Table 1 for the year ended March 31 (in thousands of dollars)
Expenses Forecast results 2019-2020 Planned results 2020-2021
Parks Canada Programs
Heritage Places Establishment 22 809 24 589
Heritage Places Conservation 190 599 204 239
Heritage Places Promotion and Public Support 63 880 52 955
Visitor Experience 334 997 379 767
Heritage Canals, Highways and Townsites Management 140 807 153 567
Internal Services 151 982 94 684
Total expenses 905 074 909 801
Revenues
Entrance fees 71 192 71 192
Recreational fees 36 546 36 546
Rentals and concessions 27 946 27 946
Other operating revenues 8 720 8 720
Townsites revenues 2 593 2 593
Staff housing 3 138 3 138
Revenues earned on behalf of Government (135) (135)
Total revenues 150 000 150 000
Net cost of operations before government funding and transfers 755 074 759 801
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 forecasted results for fiscal year 2019-20 is based on actual results as at October 31, 2019 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2020-21 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 October 31, 2019.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2019-20 and for 2020-21, 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 2019—20, 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 the 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 2019-2020 Planned results 2020-2021
Net cost of operations before government funding and transfers 755 074 759 801
Revenues received pursuant to section 20 of the Parks Canada Agency Act 150 000 150 000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (174 207) (204 114)
Services provided without charge by other government departments (49 389) (48 000)
Net loss on disposal of tangible capital assets including adjustments (6 832) (6 832)
Total items affecting net cost of operations but not affecting authorities (230 428) (258 946)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 983 421 444 768
Salary overpayments 1 917 1 917
Increase in New Parks and Historic Sites Account 22 892 9 992
Total items not affecting net cost of operations but affecting authorities 1 008 230 456 677
Requested authorities 1 682 876 1 107 532
(b) Authorities requested
Table 3 for the year ended March 31 (in thousands of dollars)
Forecast results 2019-2020 Planned results 2020-2021
Authorities requested:
Vote 1 - Program expenditures 1 455 905 898 653
Vote 5 - New Parks and Historic Sites Account 22 892 9 992
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 150 000 150 000
Contributions to employee benefit plans 54 079 48 887
Requested authorities 1 682 876 1 107 532