1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the manner prescribed by the Treasury Board. The report should be read in conjunction with the Main Estimates, the Supplementary Estimates and the previous Quarterly Financial Reports.

A summary description of the Parks Canada Agency’s programs can be found in Part II of the Main Estimates, and a detailed description in Part III – Departmental Plans.

This quarterly report has not been subject to an external audit. However, it has been reviewed by the Agency’s Audit Committee.

1.1 Basis of presentation

This report has been prepared using an expenditure basis of accounting (modified cash accounting). The accompanying Statement of Authorities includes the Parks Canada Agency’s spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2019-20 fiscal year. This report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements, which are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

2. Highlights of fiscal quarter and fiscal year to date results

A chart outlining the total authorities available within the Agency as of September 30 of each year as well as the expenditures of the second quarter. 
The above chart outlines the total authorities available within the Agency as of September 30 of each year, the expenditures during the same quarter as well as the year to date expenditures. Significant changes to authorities and to expenditure patterns are outlined in the following sections.

2.1 Statement of authorities (Table 1)

Authorities available for use

This quarterly report reflects the funding available for use from the 2019-20 Main Estimates, authorities received via allocation from Treasury Board Vote 5 - Government Contingencies, and the 2018-19 unused spending authorityFootnote 1 . The authorities at the same time last year consisted of 2018-19 Main Estimates, authorities for Budget 2018 measures and the 2017-18 unused spending authority.

As per Table 1 (Statement of authorities), at September 30, 2019, Parks Canada’s total authorities available for use for the year ending March 31, 2020, are $298.3 million or 16 percent higher when compared to the same quarter of the previous year (from $1,858.0M to $2,156.3M). The increase in authorities is primarily due to the following factors:

  • An increase in spending authorities related to infrastructure investments -$128.1 million;
  • An increase in unused spending authorities in 2018-2019 - $135 million;
  • An increase in spending authorities to implement A Nature Legacy for Canada - $14.8 million;
  • An increase in spending authorities as a result of last year’s ratification of the collective agreement signed in May 2018 -$11.3 million.

Note: Parks Canada has requested to reprofile $502.6 million from 2019-20 into 2020-21 and 2021-22 in order to align the remaining authorities with the multi-year forecasts.

Authorities used during the quarter

In the second quarter of 2019-20, total net budgetary expenditures were $403.0 million compared to $419.6 million reported for the same period in 2018-19, resulting in a decrease of $16.6 million or 4 percent.

The decrease in authorities used during the quarter is primarily due to retroactive payments following the ratification of the collective agreement in 2018-19 as well as a decrease in fire management costs compared to 2018-19.

These decreases were partially offset by an increase in expenditures related to the Agency’s infrastructure investment program.

2.2 Budgetary expenditures by standard object (Table 2)

Planned by standard object

Total planned expenditures in the second quarter of 2019-20 are $298.3 million or 16 percent higher compared to the previous year. This variance is primarily due to the ramp up of authorities in the Agency’s infrastructure investment program, an increase in authorities from unused spending authorities from the previous fiscal year, an increase in spending authorities to implement A Nature Legacy for Canada and an increase in spending authorities as a result of last year’s ratification of the collective agreement.

Expended by standard object

As per Table 2 (Budgetary expenditures by standard object), the total expended in the second quarter ending September 30, 2019, is $16.6 million or 4 percent lower compared to the previous year. The overall decrease can be explained by the following:

  • Personnel expenditures have decreased by $32.3 million compared to the same quarter last year. This decrease is primarily due to the retroactive payments following the ratification of the collective agreement in 2018-19.
  • Compared to the same quarter last year, rental expenditures, such as aircraft rentals, decreased by $4.5 million. This decrease is primarily due to a reduction in fire management costs following important wildfires in 2018-19.
  • These decreases were partially offset by an increase of $29.9 million in the acquisition of land, buildings and works expenditures primarily due to the increase in expenditures of the Agency’s infrastructure investments program.

Note: Parks Canada’s complex asset portfolio is comprised of a significant number of heritage assets as well as the rural and remote locations where our projects are delivered, both factors which can increase the uncertainty in project delivery that may lead to unexpected changes to project scope and corresponding cost and schedule.

3. Risks and uncertainties

Parks Canada's objectives and core responsibility are influenced by various internal and external factors. The Agency undertakes a risk assessment every year to support decision making related to priority setting and resource allocation. The risk assessment identifies key risks that have the greatest impact on the Agency's ability to achieve its core responsibility and departmental results. The Agency has identified the following key corporate risks for 2019-20:

  • Environmental forces adaptation and response:

    The magnitude and rapid pace of environmental changes, including climate change, may affect Parks Canada's ability to maintain the integrity of its ecosystems, cultural resources and infrastructure.

  • Reconciliation with Indigenous peoples:

    There is a risk that Parks Canada’s actions may not fulfill obligations to Indigenous peoples and that Canadians may not support or understand Parks Canada’s reconciliation actions.

  • Relationships:

    There is a risk that Parks Canada will not establish the partnerships required to achieve Agency results.

  • Relevance and public support:

    There is a risk that Parks Canada’s programs and services may not meet the expectations of Canadians.

  • Built asset condition and long-term sustainability:

    There is a risk that a sustainable asset portfolio will not be maintained to support the delivery of Parks Canada's mandate.

4. Significant changes in relation to operations, personnel and programs

Ron Hallman was appointed as President & Chief Executive Officer of the Agency on August 28, 2019. This role was filled on an interim basis by Michael Nadler.

Catherine Blanchard was appointed Chief Financial Officer effective October 7, 2019. The role was filled on an interim basis by Ghislaine Lalonde.

Trevor Swerdfager, Senior Vice-President, Operations Directorate, has left the Parks Canada Agency during the month of September 2019. Michael Nadler has been occupying the position on an interim basis since then.

5. Approval by senior officials

Approved by:

Ron Hallman
President & Chief Executive Officer,
Parks Canada,
Gatineau, Canada
November 27, 2019

Catherine Blanchard
Chief Financial Officer,
Parks Canada
Gatineau, Canada
November 25, 2019


Parks Canada Agency
For the quarter ended September 30, 2019
Statement of authorities - Table 1
(Unaudited)

Fiscal year 2019-20
(in thousands of dollars) Total available for use for the year ending March 31, 2020Footnote * Used during the quarter ended September 30, 2019 Year to date used at quarter end
Vote 1 - Program expenditures 1,914,398 328,281 495,388
Vote 5 - Payments to the New parks and historic sites account 13,423 0 0
Statutory - Contributions to employee benefit plans 53,221 13,305 26,610
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 175,210 61,443 97,337
Total budgetary authorities 2,156,252 403,029 619,335
 
Fiscal Year 2018-19
(in thousands of dollars) Total available for use for the year ending March 31, 2019Footnote * Used during the quarter ended September 30, 2018 Year to date used at quarter end
Vote 1 - Program expenditures 1,638,182 346,821 504,806
Vote 5 - Payments to the New parks and historic sites account 9,007 0 0
Statutory - Contributions to employee benefit plans 49,257 11,946 23,891
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 161,590 60,793 94,784
Total budgetary authorities 1,858,036 419,560 623,481
 

Parks Canada Agency
For the quarter ended September 30, 2019
Budgetary expenditures by standard object - Table 2
(Unaudited)

Fiscal year 2019-20
(in thousands of dollars) Planned expenditures for the year ending March 31, 2020Footnote * Expended during the quarter ended September 30, 2019 Year to date used at quarter end
Expenditures:
Personnel 401,067 136,137 249,845
Transportation and communications 53,990 5,845 10,394
Information 18,937 1,712 3,737
Professional and special services 478,309 45,058 64,005
Rentals 39,267 6,711 10,176
Repair and maintenance 73,913 6,089 10,297
Utilities, materials and supplies 113,102 14,899 22,807
Acquisition of land, buildings and works 852,127 160,960 215,239
Acquisition of machinery and equipment 52,410 7,718 10,931
Transfer payments 40,390 4,607 7,079
Public debt charges 0 38 59
Other subsidies and payments 32,740 13,255 14,766
Total budgetary expenditures 2,156,252 403,029 619,335
 
Fiscal year 2018-19
(in thousands of dollars) Planned expenditures for the year ending March 31, 2019Footnote * Expended during the quarter ended September 30, 2018 Year to date used at quarter end
Expenditures:
Personnel 377,853 168,409 273,776
Transportation and communications 37,978 5,526 10,335
Information 14,330 2,177 4,422
Professional and special services 406,395 54,876 75,778
Rentals 40,258 11,226 16,003
Repair and maintenance 53,817 10,386 14,440
Utilities, materials and supplies 85,770 15,479 23,035
Acquisition of land, buildings and works 751,544 131,091 177,027
Acquisition of machinery and equipment 42,709 4,741 7,907
Transfer payments 27,196 4,492 5,832
Public debt charges 0 36 48
Other subsidies and payments 20,186 11,121 14,878
Total budgetary expenditures 1,858,036 419,560 623,481