For the year ending March 31 (in thousands of dollars)
Expenses Forecast results
2021-2022
Planned results
2022-2023
Parks Canada Programs
Heritage Places Establishment57,75968,196
Heritage Places Conservation 197,629 290,710
Heritage Places Promotion and Public Support 56,497 69,335
Visitor Experience 399,495 386,129
Heritage Canals, Highways and Townsites Management 118,538 196,922
Internal Services 131,563 110,437
Total expenses 961,481 1,121,729
Revenues
Entrance fees 64,865 67,075
Recreational fees 32,860 27,269
Rentals and concessions 31,004 40,393
Other operating revenues 14,150 4,626
Townsites revenues 3,612 5,360
Staff housing 4,076 5,406
Revenues earned on behalf of Government (107) (129)
Total revenues 150,460 150,000
Net cost of operations before government funding and transfers 811,021 971,729
The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to the Future-Oriented Statements of Operations (Unaudited)

1. Methodology and significant assumptions

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

The information in the forecast results for fiscal year 2021-22 is based on actual results as at October 31, 2021 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the fiscal year 2022-23.

The main assumptions underlying the forecasts are as follows:

a) The Agency's activities will remain substantially the same as in the previous year.
b) Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.
c) Amortization expenses of tangible capital assets are estimated based on the expected capital asset closing balances.

These assumptions are made as at October 31, 2021.


2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2021-22 and for 2022-23, 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 experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

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

a) the timing and the amount of acquisitions and disposals of tangible capital assets, which may affect gains, losses and amortization expense;
b) the implementation of new collective agreements;
c) the pandemic COVID-19 impacts which may affect the ability to generate revenue;
d) other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year;
e) changes within Government of Canada policies and direction or accounting standards;
f) 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 2021-22, 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) Revenues recognition

Entrance fees, recreational fees, rentals and concessions, other operating, townsites and staff housing revenues are recognized in the fiscal 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 as a reduction of the Agency's gross revenues.

c) Measurement uncertainty

The preparation of the Future-Oriented Statement of Operations in accordance with Canadian public sector accounting standards 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 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 requested authorities (in thousands of dollars)
Forecast results
2021-2022
Planned results
2022-2023
Net cost of operations before government funding and transfers 811,021 971,729
Revenues received pursuant to section 20 of the Parks Canada Agency Act 150,460 150,000
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (230,862) (269,728)
Services provided without charge by other government departments (58,278) (53,694)
Net loss on disposal of tangible capital assets including adjustments (430) (430)
Increase in vacation pay and compensatory leave (2,777) (2,777)
Decrease in employee future benefits 356 356
Increase in environmental liability 3,010 1,500
Refund of prior years' expenditures 2,347 2,347
Other (1,542) (1,542)
Total items affecting net cost of operations but not affecting authorities (288,176) (323,968)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets 605,774 159,388
Salary overpayments 1,931 1,931
Increase in New Parks and Historic Sites Account 50,989 21,258
Loss from disposal of tangible capital assets 15,011 8,347
Decrease in lease obligation for tangible capital assets 351 351
Decrease in inventory (98) (98)
Decrease in prepaid expenses (226) (226)
Other (129) (129)
Total items not affecting net cost of operations but affecting authorities 673,603 190,822
Requested authorities1,346,908 988,583
b) Authorities requested (in thousands of dollars)
Forecast results
2021-2022
Planned results
2022-2023
Authorities requested:
Vote 1 - Program expenditures 1,083,949 -
Vote 1 - Operating, grants and contributions - 622,094
Vote 5 - New Parks and Historic Sites Account 50,989 -
Vote 5 - Capital - 138,130
Vote 10 - Payments to New Parks and Historic Sites Account - 21,258
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 150,460 150,000
Contributions to employee benefit plans 61,510 57,101
Requested authorities1,346,908 988,583