Table of contents


 

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, 2021, 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, 2021 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.

In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. The situation is dynamic and the ultimate duration and magnitude of the full impact on the economy and the financial effect on Parks Canada is unknown at this time. Management is following the situation and its impacts very closely.

The financial statements of the Agency have not been audited.

Ron Hallman

President & Chief Executive Officer
Gatineau, Canada
Date: xx xx 2021

Catherine Blanchard

Vice-President, Finance
Gatineau, Canada
Date: xx xx 2021


Statement of financial position (unaudited)

As at March 31 (in thousands of dollars)
Liabilities 2021 2020
Accounts payable and accrued liabilities (Note 4) 188,615 189,182
Environmental liabilities (Note 5) 98,411 96,178
Deferred revenue (Note 6) 20,582 31,820
Lease obligations for tangible capital assets (Note 7) 1,334 1,643
Employee future benefits (Note 8) 9,569 10,357
Total liabilities 318,511 329,180
Financial assets
Due from the Consolidated Revenue Fund 175,709 193,030
Accounts receivable and advances (Note 9) 26,886 31,461
Total gross financial assets 202,595 224,491
Financial assets held on behalf of Government
Accounts receivable and advances (Note 9) (11,491) (10,337)
Total financial assets held on behalf of Government (11,491) (10,337)
Total net financial assets 191,104 214,154
Net debt 127,407 115,026
Non-financial assets
Prepaid expenses 1,864 3,035
Inventory (Note 10) 11,178 11,276
Tangible capital assets (Note 11) 4,678,623 4,370,004
Total non-financial assets 4,691,665 4,384,315
Net financial position (Note 12) 4,564,258 4,269,289

Contractual obligations and contractual rights (Note 13)

Contingent liabilities (Note 14)

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

Ron Hallman

President & Chief Executive Officer
Gatineau, Canada
Date: xx xx 2021

Catherine Blanchard

Vice-President, Finance
Gatineau, Canada
Date: xx xx 2021


Statement of operations and net financial position (unaudited)

For the year ended March 31 (in thousands of dollars)
Expenses 2021 Planned Results 2021 2020
Parks Canada programs
Heritage places establishment 24,589 18,844 35,983
Heritage places conservation 204,239 212,658 196,934
Heritage places promotion and public support 52,955 68,434 66,255
Visitor experience 379,767 448,598 406,973
Heritage canals, highways and townsites management 153,567 165,348 133,347
Internal services 94,684 138,208 129,258
Total expenses 909,801 1,052,090 968,750
Revenues
Entrance fees 71,192 47,141 79,123
Recreational fees 36,546 19,165 41,109
Rentals and concessions 27,946 28,388 34,553
Other operating revenues 8,720 3,251 10,249
Townsites revenues 2,593 3,767 3,988
Staff housing 3,138

3,799

3,937
Revenues from donated properties   233 27
Revenues earned on behalf of Government (135) (91) (375)
Total revenues 150,000 105,653 172,611
Net cost of operations before government funding and transfers 759,801 946,437 796,139
Government funding and transfers
Net cash provided by Government of Canada   1,201,653 1,291,156
Change in due from Consolidated Revenue Fund   (17,321) (4,691)
Services provided without charge by other government departments (Note 15a)   57,073 56,057
Transfer of the transition payments for implementing salary payments in arrears   - (3)
Transfer of assets from other government departments   1 18
Total government funding and transfers   1,241,406 1,342,537
Net cost of operations after government funding and transfers   (294,969) (546,398)
Net financial position - Beginning of year   4,269,289 3,722,891
Net financial position - End of year   4,564,258 4,269,289

Segmented information (Note 16)

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


Statement of change in net debt (unaudited)

For the year ended March 31
(in thousands of dollars) 2021 2020
Net cost of operations after government funding and transfers (294,969) (546,398)
Change due to tangible capital assets
Acquisitions and betterments to tangible capital assets 565,077 731,065
Amortization of tangible capital assets (239,570) (163,730)
Proceeds from disposal of tangible capital assets (430) (862)
Net loss on disposal of tangible capital assets including adjustments (16,484) (3,504)
Transfer (to) from other government departments 26 (5)
Total change due to tangible capital assets 308,619 562,964
Change due to inventory (98) (915)
Change due to prepaid expenses (1,171) (389)
Net increase in net debt 12,381 15,262
Net debt - Beginning of year 115,026 99,764
Net debt - End of year 127,407 115,026

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


Statement of cash flows (unaudited)

For the year ended March 31
(in thousands of dollars) 2021 2020
Operating activities
Net cost of operations before government funding and transfers 946,437 796,139
Non-cash items:
Amortization of tangible capital assets (239,570) (163,730)
Net loss on disposal of tangible capital assets including adjustments (16,484) (3,504)
Services provided without charge by other government departments (Note 15a) (57,073) (56,057)
Transition payments for implementing salary payments in arrears - 3
Variations in statement of financial position:
(Decrease) increase in accounts receivable and advances (5,729) 2,833
Decrease in prepaid expenses (1,171) (389)
Decrease in inventory (98) (915)
Decrease (increase) in accounts payable and accrued liabilities 567 (1,412)
Decrease in deferred revenue 11,238 6,893
Decrease in employee future benefits 788 7
Increase in environmental liabilities (2,233) (19,285)
Transfer of other assets between government departments 25 (23)
Cash used in operating activities 636,697 560,560
Capital investing activities
Acquisitions and betterments to tangible capital assets 565,077 731,065
Proceeds from disposal of tangible capital assets (430) (862)
Cash used in capital investing activities 564,647 730,203
Financing activities
Payments on lease obligations for tangible capital assets 309 394
Cash used in financing activities 309 394
Net cash provided by Government of Canada 1,201,653 1,291,156

Note: Totals may not add due to rounding.

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'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. This process results in national parks, national marine conservation areas, national historic sites, persons and events, and other designated heritage places, including world heritage sites. Establishment or designation is achieved through feasibility assessments, public nominations, research, consultation and engagement with Indigenous Peoples, stakeholders and the general public, negotiations with other governments and Indigenous organizations, and recommendations from advisory bodies, where required. The Program also supports the Government of Canada’s outcome of “A vibrant Canadian culture and heritage” and Canada’s international biodiversity goals (Canada Target 1).
Heritage Places Conservation:
This program aims to protect and conserve the natural and cultural resources of heritage places managed by Parks Canada, including some World Heritage Sites in Canada, for the benefit and enjoyment of present and future generations. This program also provides financial and professional support and advice to heritage places not administered by Parks Canada, and supports Canada’s international conservation obligations. Conservation of natural and cultural resources includes various knowledge-based approaches, applied science, monitoring and reporting, active management, ecological restoration, species recovery, environmental assessment, fire management, commemorative integrity assessments and statements for national historic sites and compliance activities. The Program supports the Government of Canada’s outcome of “A clean and healthy environment”.
Heritage Places Promotion and Public Support:
This program aims to strengthen awareness and appreciation of Canada's national parks, national historic sites, and national marine conservation areas, and to introduce key audiences, such as youth, new Canadians, low- and middle-income Canadians, and urban Canadians to these places. Promotional activities strengthen awareness of heritage places managed by Parks Canada as well as key visitor experience offers and programs. Promotional activities include advertising, social media promotion, marketing, proactive media, and collaborative efforts with national, regional, and local partners and the tourism trade. Outreach activities introduce Canadians to these places through direct connections, interactive experiences, and learning. Outreach activities include digital products such as online video, television, websites, and social media and also include interactive activities such as activation events and participation in learning and tourism events, community gatherings, festivals, and presence at institutions such as museums and aquariums. Collaborative arrangements and partnerships play an important role in promotions and outreach. This program supports the Government of Canada's outcome of “A vibrant Canadian culture and heritage”.
Visitor Experience:
This program provides visitors to national parks, national historic sites, and national marine conservation areas with opportunities to enjoy and appreciate these places in safe and meaningful ways. The program includes a range of activities, such as trip planning, reception, camping, accommodations, visitor safety, visitor services, interpretive activities, merchandise, compliance, and support for visitor facilities. This program supports the Government of Canada's outcome of “A vibrant Canadian culture and heritage”.
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. This program includes: the operation, maintenance and improvement of the Trans Canada and provincially numbered highways within national parks and national historic sites; water management activities and the management of bridge and dam infrastructure at heritage canals; and the provision of municipal services to certain national park townsites, and the management of related infrastructure. This program supports the Government of Canada’s outcome of “A safe and secure Canada”.
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 refers to the activities and resources of the 10 distinct services that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. These services are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Management Services; Materiel Management Services and Acquisition Management 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 2020-2021 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 2020-2021 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

(in thousands of dollars) 2021 2020
Net cost of operations before government funding and transfers 946,437 796,139
Total revenues as per Statement of Operations 105,653 172,611
less: Revenues from donated properties (233) (27)
Revenues received pursuant to section 20 of the Parks Canada Agency Act 105,420 172,584
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (239,570) (163,730)
Services provided without charge by other government departments (57,073) (56,057)
Net loss on disposal of tangible capital assets including adjustments (16,484) (3,504)
Increase (decrease) in vacation pay and compensatory leave (9,323) 1,724
Decrease in employee future benefits 788 7
Increase in environmental liabilities (2,233) (19,285)
Refund of prior years' expenditures 1,881 2,893
Increase in New Parks and Historic Sites Account 10,888 21,547
Other (851) (3,800)
Total items affecting net cost of operations but not affecting authorities (311,977) (220,205)
Adjustments for items not affecting net cost of operations but affecting authorities:
Amortization of tangible capital assets 565,077 731,065
Salary overpayments 2,003 2,358
Proceeds from disposal of tangible capital assets (430) (862)
Decrease in lease obligation for tangible capital assets 309 394
Decrease in inventory (98) (915)
Decrease in prepaid expenses (1,171) (389)
Transition payments for implementing salary payments in arrears - 3
Other - 103
Total items not affecting net cost of operations but affecting authorities 565,690 731,757
Current year authorities used 1,305,570 1,480,275

(b) Authorities provided and used

(in thousands of dollars) 2021 2020
Authorities provided:
Vote 1 - Program expenditures Footnote 1 1,411,698 1,932,377
Vote 5 - New Parks and Historic Sites Account 19,292 26,323
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 110,514 196,329
Contributions to employee benefit plans 66,821 58,533
Total authorities 1,608,325 2,213,562
Less:
Authorities available for future years (221,998) (213,210)
Lapsed authorities (80,757) (520,077)
Current year authorities used 1,305,570 1,480,275
Footnote 1

In 2020-2021, Parks Canada accessed additional authorities in the amount of $56.9M to address revenue shortfalls from the COVID-19 pandemic.

Return to footnote 1 referrer


4. Accounts payable and accrued liabilities

The following table presents details of the Agency’s accounts payable and accrued liabilities:

(in thousands of dollars) 2021 2020
Accounts payable - Other government departments and agencies 40,268 42,149
Accounts payable - External parties 78,947 112,134
Total accounts payable 119,215 154,283
Accrued liabilities 69,400 34,899
Total accounts payable and accrued liabilities 188,615 189,182

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 236 sites (238 sites in 2020) where contamination may exist and assessment, remediation and monitoring may be required. Of these, the Agency has identified 97 sites (89 sites in 2020) where action is required and for which a gross liability of $77,628,735 ($73,092,931 in 2020) 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 sites with no liability. As a result, there are 58 unclassified sites (66 sites in 2020) where a liability estimate of $14,866,539 ($16,784,810 in 2020) has been recorded using this model. Furthermore, there are 5 classified sites with no liability estimates (6 site in 2020) where estimates have been calculated based on professional judgment and comparison with similar sites giving a total liability of $5,916,000 ($6,300,000 in 2020).

These three estimates combined, totaling $98,411,274 ($96,177,741 in 2020) 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 76 sites (77 sites in 2020), 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, 2021, and March 31, 2020. When the liability estimate is based on a future cash requirement, the amount is adjusted for inflation using a forecast CPI rate of 2.0% (2.0% in 2020). 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 2021 rates range from 0.24% (0.45% in 2020) for 2 year term to 2.00% (1.37% in 2020) for a 30 or greater year term.

(in thousands of dollars) 2021 2020
Nature and source Total number of sites Number of sites with a liability Estimated liability Total undiscounted expenditures 2021 Total number of sites Number of sites with a liability
(note 17)
Estimated liability Estimated total undiscounted expenditures 2020
Former mineral exploration sites 1 6 5 5,892 5,981 8 5 5,773 5,865
Military & former military sites 2 4 2 567 576 3 1 160 163
Fuel related practices 3 52 24 15,866 16,104 49 23 14,775 15,013
Landfill/waste sites 4 46 40 16,185 16,428 48 40 23,630 24,009
Engineered asset/air & land transportation 5 6 2 374 380 5 2 367 373
Marine facilities/aquatic sites 6 6 5 31,121 31,588 6 5 30,673 31,165
Office/commercial/industrial operations 7 94 67 22,981 23,325 96 68 15,444 15,691
Other 8 22 15 5,425 5,506 23 17 5,356 5,442
Totals 236 160 98,411 99,888 238 161 96,178 97,721

Also during the year 8 sites (1 in 2020) 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 8 note 1

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

1

Table 8 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 8 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 8 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 8 note 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 8 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 8 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 8 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:

(in thousands of dollars) 2021 2020
Deferred revenue - Beginning of year 31,820 38,713
Amounts received 13,502 23,548
Revenue recognized (24,740) (30,441)
Deferred revenue - End of year 20,582 31,820

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 $19,205,164 and accumulated amortization of $9,483,558 as at March 31, 2021 ($19,205,164 and $8,908,131 respectively as at March 31, 2020). The obligations related to the upcoming years include the following:

(in thousands of dollars) 2021 2020
2021 - 403
2022 403 403
2023 403 403
2024 403 403
2025 287 287
2026 and subsequent -  
Total future minimum lease payment 1,496 1,899
Less: imputed interest (6.3%) (162) (256)
Balance of obligations under leased tangible capital assets 1,334 1,643

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 related to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2021 expense amounts to $45,598,876 ($40,551,405 in 2020). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2020) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2020) 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:

(in thousands of dollars) 2021 2020
Accrued benefit obligation - Beginning of year 10,357 10,364
Expense for the year 894 1,979
Benefits paid during the year (1,682) (1,986)
Accrued benefit obligation - End of year 9,569 10,357

9. Accounts receivable and advances

The following table presents details of the Agency's accounts receivable and advances balances:

(in thousands of dollars) 2021 2020
Receivables - Other government departments and agencies 2,677 5,921
Receivables - External parties 21,736 23,130
Employee advances 3,684 3,659
28,097 32,710
Allowance for doubtful accounts on receivables from external parties (1,211) (1,249)
Gross accounts receivable 26,886 31,461
Accounts receivable held on behalf of Government (11,491) (10,337)
Total accounts receivable and advances 15,935 21,124

10. Inventory

(in thousands of dollars) 2021 2020
(note 17)
Inventory held for sale and consumption - Opening Balance 11,276 12,191
Purchases 45,843 56,190
Consumed Inventory (45,941) (57,105)
Inventory held for sale and consumption - Closing Balance 11,178 11,276

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.

Cost
(in thousands of dollars)
Opening balance Acquisitions Adjustments Footnote 1 Disposals and write-offs Closing balance
Tangible capital assets
Land 269,758 9,636 40 (18) 279,416
Buildings, fortifications and leasehold improvements 1,132,872 13,214 130,956 (21,210) 1,255,832
Landscaping and improvement 721,391 7,919 65,684 (6,529) 788,465
Roads 1,987,646 63,072 43,747 (14,390) 2,080,075
Bridges 732,965 19,813 35,603 (3,014) 785,367
Canals and marine facilities 941,262 46,189 105,481 (8,379) 1,084,553
Utilities 319,685 7,699 24,065 (5,006) 346,443
Vehicles and equipment 212,325 9,800 11,803 (4,861) 229,067
Exhibits 105,949 217 4,814 (3,113) 107,867
6,423,853 177,559 422,193 (66,520) 6,957,085
Assets under construction
Buildings, fortifications and leasehold improvements 329,771 114,783 (129,218) (1,162) 314,174
Landscaping and improvement 166,840 47,132 (80,135) (244) 133,593
Roads 56,695 22,021 (23,344) (1,663) 53,709
Bridges 78,256 25,188 (35,158) - 68,286
Canals and marine facilities 350,767 144,310 (111,949) (7,937) 375,191
Utilities 84,912 26,405 (33,796) (2) 77,519
Vehicles and equipment 16,378 4,699 (3,045) (2,509) 15,523
Exhibits 15,592 1,850 (2,605) - 14,837
Buildings, fortifications and leasedhold improvements under capital lease - 1,130 - - 1,130
1,099,211 387,518 (419,250) (13,517) 1,053,962
Leased tangible capital assets
Buildings, fortifications and leasehold improvements 19,205 - - - 19,205
Total 7,542,269 565,077 2,943 (80,037) 8,030,252
Footnote 1

Adjustments include assets under construction of $472,529,131 that were transferred to the other categories upon completion of the assets.

Return to footnote 1 referrer

 
Accumulated amortization
(in thousands of dollars)
Opening balance Amortization AdjustmentsFootnote 1 Disposals and write-offs Closing balance Net book value
2021 2020
Tangible capital assets
Land - - - - - 279,416 269,758
Buildings, fortifications and leasehold improvements 696,181 37,497 1,129 (19,258) 715,549 540,283 436,691
Landscaping and improvement 603,391 16,094 116 (6,304) 613,297 175,168 118,000
Roads 928,894 98,433 (1,562) (13,599) 1,012,166 1,067,909 1,058,752
Bridges 170,507 24,118 91 (2,081) 192,635 592,732 562,458
Canals and marine facilities 371,560 34,435 - (5,704) 400,291 684,262 569,702
Utilities 158,308 10,250 (844) (4,670) 163,044 183,399 161,377
Vehicles and equipment 136,331 14,814 200 (4,633) 146,712 82,355 75,994
Exhibits 98,186 3,354 3 (3,090) 98,453 9,414 7,763
3,163,358 238,995 (867) (59,339) 3,342,147 3,614,938 3,260,495
Assets under construction
Buildings, fortifications and leasehold improvements - - - - - 314,174 329,771
Landscaping and improvement - - - - - 133,593 166,840
Roads - - - - - 53,709 56,695
Bridges - - - - - 68,286 78,256
Canals and marine facilities - - - - - 375,191 350,767
Utilities - - - - - 77,519 84,912
Vehicles and equipment - - - - - 15,523 16,378
Exhibits - - - - - 14,837 15,592
Buildings, fortifications and leasehold improvements under capital lease - - - - - 1,130

-

- - - - - 1,053,962 1,099,211
Leased tangible capital assets
Buildings, fortifications and leasehold improvements 8,907 575 - - 9,482 9,723 10,298
Total 3,172,265 239,570 (867) (59,339) 3,351,629 4,678,623 4,370,004
Footnote 1

During 2020-21, the Agency transferred in a generator with a net book value of $26,217 from National Research Council Canada. This transfer is included in the adjustment column.

Return to footnote 1 referrer


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 expenditures are made for the purpose of establishing or developing new parks, 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 protect the capital funding required and honor the Agency’s commitment for the establishment, enlargement or designation of national parks, national historic sites, national marine conservation areas or other protected heritage areas.

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.

The following table presents details of the Agency's net financial position:

(in thousands of dollars) 2021 2020
Restricted
New Parks and Historic Sites Account
Available at beginning of year 79,152 57,605
Receipts:
Parliamentary authorities 19,292 26,323
Proceeds on disposal of tangible capital assets 6 215
Donations - 27
19,298 26,565
Capital expenditures (8,410) (5,018)
New Parks and Historic Sites Account - Available at end of year 90,040 79,152
Mackenzie King Trust Account 225 225
Restricted - Available at end of year 90,265 79,377
Unrestricted 4,473,993 4,189,912
Net financial position at year end 4,564,258 4,269,289

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:

(in thousands of dollars) 2022 2023 2024 2025 2026 and subsequent Total
Operating leases 1,946 564 564 463 1,532 5,069
Purchases and transfer payments 207,159 54,391 31,752 9,722 3,153 306,177
Total 209,105 54,955 32,316 10,185 4,685 311,246

b) Contractual rights

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

(in thousands of dollars) 2022 2023 2024 2025 2026 and subsequent Total
Leases of property 9,652 9,634 9,627 9,662 177,053 215,628
OtherFootnote 1 2,764 2,769 2,761 2,705 5,716 16,715
Total 12,416 12,403 12,388 12,367 182,769 232,343
Footnote 1

Includes municipal incorporation agreements and residential licenses that do not have an end date, therefore amounts for 2026 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 records 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 $7,038,000 at March 31, 2021 ($2,320,000 in 2020). A claim in regards to Indigenous rights and another one for damage are likely, however a reasonable estimate cannot be made.


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:

(in thousands of dollars) 2021 2020
Employer's contribution to the health and dental insurance plans 37,941 36,914
Accommodation 18,876 18,914
Legal services 209 180
Workers' compensation 47 49
Total 57,073 56,057

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

(in thousands of dollars) 2021 2020
Accounts receivable 2,677 5,921
Accounts payable 40,268 42,149
Expenses 118,716 184,026
Revenues 475 824
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 expense and by major type of revenue. The segment results for the period are as follows:

(in thousands of dollars) Heritage places establishment Heritage places conservation Heritage places promotion and public support Visitor experience Heritage canals, highways and townsites Internal services 2021 2020
Salaries and employee benefits 8,142 136,502 45,793 214,568 30,280 112,398 547,683 479,516
Operating expenses
Amortization of tangible capital assets 13 18,765 501 119,082 98,846 2,363 239,570 163,730
Professional and special services 673 19,162 3,899 29,162 6,409 13,944 73,249 99,125
Utilities, materials and supplies 170 12,014 1,269 34,056 11,612 1,708 60,829 70,376
Rentals 58 5,807 213 6,505 497 4,032 17,112 17,593
Transportation and communications 51 2,741 495 2,059 434 1,446 7,226 22,301
Net loss on disposal of tangible capital assets including adjustments 804 3,096 2,203 2,096 10,788 (2,503) 16,484 3,504
Payments in lieu of taxes - - - 20,980 - - 20,980 20,514
Repairs and maintenance 1 1,856 48 8,073 4,982 126 15,086 15,923
Accommodation 273 4,643 1,535 7,408 1,137 3,880 18,876 18,914
Information 55 670 847 2,006 17 369 3,964 8,480
Miscellaneous expenses - 272 26 138 180 445 1,061 3,366
Total operating expenses 2,098 69,026 11,036 231,565 134,902 25,810 474,437 443,826
Grants and contributions 8,604 7,130 11,605 2,465 166 - 29,970 45,408
Total expenses 18,844 212,658 68,434 448,598 165,348 138,208 1,052,090 968,750
Revenues
Entrance fees - - - 47,141 - - 47,141 79,123
Recreational fees - - - 19,165 - - 19,165 41,109
Rentals and concessions - - - 25,328 3,060 - 28,388 34,553
Other operating revenues - 745 56 1,123 809 518 3,251 10,249
Townsites revenues - - - - 3,767 - 3,767 3,988
Staff housing - 1,313 - 2,486 - - 3,799 3,937
Revenues from donated properties - - - 233 - - 233 27
Revenues earned on behalf of Government - - - - - (91) (91) (375)
Total revenues - 2,058 56 95,476 7,636 427 105,653 172,611
Net cost from continuing operations 18,844 210,600 68,378 353,122 157,712 137,781 946,437 796,139

17. Comparative information

Comparative figures have been reclassified to conform to the current year’s presentation.