Table 1 for the year ended March 31 (in thousands of dollars)
Expenses Forecast results 2018-2019 Planned results 2019-2020
Parks Canada Programs
Heritage Places Establishment 42,198 15,635
Heritage Places Conservation 170,700 187,329
Heritage Places Promotion and Public Support 54,696 55,053
Visitor Experience 282,674 333,381
Heritage Canals, Highways and Townsites Management 115,325 135,382
Internal Services 176,284 151,347
Total expenses 841,877 878,127
Revenues
Entrance fees 21,483 23,016
Recreational fees 51,230 54,890
Rentals and concessions 46,959 50,313
Other operating revenues 11,201 12,002
Townsites revenues 4,342 4,652
Staff housing 4,923 5,274
Revenues earned on behalf of Government (138) (147)
Total revenues 140,000 150,000
Net cost of operations before government funding and transfers 701,877 728,127
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 2018-19 is based on actual results as at November 30, 2018 and on forecasts for the remainder of the fiscal year.

Forecasts have been made for the planned results for the 2019-20 fiscal year. The main assumptions underlying the forecasts are as follows:

  1. The Agency's 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 November 30, 2018.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2018-19 and for 2019-20, 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.

After 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 2018-19, 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 item where an estimate is used is estimated useful lives of tangible capital assets. 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 Forecast results 2018-2019 Planned results 2019-2020
Net cost of operations before government funding and transfers 701,877 728,127
Revenues received pursuant to section 20 of the Parks Canada Agency Act 140,000 150,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (145,880) (170,549)
Services provided without charge by other government departments (50,440) (50,030)
Net loss on disposal of tangible capital assets including adjustments 1,384 -
Total items affecting net cost of operations but not affecting authorities (194,936) (220,579)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 872,229 979,573
Salary overpayments 3,923 -
Increase in New Parks and Historic Sites Account 44,007 13,423
Total items not affecting net cost of operations but affecting authorities 920,159 992,996
Requested authorities 1,567,100 1,650,544
(b) Authorities requested
Table 3 for the year ended March 31 (Unaudited)
(in thousands of dollars) Forecast results 2018-2019 Planned results 2019-2020
Authorities requested:
Vote 1 - Program expenditures 1,333,601 1,433,900
Vote 5 - New Parks and Historic Sites Account 44,007 13,423
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 140,000 150,000
Contributions to employee benefit plans 49,492 53,221
Requested authorities 1,567,100 1,650,544