Quarterly financial report for the quarter ended June 30, 2019
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 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 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
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 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 June 30, 2019, Parks Canada’s total authorities available for use for the year ending March 31, 2020, are $292.8 million or 16 percent higher when compared to the same quarter of the previous year (from $1,858.0M to $2,150.8M). The increase in authorities is primarily due to the following factors:
- A net increase in spending authorities related to infrastructure investments -$128.1 million;
- An increase in unused spending authorities in 2018-2019 as compared to 2017-2018 - $135 million;
- Spending authorities received to implement A Nature Legacy for Canada - $14.8 million;
- Additional spending authorities as a result of last year’s ratification of the collective agreement signed in May 2018 -$11.3 million.
Authorities used during the quarter
In the first quarter of 2019-20, total net budgetary expenditures were $216.3 million compared to $203.9 million reported for the same period in 2018-19, resulting in an increase of $12.4 million or 6 percent. The increase in authorities used during the quarter is primarily related to the Agency’s infrastructure investment program combined with an increase in personel expendiutres as a result of revised salary rates of last year’s ratification of the collective agreement.
2.2 Budgetary expenditures by standard object (Table 2)
Planned by standard object
Total planned expenditures in the first quarter of 2019-20 are $292.8 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, 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 first quarter ending June 30, 2019, is $12.4 million or 6 percent higher compared to the previous year. The overall increase can be explained by the following:
- Personnel expenditures have increased by $8.3 million compared to the same quarter last year. This increase is primarily due to revised salary rates as a result of the ratification of the collective agreement.
- Compared to the same quarter last year, Acquisition of land, buildings and works expenditures have increased by $8.3 million. This increase in expenditures is primarily due to the increase in the Agency’s infrastructure investments.
- Transfer payments have increased by $1.1 million compared to the same quarter last year. This increase is primarily due to contributions in support of the Trans Canada Trail.
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.
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
Sylvain Michaud, Chief Financial Officer, left Parks Canada on May 8, 2019. This role has been filled on an interim basis by Ghislaine Lalonde.
5. Approval by senior officials
Acting Chief Executive Officer, Parks Canada
August 26, 2019
Acting Chief Financial Officer, Parks Canada
August 21, 2019
Parks Canada Agency
For the quarter ended June 30, 2019
Statement of authorities - Table 1
|(in thousands of dollars)||Total available for use for the year ending March 31, 2020Footnote *||Used during the quarter ended June 30, 2019||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,908,971||167,107||167,107|
|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||13,305|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||175,210||35,894||35,894|
|Total budgetary authorities||2,150,825||216,306||216,306|
|(in thousands of dollars)||Total available for use for the year ending March 31, 2019Footnote *||Used during the quarter ended June 30, 2018||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,638,182||157,985||157,985|
|Vote 5 - Payments to the New parks and historic sites account||9,007||0||0|
|Statutory - Contributions to employee benefit plans||49,257||11,945||11,945|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||161,590||33,991||33,991|
|Total budgetary authorities||1,858,036||203,921||203,921|
Parks Canada Agency
For the quarter ended June 30, 2019
Budgetary expenditures by standard object - Table 2
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2020Footnote *||Expended during the quarter ended June 30, 2019||Year to date used at quarter end|
|Transportation and communications||53,990||4,549||4,549|
|Professional and special services||478,309||18,947||18,947|
|Repair and maintenance||73,913||4,208||4,208|
|Utilities, materials and supplies||113,102||7,908||7,908|
|Acquisition of land, buildings and works||852,127||54,279||54,279|
|Acquisition of machinery and equipment||52,410||3,213||3,213|
|Public debt charges||0||21||21|
|Other subsidies and payments||32,740||1,511||1,511|
|Total budgetary expenditures||2,150,825||216,306||216,306|
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2019Footnote *||Expended during the quarter ended June 30, 2018||Year to date used at quarter end|
|Transportation and communications||37,978||4,809||4,809|
|Professional and special services||406,395||20,902||20,902|
|Repair and maintenance||53,817||4,054||4,054|
|Utilities, materials and supplies||85,770||7,556||7,556|
|Acquisition of land, buildings and works||751,544||45,936||45,936|
|Acquisition of machinery and equipment||42,709||3,166||3,166|
|Public debt charges||0||12||12|
|Other subsidies and payments||20,186||3,757||3,757|
|Total budgetary expenditures||1,858,036||203,921||203,921|
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