Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2018, and all information contained in these financial statements rests with the management of the Parks Canada Agency. These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Agency's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Agency's Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Agency; and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2018 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Agency's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Agency's operations, and by the Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting.


The financial statements of the Agency have not been audited.

Daniel Watson

Chief Executive Officer, Parks Canada
Gatineau, Canada
September 05, 2018

Sylvain Michaud

Chief Financial Officer, Parks Canada
Gatineau, Canada
September 05, 2018 

Statement of Financial Position (Unaudited)

Table 1 as at March 31 (in thousands of dollars)
Liabilities 2018 2017
Accounts payable and accrued liabilities (Note 4) 174,676 164,178
Environmental liabilities (Note 5) 58,051 50,638
Deferred revenue (Note 6) 37,843 34,932
Lease obligations for tangible capital assets (Note 7) 2,453 2,831
Employee future benefits (Note 8) 10,251 10,306
Total liabilities 283,274 262,885
Financial assets
Due from the Consolidated Revenue Fund 181,482 172,265
Accounts receivable and advances (Note 9) 28,571 22,210
Total financial assets 210,053 194,475
Net debt 73,221 68,410
Non-financial assets
Prepaid expenses 2,440 2,558
Inventory (Note 10) 9,828 8,595
Tangible capital assets (Note 11) 3,234,389 2,760,958
Total non-financial assets 3,246,657 2,772,111
Net financial position (Note 12) 3,173,436 2,703,701

Contractual obligations and contractual rights (Note 13)

Contingent liabilities (Note 14)

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

Daniel Watson

Chief Executive Officer, Parks Canada
Gatineau, Canada
September 05, 2018  

Sylvain Michaud

Chief Financial Officer, Parks Canada
Gatineau, Canada
September 05, 2018  

Statement of Operations and Net Financial Position (Unaudited)

Table 2 for the year ended March 31 (in thousands of dollars)
Expenses 2018 Planned Results 2018 2017
Parks Canada Programs
Heritage Places Establishment 7,413 9,815 12,161
Heritage Resources Conservation 147,582 197,307 157,882
Heritage Places Promotion and Public Support 44,553 50,933 48,360
Visitor Experience 287,155 333,959 324,077
Heritage Canals, Highways and Townsite Management 73,643 108,145 89,671
Internal Services 154,949 178,254 167,748
Total expenses 715,295 878,413 799,899
Revenues
Entrance fees 13,582 15,465 68,972
Recreational fees 26,693 36,881 33,693
Rentals and concessions 25,326 33,806 28,008
Other operating revenues 8,994 8,064 7,508
Townsites revenues 3,268 3,126 3,253
Staff housing 3,205 3,544 3,233
Revenues earned on behalf of Government (68) (99) (84)
Total revenues 81,000 100,787 144,583
Net cost of operations before government funding and transfers 634,295 777,626 655,316
Government funding and transfers
Net cash provided by Government of Canada   1,181,190 1,032,416
Change in due from Consolidated Revenue Fund   9,217 7,486
Services provided without charge by other government departments (Note 15a)   50,953 49,727
Transfer of the transition payments for implementing salary payments in arrears   - (3)
Transfer of assets from other government departments   6,001 17
Total government funding and transfers   1,247,361 1,089,643
Net cost of operations after government funding and transfers   (469,735) (434,327)
Net financial position - Beginning of year   2,703,701 2,269,374
Net financial position - End of year   3,173,436 2,703,701

Segmented information (Note 16)

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

Statement of Change in Net Debt (Unaudited)

Table 3 for the year ended March 31 (in thousands of dollars)
(in thousands of dollars) 2018 2017
Net cost of operations after government funding and transfers (469,735) (434,327)
Change due to tangible capital assets
Acquisitions and improvements to tangible capital assets 613,184 557,746
Amortization of tangible capital assets (122,512) (96,908)
Proceeds from disposal of tangible capital assets (648) (1,030)
Net loss on disposal of tangible capital assets including adjustments (22,594) (11,295)
Transfer from other government departments 6,001 17
Total change due to tangible capital assets 473,431 448,530
Change due to inventory 1,233 (129)
Change due to prepaid expenses (118) (437)
Net increase in net debt 4,811 13,637
Net debt - Beginning of year 68,410 54,773
Net debt - End of year 73,221 68,410

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

Statement of Cash Flows (Unaudited)

Table 4 for the year ended March 31
(in thousands of dollars) 2018 2017
Operating activities
Net cost of operations before government funding and transfers 777,626 655,316
Non-cash items:
Amortization of tangible capital assets (122,512) (96,908)
Net loss on disposal of tangible capital assets including adjustments (22,594) (11,295)
Services provided without charge by other government departments (Note 15a) (50,953) (49,727)
Transition payments for implementing salary payments in arrears - 3
Variations in Statement of Financial Position:
Increase in accounts receivable and advances 6,361 9,131
Decrease in prepaid expenses (118) (437)
Increase (decrease) in inventory 1,233 (129)
Increase in accounts payable and accrued liabilities 10,498 (13,559)
Increase in deferred revenue (2,911) (4,688)
Decrease in employee future benefits 55 1,041
Increase in environmental liabilities (7,413) (13,401)
Cash used in operating activities 568,276 475,347
Capital investing activities
Acquisitions and improvements to tangible capital assets 613,184 557,746
Proceeds from disposal of tangible capital assets (648) (1,030)
Cash used in capital investing activities 612,536 556,716
Financing activities
Payments on lease obligations for tangible capital assets 378 353
Cash used in financing activities 378 353
Net cash provided by Government of Canada 1,181,190 1,032,416

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

Notes to the Financial Statements (Unaudited) for the year ended March 31

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 Environment and Climate Change. 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 Rouge National Urban Park Act , the Historic Sites and Monuments Act , the Canada National Marine Conservation Areas Act, the Saguenay-St. Lawrence Marine Park Act, the Historic Canal Regulations pursuant to the Department of Transport Act, the Heritage Railway  Stations Protection Act , the Heritage Lighthouse Protection Act , and the Species at Risk Act.

The programs include:

Heritage Places Establishment:
This program aims to establish heritage places in order to conserve Canada’s natural and cultural heritage for the benefit and enjoyment of present and future generations, thus fostering a strong sense of connection to our natural and cultural heritage. This program also supports Canada’s involvement in the internationally shared objective of protecting and commemorating the best of the world’s natural and cultural heritage. By establishing national parks and national marine conservation areas in each of Canada’s natural terrestrial and marine regions,   this program ensures the protection and presentation of representative examples of Canada’s natural diversity. Likewise, the designation and commemoration of historic places, persons and events in communities across Canada ensures our history remains a living legacy for all Canadians. Establishment or designation is achieved through feasibility assessments, public nominations, research, consultation with Indigenous Peoples, stakeholders and the general public, negotiations with other governments and Indigenous organizations, recommendations from advisory bodies and fulfilment of legislative requirements. This process results in established national parks and national marine conservation areas, and designated national historic sites, persons and events and other heritage places.
Heritage Places Conservation:
This program aims to protect and conserve the natural and cultural resources of all heritage places managed by Parks Canada, as well as the agricultural resources in the national urban park; and to fulfill responsibilities assigned to Parks Canada or mandated through federal legislation. Protection and conservation activities in a national urban park, national parks, national marine conservation areas, heritage canals and Parks Canada-administered national historic sites ensure that these heritage places are maintained and used in ways that leave them unimpaired for the benefit and enjoyment of present and future generations.
Heritage Places Promotion and Public Support:
This program aims to nurture a sense of pride in and support for Parks Canada-administered places by increasing Canadians’ awareness, appreciation of their value and the various ways to experience them. This is achieved through relevant and effective heritage places promotion initiatives delivered to Canadians, reaching them in their daily lives. Some of these promotion activities are done in collaboration with stakeholders and partners to reach and engage more Canadians.
Visitor Experience:
This program fosters opportunities for Canadians and international visitors to discover, experience, enjoy and develop a sense of personal connection to Canada’s national urban park, national parks, national historic sites administered by Parks Canada, national marine conservation areas, and heritage canals. This program includes a range of activities, services and products associated with pre-visit planning, the on- site visit, and post-visit communications. It includes tourism marketing, trip planning information, reception, orientation, interpretation, recreational activities, special events, merchandise, compliance, visitor safety services, and visitor facilities. The program is supported by market and visitor analytics, trend analysis, and performance measurement.
Heritage Canals, Highways and Townsites Management:
This program involves the management of infrastructure for Canadians and provides opportunities for socio-economic benefits to adjacent communities. It is related to the operation, maintenance and improvement of the Trans-Canada and provincially numbered highways within national parks and a national historic site; the water management of certain heritage canals; and, the provision of municipal services to certain national park townsites.
Internal Services:
Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refer to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

2. Summary of significant accounting policies

These financial statements are prepared using the Government of Canada'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.

Significant accounting policies are as follows:

(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 generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2017-2018 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt because these amounts were not included in the 2017-2018 Departmental Plan.

(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) Amounts due from or to the CRF

Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Agency is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues

Entrance fees, recreational fees, rental and concessions, townsites, staff housing and other operating revenues are recognized based on the goods or services provided in the year by the Agency.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. Revenues are then recognized in the period in which the related expenses are incurred.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

Other revenues are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the CEO is expected to maintain accounting control, he 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 as a reduction of the Agency's gross revenues.

(e) Expenses

  • Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
  • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, legal services and workers' compensation are recorded as operating expenses at their carrying value.

(f) Employee future benefits

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. 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.
Severance benefits:
The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts receivable

Accounts receivable are initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

(h) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 11. 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 do not include immovable assets located on reserves as defined in the Indian Act , works of art and museum collection to which no acquisition cost is attributable; and intangible assets. 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.

Inventories are valued at cost and are comprised of consumable supplies held for future program delivery and are not primarily intended for resale. Inventories that no longer have service potential are valued at the lower of cost or net realizable value.

(i) Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(j) Environmental liabilities

An environmental liability for the remediation of contaminated sites is recognized when all of the following criteria are satisfied: an environmental standard exists, contamination exceeds the environmental standard, the Government is directly responsible or accepts responsibility, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The liability reflects the Government’s best estimate of the amount required to remediate the sites to the current minimum standard for its use prior to contamination. When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable and expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the Government’s cost of borrowing, associated with the estimated number of years to complete remediation.

The recorded liabilities are adjusted each year, for present value adjustments, inflation, new obligations, changes in management estimates and actual costs incurred.

If the likelihood of the Government’s responsibility is not determinable, a contingent liability is disclosed in the notes to the consolidated statements.

(k) Transactions involving foreign currencies

Transactions involving foreign currencies are translated in Canadian dollar equivalents using rates of exchange in effect at the time of those transactions.

(l) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government’s best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

Environmental liabilities are subject to measurement uncertainty as discussed in Note 5 due to the evolving technologies used in the estimation of the costs for remediation of contaminated sites, the use of discounted present value of future estimated costs, and the fact that not all sites have had a complete assessment of the extent and nature of remediation. Changes to underlying assumptions, the timing of the expenditures, the technology employed, or the revisions to environmental standards or changes in regulatory requirements could result in significant changes to the environmental liabilities recorded.

(m) Related party transactions

Related party transactions, other than inter-entity transactions, are recorded at the exchange amount. Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

  1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
  2. Certain services received on a without charge basis are recorded for agency financial statement purposes at the carrying amount.

3. Parliamentary authorities

The Agency receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the 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) Reconciliation of net cost of operations to current year authorities used

Table 5 for the year ended March 31
(in thousands of dollars) 2018 2017
Net cost of operations before government funding and transfers 777,626 655,316
Revenues received pursuant to section 20 of the Parks Canada Agency Act 100,787 144,583
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (122,512) (96,908)
Services provided without charge by other government departments (50,953) (49,727)
Net loss on disposal of tangible capital assets including adjustments (22,594) (11,295)
Increase in vacation pay and compensatory leave (2,843) (1,274)
Decrease in employee future benefits 55 1,041
Increase in environmental liability (7,413) (13,401)
Refund of prior years' expenditures 2,024 1,575
Increase in New Parks and Historic Sites Account 25,082 43
Other (2,271) 708
Total items affecting net cost of operations but not affecting authorities (181,425) (169,238)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 613,184 557,746
Salary overpayments 5,031 2,617
Proceeds from disposal of tangible capital assets (648) (1,030)
Decrease in lease obligation for tangible capital assets 378 353
Increase (decrease) in inventory 1,233 (129)
Decrease in prepaid expenses (118) (437)
Transition payments for implementing salary payments in arrears - 3
Other 985 1,909
Total items not affecting net cost of operations but affecting authorities 620,045 561,032
Current year authorities used 1,317,033 1,191,693

(b) Authorities provided and used

Table 6 for the year ended March 31
(in thousands of dollars) 2018 2017
Authorities provided:
Vote 1 - Program expenditures 1,570,654 1,252,025
Vote 5 - New Parks and Historic Sites Account 25,546 500
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 121,405 166,348
Contributions to employee benefit plans 51,596 50,864
Total authorities 1,769,201 1,469,737
Less:
Authorities available for future years 365,264 275,791
Lapsed authorities 86,904 2,253
Current year authorities used 1,317,033 1,191,693

4. Accounts payable and accrued liabilities

Table 7 for the year ended March 31
The following table presents details of the Agency’s accounts payable and accrued liabilities:
(in thousands of dollars) 2018 2017
Accounts payable - Other government departments and agencies 31,756 25,054
Accounts payable - External parties 107,654 104,320
Total accounts payable 139,410 129,374
Accrued liabilities 35,266 34,804
Total accounts payable and accrued liabilities 174,676 164,178

5. Environmental liabilities

The Government’s "Federal Approach to Contaminated Sites" sets out a framework for management of contaminated sites using a risk-based approach. Under this approach the Government has inventoried the contaminated sites identified on federal lands, allowing them to be classified, managed and recorded in a consistent manner. This systematic approach aids in identification of the high risk sites in order to allocate limited resources to those sites which pose the highest risk to human health and the environment.

The Agency has identified 235 sites (235 sites in 2017) where contamination may exist and assessment, remediation and monitoring may be required. Of these, the Agency has identified 90 sites (91 sites in 2017) where action is required and for which a gross liability of $39,644,198 ($33,739,995 in 2017) has been recorded. This liability estimate has been determined based on site assessments performed by environmental experts.

In addition, a statistical model based upon a projection of the number of sites that will proceed to remediation and upon which current and historical costs are applied is used to estimate the liability for a group of unassessed sites. As a result, there are 96 unassessed sites (122 sites in 2017) where a liability estimate of $18,406,472 ($16,898,177 in 2017) has been recorded using this model.

These two estimates combined, totalling $58,050,670 ($50,638,172 in 2017) represents management’s best estimate of the costs required to remediate sites to the current minimum standard for its use prior to contamination, based on information available at the financial statement date.

For the remaining 49 sites (22 sites in 2017), no liability for remediation has been recognized. Some of these sites are at various stages of testing and evaluation and if remediation is required, liabilities will be reported as soon as a reasonable estimate can be determined. For other sites, the Agency does not expect to give up any future economic benefits (there is likely no significant environmental impact or human health threats). These sites will be re-examined and a liability for remediation will be recognized if future economic benefits will be given up.

The following table presents the total estimated amounts of these liabilities by nature and source, the associated expected recoveries and the total undiscounted future expenditures as at March 31, 2018, and March 31, 2017. When the liability estimate is based on a future cash requirement, the amount is adjusted for inflation using a forecast CPI rate of 1.9% (2.0% in 2017). Inflation is included in the undiscounted amount. The Government of Canada's cost of borrowing by reference to the actual zero-coupon yield curve for Government of Canada bonds has been used to discount the estimated future expenditures. The March 2018 rates range from 1.79% (0.76% in 2017) for 2 year term to 2.24% (2.39% in 2017) for a 30 or greater year term.

Table 8 for the year ended March 31 (in thousands of dollars)
Nature and Source Number of Sites 2018 Estimated Liability 2018 Estimated Total Undiscounted Expenditures 2018 Number of Sites 2017 Estimated Liability 2017 Estimated Total Undiscounted Expenditures 2017
Former Mineral Exploration Sites 1 4 3,708 3,921 4 3,791 3,907
Military & Former Military Sites 2 1 147 156 1 149 153
Fuel Related Practices 3 24 7,625 8,063 30 7,443 7,700
Landfill/Waste Sites 4 97 24,058 25,440 106 17,818 18,729
Engineered Asset/Air & Land Transportation 5 2 344 364 2 346 357
Marine Facilities/Aquatic Sites 6 6 1,831 1,936 6 1,410 1,494
Office/Commercial/Industrial Operations 7 36 16,463 17,409 44 17,109 17,700
Other 8 16 3,875 4,098 20 2,572 2,665
Totals 186 58,051 61,387 213 50,638 52,705

Also during the year 8 sites (8 in 2017) were closed as they were either remediated or assessed to confirm that they no longer meet all the criteria required to record a liability for contaminated sites.

Table 7 note 1

Contamination associated with former mine activities, e.g. heavy metals, petroleum hydrocarbons, etc. Sites often have multiple sources of contamination.

1

Table 7 note 2

Contamination associated with the operations of military and former military sites where activities such as fuel handling and storage activities, waste sites, metals/PCB-based paint used on buildings resulted in former or accidental contamination, e.g. petroleum hydrocarbons, polychlorinated biphenyls (PCBs), heavy metals.  Sites often have multiple sources of contamination.

2

Table 7 note 3

Contamination primarily associated with fuel storage and handling, e.g. accidental spills related to fuel storage tanks or former fuel handling practices, e.g. petroleum hydrocarbons, polyaromatic hydrocarbons and BTEX (benzene, toluene, ethylbenzene and xylenes).

3

Table 7 note 4

Contamination associated with former landfill/waste site or leaching from materials deposited in the landfill/waste site, e.g. metals, petroleum hydrocarbons, BTEX, other organic contaminants, etc.

4

Table 7note 5

Contamination associated with the operations of engineered assets such as airports, railways and roads where activities such as, fuel storage/handling, waste sites, firefighting training facilities and chemical storage areas resulted in former or accidental contamination, e.g. metals, petroleum hydrocarbons, polyaromatic hydrocarbons, BTEX and other organic contaminants. Sites often have multiple sources of contamination.

5

Table 7 note 6

Contamination associated with the operations of marine assets, e.g. port facilities, harbours, navigation systems, light stations, hydrometric stations, where activities such as fuel storage/handling, use of metal based paint (e.g. on light stations) resulted in former or accidental contamination, e.g. metals, petroleum hydrocarbons, polyaromatic hydrocarbons and other organic contaminants. Sites often have multiple sources of contamination.

6

Table 7 note 7

Contamination associated with the operations of the office/commercial/industrial facilities where activities such as fuel storage/handling waste sites and use of metal-based paint resulted in former or accidental contamination, e.g. metals, petroleum hydrocarbons, polyaromatic hydrocarbons, BTEX, etc. Sites often have multiple sources of contamination.

7

Table 7 note 8

Contamination from other sources, e.g. use of pesticides, herbicides, fertilizers at agricultural sites, use of PCBs, firefighting training areas, firing ranges and training facilities, etc.

8

6. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties for fees prior to services being performed. Revenue is recognized in the period in which the service is performed. Details of the transactions related to this account are as follows:

Table 9 for the year ended March 31
(in thousands of dollars) 2018 2017
Deferred revenue - Beginning of year 34,932 30,244
Amounts received 35,235 31,620
Revenue recognized (32,324) (26,932)
Deferred revenue - End of year 37,843 34,932

7. Lease obligations for tangible capital assets

The Agency has entered into agreements to lease commercial and office space under capital leases with a cost of $20,967,931 and accumulated amortization of $8,216,548 as at March 31, 2018 ($20,967,931 and $7,521,320 respectively as at March 31, 2017). The obligations related to the upcoming years include the following:

Table 10 for the year ended March 31
(in thousands of dollars) 2018 2017
2018 - 544
2019 544 544
2020 509 509
2021 403 403
2022 403 403
2023 and subsequent 1,200 1,189
Total future minimum lease payment 3,059 3,592
Less: imputed interest (6.3%) 606 761
Balance of obligations under leased tangible capital assets 2,453 2,831

8. Employee future benefits

(a) Pension benefits

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

Both the employees and the Agency contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 related to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2018 expense amounts to $35,136,745 ($35,437,044 in 2017). For Group 1 members, the expense represents approximately 1.01 times (1.12 times in 2017) the employee contributions and, for Group 2 members, approximately 1.00 times (1.08 times in 2017) the employee contributions.

The Agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

Severance benefits provided to the Agency’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Table 11 for the year ended March 31
(in thousands of dollars) 2018 2017
Accrued benefit obligation - Beginning of year 10,306 11,347
Expense for the year 926 621
Benefits paid during the year (981) (1,662)
Accrued benefit obligation - End of year 10,251 10,306

9. Accounts receivable and advances

Table 12 for the year ended March 31
The following table presents details of the Agency's accounts receivable and advances balances:
(in thousands of dollars) 2018 2017
Receivables - Other government departments and agencies 6,531 8,738
Receivables - External parties 19,919 12,849
Employee advances 3,194 2,154
Subtotal 29,644 23,741
Allowance for doubtful accounts on receivables from external parties (1,073) (1,531)
Total accounts receivable and advances 28,571 22,210

10. Inventory

Table 13 for the year ended March 31
(in thousands of dollars) 2018 2017
Stationery, office and miscellaneous supplies 3,256 1,973
Equipment, materials and supplies 1,620 1,842
Safety equipment 1,122 892
Fabricated wood and metal products 866 732
Fuel and other petroleum products 833 756
Top soil, sand, gravel and other crude material 641 909
Construction material and supplies 576 661
Printed books, publications and maps 543 423
Uniforms and protective clothing 371 407
Total inventory 9,828 8,595
The cost of consumed inventory recognized as an expense in the Statement of Operations and Net Financial Position is $71,953,938 in 2018 ($41,460,727 in 2017).

11. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset Class
Amortization Period

Buildings

25-50 years

Fortifications

50-100 years

Leasehold improvements

Lesser of the remaining term of the lease or 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

Landscaping and improvement

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

Assets under construction are recorded in the applicable asset class in the year they are put into service and are not amortized until they are put into service.

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 Parks Canada's national historic sites, national parks and marine conservation areas. The types of sites vary greatly, from Indigenous villages, hunting camps, observation areas, and animal processing areas, to European fur trade and military posts, battlefields, shipwrecks, homesteads, and transportation and industrial sites.

Table 14 for the year ended March 31 (in thousands of dollars)
Cost
Opening Balance
Acquisitions Adjustments Footnote 1 Disposals and Write-offs Closing Balance
Tangible capital assets
Land 185,277 2,694 4,691 559 192,103
Buildings, fortifications and leasehold improvements 989,043 21,841 33,862 21,925 1,022,821
Landscaping and improvement 675,303 7,163 13,274 2,466 693,274
Roads 1,459,544 128,073 131,770 37,804 1,681,583
Bridges 481,503 25,585 64,289 6,237 565,140
Canal and marine facilities 642,773 10,114 43,920 3,220 693,587
Utilities 284,584 2,708 15,306 2,075 300,523
Vehicles and equipment 178,404 10,650 5,558 3,779 190,833
Exhibits 106,022 973 1,174 924 107,245
- 5,002,453 209,801 313,844 78,989 5,447,109
Assets under construction
Buildings, fortifications and leasehold improvements 100,865 96,529 (31,659) 8,104 157,631
Landscaping and improvement 49,015 40,931 (7,648) 1,341 80,957
Roads 210,919 89,333 (138,099) 913 161,240
Bridges 80,542 42,219 (60,998) 789 60,974
Canal and marine facilities 102,919 99,796 (40,449) 72 162,194
Utilities 46,355 22,227 (18,999) 22 49,561
Vehicles and equipment 14,589 8,832 (5,972) 35 17,414
Exhibits 6,613 3,516 (603) 162 9,364
- 611,817 403,383 (304,427) 11,438 699,335
Leased tangible capital assets
Buildings, fortifications and leasehold improvements 20,968 - - - 20,968
Total 5,635,238 613,184 9,417 90,427 6,167,412
Footnote 1

Adjustments include assets under construction of $305,855,395 that were transferred to the other categories upon completion of the assets.

Return to footnote 1 referrer

 
Table 15 for the year ended March 31 (in thousands of dollars)
Accumulated Amortization Opening Balance Amortization Adjustments(1) Disposals and Write-offs Closing Balance Net Book Value
2018 2017
Tangible capital assets
Land - - - - - 192,103 185,277
Buildings, fortifications and leasehold improvements 648,083 19,559 1,814 19,203 650,253 372,568 340,960
Landscaping and improvement 584,310 8,821 1,017 1,969 592,179 101,095 90,993
Roads 810,937 50,551 (1,399) 32,815 827,274 854,309 648,607
Bridges 136,305 11,755 573 4,027 144,606 420,534 345,198
Canal and marine facilities 345,924 8,666 79 1,334 353,335 340,252 296,849
Utilities 138,837 7,072 1 1,916 143,994 156,529 145,747
Vehicles and equipment 109,136 12,650 (259) 3,566 117,961 72,872 69,268
Exhibits 93,227 2,743 53 818 95,205 12,040 12,795
- 2,866,759 121,817 1,879 65,648 2,924,807 2,522,302 2,135,694
Assets under construction
Buildings, fortifications and leasehold improvements - - - - - 157,631 100,865
Landscaping and improvement - - - - - 80,957 49,015
Roads - - - - - 161,240 210,919
Bridges - - - - - 60,974 80,542
Canal and marine facilities - - - - - 162,194 102,919
Utilities - - - - - 49,561 46,355
Vehicles and equipment - - - - - 17,414 14,589
Exhibits - - - - - 9,364 6,613
  - - - - - 699,335 611,817
Leased tangible capital assets
Buildings, fortifications and leasehold improvements 7,521 695 - - 8,216 12,752 13,447
Total 2,874,280 122,512 1,879 65,648 2,933,023 3,234,389 2,760,958

(1) During 2018, the Agency transferred in land of $5,421,620 from Transport Canada as well as buildings with a net book value of $254,578 and works with a net book value of $13,644. Also, during 2018, the Agency transferred in land with a net book value of $311,137 from Library and Archives Canada. These transfers are included in the adjustments column.

12. Net financial position

A portion of the Agency's net financial position is used for a specific purpose. Related revenues and expenses are included in the Statement of Operations and Net Financial Position.

The New Parks and Historic Sites Account was established pursuant to the Parks Canada Agency Act. 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 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. The balance of the account is to be used to acquire real property or immovables related to, or to develop or maintain any national park, national historic site, national marine conservation area or other protected heritage area that is being established, enlarged or designated.

The late The Right Hon W L Mackenzie King bequeathed Laurier House, Ottawa, and the sum of $225,000, to the Government of Canada. This amount was credited to the account and earns interest, in accordance with the terms of section 3 of the Laurier House Act . The interest is to be used to assist in the maintenance of the Laurier House, which is to be preserved as a place of historic interest, and also to provide accommodation for study and research.

Table 16 for the year ended March 31
The following table presents details of the Agency's net financial position (in thousands of dollars):
Restricted 2018 2017
New Parks and Historic Sites Account
Available at beginning of year 14,761 14,718
Receipts:
Parliamentary authorities 25,546 500
Proceeds on disposal of tangible capital assets 330 336
Donations 3 3
  25,879 839
Capital expenditures 797 796
New Parks and Historic Sites Account - Available at end of year 39,843 14,761
Mackenzie King Trust Account 225 225
Restricted - Available at end of year 40,068 14,986
Unrestricted 3,133,368 2,688,715
Net financial position at year end 3,173,436 2,703,701

13. Contractual obligations and contractual rights

a) Contractual obligations

The nature of the Agency's activities may result in some large multi-year contracts and obligations whereby the Agency will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Table 17 for the year ended March 31
(in thousands of dollars) 2019 2020 2021 2022 2023 and subsequent Total
Operating leases 500 257 199 117 625 1,698
Purchases and transfer payments 382,134 272,486 59,633 2,744 7,413 724,410
Total 382,634 272,743 59,832 2,861 8,038 726,108

b) Contractual rights

The activities of the agency sometimes involve the negotiation of contracts or agreements with outside parties that result in the agency having rights to both assets and revenues in the future. They principally involve leases of property and municipality agreements. Major contractual rights that will generate revenues in future years and that can be reasonably estimated are summarized as follows:

Table 18 for the year ended March 31
(in thousands of dollars) 2019 2020 2021 2022 2023 and subsequent Total
Leases of property 1,274 1,306 1,339 1,372 56,237 61,528
Municipality agreements1 1,195 1,205 1,216 1,226 - 4,842
Total 2,469 2,511 2,555 2,598 56,237 66,370
Footnote 1

Agreements for municipalities do not have an end date, therefore amounts for 2022-23 and subsequent cannot be determined.

Return to footnote 1 referrer

14. Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. The Agency's contingent liabilities consist of claims which 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 $1,325,000 at March 31, 2018 ($25,640,000 in 2017).

15. Related party transactions

The Agency is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The Agency enters into transactions with these entities in the normal course of business and on normal trade terms.

a) Common 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 at the carrying value in the Agency's Statement of Operations and Agency's Net Financial Position as follows:

Table 19 for the year ended March 31
(in thousands of dollars) 2018 2017
Employer's contribution to the health and dental insurance plans 33,119 30,908
Accommodation 17,599 18,514
Legal services 159 224
Workers' compensation 76 81
Total 50,953 49,727

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 Services and Procurement Canada as well as the email, network and data center services and the workplace technology devices provided by Shared Services Canada are not included in the Agency's Statement of Operations and Agency's Net Financial Position.

(b) Other transactions with other government departments and agencies

Table 20 for the year ended March 31
(in thousands of dollars) 2018 2017
Accounts receivable 6,531 8,738
Accounts payable 31,756 25,054
Expenses 267,202 258,473
Revenues 26,015 955
Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

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 2. 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:

Table 21 for the year ended March 31 (in thousands of dollars)
Heritage Places Establishment Heritage Places Conservation Heritage Places Promotion and Public Support Visitor Experience Heritage Canals, Highways and Townsite Management Internal Services 2018 2017
Salaries and employee benefits 5,834 89,149 33,321 160,559 22,199 119,079 430,141 398,736
Operating expenses
Amortization of tangible capital assets 11 8,385 368 57,822 51,908 4,018 122,512 96,908
Professional and special services 392 34,709 4,546 22,534 11,386 19,756 93,323 82,919
Utilities, materials and supplies 544 12,181 1,042 32,588 13,221 8,803 68,379 62,899
Rentals 37 17,962 1,650 6,876 261 5,297 32,083 17,578
Transportation and communications 570 6,621 2,549 5,226 420 7,738 23,124 23,317
Net loss on disposal of tangible capital assets including adjustments - 8,027 (138) 3,846 4,682 6,176 22,593 11,295
Payments in lieu of taxes - - - 19,000 - - 19,000 37,128
Repairs and maintenance 5 3,282 37 11,019 2,949 1,395 18,687 17,601
Accommodation 240 3,642 1,378 6,592 882 4,866 17,600 18,514
Information 30 255 3,994 4,141 16 735 9,171 9,550
Miscellaneous expenses - 32 9 2,900 61 391 3,393 7,660
Total Operating expenses 1,829 95,096 15,435 172,544 85,786 59,175 429,865 385,369
Grants and contributions 2,152 13,062 2,177 856 160 - 18,407 15,794
Total expenses 9,815 197,307 50,933 333,959 108,145 178,254 878,413 799,899
Revenues
Entrance fees - - - 15,465 - - 15,465 68,972
Recreational fees - - - 36,881 - - 36,881 33,693
Rentals and concessions - 1,014 - 18,377 3,114 11,301 33,806 28,008
Other operating revenues - 1,195 90 4,593 437 1,749 8,064 7,508
Townsites revenues - - - - 3,126 - 3,126 3,253
Staff housing - - - - - 3,544 3,544 3,233
Revenues earned on behalf of Government - - - - - (99) (99) (84)
Total revenues - 2,209 90 75,316 6,677 16,495 100,787 144,583
Net cost from continuing operations 9,815 195,098 50,843 258,643 101,468 161,759 777,626 655,316