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 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 2019-20 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 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 that 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 December 31 of each year as well as the expenditures of the third quarter. 
The above chart outlines the total authorities available within the Agency as of December 31 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, the 2019-20 Supplementary Estimates A, 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, the 2018-19 Supplementary Estimates A, and the 2017-18 unused spending authority.

As per Table 1 (Statement of authorities), at December 31, 2019, Parks Canada’s total authorities available for use for the year ending March 31, 2020, are $252.0 million or 13 percent higher when compared to the same quarter of the previous year (from $1,925.6 million to $2,177.6 million). 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 2018-19 - $135 million.

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

Authorities used during the quarter

In the third quarter of 2019-20, total net budgetary expenditures were $404.3 million compared to $375.3 million reported for the same period in 2018-19, resulting in an increase of $29.0 million or 8 percent.

The increase in authorities used during the quarter is primarily due to an increase in expenditures related to the Agency’s infrastructure investment program, as well as grant payments related to the establishment and development of Thaidene Nëné National Park Reserve and Tallurutiup Imanga National Marine Conservation Area.

2.2 Budgetary expenditures by standard object (Table 2)

Planned by standard object

Total planned expenditures in the third quarter of 2019-20 are $252.0 million or 13 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, and 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, 2019, is $29.0 million or 8 percent higher compared to the previous year. The overall increase can be explained by the following:

  • Compared to the same quarter of last year, expenditures for the acquisition of land, buildings and works have increased by $21.1 million primarily related to the Agency’s infrastructure investments program.
  • In addition, transfer payments have increased by $19.9 million compared to the same quarter of last year. This is primarily related to grant payments for the establishment and development of Thaidene Nëné National Park Reserve and Tallurutiup Imanga National Marine Conservation Area.
  • These increases were partially offset by a decrease of $8.7 million in professional and special services expenditures primarily related to the Agency’s infrastructure investments program.

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

Jaclyn Staniforth was appointed Chief Audit and Evaluation Officer effective October 15, 2019. The role was filled on an interim basis by René Lajzerowicz.

Line Lamothe was appointed Vice-President, Human Resources and Employee Wellness, effective November 4, 2019. The role was filled on an interim basis by Shirley Squires.

Andrew Campbell was appointed Senior Vice-President, Operations, effective December 16, 2019. The role was filled on an interim basis by Michael Nadler.

5. Approval by senior officials

Approved by:

Ron Hallman
President & Chief Executive Officer,
Parks Canada,
Gatineau, Canada
February 19, 2020

Catherine Blanchard
Vice-President, Finance,
Parks Canada
Gatineau, Canada
February 14, 2020


Parks Canada Agency
For the quarter ended December 31, 2019
Statement of authorities - Table 1
(Unaudited)

(in thousands of dollars) Fiscal Year 2019-20
Total available for use for the year ending March 31, 2020Footnote * Used during the quarter ended December 31, 2019 Year to date used at quarter end
Vote 1 - Program expenditures 1,935,067 356,043 851,431
Vote 5 - Payments to the New Parks and Historic Sites Account 13,423 0 0
Statutory - Contributions to employee benefit plans 53,927 13,305 39,915
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 175,210 34,976 132,313
Total budgetary authorities 2,177,627 404,324 1,023,659
 
(in thousands of dollars) Fiscal Year 2018-19
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 31,177 125 961
Total budgetary authorities 1,925,560 375,310 998,791
 

Parks Canada Agency
For the quarter ended December 31, 2019
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)

(in thousands of dollars) Fiscal Year 2019-20
Planned expenditures for the year ending March 31, 2020Footnote * Expended during the quarter ended December 31, 2019 Year to date used at quarter end
Expenditures:
Personnel 407,834 105,408 355,253
Transportation and communications 54,421 6,496 16,890
Information 18,937 2,626 6,363
Professional and special services 478,917 58,286 122,291
Rentals 39,267 5,228 15,404
Repair and maintenance 74,104 6,009 16,306
Utilities, materials and supplies 113,628 14,078 36,885
Acquisition of land, buildings and works 855,299 173,229 388,468
Acquisition of machinery and equipment 53,085 7,116 18,047
Transfer payments 49,395 26,037 33,116
Public debt charges 0 27 86
Other subsidies and payments 32,740 (216) 14,550
Total budgetary expenditures 2,177,627 404,324 1,023,659
 
(in thousands of dollars) Fiscal Year 2018-19
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