrance fees 25 467 5 50,798 2,480 3,199 56,974 56,476
Recreational fees 11 198 2 21,523 1,051 1,355 24,140 23,929
Rentals and concessions 9 177 2 19,252 940 1,212 21,592 21,404
Other operating revenues 3 54 1 5,921 289 373 6,641 6,583
Staff housing 1 26 0 2,814 137 177 3,155 3,129
Townsites revenues 1 25 0 2,769 135 174 3,104 3,079
Total revenues 50 947 10 103,077 5,032 6,490 115,606 114,600
Net cost from continuing operations 582,735 616,752
Transferred Operations (Note 17) - - - - - - - 7,606
Net cost of operations 582,735 624,358

16. Net Debt indicator

The presentation of the net debt indicator and a statement of change in net debt is required under Canadian generally accepted accounting principles.

Net debt is the difference between a government’s liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventory of consumable supplies. The Agency is financed by the Government of Canada through Parliamentary authorities and operates within the 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 by the CRF. Under this government business model, assets reflected on the Agency financial statements, with the exception of the cash entitlement, are not available to use for the purpose of discharging the existing liabilities of the Agency. Future Parliamentary authorities and any respendable revenues generated by the Agency’s operations would be used to discharge existing liabilities.


Planned
Results
2013
Estimated
Results
2012
Liabilities:
Accounts payable and accrued liabilities 75,721 82,405
Deferred revenue (Note 9) 16,449 16,215
Employee future benefits (Note 10) 62,660 62,477
Provision for environmental clean-up (Note 11b) 19,114 19,114
Total liabilities 173,944 180,211
Financial Assets:
Cash entitlements (Note 5) 86,355 88,277
Accounts receivable 11,252 10,388
Total financial assets 97,607 98,665
Net debt indicator 76,337 81,546

17. Transfer to other government departments

Effective November 15, 2011, the Agency transferred its information technology responsibilities to Shared Services Canada, including the stewardship reponsibility for the assets and liabilities related to these services. The amount of expenses for information technology services provided internally up to the transition date amounted to $0 ($7.6 million in 2012) and is presented separately as Transferred operations expenses in the Future-oriented Statement of Operations. Accordingly, the Agency transferred the following liabilities related to information technology responsibilities to Shared Services Canada on November 15, 2011:


Planned
Results
2013
Estimated
Results
2012
Liabilities
Vacation pay and compensatory leave - 77
Employee future benefits (Note 10) - 287
- 364


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