Future-Oriented Statement of Operations

Future-oriented Statement of Operations and Net Financial Position for the Year Ended March 31 (Unaudited)
(in thousands of dollars)
Planned
Results
2014-15
Estimated
Results
2013-14
Expenses
Parks Canada Programs
Heritage Places Establishment 28,664 22,946
Heritage Resources Conservation 170,739 164,746
Public Appreciation and Understanding 44,842 46,498
Visitor Experience 232,655 226,483
Townsite and Throughway Infrastructure 39,610 72,840
Internal Services 65,143 65,698
581,653 599,211
Amortization of tangible capital assets 80,460 78,350
Total expenses 662,113 677,561
Revenues
Entrance fees 60,050 59,504
Recreational fees 24,622 24,398
Rentals and concessions 22,407 22,203
Other operating revenues 5,057 5,011
Townsites revenues 3,360 3,329
Staff housing 3,111 3,083
Revenues earned on behalf of Government (172) (170)
118,435 117,358
Net cost of operations 543,678 560,203

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to Future-Oriented Statements of Operations for the Year Ended March 31, 2015 (Unaudited)

1. Significant assumptions

The Future-Oriented Statement of Operations 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 2013-14 is based on actual results as at November 30, 2013 and forecast for the remainder of the fiscal year. Estimated year-end information for 2013-14 is used as the opening position for the 2014-15 planned results and forecasts have been made for the planned results for 2014-15.

The main assumptions underlying the forecasts 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. Amortization expenses of tangible capital assets are estimated based on the expected capital asset closing balances.

These assumptions are adopted as at November 30, 2013.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2013-14 and for 2014-15, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing the Future-Oriented Statement of Operations, the Agency has made estimates and assumptions concerning the future. These estimates and 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 Statement of Operations and the historical financial statements include:

  1. The timing and amounts of acquisitions and disposals of tangible capital assets 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.
  5. Changes within Government of Canada policies and direction or accounting standards.
  6. Weather or other natural adversities or disasters.

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

3. Summary of Significant Accounting Policies

This Future-Oriented Statement of Operations has been prepared in accordance with the Government's accounting policies stated below, which are based on Canadian Public Sector Accounting Standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian Public Sector Accounting Standards. The Future-Oriented Statement of Operations was prepared using the accounting standards in effect at the time of preparation. The estimated results for the current fiscal year and the planned results for the future year may have to be restated when presented as planned information in the historical financial statement for that year.

a) Parliamentary authorities:

The Agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Agency do not parallel financial reporting according to Canadian generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-Oriented Statement of Operations are not necessarily the same as those provided through authorities from Parliament. Note 4 provides a reconciliation between the bases of reporting.

b) Expenses:

Expenses are recorded on the accrual basis.

  1. 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.

  2. 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.

  3. Vacation pay and compensatory leave:
    Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
c) Revenue recognition:

Entrance fees, recreational fees, rentals and concessions, other operating, townsites and staff housing revenues are recognized in the year in which the goods or services are provided by the Agency. Funds received for future services are recorded as deferred revenue.

Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the Agency is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the Agency's gross revenues.

d) Measurement uncertainty:

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

4. Parliamentary Authorities

The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Agency has different net 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) Reconciliation of net cost of operations to current year authorities used:
(In thousands of dollars)
Planned
2014-15
Estimated
2013-14
Net cost of operations 543,678 560,203
Revenue received pursuant to section 20 of the
Parks Canada Agency Act
118,435 117,358
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (80,460) (78,350)
Services provided without charge by other government departments (44,442) (45,693)
Refund of prior years' expenditures (914) (914)
Accrued liabilities not charged to authorities (3,489) 11,909
Bad debt expense (113) (113)
Net gain (loss) on disposal of tangible capital assets (513) 139
(129,931) (113,022)
Variation in accounts affecting net cost of operations but not affecting authorities:
Vacation pay included in the accounts payable and accrued liabilities 31 10
Employee future benefits 1,135 42,992
Environmental liability - 1,554
Lease obligation for tangible capital assets 312 308
  1,478 44,864
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 124,468 115,347
Proceeds on disposal of tangible capital assets (702) (2,357)
Change in prepaid expenses 600 600
Change in inventory of consumable supplies 321 321
Change in New parks and historic sites account 1,348 (2)
  126,035 113,909
Forecast authorities available 659,695 723,312
b) Authorities provided and used:
(In thousands of dollars)
2014-15 2013-14
Authorities requested:
Vote 20 - Program expenditures 546,681 672,816
Vote 25 - New parks and historic sites account 3,500 500
Statutory amounts:
Revenue received pursuant to section 20 of the Parks Canada Agency Act 112,930 113,000
Contributions to employee benefits plan 46,584 48,593
Less:
Forecasted lapse - 4,497
Authorities available for future years 50,000 107,100
Forecast authorities available 659,695 723,312