1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This 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 quarterly 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 and Supplementary Estimates for the 2018-19 fiscal year. This quarterly 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 moneys 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 that are part of the department performance 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

Budgetary Authorities and Expenditure - description follow 

The above chart outlines the total authorities available within the Agency as of December 31 of each year, the expenditures during the third 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 2018-19 Main Estimates, authorities for Budget 2018 measures, the 2018-19 Supplementary Estimates A and the 2017-18 unused spending authorityFootnote 1. The authorities at the same time last year consisted of 2017-18 Main Estimates, the 2016-17 unused spending authority, the 2017-18 Supplementary Estimates A and the 2017-18 Supplementary Estimates B.

As per Table 1 (Statement of Authorities), at December 31, 2018, Parks Canada’s total authorities available for use for the year ending March 31, 2019 are $295.4 million or 18 percent higher when compared to the same quarter of the previous year (from $1,630.2M to $1,925.6M). The increase in authorities is primarily due to the following factors:

  • A net increase in authorities related to infrastructure investments - $162.2 million;
  • An increase in unused spending authorities in 2017-18 as compared to 2016-17 - $89.5 million;
  • Additional authorities received to implement A Nature Legacy for Canada - $57.0 million; and
  • Authorities for compensation adjustments related to the most recent collective agreement - $21.9 million.

These increases are offset primarily by a $20.0 million decrease in authorities on a comparative basis due to funding received in 2017-18 for a one time settlement of payments in lieu of taxes related to the Halifax Citadel National Historic Site.

Authorities used during the quarter

In the third quarter of 2018-19, total net budgetary expenditures were $375.3 million compared to $338.4 million reported for the same period in 2017-18, resulting in an increase of approximately $36.9 million or 11 percent. The increase in authorities used is primarily related to the increase in funding in the Agency’s infrastructure investment program as well as the increase in salary rates negotiated in the Agency’s new collective agreement.

2.2 Budgetary Expenditures by Standard Object (Table 2)

Planned by Standard Object

Total planned expenditures in the third quarter of 2018-19 are $295.4 million or 18 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, as well as an increase in authorities from unused spending authorities from the previous fiscal year.     

Expended by Standard Object

As per Table 2 (Budgetary Expenditures by Standard Object), the total expended in the third quarter ending December 31, 2018, is approximately $36.9 million or 11 percent higher compared to the previous year. The overall increase can be explained by the following:

Compared to the same quarter last year, Acquisition of land, buildings and works expenditures increased by $16.2 million, Professional and special services expenditures increased by $8.1 million and Repair and maintenance expenditures increased by $6.6 million. These increases in expenditures are consistent with the increase in funding in the Agency’s infrastructure investment program.

Personnel expenditures have increased by $12.8 million compared to the same quarter last year. This increase is primarily due to increased salary rates negotiated in the Agency’s new collective agreement.

Meanwhile, Rental expenditures decreased by $7.9 million on a comparative basis, primarily due to an increase in expenditures in the fire management program in 2017-18 as a result of a series of record-breaking wildfires in British Columbia and Alberta.

All other expenditures are consistent with prior year spending trends.

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, as well as planned mitigation strategies. The Agency has identified the following key corporate risks for 2018-19:

  • Remaining relevant to Canadians, particularly in some of Canada’s largest cities;
  • Establish, develop and maintain effective relationships with external parties to achieve common goals and objectives;
  • Environmental forces adaptation and response;
  • Built asset condition and long-term sustainability; and
  • Reconciliation with Indigenous peoples.

4. Significant Changes in Relation to Operations, Personnel and Programs

The following significant changes occurred to operations, personnel and programs over the third quarter of 2018-19:

  • Daniel Watson, Chief Executive Officer, left Parks Canada on October 9, 2018. This role has since been filled on an interim basis by Michael Nadler.

5. Approval by Senior Officials

Approved by:

Michael Nadler
Acting Chief Executive Officer, Parks Canada
Gatineau, Canada
February 28, 2019

Sylvain Michaud
Chief Financial Officer, Parks Canada
Gatineau, Canada
February 28, 2019

Parks Canada Agency
For the quarter ended December 31, 2018
Statement of Authorities - Table 1
(Unaudited)

Fiscal Year 2018-19
(in thousands of dollars) Total available for use for the year ending March 31, 2019Footnote * Used during the quarter ended December 31, 2018 Year to date used at quarter end
Vote 1 - Program expenditures 1,705,573 332,187 836,993
Vote 5 - Payments to the New Parks and Historic Sites Account 9,007 0 0
Statutory - Contributions to employee benefit plans 49,390 11,946 35,837
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 161,590 31,177 125,691
Total budgetary authorities 1,925,560 375,310 998,791
 
Fiscal Year 2017-18
(in thousands of dollars) Total available for use for the year ending March 31, 2018Footnote * Used during the quarter ended December 31, 2017 Year to date used at quarter end
Vote 1 - Program expenditures 1,455,814 304,485 808,214
Vote 5 - Payments to the New Parks and Historic Sites Account 25,546 0 0
Statutory - Contributions to employee benefit plans 49,599 12,328 36,984
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 99,232 21,564 67,446
Total budgetary authorities 1,630,191 338,377 912,644
 

Parks Canada Agency
For the quarter ended December 31, 2018
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)

Fiscal Year 2018-19
(in thousands of dollars) Planned expenditures for the year ending March 31, 2019Footnote * Expended during the quarter ended December 31, 2018 Year to date used at quarter end
Expenditures:
Personnel 400,532 104,454 378,230
Transportation and communications 40,189 5,901 16,236
Information 14,461 2,410 6,832
Professional and special services 408,744 66,985 142,763
Rentals 41,190 6,105 22,108
Repair and maintenance 53,817 11,618 26,058
Utilities, materials and supplies 86,441 14,603 37,638
Acquisition of land, buildings and works 772,543 152,135 329,162
Acquisition of machinery and equipment 42,753 5,244 13,151
Transfer payments 44,703 6,170 12,002
Public debt charges 0 36 84
Other subsidies and payments 20,187 (351) 14,527
Total budgetary expenditures 1,925,560 375,310 998,791
 
Fiscal Year 2017-18
(in thousands of dollars) Planned expenditures for the year ending March 31, 2018Footnote * Expended during the quarter ended December 31, 2017 Year to date used at quarter end
Expenditures:
Personnel 379,186 91,625 319,212
Transportation and communications 38,050 6,003 17,182
Information 19,417 1,593 5,009
Professional and special services 336,646 58,895 144,275
Rentals 34,075 13,990 29,289
Repair and maintenance 42,698 4,983 22,024
Utilities, materials and supplies 90,452 14,306 36,079
Acquisition of land, buildings and works 540,054 135,912 301,626
Acquisition of machinery and equipment 61,407 5,394 15,148
Transfer payments 23,594 3,899 5,752
Public debt charges 0 0 0
Other subsidies and payments 64,612 1,777 17,048
Total budgetary expenditures 1,630,191 338,377 912,644