Annex to the statement of management responsibility including internal control over financial reporting — Fiscal year 2023-24

Table of contents

1. Introduction
2. Parks Canada's system of internal control over financial reporting
   1. 2.1 Internal control management
   2. 2.2 Service arrangements relevant to the financial statements
3. Parks Canada's assessment results during fiscal year 2023-24
   1. 3.1 New or significantly amended key controls
   2. 3.2 Ongoing monitoring program
4. Parks Canada's action plan for the next fiscal year and subsequent years

1. Introduction

This document provides summary information on the measures taken by Parks Canada Agency (PC) to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.

Detailed information on PC’s authority, mandate and programs can be found in the attached Departmental Results Report and Departmental Plan.

2. Parks Canada's system of internal control over financial reporting

2.1 Internal control management

PC has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its overall system of internal control. An internal control framework, approved by the Vice-President Finance, is in place and includes:

• Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities which span from senior managers across to PC employees in their areas of responsibility for control management;
• Parks Canada has a Values and Ethics Code and an Ombud whose mission is to support and foster the co-creation of respectful workplace culture and relationships throughout PC;
• Ongoing communication and training on statutory requirements, policies and procedures for sound financial management and control; and
• Monitoring and regular updates on internal control management, as well as the provision of related assessment results and action plans to the President and Chief Executive Officer (PCEO) and senior management and, as applicable, the Audit Committee (AC).

The AC is an independent advisory committee to the PCEO. It is responsible to provide advice to the PCEO on the adequacy and functioning of PC’s risk management, control and governance frameworks and processes.

2.2 Service arrangements relevant to the financial statements

PC relies on other organizations for processing of certain transactions that are recorded in its financial statements as follows:

Readers of this annex may refer to the annexes of the above-noted departments for a greater understanding of the systems of internal control over financial reporting related to these specific services.

3. Parks Canada's assessment results during fiscal year 2023-24

The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year’s rotational plan.

3.1 New or significantly amended key controls

There were no other new or significantly amended key controls in existing processes which required a reassessment in the current fiscal year.

3.2 Ongoing monitoring program

As part of its rotational ongoing monitoring plan, PC completed its reassessment of the financial controls within the assets and assets under construction process.

PC also conducted a first full assessment of the costing financial management process.

Management action plans addressing the recommendations were developed by the business process owner.

4. Parks Canada's action plan for the next fiscal year and subsequent years

The Parks Canada’s rotational ongoing monitoring plan over the next fiscal years, based on our internal control framework, is shown in the following table. A full risk assessment will be conducted in 2024-2025 and the ongoing monitoring plan presented below will be updated based on the results.