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 A and B for the 2021-22 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

This section:

  • highlights the financial results for the quarter and fiscal year-to-date ended December 31, 2021
  • provides explanations of significant variances compared with the same period last year
Note: The Authorities for 2020-21 have been adjusted to include $38.7 million in the updated amount of $1,546.8 million which pertains to unused revenue replacement authorities that was previously excluded from this report.
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

Authorities available for use

This quarterly report reflects the funding available for use from the 2021-22 Main Estimates, the 2021-22 Supplementary Estimates A, the 2021-22 Supplementary Estimates B and the 2020-21 unused spending authorityFootnote 1. The authorities at the same time last year consisted of 2020-21 Main Estimates, the 2020-21 Supplementary Estimates A, the 2020-21 Supplementary Estimates B, and the 2019-20 unused spending authority.

At December 31, 2021, Parks Canada’s total authorities available for use for the year ending March 31, 2022, are $14.8 million or 1% lower when compared to the same quarter of the previous year (from $1,546.8 million to $1,531.9 million). This decrease in authorities is primarily due to the following factors:

  • A net decrease of $142.1 million in spending authorities related to infrastructure investments;
  • An increase of $47.8 million in spending authorities related to the initiative to conserve Canada’s land and freshwater, protect species, advance Indigenous reconciliation and increase access to nature (Budget 2021);
  • An increase of $44.7 million in spending authorities related to the Youth Employment and Skills Strategy (YESS);
  • An increase of $24.1 million due to ratification of collective agreement;
  • An increase of $8.8 million in the unused spending authority from 2020-21 (included in the 2021-22 authorities) as compared to 2019-20.

The 2021-22 total authorities available for use includes an approved up-to amount of $71.7 million to, if necessary, partially cover pandemic related revenue shortfalls over the course of the first six months of 2021-22. Given the flattening of the pandemic curve and loosening of restrictions during this period (pre-Omicron), revenue shortfalls, net of savings generated, were immaterial and this funding will not be needed. Revenue impacts, however, have continued into the last six months and are expected to continue into the next fiscal year.

Authorities used during the quarter

In the third quarter of 2021-22, total net budgetary expenditures were $257.2 million compared to $311.9 million reported for the same period in 2020-21, resulting in a decrease of $54.7 million or 18 percent. The decrease in authorities used during the quarter is primarily related to infrastructure investments. The decrease is partially offset by an increase in personnel expenditures due to revised salary rates as a result of ratification of the collective agreement.

Table 1 provides information on the authorities available for use and used during this quarter.

2.2 Budgetary expenditures by standard object (Table 2)

Planned by standard object

Total planned expenditures, for the year ending March 31, 2022, are $14.8 million or 1 percent lower compared to the previous year. The decreases are mainly observed in Acquisition of land, buildings and works and professional services planned expenditures, mainly due to infrastructure investments.

These decreases are partially offset by increases in Personnel and Transfer payments planned expenditures, largely due to additional funding received for the Youth Employment and Skills Strategy (YESS) and the ratification of collective agreements.

Expended by standard object

As per Table 2 (Budgetary expenditures by standard object), the total expended in the third quarter ending December 31, 2021, is $54.7 million or 18 percent lower compared to the previous year.

The major variances are as follows:

  • a decrease of $65.3 million in Acquisition of land, buildings and works expenditures related to infrastructure investments; and
  • an increase of $8.7 million in Personnel expenditures due to ratification of collective agreement.

3. Risks and uncertainties

The Agency undertakes a corporate risk assessment every year to support programs, priority setting and resource allocation. The risk assessment identifies key corporate risks that have the greatest impact on the Agency's ability to deliver its Core Responsibility and achieve Departmental Results. The Agency has identified the following key corporate risks for 2021-22:

Environmental forces adaptation and response:

Due to the magnitude and rapid pace of environmental changes, including climate change, there is a risk that the integrity of ecosystems, cultural resources and infrastructure cannot be maintained or improved which may lead to Parks Canada being unable to deliver its mandate.

Relationships with Indigenous peoples:

If Parks Canada does not allocate the necessary time, effort and investment to build and maintain relationships with Indigenous peoples, there is a risk that the Agency may not be able to fulfill its obligations and deliver on its programs and services, which may result in damaged reputation, increased litigation and challenges meeting conservation targets.

Built asset condition and long-term sustainability:

Due to aging infrastructure, inadequate level of recapitalization and maintenance, climate change and inflationary impacts, there is a risk that Parks Canada will not be able to maintain a sustainable asset portfolio which may result in compromised public safety, loss of irreplaceable cultural heritage, and damage to the Agency’s reputation.

Competitive position:

If the Agency does not respond to changing socio-economic conditions and other market influences, there is a risk that Parks Canada’s programs and services may not meet the expectations of Canadians which may lead to a decrease in Agency relevance as measured by a decrease in tourism market share and visitation.

Business Innovation:

If the Agency does not modernize its corporate and internal services, there is a risk that Parks Canada may not have the capacity, business processes and tools to effectively and efficiently support service delivery and meet government management accountability expectations.

Workforce, Equity, Accessibility, Inclusion and Diversity, and Well-Being

If the Agency fails to foster an inclusive and barrier-free work environment that reflects Canada’s diverse population, there is a risk that it may no longer be an employer of choice and will lack the perspective needed to serve all Canadians, which may result in impacts on programs and services, and damage the Agency’s reputation.

COVID-19 pandemic:

Parks Canada’s priority, as it manages through the pandemic, is the health and safety of its employees, visitors and all Canadians. Parks Canada continues to follow public health measures (social distancing, restriction on indoor and group activities, travel restrictions) and to monitor efforts and progress regarding vaccinations with a view to being ready, as appropriate, to adjust operations.

The pandemic continues to create uncertainty with respect to the Agency’s financial situation, particularly its ability to generate revenue to pre-Covid 19 levels, which represents 25% of its on-going operational budget. Funding, up to $71.7 million, had been approved to compensate the Agency for revenue shortfalls it may experience for the period of April 1 to September 30, 2021, if necessary. Given the flattening of the pandemic curve and loosening of restrictions during this period (pre-Omicron), revenue shortfalls, net of savings generated, were immaterial and this funding will not be needed. Revenue impacts, however, have continued into the last six months and are expected to continue into next fiscal year.


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

Rima Hamoui, Vice President, Strategic Policy and Planning, has departed the Parks Canada Agency in November 2021. Jewel Cunningham has been occupying the position on an interim basis until an indeterminate successor is identified.

Starting this fiscal year, the Agency transitioned from a multi-year appropriation cycle to a single year and is preparing to transition from one parliamentary vote (or envelop) to two votes (operating and capital) starting next fiscal year, April 1, 2022. Changes to the internal financial management regime are underway to ensure effective financial management under these new requirements.


5. Approval by senior officials

Approved by:

Ron Hallman
President & Chief Executive Officer,
Parks Canada
Gatineau, Canada
February 2022

Catherine Blanchard
Vice-President, Finance,
Parks Canada
Gatineau, Canada
February 2022


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

Fiscal year 2021-22
For the quarter ended December 31
Statement of Authorities - Table 1
(Unaudited)
Fiscal Year 2021-22 Fiscal Year 2020-21
(in thousands of dollars) Total available for use for the year ending March 31, 2022 Footnote 2 Used during the quarter ended December 31, 2021 Year to date used at quarter-end Total available for use for the year ending March 31, 2021 Footnote 2,Footnote 3 Used during the quarter ended December 31, 2020 Year to date used at quarter-end
Vote 1 - Program expenditures 1,272,021 206,454 581,068 1,312,612 273,752 766,184
Vote 5 - Payments to the New Parks and Historic Sites Account 50,078 0 0 9,992 0 0
Statutory - Contributions to employee benefit plans 59,830 13,709 41,127 54,153 12,222 36,666
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act 150,000 37,015 128,332 169,993 25,907 68,547
Total budgetary authorities 1,531,929 257,179 750,528 1,546,750 311,881 871,397
 

Parks Canada Agency
For the quarter ended December 31, 2021
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)

Fiscal year 2021-22
For the quarter ended December 31, 2021
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)
Fiscal Year 2021-22 Fiscal Year 2020-21
(in thousands of dollars) Planned expenditures for the year ending March 31, 2022 Footnote 2 Expended during the quarter ended December 31, 2021 Year to date used at quarter-end Planned expenditures for the year ending March 31, 2021 Footnote 2,Footnote 3 Expended during the quarter ended December 31, 2020 Year to date used at quarter-end
Expenditures:
Personnel 460,524 114,071 391,231 404,971 105,362 346,222
Transportation and communications 54,801 2,436 6,934 38,113 2,791 5,372
Information 25,052 967 2,923 20,818 871 2,277
Professional and special services 242,054 33,130 77,208 278,073 35,808 95,600
Rentals 55,862 4,844 17,527 52,942 4,243 12,638
Repair and maintenance 65,886 5,510 13,340 72,683 7,926 18,947
Utilities, materials and supplies 103,300 11,446 32,583 118,502 10,786 27,359
Acquisition of land, buildings and works 385,008 65,851 151,918 440,460 131,101 326,159
Acquisition of machinery and equipment 38,235 8,190 17,764 50,506 5,084 12,015
Transfer payments 73,167 10,048 25,709 39,453 6,574 11,410
Public debt charges 0 30 64 0 23 72
Other subsidies and payments 28,040 656 13,327 30,229 1,312 13,326
Total budgetary expenditures 1,531,929 257,179 750,528 1,546,750 311,881 871,397