Quarterly financial report for the quarter ended September 30, 2018
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.
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 for the 2018-19 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
The above chart outlines the total authorities available within the Agency as of September 30 of each year, the expenditures during the second 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 2018-19 Main Estimates, authorities for Budget 2018 measures and the 2017-18 unused spending authorityFootnote 1 . The authorities at the same time last year consisted of 2017-18 Main Estimates, the 2016-17 unused spending authority and the 2017-18 Supplementary Estimates A.
As per Table 1 (Statement of Authorities), at September 30, 2018, Parks Canada’s total authorities available for use for the year ending March 31, 2019, are $154.8 million or 9 percent higher when compared to the same quarter of the previous year (from $1,703.2M to $1,858.0M). The increase in authorities is primarily due to the following factors:
- Authorities to address immediate pressures on Parks Canada Agency’s high-priority capital asset projects, announced in Budget 2017 - $156.0 million;
- An increase in unused spending authorities in 2017-18 as compared to 2016-17 - $89.5 million;
- An increase in the Agency’s statutory authorities of expenditures equivalent to revenues as a result of the return to a conventional revenue generating model following the impact of free entry for the celebration of Canada 150 during the 2017-18 fiscal year. This increase is offset by a corresponding decrease in voted authorities for the same purpose - $59.0 million;
- An increase in investments in federal infrastructure assets across the country to address the backlog of deferred work for heritage, tourism, highway and waterway built assets, announced in Budget 2015 - $34.3 million;
- Additional authorities to advance a cost-effective plan that meets international land and wildlife conservation targets; transitions the Species at Risk program from recovery planning to protection and recovery actions; and contributes to reconciliation with Indigenous peoples while delivering conservation outcomes - $21.1 million; and
- An increase in authorities to expand national parks and national marine conservation area systems, announced in Budget 2016 - $13.7 million.
These increases are offset by the following decreases:
- A decrease in authorities for investments in trails and highways in national parks, announced in Budget 2016 - $102.0 million;
- A decrease in authorities for developing programs and connecting Canadians to Canada’s heritage places in celebration of Canada 150 - $59.2 million;
- A decrease in authorities due to the sunsetting of funding for the expansion of Parks Canada’s National Historic Sites Cost-Sharing Program in 2017-18 - $9.9M; and
- A decrease in authorities for improvements to highways, bridges and dams located in national parks and along historic canals, announced in Budget 2014 - $9.5 million.
Authorities used during the quarter
In the second quarter of 2018-19, total net budgetary expenditures were $419.6 million compared to $379.1 million reported for the same period in 2017-18, resulting in an increase of approximately $40.4 million or 11 percent. The increase in authorities used during the quarter is primarily due to the new collective agreement.
2.2 Budgetary Expenditures by Standard Object (Table 2)
Planned by Standard Object
Total planned expenditures in the second quarter of 2018-19 are $154.8 million or 9 percent higher compared to the previous year. This variance is primarily due to the ramp up of authorities in the Agency’s infrastructure investment program, as well as an increase in authorities from unused spending authorities from the previous fiscal year.
Expended by Standard Object
As per Table 2 (Budgetary Expenditures by Standard Object), the total expended in the second quarter ending September 30, 2018, is approximately $40.4 million or 11 percent higher compared to the previous year. The overall increase can be explained by the following:
Compared to the same quarter last year, Personnel expenditures have increased by $44.9 million, which is primarily due to the new collective agreement.
This increase is offset by a decrease of $8.6 million in Professional and special services expenditures due to an overall reduction in investments in federal infrastructure assets across the country to address the backlog of deferred work for heritage, tourism, highway and waterway built assets.
All other expenditures are consistent with prior year spending trends.
3. Risks and Uncertainties
Parks Canada's objectives and Core Responsibility 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 Core Responsibility and departmental results. The Agency has identified the following key corporate risks for 2018-19:
- Remaining relevant to Canadians, particularly in some of Canada’s largest cities;
- Establish, develop and maintain effective relationships with external parties to achieve common goals and objectives;
- Environmental forces adaptation and response;
- Built asset condition and long-term sustainability; and
- Reconciliation with Indigenous peoples.
4. Significant Changes in Relation to Operations, Personnel and Programs
The following significant changes occurred to operations, personnel and programs over the second quarter of 2018-19:
- Darlene Upton was appointed Vice-President, Protected Area Establishment and Conservation effective July 1, 2018.
- Stephen Van Dine was appointed Vice-President, Strategic Policy and Investment, effective August 29, 2018.
5. Approval by Senior Officials
Acting Chief Executive Officer, Parks Canada
November 20, 2018
Chief Financial Officer, Parks Canada
November 20, 2018
Parks Canada Agency
For the quarter ended September 30, 2018
Statement of Authorities - Table 1
|(in thousands of dollars)||Total available for use for the year ending March 31, 2019Footnote *||Used during the quarter ended September 30, 2018||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,638,182||346,821||504,806|
|Vote 5 - Payments to the New Parks and Historic Sites Account||9,007||0||0|
|Statutory - Contributions to employee benefit plans||49,257||11,946||23,891|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||161,590||60,793||94,784|
|Total budgetary authorities||1,858,036||419,560||623,481|
|(in thousands of dollars)||Total available for use for the year ending March 31, 2018Footnote *||Used during the quarter ended September 30, 2017||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,554,014||341,981||503,728|
|Vote 5 - Payments to the New Parks and Historic Sites Account||500||0||0|
|Statutory - Contributions to employee benefit plans||49,481||12,328||24,656|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||99,232||24,808||45,882|
|Total budgetary authorities||1,703,227||379,116||574,267|
Parks Canada Agency
For the quarter ended September 30, 2018
Budgetary Expenditures by Standard Object - Table 2
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2019Footnote *||Expended during the quarter ended September 30, 2018||Year to date used at quarter end|
|Transportation and communications||37,978||5,526||10,335|
|Professional and special services||406,395||54,876||75,778|
|Repair and maintenance||53,817||10,386||14,440|
|Utilities, materials and supplies||85,770||15,479||23,035|
|Acquisition of land, buildings and works||751,544||131,091||177,027|
|Acquisition of machinery and equipment||42,709||4,741||7,907|
|Public debt charges||0||36||48|
|Other subsidies and payments||20,186||11,121||14,878|
|Total budgetary expenditures||1,858,036||419,560||623,481|
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2018Footnote *||Expended during the quarter ended September 30, 2017||Year to date used at quarter end|
|Transportation and communications||37,746||6,722||11,179|
|Professional and special services||372,137||63,433||85,380|
|Repair and maintenance||42,698||11,323||17,041|
|Utilities, materials and supplies||93,055||14,531||21,773|
|Acquisition of land, buildings and works||604,696||126,633||165,714|
|Acquisition of machinery and equipment||62,704||5,502||9,754|
|Public debt charges||0||0||0|
|Other subsidies and payments||39,566||12,329||15,271|
|Total budgetary expenditures||1,703,227||379,116||574,267|
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