Table 1 for the year ended March 31 (in thousands of dollars)
Expenses Planned results 2018-19 Forecast results 2017-18
Parks Canada Programs
Heritage Places Establishment 26,863 16,014
Heritage Places Conservation 139,963 182,852
Heritage Places Promotion and Public Support 51,794 51,832
Visitor Experience 298,132 295,136
Heritage Canals, Highways and Townsites Management 96,421 77,404
Internal Services 172,267 157,330
Total expenses 785,440 780,568
Revenues
Entrance fees 66,785 9,101
Recreational fees 32,625 32,039
Rentals and concessions 27,120 26,633
Other operating revenues 7,270 7,140
Townsites revenues 3,150 3,093
Staff housing 3,131 3,074
Revenues earned on behalf of Government (81) (80)
Total revenues 140,000 81,000
Net cost of operations before government funding and transfers 645,440 699,568
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 (Unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of the government priorities and agency's plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2017-18 is based on actual results as at December 31, 2017 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2018-19 fiscal year.

The main assumptions underlying the forecasts are as follows:

  1. The Agency's core activities will remain substantially the same as in the previous year.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on past 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 December 31, 2017.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the Agency has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

  1. The timing and the amount of acquisitions and disposals of tangible capital assets which may affect gains, losses and amortization expense.
  2. The 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 Departmental Plan is tabled in Parliament, 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 Results Report.

3. Summary of Significant Accounting Policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for fiscal year 2017-18, and is 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) 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.

b) 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.

c) 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 differs from financial reporting according to generally accepted accounting principles because authorities are based mainly 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. 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:
Table 2 for the year ended March 31 (in thousands of dollars)
Net cost of operations Planned results 2018-19 Forecast results 2017-18
Net cost of operations before government funding and transfers 645,440 699,568
Revenues received pursuant to section 20 of the Parks Canada Agency Act 140,000 81,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (121,261) (103,337)
Services provided without charge by other government departments (49,541) (49,139)
Net loss on disposal of tangible capital assets including adjustments (6,868) (6,868)
Decrease in environmental liability 4,521 3,297
Increase in accrued liabilities not charged to authorities - (2,500)
Total items affecting net cost of operations but not affecting authorities (173,149) (158,547)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 851,229 732,817
Salary overpayments - 5,137
Increase in New Parks and Historic Sites Account 9,007 25,546
Total items not affecting net cost of operations but affecting authorities 860,236 763,500
Requested authorities 1,472,527 1,385,521
(b) Authorities requested
Table 3 for the year ended March 31
(in thousands of dollars) Planned results 2018-19 Forecast results 2017-18
Authorities requested:
Vote 1 - Program expenditures 1,275,738 1,228,855
Vote 5 - New Parks and Historic Sites Account 9,007 25,546
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 140,000 81,000
Contributions to employee benefit plans 47,782 50,120
Requested authorities 1,472,527 1,385,521