Parks Canada Financial Statements

Future-oriented Statement of Operations for the Year Ending March 31 (Unaudited)

(in thousands of dollars)
Planned
Results
2016-2017
Estimated
Results
2015-2016
Expenses
Parks Canada Programs
Heritage Places Establishment 17,149 17,150
Heritage Places Conservation 131,730 133,862
Heritage Places Promotion and Public Support 47,358 40,546
Visitor Experience 274,007 296,280
Heritage Canals, Highways and Townsites Management 70,883 86,567
Internal Services 141,002 144,219
Total expenses 682,129 718,624
Revenues
Entrance fees 60,468 58,010
Recreational fees 25,484 24,448
Rentals and concessions 25,051 24,032
Other operating revenues 6,140 5,891
Townsites revenues 2,812 2,698
Staff housing 3,115 2,988
Revenues earned on behalf of Government (70) (67)
Total revenues 123,000 118,000
Net cost from continuing operations 559,129 600,624

The accompanying notes form an integral part of the future-oriented statement of operations.

Notes to Future-Oriented Statements of Operations for the Year Ending March 31, 2017 (Unaudited)

1. Methodology and Significant assumptions

The future-oriented statement of operations has 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 2015-2016 is based on actual results as at November 30, 2015 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2016-2017 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.
  • Amortization expenses of tangible capital assets are estimated based on the expected capital asset closing balances.

These assumptions are adopted as at November 30, 2015.

2. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2015-2016 and for 2016-2017, 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 assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include the following:

  • 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.
  • Changes within Government of Canada policies and direction or accounting standards.
  • 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 in financial resources 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. Expenses for the Agency's operations are recorded when goods are received or services are rendered, including services provided without charges provided by other government departments which are recorded as expenses at their estimated cost.

Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

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. The most significant items where estimates are used are estimated useful lives of tangible capital assets and environment-related liabilities. 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 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 generally accepted accounting principles because authorities are primarily based on cash flow requirements. Items recognized in the future-oriented statement of operations in one year may be funded through parliamentary authorities in prior, current, or future years. The Agency receives most of its funding through annual Parliamentary authorities. Accordingly, the Agency has different net cost 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 requested authorities:
(In thousands of dollars)
Planned
2016-2017
Estimated
2015-2016
Net cost of operations 559,129 600,624
Revenue received pursuant to section 20 of the
Parks Canada Agency Act
123,000 118,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (95,216) (86,518)
Services provided without charge by other government departments (42,893) (44,527)
Increase in environmental liability (3,411) (3,411)
Total items affecting net cost of operations but not affecting authorities (141,520) (134,456)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 637,636 499,748
Increase (decrease) in New Parks and Historic Sites Account (4,707) (4,522)
Total items not affecting net cost of operations but affecting authorities 632,929 495,226
Requested authorities 1,173,538 1,079,394


b) Authorities requested:
(In thousands of dollars)
Planned Results
2016-2017
Estimated Results
2015-2016
Authorities requested:
Vote 1 - Program expenditures 997,202 908,422
Vote 5 - New Parks and Historic Sites account 500 500
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 123,000 118,000
Contributions to employee benefits plan 52,836 52,472
Requested authorities 1,173,538 1,079,394