2013-14 Report on Plans and Priorities
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, 2014, 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 the Estimates (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 these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. 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 November 30, 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 version was signed by
_________________________________
Alan Latourelle,
Chief Executive Officer
_________________________________
Maria Stevens
Chief Financial Officer
Gatineau, Canada
January 25, 2013
| Planned Results 2014 |
Estimated Results 2013 |
|
|---|---|---|
| Liabilities | ||
| Accounts payable and accrued liabilities | ||
| Federal government departments and agencies | 21,462 | 21,395 |
| Others | 51,395 | 58,643 |
| 72,857 | 80,038 | |
| Deferred revenue (Note 5) | 13,231 | 13,518 |
| Lease obligation for tangible capital assets (Note 6) | 3,832 | 4,140 |
| Employee future benefits (Note 7) | 13,404 | 53,616 |
| Environmental liability (Note 8b) | 16,053 | 16,053 |
| Total net liabilities | 119,377 | 167,365 |
| Financial assets | ||
| Due from Consolidated Revenue Fund (Note 9) | ||
| General operations account | 63,108 | 70,576 |
| Specified purpose accounts | 3,020 | 4,156 |
| New parks and historic sites account | 3,750 | 5,650 |
| 69,878 | 80,382 | |
| Accounts receivable | 8,654 | 8,445 |
| Total net financial assets | 78,532 | 88,827 |
| Net Debt | 40,845 | 78,538 |
| Non-financial assets | ||
| Prepaid expenses | 3,863 | 3,238 |
| Inventory of consumable supplies (Note 10) | 6,044 | 5,929 |
| Tangible capital assets (Note 11) | 1,884,564 | 1,850,730 |
| Collections and archaeological sites (Note 12) | 1 | 1 |
| Total non-financial assets | 1,894,472 | 1,859,898 |
| Net Financial Position | 1,853,627 | 1,781,360 |
Information for the year ended March 31, 2013 includes actual amounts from April 1 to November 30, 2012.
Contingent liabilities and contractual obligations (Notes 8a) and 15)
The accompanying notes form an integral part of these future-oriented financial statements.
The original version was signed by
_________________________________
Alan Latourelle,
Chief Executive Officer
_________________________________
Maria Stevens
Chief Financial Officer
Gatineau, Canada
January 25, 2013
| Planned Results 2014 |
Estimated Results 2013 |
|
|---|---|---|
| Expenses | ||
| Parks Canada Program Activities | ||
| Heritage places establishment | 35,354 | 12,687 |
| Heritage resources conservation | 164,189 | 160,746 |
| Public appreciation and understanding | 43,058 | 52,614 |
| Visitor experience | 221,632 | 223,272 |
| Townsite and throughway infrastructure | 77,910 | 76,083 |
| Internal services | 66,749 | 75,491 |
| 608,892 | 600,893 | |
| Amortization of tangible capital assets | 80,389 | 79,135 |
| Total expenses | 689,281 | 680,028 |
| Revenues | ||
| Entrance fees | 59,409 | 58,043 |
| Recreational fees | 24,527 | 23,963 |
| Rentals and concessions | 22,552 | 22,034 |
| Other operating revenues | 7,254 | 7,087 |
| Staff housing | 3,374 | 3,296 |
| Townsites revenues | 3,427 | 3,348 |
| 120,543 | 117,771 | |
| Net cost of operations before government funding | 568,738 | 562,257 |
| Government funding | ||
| Net cash provided by Government | 601,429 | 564,314 |
| Change in Due from Consolidated Revenue Fund | (10,504) | 11,820 |
| Services provided without charge by other government departments | 50,080 | 48,374 |
| Net cost of operations after government funding | (72,267) | (62,251) |
| Net financial position - Beginning of year | 1,781,360 | 1,719,109 |
| Net financial position - End of year | 1,853,627 | 1,781,360 |
Information for the year ended March 31, 2013 includes actual amounts from April 1 to November 30, 2012.
Segmented information (Note 16)
The accompanying notes form an integral part of these future-oriented financial statements.
| Planned Results 2014 |
Estimated Results 2013 |
|
|---|---|---|
| Net cost of operations after government funding | (72,267) | (62,251) |
| Change due to Tangible Capital Assets | ||
| Acquisition and improvements of tangible capital assets | 114,916 | 113,914 |
| Amortization of tangible capital assets | (80,389) | (79,135) |
| Proceeds from disposal of tangible capital assets | (213) | (314) |
| Net loss on disposal of tangible capital assets | (480) | (480) |
| Total change due to Tangible Capital Assets | 33,834 | 33,985 |
| Change due to Inventory of consumable supplies | 115 | 115 |
| Change due to Prepaid Expenses | 625 | 625 |
| Net decrease in Net Debt | (37,693) | (27,526) |
| Net Debt at Beginning of Year | 78,538 | 106,064 |
| Net Debt at End of Year | 40,845 | 78,538 |
Information for the year ended March 31, 2013 includes actual amounts from April 1 to November 30, 2012.
The accompanying notes form an integral part of these future-oriented financial statements.
| Planned Results 2014 |
Estimated Results 2013 |
|
|---|---|---|
| Operating activities | ||
| Net cost of operations before government funding | 568,738 | 562,257 |
| Non-cash items: | ||
| Amortization of tangible capital assets | (80,389) | (79,135) |
| Net loss on disposal of tangible capital assets | (480) | (480) |
| Services provided without charge by other government departments | (50,080) | (48,374) |
| Variations in Statement of Financial Position: | ||
| increase in accounts receivable | 209 | 209 |
| increase in prepaid expenses | 625 | 625 |
| increase in inventory of consumable supplies | 115 | 115 |
| Decrease in accounts payable and accrued liabilities | 7,181 | 2,423 |
| Decrease in deferred revenue | 287 | 287 |
| Decrease in employee future benefits | 40,212 | 11,138 |
| Decrease in environmental liability | – | 1,290 |
| Cash used in operating activities | 486,418 | 450,355 |
| Capital investing activities | ||
| Acquisitions and improvements to tangible capital assets | 114,916 | 113,914 |
| Proceeds from disposal of tangible capital assets | (213) | (314) |
| Cash used in capital investing activities | 114,703 | 113,600 |
| Financing activities | ||
| Lease obligation for tangible capital assets | 308 | 359 |
| Cash used in financing activities | 308 | 359 |
| Net cash provided by Government of Canada | 601,429 | 564,314 |
Information for the year ended March 31, 2013 includes actual amounts from April 1 to November 30, 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, 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. 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 information in the estimated results for fiscal year 2012-2013 is based on actual results as at November 30, 2012 and forecast for the remainder of the fiscal year. Estimated year end information for 2012-2013 is used as the opening position for the 2013-2014 planned results and forecasts have been made for the planned results for the 2013-2014 fiscal year.
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.
- Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
These assumptions are adopted as at November 30, 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 2012-2013 and for 2013-2014, 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:
- 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.
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 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 financial statements were 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 and Net Financial Position and in the future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 13 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):
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.
Intangible assets are not capitalized.
Construction in progress is 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 |
| 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) 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) Transfer payments:
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 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 future-oriented financial statements.
k) Environmental liability
The Agency records an environmental liability 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.
l) 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.
m) 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, lease obligation for 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. Deferred Revenue
Included in the deferred revenue total of $13.2 million ($13.5 million in 2013) is an amount of $10.2 million ($10.4 million in 2013) representing the balance, at year end, for entrance fees, recreational fees, and rentals/concessions fees collected in advance.
The remaining $3 million ($3.1 million in 2013) of deferred revenue, represents monies received from external organizations which must be used for specified purposes.
6. 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 $23.3 million and accumulated amortization of $6 million, as at March 31, 2014. The obligations related to the upcoming years, in the total amount of $3.8 million, include the following:
| 2014 | 2013 | |
|---|---|---|
| 2014-15 | 544 | 544 |
| 2015-16 | 544 | 544 |
| 2016-17 | 544 | 544 |
| 2017-18 | 544 | 544 |
| 2018-19 and beyond | 2,980 | 3,524 |
| Total future minimum lease payment | 5,156 | 5,700 |
| Less: imputed interest (6.3%) | 1,324 | 1,560 |
| Balance of obligations under leased tangible capital assets | 3,832 | 4,140 |
7. 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:
| 2014 | 2013 | |
|---|---|---|
| Accrued benefit obligation, beginning of year | 53,616 | 64,754 |
| Expense for the year | - | 3,428 |
| Benefits paid during the year | (40,212) | (14,566) |
| 13,404 | 53,616 |
As part of changes to conditions of employment, the accumulation of severance benefits under the employee severance pay program ceased at the end of 2012-2013. 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.
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 2014 expense amounts to $30.4 million ($32.6 million in 2013), which represents approximately 1.8 times (1.8 times in 2013) the contributions by employees.
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.
8. Contingent Liabilities
Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into two categories as follows:
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. 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 $0.4 million ($0.4 million in 2013) at March 31, 2014.
b) Environmental liability:
The Agency has identified 461 sites that are known or suspected of contamination. Based on the information available and detailed environmental assessments conducted thus far on 425 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 $16.1 million ($16.1 million in 2013). The Agency has estimated additional clean-up costs of $110.3 million ($109 million in 2013) 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.
9. Due from Consolidated Revenue Fund
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 the Consolidated Revenue Fund are the following:
a) General operations account
General operations account 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, 2014, the balance of the General operations account is $63.1 million ($70.6 million in 2013).
b) Specified purpose accounts:
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 $3 million ($4.2 million in 2013) for specified purpose accounts.
c) New parks and historic sites account:
A portion of the Net financial postion is used for a specific purpose. Related revenues and expenses are included in the future-oriented 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 for the year ended March 31 are highlighted in the following analysis:
| 2014 | 2013 | |
|---|---|---|
| Available at beginning of year | 5,650 | 9,754 |
| Receipts: | ||
| Parliamentary authorities | 500 | 500 |
| Proceeds on disposal of tangible capital assets | 103 | 205 |
| Donations | 27 | 34 |
| 630 | 739 | |
| Expenditures: | ||
| Capital expenditures | 2,530 | 4,843 |
| 2,530 | 4,843 | |
| Available at end of year | 3,750 | 5,650 |
10. Inventory of Consumable Supplies
The inventory of consumable supplies as at March 31 consists of the following:
| 2014 | 2013 | |
|---|---|---|
| Top soil, sand, gravel and other crude material | 967 | 949 |
| Stationery, office and miscellaneous supplies | 960 | 941 |
| Fuel and other petroleum products | 937 | 919 |
| Equipment, materials and supplies | 765 | 751 |
| Printed books, publications and maps | 664 | 652 |
| Fabricated wood and metal products | 626 | 614 |
| Safety equipment | 621 | 609 |
| Construction material and supplies | 340 | 333 |
| Uniforms and protective clothing | 164 | 161 |
| 6,044 | 5,929 |
11. Tangible Capital Assets
| Cost | |||||
|---|---|---|---|---|---|
| Opening balance | Acquisitions | Adjustments | Disposals and write-offs | Closing balance | |
| Buildings, fortifications and leasehold improvements | 937,211 | 21,218 | 373 | 4,325 | 954,477 |
| Improved grounds | 676,068 | 11,764 | 319 | 3,704 | 684,447 |
| Roads | 1,276,896 | 38,106 | 9 | 110 | 1,314,901 |
| Bridges | 300,243 | 13,039 | 110 | 1,270 | 312,122 |
| Canal and marine facilities | 601,348 | 7,649 | 137 | 1,583 | 607,551 |
| Utilities | 258,486 | 6,624 | 2,736 | 31,728 | 236,118 |
| Vehicles and equipment | 128,766 | 7,613 | 175 | 2,032 | 134,522 |
| Exhibits | 108,055 | 2,776 | 63 | 736 | 110,158 |
| Leased tangible capital assets | 22,222 | 1,155 | 7 | 83 | 23,301 |
| 4,309,295 | 109,944 | 3,929 | 45,571 | 4,377,597 | |
| Land | |||||
| Acquired land | 160,859 | 4,972 | (22) | 11 | 165,798 |
| Crown land | 1 | - | - | - | 1 |
| Donated land | 20,210 | - | - | - | 20,210 |
| 181,070 | 4,972 | (22) | 11 | 186,009 | |
| Total | 4,490,365 | 114,916 | 3,907 | 45,582 | 4,563,606 |
| Accumulated Amortization | Net Book Value | ||||||
|---|---|---|---|---|---|---|---|
| Opening balance | Amortization | Adjustments | Disposals and write-offs | Closing balance | Planned Results 2014 |
Estimated Results 2013 |
|
| Buildings, fortifications and leasehold improvements | 603,629 | 18,043 | 788 | 3,818 | 618,642 | 335,835 | 333,582 |
| Improved grounds | 571,428 | 7,519 | 456 | 3,677 | 575,726 | 108,721 | 104,640 |
| Roads | 735,794 | 27,111 | -625 | 1,005 | 761,275 | 553,626 | 541,102 |
| Bridges | 107,724 | 3,364 | -62 | 2,425 | 108,601 | 203,521 | 192,519 |
| Canal and marine facilities | 320,692 | 6,907 | 231 | 1,511 | 326,319 | 281,232 | 280,656 |
| Utilities | 122,897 | 5,680 | 702 | 25,331 | 103,948 | 132,170 | 135,589 |
| Vehicles and equipment | 84,501 | 7,383 | 80 | 3,859 | 88,105 | 46,417 | 44,265 |
| Exhibits | 87,911 | 3,449 | -23 | 869 | 90,468 | 19,690 | 20,144 |
| Leased tangible capital assets | 5,059 | 933 | -6 | 28 | 5,958 | 17,343 | 17,163 |
| 2,639,635 | 80,389 | 1,541 | 42,523 | 2,679,042 | 1,698,555 | 1,669,660 | |
| Land | |||||||
| -Acquired land | - | - | - | - | - | 165,798 | 160,859 |
| -Crown land | - | - | - | - | - | 1 | 1 |
| -Donated land | - | - | - | - | - | 20,210 | 20,210 |
| - | - | - | - | - | 186,009 | 181,070 | |
| Total | 2,639,635 | 80,389 | 1,541 | 42,523 | 2,679,042 | 1,884,564 | 1,850,730 |
The total cost of tangible capital assets includes $136.4 million ($147.8 million in 2013) of construction in progress disclosed with their respective asset category. The Agency owns land, which comprises national parks and national park reserves, national marine conservation areas, and national historic sites.
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 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. Parliamentary Authorities
The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the future-oriented Statement of Operations and Net Financial Position 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 provided and used:
| 2014 | 2013 | |
|---|---|---|
| Authorities requested: | ||
| Vote 25 - Program expenditures | 531,925 | 605,996 |
| Vote 30 - New parks and historic sites account | 500 | 500 |
| Statutory amounts: | ||
| Revenue received pursuant to section 20 of the Parks Canada Agency Act | 113,000 | 111,000 |
| Contributions to employee benefits plan | 48,303 | 51,763 |
| Less: | ||
| Forecasted lapse | - | 77,700 |
| Forecast authorities available | 693,728 | 691,559 |
b) Reconciliation of net cost of operations to current year authorities used:
| 2014 | 2013 | |
|---|---|---|
| Net cost of operations before government funding | 568,738 | 562,257 |
| Revenue received pursuant to section 20 of the Parks Canada Agency Act | 113,000 | 111,000 |
| Adjustments for items affecting net cost of operations but not affecting authorities: | ||
| Amortization of tangible capital assets | (80,389) | (79,135) |
| Services provided without charge by other government departments | (50,080) | (48,374) |
| Refund of prior years' expenditures | 850 | 706 |
| Bad debt expense | (257) | (257) |
| Net loss on disposal of tangible capital assets | (480) | (480) |
| (130,356) | (127,540) | |
| Variation in accounts affecting net cost of operations but not affecting authorities: | ||
| Vacation pay included in the accounts payable and accrued liabilities | (36) | (132) |
| Employee future benefits | - | 3,428 |
| Environmental liability | - | 1,290 |
| Lease obligation for tangible capital assets | 308 | 359 |
| 272 | 4,945 | |
| Adjustments for items not affecting net cost of operations but affecting authorities: | ||
| Acquisitions and improvements to tangible capital assets | 114,916 | 113,914 |
| Previous years accrued liabilities charged to authorities | 7,431 | 30,661 |
| Proceeds on disposal of tangible capital assets | (213) | (314) |
| Change in prepaid expenses | 625 | 625 |
| Change in inventory of consumable supplies | 115 | 115 |
| Change in New parks and historic sites account | (1,900) | (4,104) |
| 120,974 | 140,897 | |
| Forecasted lapse | 21,100 | - |
| Forecast authorities available | 693,728 | 691,559 |
14. 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 and Net Financial Position as follows:
| 2014 | 2013 | |
|---|---|---|
| Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat | 31,111 | 29,742 |
| Accommodation provided by Public Works and Government Services Canada | 17,879 | 17,459 |
| Salary and associated costs of legal services provided by Justice Canada | 938 | 1,021 |
| Other services received without charge | 152 | 152 |
| 50,080 | 48,374 |
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 future-oriented 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 $64.8 million ($67.4 million in 2013) for services provided by Government departments, including an amount of $60.7 million ($63.1million in 2013) with Public Works and Government Services Canada mostly related to architectural, engineering and environmental services of $28.3 million ($29.5 million in 2013), construction services of $3 millions ($3.1 million in 2013), repairs and maintenance $2.8 million ($2.9 million in 2013) and payments in lieu of taxes of $13.2 million ($13.5 million in 2013). Revenues generated from related parties amounted to $1.9 million ($1.9 million in 2013).
15. Contractual obligations
a) The Agency has entered into agreements for operating leases of equipment and accommodations for a total of $2.3 million ($2.5 million in 2013). 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:
| 2014-15 | 392 |
|---|---|
| 2015-16 | 227 |
| 2016-17 | 199 |
| 2017-18 | 171 |
| 2018-19 and beyond | 1,300 |
b) The Agency has entered into contracts for operating and capital expenditures for approximately $58.3 million ($61.5 million in 2013). The majority of payments under these contracts are expected to be made over the next three years.
16. 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 4. 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 | Planned Results 2014 |
Estimated Results 2013 |
|
|---|---|---|---|---|---|---|---|---|
| Salaries and employee benefits | 7,622 | 105,955 | 31,356 | 144,822 | 19,075 | 51,158 | 359,988 | 379,800 |
| Operating expenses | ||||||||
| Professional and special services | 3,400 | 14,741 | 3,124 | 20,505 | 15,706 | 4,034 | 61,510 | 56,638 |
| Utilities, materials and supplies | 2,981 | 12,929 | 2,740 | 17,984 | 13,776 | 3,538 | 53,948 | 49,622 |
| Transportation and communication | 854 | 3,703 | 785 | 5,150 | 3,945 | 1,013 | 15,450 | 15,323 |
| Accommodation received without charge | 988 | 4,285 | 908 | 5,960 | 4,565 | 1,173 | 17,879 | 17,459 |
| Repairs and maintenance | 1,548 | 6,713 | 1,423 | 9,338 | 7,153 | 1,837 | 28,012 | 23,419 |
| Rentals | 1,150 | 4,990 | 1,057 | 6,941 | 5,316 | 1,365 | 20,819 | 16,612 |
| Payments in lieu of taxes | 727 | 3,153 | 668 | 4,386 | 3,360 | 863 | 13,157 | 13,485 |
| Information | 775 | 3,362 | 712 | 4,677 | 3,582 | 920 | 14,028 | 10,080 |
| Miscellaneous expenses | 15,105 | 457 | 97 | 636 | 487 | 125 | 16,907 | 1,600 |
| Net loss on disposal of tangible capital assets | - | - | - | - | - | 480 | 480 | 480 |
| Environmental liability | - | 3,014 | - | - | - | - | 3,014 | 2,975 |
| Total operating expenses | 27,528 | 57,347 | 11,514 | 75,577 | 57,890 | 15,348 | 245,204 | 207,693 |
| Grants and contributions | 204 | 887 | 188 | 1,233 | 945 | 243 | 3,700 | 13,400 |
| Total expenses (excluding amortization) | 35,354 | 164,189 | 43,058 | 221,632 | 77,910 | 66,749 | 608,892 | 600,893 |
| Amortization | 80,389 | 79,135 | ||||||
| Total expenses | 689,281 | 680,028 | ||||||
| Entrance fees | 34 | 580 | 53 | 43,041 | 3,013 | 12,688 | 59,409 | 58,043 |
| Recreational fees | 14 | 239 | 22 | 17,770 | 1,244 | 5,238 | 24,527 | 23,963 |
| Rentals and concessions | 13 | 219 | 20 | 16,339 | 1,144 | 4,817 | 22,552 | 22,034 |
| Other operating revenues | 4 | 72 | 6 | 5,255 | 368 | 1,549 | 7,254 | 7,087 |
| Staff housing | 2 | 33 | 3 | 2,444 | 171 | 721 | 3,374 | 3,296 |
| Townsites revenues | 2 | 33 | 3 | 2,483 | 174 | 732 | 3,427 | 3,348 |
| Total revenues | 69 | 1,176 | 107 | 87,332 | 6,114 | 25,745 | 120,543 | 117,771 |
| Net cost of operations before government funding | 568,738 | 562,257 | ||||||
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